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Let $X_1, ..., X_n$ be independent uniform $[0,1]$ random variables. Find $E[\max(X_1, ..., X_n)]$.
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Blue's interest expense using the straight-line method of amortization of bond premium or discount is? a. $388.80 b. $384.62 c. $386.16 d. $387.37 e. None of the above
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Which of the following is not a Standard found in Section 9: Assessment of the APA Ethics Code? A. Informed Consent in Assessments B. Providing Assessments to Those Served by Others C. Interpreting Assessments Results D. Obsolete Tests and Outdated Test Results
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Carver Enterprises makes audio compact discs. It currently has three full-time employees who earn $1,750 per month and two part-time employees who earn $1,200 per month. If Carver makes 10,000 discs this month, the average labor cost is: a. $490 per disc b. $389 per disc c. $350 per disc d. $271 per disc
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Both of the following statements are true except: {eq}\displaystyle a. a term of years cannot be terminated except by operation of law or by the consent of all the holders. b. term of years or for years can be terminated if the parties have actually performed their duty under the agreement. c. executory is an agreem...
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Why would an organization choose a transnational structure over a multidomestic one? A. They want to maintain local responsiveness. B. They do not want to maintain local responsiveness. C. They have standardized products. D. They want both a stable source of core competence and local responsiveness. E. They have d...
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The capital structure of Vinyard Co. is as follows: Bonds, 5% $1,250,000 Preferred 8% stock, $50 par value $1,250,000 Common stock, $5 par value $6,250,000 The total market value of the stock is $8 million. The cost of capital for the bond is 6% and for the preferred stock is 10.5%. What is the weighted average c...
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Determine the interval on which the function {eq}f(x) = x\sqrt{x^2 + 9} {/eq}, defined on the interval {eq}-5 \leq x \leq 7{/eq}, is concave down.
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When Jane buys a share of Microsoft stock for $500 and a year later buys another share for $400 and sells both shares for $550 each, her realized gain on these two transactions is: a) $150 b) $50 c) $300 d) $250
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The classical model predicts that a decrease in taxes will result in: A) An increase in investment, with no change in the interest rate or price level. B) An increase in income, a decrease in the interest rate, and a decrease in the price level. C) An increase in income, a decrease in the interest rate, and an incre...
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The Timberlake-Jackson Wardrobe Co. has 10.3 percent coupon bonds on the market with eight years left to maturity. The bonds make annual payments. Required: If the bond currently sells for $1,123.35, what is its YTM? a. 8 percent b. 9 percent c. 10 percent d. 11 percent e. 12 percent
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Which of the following is not one of the three principal categories of variance for overhead? A. Variable overhead spending variance. B. Fixed overhead budget variance. C. Variable overhead efficiency variance. D. Fixed overhead volume variance.
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Gruden Company produces golf discs which it normally sells to retailers for $5.45 each. The cost of manufacturing 24,400 golf discs is: Materials $12,784 Labor 35,432 Variable overhead 25,088 Fixed overhead 48,192 Total $111,504 Gruden also incurs 5% sales commission ($0.27) on each disc sold. McGee Corporation ...
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Isler Industries Inc. expects next year's earnings to be $5.20 per share. The company expects to maintain 70 percent of its earnings for the next four years, after which time the company plans to pay a 50 percent stock dividend. A dividend reinvestment plan is also planned. The cost of capital for Isler Industries Inc....
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Ranera Distributors reported net operating income of $320,000, sales of $10,000,000, and average operating assets of $8,000,000. Ranera's return on investment is closest to: a. 32% b. 8% c. 40% d. 25% e. 20%
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Albertville has a direct labor standard of {eq}2 {/eq} hours per unit of output. Each employee has a standard wage rate of {eq}\$22.50 {/eq} per hour. During July, Albertville paid {eq}\$189,500 {/eq} to employees for 8,890 hours worked. {eq}4,700 {/eq} units were produced during July. What is the direct labor rate...
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JPS paid dividends of $1,700,000, increased its stock by issuing $5,000,000 of common stock, issued $7,000,000 of additional bonds, and paid interest of $2,000,000. Compute the cash flows from financing activities.
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A continuous varying annuity is payable for 20 years, starting at time t = 2. The rate of payment at time t is t^3 + 1 per annum, and the force of interest at time t is \delta_t = \frac {1}{t+1}. Find the present value of the annuity at t = 0.
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In a process cost accounting system, manufacturing overhead is applied to production on the basis of: A) Departmental data. B) Estimated rates computed at the beginning of the period. C) Standard rates for direct materials. D) Standard rates for direct labor.
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The maximum rate of growth for a firm with a constant dividend payout ratio, sales of $9,500, costs of goods sold of $7,615, depreciation of $380, earnings before interest and taxes (EBIT) of $1,505, interest paid of $45, taxes of $496, and net income of $964 is _____ if the firm does not want to incur any additional e...
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The marginal cost for a company to produce q items is given by {eq}\displaystyle MC(q)= 0.003q^2-0.8q + 761 {/eq}. The company's fixed costs are $9700. Find the company's costs to produce 400 items.
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Given a binomial variable x with n=100 and p=0.5, compute P(x=40). Consider using the normal approximation with the correction for continuity.
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Xelaer Corporation manufactures electronic keyboards for personal computers. The following data have been gathered: The practice model price is $250 and variable expenses are $220. The deluxe model price is $550 and variable expenses are $300. The professional model price is $1,500 and the variable expense per unit ...
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Let $A=\{a,b,c,d,e,f\}$ and $R$ be the relation on $A$ where $R=\{(a,a),(a,b),(b,b),(b,c),(c,c),(d,d),(d,e),(e,e),(f,f)\}$. Which of the following is $R^{-1}\circ R$? A. $R\cup\{(b,a),(c,b),(e,d),(f,f)\}$ B. $R\cup\{(b,a),(c,b),(d,e),(f,f)\}$ C. $R\cup\{(a,b),(b,c),(e,d),(f,f)\}$ D. $R\cup\{(a,b),(b,c),(d,e),(f,f)\...
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Blue Moon has an average collection period of 30 days. The current practice is to factor all receivables immediately at a discount rate of 1.2 percent. Assume that default is extremely unlikely. What is the effective cost of borrowing? a. 12.12 percent b. 12.35 percent c. 12.28 percent d. 12.41 percent e. 12.30 p...
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Sashay Company uses the FIFO method when computing equivalent units of production for a process cost accounting system. Assembly Department started the month with 200 units in its beginning Work in Process Inventory and 2,700 units in units transferred in from the prior department during April. The ending Work in Proce...
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Land's End is considering a project which will require an initial after-tax cash outlay of $100,000 and after-tax operating cash inflows of $11,000 a year for 12 years. The firm uses the 5% discount rate and the MACRS method of depreciation. If the project's final cash flow includes a $5,000 after-tax salvage value, wh...
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A firm has $2,000 in net working capital at year end and gross fixed assets of $25,000. It also has $1,500 in inventory and current liabilities of $1,700. How much is the firm's total long-term debt?
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If the capital account is {eq}\$100 {/eq} and the current account is {eq}-\$100 {/eq}, the official settlements account will be: A. {eq}-\$100 {/eq}. B. {eq}+ \$100 {/eq}. C. {eq}0 {/eq}. D. insufficient information to answer the question.
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Find the flux of F across S, where {eq}F (x,y,z) = xi + yj + zk{/eq}, and S is the sphere of radius 3 centered at the origin. (Use the Divergence Theorem.)
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Starling company had net income of 138,000 during the year. Depreciation expense is 46,000, and the company reported a gain on the disposal of investments of 13,000. Accounts receivable increased 23,000, and accounts payable decreased by 7,000. What is the net cash provided by operating activities?
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If the external angle at vertex $A$ is $60^\circ$, what is the measure of the angle formed by connecting the incenters of $\triangle AEF$ and $\triangle ABC$?
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A balance of trade surplus can be the result of: A. a loose monetary policy. B. foreigners having no taste for this country's products. C. an appreciation of the country's currency. D. low levels of income relative to other nations. E. high domestic prices.
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I have two production functions, $f(k,\ell) = k^{1/3} \ell^{1/2}$ and $f(k,\ell) = \sqrt{k\ell}$. The first-order conditions for the firm's problem of maximizing output subject to a cost constraint are as follows: For the first production function, the FOCs are $0.33 \frac{\ell}{k} = \frac{v}{w}$ and $0.5 \frac{k}{\ell...
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Your firm needs to buy a machine that costs {eq}\$150,000 {/eq} and the machine falls into the MACRS 5 year category. The machine will be sold at the end of year {eq}5 {/eq} for its book value. Your firm's marginal tax rate is {eq}38 \% {/eq}. The machine is part of the firm's operating expenses. What is the cash fl...
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Eleanor Corporation has common stock outstanding with a market value of $260 million. The beta of the stock is 1.3. The market value of the firm's debt is $80 million. The cost of equity is 15% and the cost of debt is 7%. The risk-free rate is 6% and the expected market risk premium is 8%. What is the Weighted Average...
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Calculate the amount (volume) of 6.25% (wt./vol.) NaOCl solution (commercial bleach) required to oxidize 150 mg of 9-fluorenol to 9-fluorenone.
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The data for a particle physics experiment have a constant mean rate of occurrence, {eq}\lambda{/eq} = 4.2 per minute. What is the probability of: a) Experiencing {eq}3{/eq} or fewer occurrences? b) Experiencing more than {eq}3{/eq} occurrences? c) Experiencing at least one occurrence?
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Assume a monopolist faces a demand schedule given in the following table, and it has total fixed costs of $50 and has a constant marginal cost of $25. Price ($) Quantity Demanded Total Revenue Marginal Revenue 85 1 $85 $85 80 2 160 75 ...
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An attorney can spend significant time and money to prepare for a trial. The cost of preparing for a trial is \$7,500 per day. If the probability of the case going to trial is 0.7, how many days should the attorney expect to spend preparing for the trial?
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There are 6,000 units in beginning inventory that were 80% complete as to conversion costs. An additional 20,000 units were started into production. At the end of the period, there were 4,000 units in ending inventory that were 50% complete. What is the number of equivalent units for the period using the weighted avera...
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Bill's Boards has net sales of $15,700, costs of goods sold of $10,000, and depreciation of $100. The firm also has an increase in net working capital of $200 and no interest payments. What is the value of the firm's free cash flow?
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Using the terms leaching and carry over, describe the desired fate of the agrochemical in the following areas: Soil Plant Environment
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A stock is correctly priced if the required return on the stock is equal to the historical return. a. True. b. False
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Your company, Beta Corporation, is considering a new project. The project will require an initial cash outlay of $4,000,000 and will generate annual cash inflows of $5,500,000. The project will have no residual value. The company uses the straight-line depreciation method for all projects. Assuming a discount rate of 1...
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The comparative financial statements of Marshall Inc. are given in the following tables. The market price of Marshall's common stock was $80 per share at December 31, 20Y2. Marshall Inc.'s Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 R...
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Given the demand function q = 400 - 20p, use the elasticity formula to calculate elasticity of demand when p = 2.
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Find the maximum and minimum values of the function f(x,y) = x^2 + xy + y^2 on the unit square (including the interior and boundary) 0<=x<=1 and 0<=y<=1.
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Which of the following is not considered an alternative when there are multiple options available? a) Opportunity Cost b) Marginal Rate of Technical Substitution c) Sunk Cost d) Cost of Capital e) Marginal Cost
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If you want to review a project from a benefit-cost perspective, you should use the _____ method of analysis. A. internal rate of return B. profitability index C. discounted payback D. payback E. net present value
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With regard to the relationship between the C + I + G + X curve and the aggregate demand curve, changes in the price level cause: A. a movement along both the aggregate demand and C + I + G + X curves. B. a shift of both the aggregate demand and C + I + G + X curves. C. the aggregate demand curve to shift while it c...
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The spot rate on the yen is ¥120/$ and the 90-day forward rate on the yen is ¥117.27/$. What must one expect if he or she does a covered interest parity arbitrage and the 90-day risk-free interest rate on the dollar is 2.5% per annum? A) The yield on the covered interest parity arbitrage must be greater than 3.04% per ...
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If a loan has an APR of 6.75 percent, its monthly rate is: a. 6.75 percent. b. 56.25 percent. c. 0.56 percent. d. 0.42 percent.
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The Bottling Department of Rocky Springs Beverage Company had 5,400 ounces in beginning work in process inventory (40% complete). During the period, 33,000 ounces were completed. The ending work in process inventory was 1,600 ounces (80% complete). What are the total equivalent units for conversion costs?
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You need to estimate {eq}s {/eq} (the population standard deviation) in a follow-up study to be within $300 of the true value with a margin of error of 10 percent. How many student IQ scores must you draw to achieve this margin of error? a. 1537 b. 1536 c. 346 d. 345
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Which of the following statements is CORRECT? A) If a stock's dividend growth rate remained constant over time, its required rate of return would have to be equal to that constant growth rate. B) The case for using the CAPM has been "reasonably" well established by scholars and practitioners, especially during the pe...
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Assume the firm's December 31, 2013, balance sheet shows the following: Accounts receivable$55,000,000 Inventory$40,000,000 Current liabilities$20,000,000 Total assets$220,000,000 What is the firm's quick ratio as of December 31, 2013? A) 0.68 B) 1.05 C) 2.75 D) 2.25 E) 1.50
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Moosehead Corporation manufactured 5,000 snowboards (all units were sold) during 2012. The following data relate to 2012: Direct materials $38,500 Direct labor $28,900 Variable overhead $6,600 Fixed overhead $18,000 Moosehead also incurred $15,000 of fixed manufacturing overhead during 2012 and $3,400 of fixe...
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X and Y are contesting in an election. 72% of the population supports X. The rest support Y. An X-supporter votes with probability 0.5, and a Y-supporter votes with probability 0.32. What is the probability of X's win?
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The speed of an electron is known to be between {eq}5.5 \times 10^6\ m/s {/eq} and {eq}6.4 \times 10^6\ m/s {/eq}. Estimate the uncertainty in its position, {eq}\Delta x {/eq}, in nanometers. ( {eq}\Delta x {/eq} = _____ nm).
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A company developed the following data: Actual overhead $243,000 Underapplied overhead $81,000 Actual direct labor hours 122,000 Manufacturing overhead rate based on direct labor hours $2.35 What is the total manufacturing cost? a. $484,000 b. $657,920 c. $399,020 d. $321,000
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Nelson Company is a company with noncallable bonds outstanding that have a par value of $1,000 and a market price of $1,025. If the yield to maturity on these bonds is 6.00%, what is the annual coupon rate?
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Maximizing utility entails allocating dollars according to which of the following criteria? a. Marginal utility of all goods is equal. b. Marginal utility of all goods is maximized. c. Marginal utility of the last dollar spent on each good is equal. d. Average utility of the last dollar spent on each good is equal....
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Habib's Market purchases inventory from the supplier by signing a 12%, 10-year promissory note in the amount of $500,000. (The face value of the note equals the cost of inventory). Calculate the amount of interest expense that will be recorded if the company uses the straight-line method of amortization of any discount...
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Allen Corporation was organized on January 2, 2010. During 2010 the following transactions occurred: Settlement of old partnership liquidation accounts by Allen Corporation $55,000 Recognition of non-cash assets received from old partners 30,000 Payment of liabilities assumed by the new partnership 25,000 Based sol...
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The Moolah Shoe Co. just paid a dividend of $1.60 per share on its stock. The total return on the stock is expected to be 12.9 percent in the coming year. You know the company is planning on a stock split 2-for-1 and you expect no change in the stock price at all on the day of the split. What is the expected dividend...
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From 2001 to 2008, the price of stock A went from $ 8.00 to $ 45.00 . During the same period, the price of stock B went from $ 30.00 to $ 43.00 . Which stock had the higher rate of return during that period, stock A or stock B? Explain your reasoning.
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Economic profit is calculated as: a. total revenue - explicit costs. b. total revenue - opportunity costs. c. total revenue - explicit costs + implicit costs. d. marginal revenue - implicit costs.
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You can buy or sell a share of stock for $50. You must pay a $5 commission for buying or selling the stock. How much should you pay for the stock, considering the transaction cost? A) $55 B) $45 C) $50 D) Cannot determine without additional information.
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Compute the flux of the vector field \(\vec F = 3y \vec{\mathbf {i}} + 5\vec{\mathbf {j}} -3xz \vec{\mathbf {k}}\) through the surface \(S\), which is the surface \(y = x^2 + z^2\), with \(x^2 + z^2 \leq 4\), oriented in the positive \(y\)-direction.
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Assume that you are the CEO of a perfectly competitive firm operating in the manufacture of widgets. The current price of widgets is $15. You have 10 employees, each of whom is paid $20,000 per year. What is the impact on profits if you reduce the price by one dollar? a) profits rise by $1 for each widget you sell b)...
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Mark's travel service earned revenue of $4 million this year. Its expenses were $3 million, including a $350,000 write-off of its home-entertainment business it sold during the year. Its interest expense was $100,000, and it paid $400,000 in dividends to its shareholders. Calculate Mark's taxable income for this year.
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The Roebuck Company uses a periodic inventory system and the average cost retail method to estimate ending inventory and cost of goods sold. The following data is available from the company records, for the month of September 2013: Beginning inventory 1,500 units @ $34.00 = $ 51,000 Purchase 1 2,000 units @ $37.00 =...
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Ralston Corp. buys 5,000 shares of Parker stock for $28 per share as a long-term investment. Two years later, the market value of Parker stock declines to $24 per share. At this time, Ralston decides to sell 2,000 shares for $26 per share and plans to retain the remaining 3,000 shares. Assuming Ralston applies the fai...
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Palmiero Corp. has an investment in a stock portfolio that has a current value of $16,000. The portfolio was originally purchased for $75,000 seven years ago. Assuming a straight-line depreciation to a zero-salvage value over 10 years, what is the annual depreciation amount?
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The following data relates to demand and cost in the market for wheat: Quantity demanded Price ($) Total cost 100 100 1,500 90 95 1,465 80 90 1,420 70 85 1,375 60 80 1,330 50 75 1...
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Ken Co. manufactures and sells one product. The selling price per unit is $90 and the variable cost per unit is $60. Fixed costs per unit are $30. A special order for 5,000 units at $85 per unit has been made. Accepting this order would result in an: a. incremental income of $30,000. b. incremental income of $25,000....
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Lerner is a firm that focuses on the development and sale of accessories for the motor industry. Lerner now plans to create a new product: laptop computer cases. To create this new product, Lerner will have to acquire the knowledge and experience to produce these computer cases. Lerner's management is most concerned wi...
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The demand for pita bread at Sam's Stuffed Knees fast food restaurant is given by Q = 3 - 0.5P If the price of a bag of pita bread is $2.50, the price elasticity of demand is: a. -1.12, and so increasing the price would raise the total revenue. b. -0.75, and so increasing the price would lower the total revenue. c...
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Tess Company experienced an increase in cash flow from the use of the indirect method. How will this affect operating income? a. Operating income will be reduced. b. Operating income will be increased. c. Operating income will remain unchanged. d. Operating income may increase, decrease, or remain unchanged. e. Op...
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Assume that the cost function is {eq}C(x) = 2000 + 40x + 0.05x^2{/eq} and the revenue function is {eq}R(x) = 80x - 0.02x^2{/eq}. Find the break-even points. Round answers to the nearest whole units. a. {eq}(0, 2000){/eq} and {eq}(100, 3000){/eq} b. {eq}(0, 2000){/eq} and {eq}(100, 3050){/eq} c. (0, 2000) and (100, 3...
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Calculate the WACC for each company (i.e. Hillcrest Corp and Hilltop Inc) using the data found below. Hillcrest Corp: Balance Sheets Assets 2012 2011 Cash $105,000 $90,000 Marketable securities 185,000 150,000 Accounts receivable 410,000 360,000 Inventory 480,000 430,000 Total current assets $1,180,000 $930,000 ...
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I purchased a water park for $1,910,000. The annual net cash inflows are $481,000 for 8 years. There is no residual value and I have to use straight line depreciation. Stockholders demand annual return of 10% investments. How do I determine accounting rate of return of ARR?
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At May 1, Kingbird Company had 18,000 units of inventory with a cost of $10 each. During the month, the company made the following purchases of inventory: Date Units Cost May 8 45,000 $12 May 17 36,000 $14 May 26 36,000 $16 During May, 45,000 units were sold. On May 1, the company had a contract with a whol...
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Why is $2x$ a solution to the differential equation $x' = 2\sqrt{x}$, when substituting $2x$ into the equation results in $2 = 2\sqrt{2x}$, which is not true for all values of $x$? Why is $2x$ included as a solution in the given solution set?
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How many units must a company sell to generate operating income of $25,000, given fixed costs of $35,000 and a contribution margin ratio of 20%, and assume each unit sells for $12?
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Mark (single) is the CEO of a publically traded corporation. He acquired $350,000 of Section 1231 (ordinary business) property for $250,000 two years ago. On June 16, he exchanged it for $250,000 of Section 1231 (ordinary business) property and cash. What is the amount and character of Mark's recognized gain or loss? ...
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Consider two beakers. The first beaker contains 500.0 mL of 1.0 M HCl(aq). The second beaker contains 500.0 mL of 1.0 M HF(aq). If you neutralize each solution with 1.0 M NaOH, what can you say about the required volumes of NaOH for each neutralization reaction?
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If a company provides its employees with a cell phone, find the probability that the mean lifetime of these phones will be greater than 24.2 months. Assume cell phone life is a normally distributed variable, the average is 24.3 months, and the standard deviation is 2.6 months.
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A corporation has established an internal rates of return (ROR) commission to evaluate capital projects. Two ROR estimates, 14% and 15%, are used to accept and reject capital budgeting proposals, respectively. An engineer has gathered the following data on a proposed water treatment plant: Rate of return on investment ...
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A firm has 6 million shares outstanding. The stock is currently selling for $23 per share. What is the market value of this firm?
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Huntex Corp. has a net profit margin of 10.3 percent and total asset turnover of 1.11. What is its ROE if the equity multiplier is .63? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) ROE _____%
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You have the opportunity to buy an investment that pays 5,000 in Year 1, 10,000 in Year 2, 20,000 in Year 3, and 25,000 in Year 4. You can buy this investment for 42,000. If you buy this investment, what is your expected return?
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Use a double integral to find the volume of a solid underneath the surface z = xy with the base bounded by y = x - 1 and x = (y^2)/2 - 3. Choose the order of integration wisely to make your work easier.
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A +3.0 mC charge is at the origin and -1.5 mC is at x = 6.0 cm. At what point, or points, on the x-axis is the electric field zero if we ignore points at infinity? Select one: A. (0.40, 0.0) m B. (0.80, 0.0) m C. (4.0, 0.0) m D. (5.1, 0.0) m
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Consider two firms, Alpha Corp and Beta Corp, in the same business. Alpha has current assets of $500 million, current liabilities of $200 million, a total of $1 billion to be paid out over the next year on a variety of accounts, and revenues of $2.6 billion. Beta has current assets of $2 billion, current liabilities of...
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What is the present value of a 10-year annuity of $3,000 per year with the first payment occurring at the end of year 3? Assume an interest rate of 8%.
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How much should you be willing to pay to play a game where you start with {eq}\$1 {/eq}, then flip a fair coin. If the coin is heads, you win the money in your pocket and the game ends. If the coin is tails, you must double the amount of money in your pocket and flip again. a. {eq}\$5 {/eq}. b. {eq}\$10 {/eq}. c....
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If the stock price falls by 2 percent when the market's overall performance increases by 4 percent, then this stock a. has a negative beta coefficient. b. has a positive beta coefficient. c. has a beta coefficient of zero. d. has a beta coefficient of 1.0.
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Uptown Interior Designs' cost of debt is 7.5%, and its tax rate is 35%. A similar firm with no debt has a cost of equity of 10.5%. What is the pre-tax cost of debt for Uptown Interior Designs? A. 7.90% B. 6.90% C. 8.80% D. 11.90% E. 5.90%
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