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A brand new company has been developing specialty shock absorbers and is now ready to market the product. The direct materials cost is $100 per unit. The direct manufacturing labor and variable manufacturing overhead cost is estimated to be $200 per unit. Fixed manufacturing overhead cost is $300,000 per year. The fixe...
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A machine costs $38,900; it will be depreciated straight-line to a zero salvage value over its 7-year life. 1,100 units will be produced annually with each unit costing $31.40 to produce. Each unit can be sold for $50.20. Required return is 10 percent. If the tax rate is 30 percent, what is the total cash flow from th...
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Given that Stock Y has a beta of 0.90 and an expected return of 10.00 percent, and Stock Z has a beta of 0.60 and an expected return of 8.00 percent, what would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?
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Why do I get $|x+y|=|y-x|$ by considering $\forall x,y\in\mathbb{R}:|x+y|=|\underbrace{y}_{-(-y)}+\underbrace{x}_{-(-x)}|=|x-y|$?
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In order for us to see an object, light must: (a) increase. (b) decrease. (c) remain constant. (d) increase and decrease.
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The last time you had a regular checkup with your physician, she suggested that you have your cholesterol tested. At that time, you had a total cholesterol level of 220 mg/dL. You were encouraged to reduce your cholesterol to a safe level by making changes in your lifestyle. Now that you have graduated, your income has...
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The following information is related to Field Company's fiscal year 2013. Income Statement: Net income$300,000 Depreciation expense30,000 Loss on sale of plant assets10,000 Interest expense500 Balance sheet - 12/31/13: Accounts payable increase4,000 Accounts receivable increase5,000 Plant assets - purchased200...
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How do we find the value of R for which the equation: $$ R\lambda e^{-\lambda x} - \frac{1}{2} \left(R(R+1)\lambda ^2e^{-\lambda x}\left(1-\sum_{n=0}^{R}{\frac{(\lambda x)^n}{n!}}\right) + \left(1-\sum_{n=0}^{R+1}{\frac{(\lambda x)^n}{n!}}\right)\right)=0 $$ has a solution for $x$?
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Assume that there are no internal transfers between divisions. The company's weighted average cost of capital is 10%. Calculate the total cost of two-way transfers to each division. Raw Materials DivisionFurniture Division a) Raw materials transferred in $80,000$60,000 b) Additional processing costs $240,000$160,00...
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Lovers of Chocolate Company estimates that 10,000 pounds of chocolate will be sold during the next month. A review of inventory records reveals that there were 2,000 pounds of chocolate on hand on January 1, and 3,000 pounds in January purchases. The company wants to have 500 pounds of chocolate on hand at the end of t...
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You purchase a bond with an invoice price of $1,080. The bond has a coupon rate of 8.2%, a $1,000 par value, and there are five months to the next coupon date. What is the clean price of the bond if the bond makes semiannual coupon payments?
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What is the main limitation of a firm's cash flow statement? a. It cannot be used to assess the company's profitability. b. It cannot be used to assess the company's liquidity and financial flexibility. c. It cannot be used to assess the company's solvency. d. It does not contain any information about financing activit...
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Paycheck, Inc. has a line of credit with their bank. At the beginning of January, there is no outstanding loan. The cash balance on January 1 is expected to be $9,000. Loans can be borrowed and repaid in any amount. There is a $1,000 minimum balance that must be maintained each month. Sales were $18,000 in December and...
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Use the Divergence Theorem to calculate the flux of F(x, y, z) = (-xy^2)i - (yx^2)j - xzk across the surface with the positive (outward) orientation. S is the sphere x^2 + y^2 + z^2 = a^2.
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If a firm employs a comparative-cost policy in making its international product pricing decisions, A. it makes a profit in all countries. B. it makes a profit only in those countries where its product is relatively less expensive than in other countries. C. the currency of the country in which the product sells best...
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A one-year zero-coupon bond has a face value of $1,000, a yield to maturity of 6%, and a price of $940. The bond has a duration of _ years. A. 5 B. 6 C. 7 D. 0.94
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A firm uses the following data, relating to direct materials costs, to prepare its budget for the next period. Quantity of direct materials units used 4,550 Actual unit price of direct materials $3.20 per lb Units of finished product manufactured 1,620 Standard direct materials per unit of finished product 2 lbs Dire...
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What will be the volume of a sphere of radius $r$ units after it is taken through $k$ turns in a cylindrical tube of radius $1$ unit, where the sphere touches the sides of the tube at all times?
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An investor purchased a ten-year bond with a face value of $10,000 two years ago. The coupon rate is 10% and the discount rate is 5%. The investor now has an opportunity to purchase a second bond with a coupon rate of 15%. The discount rate of similar types of bonds has increased to 10%. He plans on selling the first b...
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Which of the following is not an accrual? a. Debiting interest expense for interest incurred to date b. Debiting depreciation expense for depreciation incurred during the period c. Crediting salaries payable for salaries earned to date d. Debiting interest receivable for interest earned to date
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Under US GAAP, if a company sells a piece of machinery (depreciated) for $500,000 cash and has an accumulated depreciation of $400,000, what will happen to the company's tax liability when the transaction is completed? a. Tax liability will increase by $100,000. b. Tax liability will increase by $500,000. c. Tax lia...
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What is wrong with the following proof that $0$ is a compact subset of $\Bbb R$ with the metric $d(x,y) = \left| \frac{1}{x}-\frac{1}{y} \right|$? The proof claims that the only open set that can cover $0$ is $\{0\}$ itself, and since $\{0\}$ is a finite collection, $0$ is compact.
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Your investor friend asks you about the return he will receive from a 20-year zero-coupon bond that he just purchased for $452.09. The face value of the bond is $1,000. What is the bond's yield to maturity? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
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When the audience does not care about the outcomes, using a combination of _____ can help lessen negative reactions to the feeling that one is dictating outcomes. A) ingratiation and personal appeals B) pressure and exchange C) legitimacy and ingratiation D) exchange and rational persuasion E) inspirational appeal...
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Linke Motors has a beta of 1.20, the T-bill rate is 5.00%, and the T-bond rate is 6.25%. The annual return on the stock market during the past 3 years was 15.00%, but investors expect the annual future stock market return to be 14.25%. Based on the SML, what is the firm's required return? A. 15.60% B. 13.10% C. 16.0...
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Clemente Corporation had a $23,500 balance in the Accounts Receivable account on January 1. The net credit sales for January were $129,000. If the company estimated that 4% of net credit sales would be uncollectible, what would be the balance in Accounts Receivable at the end of the month assuming that there were no re...
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Fowler Corporation experienced the following events during Year 2: 1) Earned $4,000 in cash revenue. 2) Paid $1,800 for rent expense during Year 2. 3) Acquired an additional $3,500 in cash from the issue of common stock. 4) Paid $700 to suppliers for inventory purchased on account during Year 2. 5) Declared and pa...
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When firms have limited investment opportunities and little debt combined with healthy profits that provide them with free cash flow, their management team might: a. give all of the free cash flow to the equity holders. b. re-invest all of the free cash flow in positive NPV projects. c. dispose of some of the firm's eq...
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The cost of underapplied or overapplied overhead is transferred to the Cost of Goods Sold account at the end of the period using a journal entry that includes a: A. Debit to the Cost of Goods Sold account. B. Credit to the Overhead account. C. Debit to the Overhead account. D. Credit to the Cost of Goods Sold accou...
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Evaluate the flux of $\mathbf{F}=\frac{\mathbf{r}}{||\mathbf{r}||^3}$ across $S$, where $S$ is the part of the sphere of radius $4$ centered at the origin in the first octant. Use the positive (outward) orientation.
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Last year, 24,000 units were produced and sold. Selected data concerning costs follows: Variable cost per unit: Fixed cost per year: Direct materials $2.00 - Direct labor $1.50 - Variable factory overhead $2.50 $100,000 Variable selling and ...
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The market demand curve is: A. the horizontal sum of the individual demand curves of all buyers in the market. B. usually more inelastic than the individual demand curve of each consumer. C. more elastic than the demand curve for the particular product. D. none of the above.
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Staley Inc. reported the following data: Net Income $228,800 Depreciation expense 50,200 Loss on disposal of equipment 21,900 Increase in accounts receivable 11,000 Increase in accounts payable 7,400 Prepare the Cash Flows from the Operating Activities section of the statement of cash flows using the indirect method...
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Long Division - For the division: $${\pi} \over 3 = ?$$ My result is $0.(3)$. The textbook result is $1.(6)$. Where is my mistake?
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On February 1, 2010, General Corporation issued 6,000 shares of $5 par value common stock for $180,000. On May 1, 2010, General purchased 500 shares of treasury stock for $9 per share. On August 1, 2010, the corporation sold the treasury shares for $12 per share. Which of the following would be included in the journal ...
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How can I evaluate $$\lim_{\theta \to 0} \frac{\tan(4 \theta^2)-\sin(4\theta^2)}{\sin^3(\theta)}$$?
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Sonic's Service Incorporated is considering a proposal to buy a new piece of equipment for $50,000. It is estimated that this equipment will generate additional annual revenue of $15,000 while it will have an annual operating cost of $3,500 and annual depreciation expense of $5,000. The equipment will have no salvage v...
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A stock currently sells for $75 per share. A one-year call option with a strike price of $60 has an option premium of $15.50. If the risk-free rate is 5% and the market rate is 9%, what is the option premium on a one-year put with a $60 strike price? Assume the stock pays no dividends.
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A firm sells its {eq}\$1.48 {/eq} million receivables to a factor for {eq}\$1.44 {/eq} million. The average collection period is one month. What is the effective annual rate on this arrangement? a. {eq}48.00\% {/eq} b. {eq}46.79\% {/eq} c. {eq}51.21\% {/eq} d. {eq}52.42\% {/eq} e. {eq}50.00\% {/eq}
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A stock just paid a dividend of $1.73, has a required return of 14 percent and a constant dividend growth rate of 5.3 percent. What price should this stock be selling for?
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The real rate of return is based on which of the following? a) inflation and the nominal rate of return, b) the nominal rate of return only, c) the rate of return on capital goods only, d) the return on the value of consumer goods only.
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Show all your work. No credit without work! Do not use the TVM keys or the PV function on the calculator. Use the basic formulas. You are considering two different bonds. Bond X has a 10% annual coupon rate, a face value of $1,000, a maturity date of 15 years, and an 8% yield to maturity. Bond Y has an 8% annual coupon...
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The on-ramp of a highway to a interstate has a slope of 10.25%. Find the angle of elevation of the ramp with the road.
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Set up the triple integral that gives the volume of the solid bounded by the cone z=sqrt(3x^2+3y^2) and the plane z=6
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Ace Corporation expects to earn $800 in after-tax income during the coming year. Its capital budget is restricted to $400. Its equity ratio is 0.60 and its cost of capital is 12 percent. What is the maximum return on investment that the firm can earn if it uses 40 percent debt financing? a) 9.17% b) 11.33% c) 16.00...
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Suppose a geyser has a mean time between eruptions of 100 minutes. Let the interval of time between the eruptions be normally distributed with a standard deviation of 26 minutes. What is the probability that a random sample of 40 time intervals between eruptions has a mean less than 95 minutes?
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A company currently pays a dividend of $2.20 per share. It is estimated that the company's dividend will grow at a rate of 16% per share for the next two years and then 6% per year thereafter. What is the present value of one share if the required return on the stock is 14% per share?
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The mean height of women in a country (ages 20-29) is 64.2 inches. A random sample of 65 women in this age group is selected. What is the probability that the mean height for the sample is greater than 65 inches? Assume the standard deviation is 2.64 inches.
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Betty DeRose, Inc. uses job order costing. Manufacturing overhead is applied to jobs using a PDR of 140% of direct labor cost. Additional information is as follows: 1. Job 101 was the only job in process at February 1 with costs as follows: Direct materials$4,000 Direct labor2,000 Applied overhead2,800 Total$8,800 ...
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Suppose Yolanda, who is a U.S. citizen, works full-time for an American company that has operations in the United States and Brazil. During 2014, Yolanda worked half-time for this firm in Brazil and half-time in the United States. Which of the following is correct? A. Yolanda's 2014 income should be included in both t...
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Savings and Loans finance fixed-rate, long-term, 30-year home mortgages with short-term savings deposits. Is this risky? a. Yes, because an increase in nominal interest rates will push up costs far more than revenues and decrease profits. b. Yes, because a reduction in nominal interest rates will reduce income far mo...
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Evaluate {eq}\int_Cxy\:dx + e^y\:dy +x\:dz{/eq} along the ellipse {eq}\dfrac{x^2}{9} + \dfrac{y^2}{4}= 1{/eq}, oriented clockwise.
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In many cases, personal consumption expenditures account for over 70% of U.S. GDP. To stimulate the economy, the federal government may provide tax incentives for individuals to save and invest. If this is the case, which of the following would most likely be the result? a. {eq}\downarrow {/eq} MPC b. {eq}\uparrow...
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Forsyth Company acquired a 70 percent interest in Traxler Company, its sole supplier of plastic molding blocks, on January 1, 2013. At that date, the book value of Traxler's net assets was equal to the fair value of $700,000. Traxler's reported the following results for 2014: Sales to Forsyth Company$1,050,000 Cost ...
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In a project, an initial outlay of $50,000 results in a single cash flow of $75,000 at the end of year 6. The internal rate of return for the project is __________.
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Petra, Inc., had cash flow to creditors of $110,000, cash flow to shareholders of $280,000, and cash flow to stockholders of $70,000. Net capital spending was $440,000, and the firm reduced its net working capital investment by $60,000. What was Petra's 2012 operating cash flow?
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Sharon Inc. reported a net income of $105,600 for 2014. In addition, during 2014, accounts receivable increased by $6,800, inventories decreased by $4,300, and accounts payable decreased by $11,700. Depreciation expense was $14,200. Prepare the Cash Flows from Operating Activities section of the statement of cash flows...
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NASA is modeling the 1D straight-line motion of a rocket sled which will start at rest and provide a constant acceleration of {eq}a=100\ \frac {m}{s^2} {/eq} for a time of {eq}2\ s {/eq}. They want construct a simple, but accurate, data table with the following equations: {eq}v_{i+1} = v_i + at {/eq} and {eq}x_{i+1}...
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A company's income from continuing operations before taxes was $2,000,000. After taking into consideration the following items, income taxes for the year amounted to $614,400. 1. Depreciation expense was understated by $40,000. 2. A strike by the employees of the company's chief supplier resulted in lost sales of $...
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An electron moves at a speed of 5.86 106 m/s perpendicular to a magnetic field. The magnitude of the force on the electron is 1.08 10-14 N. What is the field's magnitude?
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In the indirect method, when is the increase or decrease in cash calculated from the cash flow statement? a. before the difference between operating cash flow and net income is determined. b. after the difference between operating cash flow and net income is determined. c. just after the cash flow statement is compl...
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Use the following information about Rat Race Home Security, Inc. to answer the questions: Average selling price per unit $329. Variable cost per unit $178 Units sold 375 Fixed costs $9,771 Interest expense 12,556 Based on the dat...
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Consider the following income statement: Sales $663,500 Costs 483,500 Earnings before interest and taxes (EBIT) 180,000 Interest expense 69,000 Taxable income 111,000 Taxes (at 30%) 33,300 Net income $77,700 Dividends$54,390 Addition to retained earnings 23,310 Refer to the following income statement information. Ass...
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Consider a cylindrical surface along which we cut a small piece that is about twice as long as it is wide. What are the dimensions of the corresponding surface element on the portion of the cylindrical surface cut from the central meridian to the equator? (The cylindrical surface approximates the Earth's surface.)
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A very long straight coaxial cable consists of a wire of radius a, and a cylindrical conducting shell of inner radius b. An electric current I = 6.6 A flows down the wire and back up the shell. Find the magnitude of magnetic field at a distance r = 2.2 mm from the axis of the cable. Assume that a < r < b.
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You purchase a bond with an invoice price of $1,035. The bond has a coupon rate of 5.9%, a face value of $1,000, a maturity of 20 years, and is selling at par value. Interest is paid semiannually. What is the capital appreciation yield if the bond sells for $1,000 at the end of six months?
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Sheridan Industries has a capital structure that consists of 20% debt, 70% common stock, and 10% preferred stock. The company expects an 8% return from its debt, a 12% return from its preferred stock, and a 14% return from its common stock. What is the company's weighted average cost of capital? a. 10.10% b. 10.60% ...
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Use the fact that log(1+1/n) = 1/n - 1/2n^2 + 1/3n^3 + o(1/n^3) to calculate E[N] where N = min {n : U_n >= U_{n-1}} and U_n = Z_n/n where Z_n are independent uniform [0,1] random variables.
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Bonds issued by the Coleman Manufacturing Company have a par value of $1,000, which of course is also the amount of principal to be paid at maturity. The bonds are currently selling for $900. They have 10 years remaining to maturity. The annual interest payment is 10 percent ($100). Compute the yield to maturity. a. 1...
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Schultz Industries uses the lower-of-cost-or-market basis for its inventory. The following information is available at December 31. Item Inventory Quantity Cost Per Unit Market Value Per Unit X 40 $7 $10 Y 35 12 14 Z 55 6 8...
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A lamina occupies the region inside the triangle with vertices (0, 0), (2, 0), and (2, 1) and outside the triangle with vertices (0, 0), (0.5, 0), and (1, 0.5). Find the center of mass if the density function is {eq}\rho (x, y) = 2{/eq}
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If the firm pays for its advertising in a lump-sum amount in the month prior to the month in which the advertising affects sales, what is the relevant time period for cost allocation for each of the following departments: Advertising Office Supplies Selling Storeroom
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Which of the following organizations has been responsible for setting U.S. accounting standards? a. Accounting Principles Board. b. Committee on Accounting Procedure. c. Financial Accounting Standards Board. d. All of the above.
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Compute the Riemann sum for {eq}\displaystyle f(x) = \sin x {/eq} over the interval {eq}\displaystyle [0,\pi]{/eq}, assuming a partition into {eq}\displaystyle n {/eq} sub-intervals of equal length, with the sample point {eq}\displaystyle \bar{x}_{i} {/eq} in the middle of the {eq}\displaystyle i^{th} {/eq} interval.
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The following data, relating to direct materials costs for November of the current year, are taken from the records of Ernie Manufacturing Inc., a manufacturer of plastic toys: Quantity of direct materials used 6,200 lbs. Actual unit price of direct materials $2.75 per lb. Units of finished product manufactured 1,450 u...
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Palmiero Company has not yet determined the amount of inventory to report on its balance sheet. Information related to the year 2014 is presented below. Cost of goods sold $150,000 Inventory at 12/31/14 24,000 Purchase returns 15,000 Net income 30,000 Gross margin 80,000 Under FIFO, inventory is to be reported on...
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When 3 million pounds of equipment is purchased for $6 million, the total cost is a _____ cost and the average cost per pound is _____. A) fixed; $2,000 per pound. B) variable; $2,000 per pound. C) fixed; $3,000 per pound. D) variable; $3,000 per pound.
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Mesa Tables Co. uses a four-column bank reconciliation. The bank statement reports May payments of $1,300, including service charges of $25. At the beginning of May, there were $80 of checks outstanding. At the end of May, there were $115 of checks outstanding. Before recording the bank service charge, Mesa Tables must...
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Suppose a monopolistically competitive industry has 500 firms, each with the following demand function over a particular market: p=20-Q with the cost function: c=200+10q Calculate the profit of each firm in the industry in the long-run.
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Matt derives all of his utility from consuming milk shakes. He devotes his entire $20 allowance to milk shakes each week. Suppose the price of milk shakes rise from $2 to $4. Compute Matt's Equivalent Variation (EV) of this price increase.
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Find the average value of the function over the given interval. Round your answer to three decimal places. $$f(x) = \sin x , \; [0, \; \pi]$$
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A resource will never be scarce in a market system if A. its market demand curve is perfectly inelastic. B. its market demand curve is perfectly elastic. C. its market supply curve is perfectly inelastic. D. its market supply curve is perfectly elastic.
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An electron is traveling at a speed of 2.7 x 10^7 m/s . At what speed will the electron's relativistic momentum be double its classical momentum?
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Let's call a number elegant if it is of the form p+q where p is a prime number, q is a positive integer and the number 3p+5q is also a prime number. Determine the largest beautiful number (equal to the sum of two prime numbers).
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The common stock of Flavorful Teas currently sells for $25.20. The expected return on the stock is 12%, and the expected return on the market is 13.75%. Calculate the beta of Flavorful Teas stock. Assume the risk-free rate is 8%.
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Korvan Enterprises has an opportunity to invest in a new piece of equipment that would cost $124,000 and have a nine year life. The equipment would save $45,000 per year in labor and other costs. The equipment would have no salvage value at the end of its life. The discount rate is 12%. If the internal rate of return i...
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Cardiv Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product. Production volume5,100 units6,100 units Direct materials$109.70 per unit$109.70 per unit Direct labor$51.80 per unit$51.80 per unit Manufacturing overhead$...
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The imposition of a maximum price at the point where the monopolist's SMC curve intersects the D curve causes the monopolist to A) break-even B) incur losses C) make profits D) Any of the above
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What is the sum of the cash flows if the cash flows in 2 years are $20,000 and 4 years are $10,000? a. $15,000 b. $30,000 c. $10,000 d. $40,000
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On January 1, your employer purchased you a new computer for your exclusive personal use as a benefit of your employment and included the amount in your January pay check. This value should be included in: A. neither the consumer price index or the GDP deflator. B. the consumer price index only. C. the GDP deflator ...
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Find the expected cost per loss for the exponential distribution with θ = 4000, assuming an ordinary deductible of 1000.
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A senator votes according to the dictates of her constituents {eq}80\% {/eq} of the time. In a random sample of 10 votes by this senator, what is the probability that at least {eq}7 {/eq} votes will coincide with her constituents' desires? a. {eq}0.464 {/eq}. b. {eq}0.737 {/eq}. c. {eq}0.808 {/eq}. d. {eq}0.89...
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Determine the inflation rate based on the following information: The consumer price index (CPI) in 2017 was 130.1. The CPI in 2016 was 127.5. a. 1.7% b. 3.4% c. 1.69% d. 3.38% e. 0.95% f. None of the above.
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The Ford Company developed the following standards for the manufacture of its product: Each unit should have 4 pounds of direct materials purchased at $12 per pound. Each unit should be produced in 3 hours at a direct labor cost of $18 per hour. Actual production was 40,000 units using 162,800 pounds of direct material...
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Why is the area of a square always equal to the square of its side? a) The formula A = s^2, where s is the side, is a derived formula. b) By definition of a square. c) Through the process of deduction. d) Through the process of induction.
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E. Sugar, Inc. has 10,000 shares of $10 par value, 7%, noncumulative preferred stock and 50,000 shares of $10 par value common stock outstanding. In 2011, Sugar declared and paid total cash dividends of $54,000. In 2012, Sugar declared and paid total cash dividends of $48,000. There were no changes to Sugar's outstandi...
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Which of the following statements is false? A. In an input-oriented data envelopment analysis, it is possible to have more than one efficient decision making unit in a sample. B. In an output-oriented data envelopment analysis, the maximum output for each DMU may be adjusted up or down within limits. C. Output-orien...
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Druid Company is considering the purchase of an asset for $368,750. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Year 1Year 2Year 3Year 4Year 5Total Net cash flows$50,000$62,500$65,000$80,000$98,750$356,250 Compute the payback period for this investment. ...
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Jim has the following assets and liabilities that he transferred into ABC Corporation in exchange for $80,000 in cash and 90% of the stock in ABC Corp, (FMV of $220,000). Adjusted Basis FMV Building $ 210,000 $ 225,000 Equipment $ 45,000 $ 75,000 Vehicles $ 25,000 $ 30,000 Mortgage on building $ 20,000 $ 30,000 Calc...
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The inventory cost that a firm must report on its balance sheet is: a) the sum of actual costs and opportunity costs. b) the actual costs incurred to purchase the inventory. c) actual costs plus any potential profits lost from not purchasing the alternative. d) None of the above.
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