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A firm's working capital is equal to a) current assets + current liabilities. b) current assets - current liabilities. c) current assets / current liabilities. d) current liabilities / current assets. e) none of the above.
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Find the volume of the solid obtained by rotating the region bounded by the curves y=4-x^2 and y=0 about the x-axis.
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Kelly Corporation, organized in January 2012, had a net income for 2012 of $235,000. The following equity accounts were extracted from the December 31, 2012, balance sheet: Common Stock $2 par value $345,000 Paid-in Capital in Excess of Par 675,000 Retained Earnings 185...
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You are considering an investment in Justus Corporation's stock, which is not traded in an organized exchange. The beta of Justus Corporation stock is 0.90. The risk-free rate is 6%, and the market risk premium is 8%. Justus currently pays a dividend of $3.40 per share. The risk-free rate is 6%, and the market risk pre...
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Stock dividend distribution in 1980 was taxed at the highest rate of capital gains, which was 28%. The rate was later reduced to 20%. Suppose ABC stock was owned by Barid for 10 years prior to the distribution of a {eq}200\% {/eq} stock dividend in 1983. a. If Barid sold the stock in 1986 for {eq}\$4500 {/eq} and pu...
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Which of the following equations is/are true? Choose all that apply. A) The present value of an annuity due is always less than the present value of an ordinary annuity. B) If a coupon bond is selling at par value, then the present value of the interest payments plus the present value of the face value equals the fac...
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The bond pricing formula used to determine the present value of a bond is given below. PV = (C / r) x {eq}[1 - 1 / (1+r) ^ n] {/eq} + {eq}[M / (1+r) ^ n] {/eq} PV = bond present value r = interest rate C = coupon interest n = number of periods M = par value of bond Which of the following is a correct interpret...
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Solve the recurrence relation $T(n) = 2T(\frac{n}{2}) + n$ with $T(1) = 1$ and $T(2) = 2$ by expanding it out.
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ABC Corporation is considering a project which will require an initial cash outlay of $15 million and after tax operating cash inflows of $3.8 million per year for 8 years. The firm's cost of capital is 12%. Given this, what is the approximate net present value of the project?
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The ability to quickly calculate an answer from familiar numbers such as 100, 10, or 50 and then adjust for the actual numbers is a skill called _____. A) implied reasoning. B) parallel reasoning. C) compensatory reasoning. D) benchmark reasoning. E) order of magnitude reasoning.
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Assume that the uncovered interest parity condition holds. Also assume that the U.S. interest rate is greater than the U.K. interest rate. Given this information, we know that investors expect: a. the pound to depreciate b. the pound to appreciate c. the dollar-pound exchange rate to remain fixed d. the U.S. intere...
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Han Corporation produces a single product that it sells for $115 per unit. During the last year, 13,000 units were produced and 12,000 units were sold. Variable manufacturing overhead is $6 per unit. Fixed manufacturing overhead was $78,000 during the year. The company had no beginning inventory to start the year. Vari...
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Assume there is an increase in the population of college graduates. If all other factors are held constant, this increase would _____ the labor force participation rate and _____ the unemployment rate. A) increase; decrease B) decrease; have no effect on C) increase; have no effect on D) have no effect on; have no ...
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Determine whether or not the sequence $a_n = \frac{2n^2-1}{n^2+3n+1}$ converges, and if it converges, then find the limit.
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The sum is $$\sum_{k=0}^{n-1} 2\binom{n}{k}.$$ Do I have to distribute the binomial, or is there another way to think of this sum?
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Culver Corporation has decided to buy a machine costing $28,984. Estimate the annual net cash flows required to make the investment acceptable, given a desired rate of return of 8%. Present value of an ordinary annuity of 1 at 8% for 6 periods = 4.623. a. $5,000. b. $6,000. c. $7,000. d. $8,000.
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Herring Corporation manufactures titanium and aluminum golf clubs, and it expects to make and sell 3,600 titanium clubs and 9,000 aluminum clubs each next year. Both clubs are sold for $400 per set. Titanium clubs require 2.0 machine hours per set, and aluminum clubs require 0.5 machine hours per set. Titanium clubs ha...
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Zack's Carvings wants to have $1 million in operating cash flow to support its growth opportunities. The firm currently has net working capital of $500,000 and total assets of $3 million. The firm also wants to maintain a debt-equity ratio of .75 and a constant payout ratio. What amount of net new borrowing will the f...
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A free bar of length L is uniformly heated from 0{eq}^\circ {/eq}C to temperature t{eq}^\circ {/eq}C, {eq}\alpha {/eq} is the coefficient of linear expansion and E is the modulus of elasticity. What is the stress in the bar?
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A fully depreciated machine that costs {eq}\$50,000 {/eq} is sold to a customer for {eq}\$100,000 {/eq}. The customer installs the machine on their property for {eq}\$10,000 {/eq}. The entry to record the installation includes a: A. Debit to {eq}Work In Process {/eq} of {eq}\$10,000 {/eq} B. Debit to {eq}Material...
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Which of the following is not correct in reference to investments that are available for sale? a. Investments in debt and equity securities that are available for sale should be carried at fair value. b. Unrealized losses on investments in debt and equity securities that are available for sale should be recorded in a...
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An income statement includes which of the following? a) Revenue and expenses. b) Assets, liabilities and stockholders' equity. c) Cost of goods sold and inventory. d) Revenue, expenses and taxes. e) Revenue, expenses and cash flows.
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You have a $1,000,000 mortgage. Your mortgage is an 8% loan and it calls for 20 equal end of year payments. What will your annual payment be?
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Perine Company has 2,995 pounds of raw materials in its December 31, 2016, ending inventory. Required production for January and February of 2017 is 4,450 and 6,160 units, respectively. 4 pounds of raw materials are needed for each unit, and the estimated cost per pound is $10. Management desires an ending inventory eq...
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A new treatment is successful in curing a common ailment 70% of the time. If the treatment is tried on a random sample of 75 patients, approximate the probability that 57 or fewer will be cured. Use the normal approximation to the binomial with a correction for continuity.
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The units in the beginning WIP inventory are: A. Are added at the percentage needing to be completed yet to the equivalent units of production using the weighted average method. B. Added at 100% to the equivalent of production using the FIFO method. C. Added at 100% to the equivalent units of production using the we...
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A hollow copper cylinder, 100 mm long, 25 mm thick, and with a 200 mm inner diameter is placed inside a hollow copper cylinder, 100 mm long, 25 mm thick, and with a 250 mm inner diameter. The space between the two cylinders is filled with a material with a thermal conductivity of {eq}20.1\ W/(mK) {/eq} and is insulate...
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When is driver tracing used? a. When the resource is shared by more than one activity. b. When the resource is exclusive to the activity. c. When the resource is a labor resource. d. All of these choices are correct.
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Valley Chemicals makes a single product and uses standard costs to budget and control manufacturing overhead costs. The budgeted manufacturing overhead for this year consists of $126,000 for fixed overhead and $50 per 100 units of the product as variable overhead. Valley prepared the following budget for the year: ...
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Find the work done by the force field {eq}\displaystyle F (x,\ y) = (x^2 - y)i + (x^2 + y^2)j {/eq} on a particle moving along a line segment from {eq}(0,\ 0){/eq} to {eq}(2,\ 3){/eq}.
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Kingston Co. has a capital structure that consists of 20% equity and 80% debt. The company expects to report $3 million in net income this year, and 60% of the net income will be paid out as dividends. How large can the firm's total assets be this year without it having to issue any new common stock? A) $12 million B...
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Use a Taylor series to approximate the value of $$\int_0^1 \cos\sqrt x \, dx $$ accurate to within 0.0001. (Show all terms in the series that you use and the estimate of the remainder).
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Given a matrix {eq}A = \left [ a_{ij} \right ]_{3 \times 3} {/eq}, if {eq}a_{ij} = 1, \; 0 {/eq} or {eq}-1 {/eq} and {eq}a_{ij}a_{jk} = a_{ik} {/eq}, then find the maximum and minimum values of the determinant of {eq}A {/eq}.
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A project manager is looking at a project which the company has to finance. The net present value of the project is + $25000. The internal rate of return is 8% and the cost of capital is 12%. Which of the following statements is correct? A. The project should not be accepted because it does not have a zero net present...
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Carr Corporation (a sole proprietorship) reported net income of $154,000 for the current year. The partnership agreement specifies that profits are to be divided in the ratio of 1:1. During the year, the owner withdrew $10,800. What is the amount of cash to be distributed to the owner?
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An economist is interested in studying the effects of high school grades on the wage rate of individuals who graduated from college. For this purpose, a bivariate regression analysis is conducted on a sample of {eq}150 {/eq} college graduates. A relevant equation is estimated to be: {eq}\widehat{ Wage = 1.32 + 0.24Hi...
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Able Company is considering a new project. They have compiled the following data: Market risk premium = 8.0% Risk free rate of return = 3.0% Beta of project = 1.80 Initial outlay = $1,000 Estimated life of project = 4 years Annual cash inflows: $500 per year Tax rate = 21% The appropriate discount rate is _____...
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What type of cost is allocated on the basis of direct labor-hours for a process-costing system? a. Direct labor cost. b. Factory overhead cost. c. Indirect materials cost. d. Cost of goods manufactured cost.
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A company incurs a direct materials cost variance of $100,000 U and a direct materials efficiency variance of $200,000 F. During the period, the standard cost for direct materials was $800,000. If 80% of the materials cost variance is due to price variance, what is the total materials cost variance?
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Suppose the spot exchange rate for the Canadian dollar is $1.19 and the six-month forward rate is $1.16. Assuming absolute PPP holds, what is the current cost in the United States of a beer if the price in Canada is Can$3.75?
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The real interest rate is equal to the nominal interest rate: a. plus the inflation rate. b. minus the inflation rate. c. times the inflation rate. d. divided by the inflation rate.
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Use the divergence theorem to find the flux of F(x, y, z) = (xy + cos z)i + (yz + sin z)j + zk across the total surface of the cylinder x^2 + y^2 = 4 for 0 \leq z \leq 4.
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During 2012, Company A, a publicly held corporation with 10,000 shares of $50 par common stock outstanding, declared a stock split 2 for 1. Company A's net income for the fiscal year ended December 31, 2012, was $200,000. How does the stock split affect earnings per share and total paid-in capital, respectively? a. E...
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Calculate the present value of $5,000 received at the end of each of the following years, using a discount rate of 6 percent: Year 1, Year 2, Year 3, Year 4
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Your firm is considering leasing a new robotic milling control system. The lease lasts for 4 years. The lease calls for 4 payments of $330,000 per year with the first payment occurring at lease inception. The system would cost $960,000 to buy and would be straight-line depreciated to a zero salvage value. The firm can ...
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Assume the economy is in long-run equilibrium. If investment spending rises, then in the long run: a. P and Q will be the same as they were before the rise in investment spending. b. P will be lower and Q will be higher than they were before the rise in investment spending. c. P will be higher and Q will be lower th...
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Let $$f(x)=\sum_{n=1}^{\infty}\frac{n x^{n}}{n+1}$$ Find $f^{'}(1)$. I have that the radius of convergence is $1$, and thus I have to analyze the behavior at $x=\pm 1$. If I plug in $x=1$ into my original function I get a divergent function, so I have to use some other method to analyze the behavior at $x=1$. I have th...
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Answer the following question based on the accompanying cost ratios for two products, fish (F) and chicken (C), in the countries of Singsong and Harmony. You may assume that production occurs under conditions of constant costs and that these are the only two nations in the world. Cost ratios: Singsong: 1 F = 2 C: Harmo...
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Gina likes to upset Tim by scratching her fingernails against the chalkboard as she enters their classroom. Now, whenever Gina enters a classroom that Tim is in, he automatically tenses up because he expects her to scratch the chalkboard. This explanation of Tim's behavior is consistent with: a. the informational view...
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For the year ended 31/12/2019, the sale of land for $120,000 cash produced a $60,000 gain. No other gains or losses occurred during 2019. The land was added to the bank in January 2020. In its 2019 cash flow statement, the company reported: a. $120,000 under Operating Activities, net $60,000 under Financing Activities...
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Factory Overhead Pretax Income 6,450 28,150 Based on the information above, what is the underapplied or overapplied overhead?
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Under perfect competition, labor markets will be in equilibrium when the demand for labor equals the supply of labor at the equilibrium wage rate. In the case of a monopsonistic employer, a. the demand for labor is downward sloping and the supply of labor is upward sloping. b. the demand for labor is downward sloping...
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Non-discrimination ensures that a) Each WTO member is entitled to trade in identical conditions with other WTO members. b) Each WTO member is entitled to trade in preferential conditions with other WTO members. c) Each WTO member is entitled to trade in identical conditions with both members and non-members of WTO. ...
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Which is the correct description of conditional formation constant for Metal-EDTA complex? (M = metal, EDTA = H4Y) a) {eq}K'_f = \frac{(MY^{n-4})}{(M^{n+})(Y^{4-})} {/eq} b) {eq}K'_f =\frac{(MY^{n-4})}{(M^{n+})\alpha_{Y^{4-}}(Y^{4-})} {/eq} c) {eq}K'_f = \frac{ (MY^{n-4})}{(M^{n+})(EDTA)_{initial}} {/eq} d) {eq}...
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The standard deviation of return on investment A is .10 while the standard deviation of return on investment B is .20. If the correlation coefficient between the returns on A and B is -.50, the standard deviation of a portfolio of A and B is: a. less than 10%. b. between 10% and 20%. c. equal to 15%. d. equal to 30...
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Calculate the integral, where {eq}S{/eq} is the portion of the plane {eq}3x+5y+z=15{/eq} above the square {eq}0 \le x \le 3, 0\le y \le 3{/eq}, oriented upward: {eq}\displaystyle \int \int_S (2x + 10y) \: dS{/eq}.
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You bought a stock a year ago for $54 per share. You've been selling 5 shares per day since. Today, you received $35 in dividends and sold 5 shares at $65 per share. Your annual rate of return on this stock is _____. A. 167% B. 13.7% C. 50% D. 37%
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I have a Cauchy problem: $y' = y + 10\sin y, y(0) = a$. It is need to find $\frac{\partial y}{\partial a} \Big|_a$ where $a = 0$.
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Which of the following would increase the U.S. consumer price index (CPI) the most: a) An increase in the price of a case of imported French wine from $100 to $150. b) A decrease in the price of gasoline from $4.00 to $3.00 per gallon c) An increase in the price of a case of imported French wine from $200 to $300. ...
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Evaluate the line integral along the given path. {eq}\int_{C} e^{-(x^2+y^2)}\, ds {/eq}, where {eq}C {/eq} is the circular path {eq}x=3 \cos(t),\ y = 3 \sin (t) ,\ 0\leq t \leq 2 \pi {/eq}.
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Your firm needs a program that pays off an $11,000 loan with 6.2% interest in 5 years through a single payment. Calculate the amount you will pay in five years. (Round answer to the nearest whole dollar amount.)
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The following data are for the year 2014 and 2015 for Whitmore Corporation: 2015 2014 Current assets $150,000 $130,000 Fixed assets 520,000 490,000 Total assets $670,000 $620,000 Current liabilities $24,000 $20,000 Long-term debt 180,000 120,000 Common stock 50,000 50,000 Additional paid in capital 6,000 6,000 Retai...
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What is the convergence or divergence of the sequence $a_n = 8(\frac{7}{5})^n - 3(\frac{1}{4})^n$?
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Given the following hypothesis: H0: μ ≤ 100 H1: μ > 100 A random sample of six resulted in a sample mean of 110 and a sample standard deviation of 15. The appropriate t-statistic to use a test the hypothesis would be: a) 0.67 b) 2.10 c) 2.45 d) 4.00
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A cylindrical metal can is to be made to hold 500 {eq}cm^3 {/eq} of oil. Find the dimensions of the can that will minimize the cost of metal to make the can.
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Find the minimum sample size needed for the poll to achieve a margin of error of {eq}0.07{/eq} at a {eq}95\%{/eq} confidence level if we have no prior estimate of the proportion. (Use a critical value that corresponds to a confidence level of {eq}95\%{/eq}. Round your answer up to the nearest whole number.)
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A firm uses only labor and capital in its production process. The marginal rate of technical substitution is: a. the ratio of the marginal product of labor to the marginal product of capital b. the ratio of the marginal product of capital to the marginal product of labor c. the slope of the tangent line to an isoqua...
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Getzels and Jackson (1962) used _____ to assess creativity by asking subjects to write as many meanings of the words: duck, sack, pitch and fair. (a) vocabulary ability (b) semantic ability (c) language ability (d) associative ability
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Find the price of a stock with a required return of 10 percent, a current dividend of $3 per share, and a dividend growth rate of 8 percent.
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In the Solow growth model, a steady-state equilibrium refers to A) an equilibrium in which the stock of physical capital remains constant over time. B) an equilibrium in which the GDP per capita remains constant over time. C) an equilibrium in which the poverty rate remains constant over time. D) an equilibrium in ...
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A regression model has: a. 95% confidence interval and 5% significance level b. 90% confidence interval and 10% significance level c. 99% confidence interval and 1% significance level d. None of the above
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The Piper Company produces golf discs, which are normally sold to retailers for $6.95 each. The cost of manufacturing 24,200 golf discs is: Materials $12,673 Labor $35,424 Variable overhead $25,062 Fixed overhead $49,726 Total $112,885 Piper also incurs a 5% sales commission ($0.35) on each disc sold. Garber Corporat...
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Consider a technology that exhibits diminishing MRTS. If labor is fixed, but a firm varies capital, the firm A. stays on the same isoquant. B. moves to a new isoquant. C. might move to a new isoquant, depending on how much capital is added. D. increases its marginal rate of technical substitution. E. None of the a...
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Which of the following statements is correct? A) When a firm in a competitive industry sets its price higher than the current market price, other firms will enter the industry and supply will increase. B) The entry and exit of firms in a competitive industry, which tends to leave it with zero economic profit in the l...
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Asset 1 has an expected return of 15% and a standard deviation of 20%. Asset 2 has an expected return of 20% and a standard deviation of 25%. Assets 1 and 2 are perfectly negatively correlated. Which of the following is not correct about portfolios of Asset 1 and Asset 2? a. The minimum variance portfolio is a portfol...
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Refer to Table 6-1. The profit-maximizing price is: a. $240 b. $260 c. $270 d. $220 e. $230 Year 1 Year 2 Quantity Price Quantity Price 100 $240 80 $260 90 $250 60 $270 80 $260 40 $280 ...
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A US-based company which owns a coffee plantation in Brazil and purchases the coffee at world market prices, pays its Brazilian workers less than the market wage rate. Should this coffee count toward Brazilian GDP? A. Yes, because the output of the coffee was produced in Brazil. B. No, because the owners did not pay ...
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If x = 1.2 meters, y = 0.55 meters, and a = 1.7 Newtons, what is the value of the electric potential, V, in volts, at point P? Use -1.6e-19 C as the value of the charge of an electron. x: y: a: P:
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Given $T(1) = 1$, $T(2) = 1$ and $T(n) = 2T(n/2) + n/2$ what is $T(n)$? Using the substitution method, I assumed that $T(n) \leq an + b$. $T(n) = 2(2T(n/4) + n/4) + n/2 = 2(2(2T(n/8) + n/8) + n/4) + n/2 = 2(2(2(2T(n/16) + n/16) + n/8) + n/4) + n/2 \leq 2(2(2(2an/16 + b) + an/8) + an/4) + an/2 + b \leq 2(2(2(2an/16 + an...
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Redesigned Computers can produce any number of chips over 600. The first order of 6,000 chips was produced at a rate of 200 per day. The production rate declines by 20 percent each day. What is the expected number of chips produced in the 4th day?
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Which one of the following is the correct statement of the capital structure weights? A. debt/equity ratio B. debt weight/(debt weight + equity weight) C. equity weight/(debt weight + equity weight) D. debt/(debt + equity) E. equity/(debt + equity)
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Suppose Richard Branson withdraws $5 million from his checking account at Bank of America. If the required reserve ratio is 25%, what is the maximum change in deposits in the banking system?
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A creamery purchases three different types of cheese: panela cheese at $3.75, goat cheese at $7.10 per pound, and Oaxaca cheese at $4.50 per pound. The daily demand for each cheese is 45, 22, and 63 pounds, respectively. The creamery has a dedicated supplier for each type of cheese, and the ordering cost is $2.00 per o...
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Which of the following is not a broad category of incompetent and disreputable conduct subject to sanctions under Circular 230? a. misconduct related to the practitioner's own return b. misconduct while performing professional duties c. misconduct while acting in an official public capacity d. misconduct not direct...
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Lion Co. has 160,000 shares of common stock and 20,000 shares of preferred stock outstanding. Lion's net income is $640,000. Preferred stockholders are guaranteed a $3 per share dividend. If the total amount of dividends paid to both preferred and common stockholders is $100,000 and common stockholders are to receive t...
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The prepaid expense account has a debit balance of $1,600 at the beginning of the year and a credit balance of $500 at year-end. The adjusting entry at the end of the year included a: A. debit to expense for $1,100. B. debit to asset for $500. C. credit to expense for $1,100. D. credit to asset for $500.
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The Last Word Company anticipates a non-constant growth pattern for dividends. The company paid a $2 per share dividend last year. The dividend is expected to grow by 15% per year until the end of year 4 (i.e. for the next three years) and 7% per year thereafter. Find the projected dividend for the eighth year.
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Thomasson Air uses two measures of activity, flights, and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $36,400 per month plus $2,080 per flight plus $1 per passenger. The company expected its activity in April to be 80 flights and 230 passengers,...
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A population of beetles is growing at a rate given by the function {eq}\dfrac{dP}{dt} = \dfrac{1425e^{-0.25t}}{(1 + 3e^{-0.25t})^2} {/eq}, where {eq}\dfrac{dP}{dt} {/eq} is measured in beetles per week and {eq}t {/eq} is measured in weeks. Suppose that {eq}\Delta P = 90 {/eq} beetles on the time interval {eq}[2, b] {/e...
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John was asked to present a cash flow statement for 2013 for MNO Corporation for 2013 given the following data and some additional information: MNO began operations in 2012 and has issued 10,000 shares of common stock at a cost of $120,000. Expenses for 2013 totaled $64,000. The corporation paid a 30% income tax rat...
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EarthMover Inc. sold $5,000 of merchandise to Train Company on account, with sales terms of 2/10, n/30. Train Company returns $1,500 of the merchandise on account within the discount period. The merchandise was actually returned to EarthMover Inc.'s inventory. EarthMover Inc. paid the account payable within the discoun...
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An investor buys $17,000 worth of a stock priced at $20 per share using a 60% initial margin. The broker charges 8% on the margin loan and requires a 35% maintenance margin. The stock pays a $0.50-per-share dividend in 1 year, and then the stock is sold at $23 per share. What was the investor's rate of return?
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$$\sum_{n=0}^{\infty}\frac{(-1)^{n}x^{2n+1}}{(2n)!} = \sin(x)$$ $$ \text{ Taylor series expansion: } $$ $$f(0)+f'(0)(x-0)+f''(0)\frac{(x-0)^{2}}{2!} + f'''(0)\frac{(x-0)^{3}}{3!}$$ $$ \text{ Given that the Taylor polynomial of degree 3 (T3) is: } $$ $$ T_{3}(x)=x - \frac{x^{3}}{6} $$ $$ \text{ How do I find M? } $$
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The average annual return on the S&P 500 index from 1926 through 1990 was 10.47 percent. The average annual risk-free rate over the same period was 5.78 percent, and the standard deviation of the return on the S&P 500 index was 19.61 percent. What was the average real return on the S&P 500 index from 1926 through 1990?
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A firm is considering purchasing a machine that costs $100,000; it is expected to generate annual cash revenues of $28,000 and annual cash expenses of $10,000 for 10 years. The rate of return on the machine would be closest to A) 9%. B) 10%. C) 11%. D) 12%.
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Oxygen reaches the veinless cornea of the eye by diffusing through its tear layer, which is 0.50mm thick. How long does it take an average oxygen molecule to do this? The diffusion constant for oxygen in the tear layer is 1.0 x 10^-9 m^2/s
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Solve the following problem using MATLAB. Please show me the MATLAB code. Thank you. Consider a stock price which can take the values Sd and Su at date 1, where Sd = 50 and Su = 100. The continuously compounded interest rate is r = 4%. Use a two step binomial tree to value a derivative that pays the square of the stoc...
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Find the limit of the following or show it does not exist: {eq}\lim_{x\rightarrow \, -\infty} (\frac{1}{4^x} + \int_{0}^{x} \frac{2}{1 + t^3}\,dt).
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Carver Enterprises wants to have $500,000 in its investment portfolio 5 years from now. The portfolio manager currently has $210,000 invested in the portfolio. At what rate of return will the portfolio manager have to earn to reach her goal? 8.97% 11.34% 8.36% 11.81%
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Calculate the area of the surface when {eq}y = 3x^{\frac{1}{3}} {/eq} is rotated about the x-axis from x = 1 to x = 8.
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