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Consider the following data for option trading activities in June 2015: Option type | Quantity | Price -----------|----------|------ Call option with 1 month to expiration | 100,000 | $1.00 Call option with 2 months to expiration | 200,000 | $1.50 Call option with 3 months to expiration | 300,000 | $2.00 What is the t...
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Collison and Ryder Company (C&R) has been experiencing declining market conditions for its sportswear division. Management decided to test the assets of the division for possible impairment. The test revealed the following: book value of division's assets, $31.5 million; fair value of division's assets, $25.9 million; ...
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In your weekly meeting Sue asks you to prepare some numbers for the investor conference call right after the board meeting. You know one question potential investors will have is how much return they can expect from investing in your common stock. So you need to calculate the cost of your stock in relation to the price...
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The MACRS table allows managers to apply a: a. uniform depreciation rate to property with varying useful life b. variable depreciation rate to property with a useful life of 3 years c. uniform depreciation rate to property with a useful life of less than 10 years d. variable depreciation rate to property with varyi...
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How many nth-order partial derivatives does a function of two variables have?
2^n
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If a perpetual inventory system is used and the physical count of inventory on hand at year-end is not adjusted to the physical count, net income will be overstated because: A. the cost of goods sold will be overstated. B. the cost of goods sold will be understated. C. the inventory will be overstated. D. the inven...
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A parking garage is considering purchasing 60 self-service electric vehicle recharging stations. The purchase price of the 60 stations is $48,000. The gross income per month per charging station is $2,700 and the operating costs per month per charging station are $200. The rental costs for land and facilities for the p...
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Which of the following is likely to impose a large excess burden? a. A tax on land. b. A tax of 24 percent on the use of cellular phones. (This is the approximate sum of federal and state tax rates in California, New York, and Florida.) c. A subsidy for investment in "high-tech" cornpones. d. A tax on soda bought i...
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The margin of error for a sample of {eq}\displaystyle 380 {/eq} was found to be {eq}\displaystyle 0.04 {/eq}. The sample proportion is {eq}\displaystyle 0.40 {/eq}. Construct a {eq}\displaystyle 95\% {/eq} confidence interval for {eq}\displaystyle p {/eq}.
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You have a one-year option to purchase a shopping center for $100 million, if you exercise the option. You estimate that the NPV (net present value) of owning the shopping center if you exercise the option is $20 million in one year. It will cost $1 million to be ready to exercise the option if the price comes down. As...
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Find the radius of convergence of $\sum_{n=1}^{\infty}{n!x^{n!}}$.
1
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Which of the following is a benefit of automatic stabilizers? a. They reduce the economic fluctuations associated with business cycles. b. They speed up the lag between when a need for fiscal policy arises and when that policy is enacted. c. They speed up the lag between when the results of fiscal policy are felt in...
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If $\displaystyle \prod_{n=0}^\infty(1+a_n x^{2n})=\sum_{k=0}^\infty \binom{2n}{n}^{\frac{1}{2n}} x^{2k}$, show that $a_n=(-1)^n4^{-n}\binom{2n}{n}^{-1}$.
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Assuming that the short-run marginal product curve is a smooth inverted U-shaped curve, when labor input increases, the corresponding total product curve has a(an) A. U-shape because it will be concave first and then convex later. B. reverse S-shape because it will be convex first and concave later. C. S-shape becau...
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An airline oneworld member receiving a free ticket to Maldives from one of its partner airlines is an example of a: a) differentiated reward b) social reward c) direct reward d) secondary reward
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Alpha has 1.8 million shares outstanding at a price per share of $46. Beta has 1.2 million shares outstanding at a price per share of $39. Company Alpha is merging with Beta by exchanging 1.2 shares for every 10 shares of Beta. What will be the EPS for Beta after the merger if the EPS for Beta is currently $4 and there...
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All of the following are correct statements about the market-based approach except that it: a. ensures that each division manager is properly motivated and rewarded. b. produces a higher company contribution margin than the cost-based approach. c. assumes that the transfer price should be based on the most objective...
b
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Suppose that in an attempt to protect workers, Congress imposes legislation that makes it more difficult and time consuming to reduce workers' nominal wages. How would SRAS and LRAS be affected by this change? A) the SRAS curve would become steeper and the LRAS curve would remain unchanged B) neither curve would be a...
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A good example of perfect price discrimination is: A. buying a concert ticket on the street corner. B. selling concert tickets to individuals on the street corner. C. buying concert tickets at the ticket window. D. selling concert tickets at the ticket window.
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Evaluate {eq}\oint_{c} F\cdot dr{/eq}, where C is a circle of radius 1 in the plane x + y + z = 3, centered at (2, 1, 0) and oriented clockwise when viewed from the origin, and where F(x, y, z) = (y - 2x)i + (2x + z)j + (y - x)k.
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Cuban Corporation will pay a dividend of $4.10 per share next year. The company pledges to increase its dividend by 6% per year indefinitely. If you require a return of 12% on your investment, how much will you pay for the company's stock today?
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Find the WACC. A firm has issued bonds with a face value of $10,000,000.00. Their current market value is $8,500,000.00, and the annual coupon interest rate is 8%. The total market value of the firm's common stocks is $15,000,000.00, the dividend, ,D1 = $2.00, and the growth rate, g = 4%. The firm's bonds pay interest...
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What is the probability that a randomly selected bulb will last between 900 and 1200 hours, given that the average life of a bulb is 1,000 hours and that this failure time follows the exponential distribution? Round to four decimal places.
0.1054
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Sabas Company's relevant range of production is 3,000 units to 15,000 units. The unit costs when it produces and sells 9,000 units are provided. If 10,000 units are produced, what are the total amounts of direct manufacturing costs incurred to support this level of production? Direct materials $7.00 ...
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Which is the correct cost function for which of the following products? a. Y = a + b1 X1 + b2 X2 b. Y = a + b1 X1 + b2 X2 + b3 X1 X2 c. Y = a + b1 X1 + b2 X1^2 d. Y = a + b1 X1 + b2 X2 + b3 X1 X2 + b4 X1^2 + b5 X2^2
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When the Federal Reserve reduces its policy interest rate, how, if at all, is the IS curve affected? A. The IS curve shifts to the left. B. The IS curve shifts to the right. C. Changes in interest rates represent a movement along the IS curve, and so the IS curve does not shift. D. The change in the IS curve is unc...
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If a company overstates the ending inventory, it will: a. understate net income. b. overstate total assets. c. overstate current assets. d. understate retained earnings.
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The rates of return that must be earned on investments in order to satisfy the investor's minimum desired rate of return are known as A) opportunity cost. B) marginal cost. C) relevant cost. D) capital cost.
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What is the most conservative estimate of the sample size that would limit the margin of error to within 0.05 of the population proportion for a 95% confidence interval?
385
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Alphafem Company has paid a constant $1.20 per share dividend to its common stockholders. Next year and every year thereafter, the company plans to increase the dividend at a constant rate equal to 2.5 percent per year. If investors require a 15 percent rate of return to purchase Alphafem's common stock, what is the ma...
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Costs that can be easily traced to a cost object are called: A. Direct Costs. B. Indirect Costs. C. Manufacturing Costs. D. Period Costs.
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Culver Corporation has two production departments, Machining and Assembly. Information about these two departments for the month of July is as follows: AssemblyMachining Transferred in from the prior department$40,000 Direct materials$50,000$30,000 Units started into production15,0008,000 Units completed and transfe...
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Last National Bank has 2 drive-in lanes. During the weekday noon hour, an average of 30 customers per hour arrive (Poisson distribution), and they are given FCFS service, requiring an average of 2.5 minutes service times. The bank wants customers to wait no more than 6 minutes on average. How many drive-in tellers are ...
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In the perfectly competitive factor market, a firm maximizes its profits by hiring a quantity of labor so that the marginal product of labor equals the a. Marginal revenue b. Marginal value product of labor c. Wage rate d. Price of the firm's output
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Brooke Company had sales of $300,000 and NOPAT of $15,000. The company's invested capital is $656,250. What is the company's profit margin as it relates to investment center performance evaluation? A. 45.7% B. 5% C. 48.0% D. 2.3%
D
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Rajan Inc. uses the weighted-average method in its process costing system. During the month of June, the beginning work in process inventory had 3,000 units. An additional 32,000 units were transferred in from the prior department during the month to begin processing in the Mixing Department. There were 9,000 units in ...
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Evaluate the triple integral {eq}\displaystyle\iiint_Exy^2z^3 \: dV, where {eq}E lies under the plane {eq}2x + 5y + z = 20 and above the rectangle {eq}R = [1,2] \times [2,5] \times [1,3] in the {eq}xyz-coordinate system.
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Heston Corporation, which has a single product, has provided the following data for its most recent month of operation: Units produced 3,600 Variable production cost $38 Fixed production cost $14 Variable selling & admin. expense $8 Fix...
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Company X has a beta of 1.6, while Company Ys beta is 0.7. The risk-free rate is 7 percent, and the required rate of return on an average stock is 12 percent. Now the expected rate of inflation built into rRF rises by 1 percentage point, the real risk-free rate remains constant, the required return on the market rises ...
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I'm not sure how I can rearrange the formula to get p on the left side of the equal sign. Can I rearrange the formula like this? R = ((p/(1-p))^t)*p P = R/(((p/(1-p))^t)+R)
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Set up an integral for both orders of integration, and use the more convenient order to evaluate the integral over the region R. ∫∫R sin(x)sin(y) dA R: rectangle with vertices (-π,0), (π,0), (π, π/2), (-π, π/2)
0
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A fair 6-sided die is rolled 3 times. Find the probability that the first roll was a 3 or the second roll was 2 or the third roll was a 1.
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The following information pertains to Smith and Johnson: Expected return on Smith's stock = 10% Expected return on Johnson's stock = 22% Standard deviation of return on Smith's stock = 4.4% Standard deviation of return on Johnson's stock = 12.1% Correlation coefficient of returns = 0.37 Assume that you have $100,...
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A 100.0 mL sample of 0.10 M methylamine {eq}\rm K_b = 3.7\times10^{-4} {/eq} is titrated with 0.25 M nitric acid. Calculate the pH after addition of 0.0 mL of acid.
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Sweet Acacia Industries has a machine with a book value of $88,000. A new machine will cost $150,000. The company is replacing the machine with a new state of the art machine and it will incur a tax cost of $12,875 on the sale of the old machine. The company uses the straight line method of depreciation and is in the 2...
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You have a loan outstanding. It requires three annual payments at the end of the next three years of $1,000, $2,000, and $3,000, respectively. Your bank has offered to let you skip making the next two payments, and in lieu thereof make one large payment in three years. If the interest rate on the loan is 5%, how much w...
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Confirmation would be most effective in addressing the existence assertion for the: a. addition of a milling machine to a machine shop. b. payment of payroll during the regular course of business. c. inventory held on consignment. d. granting of a patent for a special process developed by the organization.
c
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What is the probability that at most 3 heads show when a fair coin is flipped 20 times?
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How large a sample must be taken to know, with 95 percent confidence, the proportion of smokers who have tried quit smoking within the last year is within 0.02 of the true population proportion, given a preliminary estimate of 0.34 from a Harris poll?
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Assume a U.S. investor wishes to invest in a British company whose stock is currently selling for 100 pounds. The investor can buy or sell the pound at the spot exchange rate of $2 per pound. Further assume that he expects the pound will appreciate to $1.50 per pound over the course of the next year. If the investor ha...
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Monopolistic competition may result in positive economic profits in the short-run. Which of the following is NOT correct about the long-run adjustment when positive economic profit is being made? a. In the long-run, new firms will enter the market. b. In the long-run, price will equal average total cost. c. In the l...
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How many customers should be included in the sample to estimate the average electric usage in September to be within 300 kWh at 98% confidence?
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When marginal benefit exceeds the marginal cost in a market, A. consumer surplus and producer surplus are not affected compared to when production is such that marginal cost equals marginal benefit. B. the deadweight loss is negative. C. only producer surplus is reduced. D. only consumer surplus is reduced. E. non...
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Diver, Inc. wants to lease some equipment to Hardware. The lease lasts for 7 years. The lease calls for 6 annual payments of $210,000 per year with the first payment occurring immediately. The computer equipment would cost $1,173,594 today. Diver's cost of borrowing is 6%. Should this lease be proposed? A. Yes, the le...
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Which of the following is true of muscular power? a). It is maximal at approximately {eq}\dfrac 23 {/eq} maximal isometric force production. b) It is maximal at maximal velocity. C). It is maximal at minimum velocity. D). It is maximal during slow eccentric muscle action. E). It is maximal at about {eq}\dfrac 13 ...
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A company reports a net income of $85,000. Its cost of goods sold equals one-third of sales, and its operating expenses are $230,000. Given this information, we can conclude that: a) the economy is in recession b) the company did not collect all of the money owed to it for goods sold c) the company is not spending a...
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Which one of the following is not a benefit of enzyme hydrolysis of penicillin/cephalosporins: a) Elimination of alcohol solvents. b) Reduced costs. c) Neutral pH reactions and ambient temperatures. d) Improved yields. e) All variants can be hydrolyzed easily.
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Given that $m>1$, find: $$\lim_{n\to\infty} \frac{\Gamma(n+1/n)^m}{(n!)^m}$$
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Corporation new venturing may take the form of either establishing a new business or _____ . A) acquiring a smaller competitor B) creating a new-ventures division C) establishing a global market presence D) merging with an equal-sized competitor
B
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Travis Company, a calendar year entity, is subject to income tax at a rate of 35%. During 2012, it recorded the following amounts in the Income Before Income Tax account: Salaries expense $500,000 Interest income 140,000 $640,000 The federal income tax return, which was filed in 2013, was signed by the company's pres...
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An investor wants to estimate, with 99% confidence, the proportion of a stock's value that he should allocate to debt and equity securities. How large a sample must he select so that the estimate will be within 0.08% of the actual proportion? (Use 0.5 for the actual proportion.)
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An analyst has modeled the stock of a company using a Fama-French three-factor model. The risk-free rate is 6%, the market return is 9%, the return on the SMB portfolio (rSMB) is 2.0%, and the return on the HML portfolio (rHML) is 5.5%. If ai = 0, bi = 1.2, ci = - 0.4, and di = 1.3, what is the stock's predicted return...
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Mueller Corporation currently has 280,000 shares outstanding of $1 par value common stock. The stock was originally issued for $26 per share. On March 15, the board of directors declares an 8% stock dividend when the stock is selling for $32 per share. Which of the following is the correct journal entry to record this ...
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Debt management ratios measure how efficiently a firm's assets are used. True / False
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Barr Corp. is the lessee in a Type A lease. Under the new ASU, Barr would record: a. Depreciation expense. b. A right-of-use asset. c. Lease expense. d. Interest revenue.
b
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Del Pia Soaps paid a dividend today of $2.30 per share. The dividend is expected to grow at 1.2 percent per share per year. How much is one share of this stock worth today if the required return is 15 percent? a. $10.80 b. $10.98 c. $11.15 d. $11.32 e. $11.48
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Using the L'Hospital rule, evaluate the following: {eq}\lim_{x \rightarrow 0} \frac{(4x - 1) e^{2x} - 4x + 1}{x^2}
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The answer to the question is 2500 but I do not know how to get there. Please help. Thanks. Cash paid for dividends is an example of an expense and so should be added to net income to get operating cash flow. True or False.
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What is the probability that a customer experiences fewer than 6 phone calls in a 1 minute interval, given that calls arrive at the rate of 2 per minute at an insurance claims counter according to the Poisson distribution?
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For the year ended December 31, 2017, Transformers Inc. reported the following: Net income $279,820 Preferred dividends paid $52,563 Common dividends paid $11,449 Unrealized holding loss, net of tax $4,297 Retained earnings, beginning balance $413,318 Common stock $189,651 Accumulated other comprehensive income,...
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Which of the following statements is correct? a) In an accounting world ruled by reliability we would be producing market value financial statements only b) Reliability and relevance are conflicting objectives in designing an accounting system c) Reliability and relevance are complementary (congruent) objectives in ...
c
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What are the total proceeds (PV) of a cash flow if its future values (FV) are $10,000 in year 3, $25,000 in year 6, $50,000 in year 8, and $75,000 in year 10, with a discount rate of 12%?
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Find the margin of error for a 99% confidence interval on the mean, assuming the standard deviation equals 30.9 for a sample of 80, rounded to three decimal places.
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Riverbed Company common stock is currently selling for $139.41. The last dividend paid was $11.50. The market rate of return is 10%. At what growth rate is the stock currently priced?
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Dora Skysong Inc. has the following amounts reported in its general ledger at the end of the current year. Organization cost $22,600 Trademarks 13,300 Discount on bonds payable 35,600 Deposits with advertising agency ads to promote goodwill of company 10,600 Excess of cost over fair value of net identifiable as...
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Which of the following depreciation methods is used by most companies for their tax returns? a. Units-of-production b. Straight-line c. Declining-balance d. All of the above methods are used about equally.
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Evaluate the double integral {eq}\int \int_R (A - 2y)dA,\; R = \left [ 0, 1 \right ] \times \left [ 0, 1 \right ]{/eq} by first identifying it as the volume of a solid.
A-1
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Your investment club has only two stocks in its portfolio: {eq}\$20,000 is invested in a stock with a beta of 0.7, and {eq}\$35,000 is invested in a stock with a beta of 1.3. What is the portfolio's beta? a. 0.98 b. 1.02 c. 0.95 d. 1.06 e. 1.00
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A company has excess capacity and regular, repeat business. Its variable costs per unit are $45, and it incurs fixed costs of $50,000. In addition, the company could accept a special order for 10,000 units at a price of $40 per unit. a. yes. b. no.
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The aggregate demand curve shows how the quantity of real GDP demanded: a. varies as the interest rate changes. b. varies as the price level changes. c. varies as government spending changes. d. and the price level are positively related. e. and the price level are inversely related.
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In the South, the end of slavery led to: a. greater inequality and social tension. b. a significant reduction in the number of poor whites. c. a higher ratio of the poor to the total population than in the North. d. a higher ratio of the poor to the total population than in the South.
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A financial planner is examining the portfolios held by several of her clients. Which of the following portfolios is likely to have the smallest standard deviation? a) A portfolio with 10 randomly selected U.S. stocks b) A portfolio with 10 randomly selected stocks from U.S. and international markets c) A portfolio...
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If sales growth for XYZ Corporation exceeds 6%, XYZ will need to seek external financing. This means that 6% is the: A) external growth rate. B) internal growth rate. C) optimal growth rate. D) sustainable growth rate.
D
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Suppose that the demand for a good is highly inelastic and the supply of that good is very elastic. Then, according to static analysis: A) the majority of the tax burden will be borne by the buyers. B) buyers and sellers will share the tax burden equally. C) the majority of the tax burden will be borne by the selle...
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Evaluate the integral $$\int_0^{\infty} \frac{1}{1+(x+\frac{1}{x})^2} dx$$. My approach is as follows: $$I=\int_0^{\infty}\frac{1}{1+(x+\frac{1}{x})^2} dx$$ $$I=\int_0^{\infty}\frac{x}{x^2+1+\frac{1}{x^2}} dx$$ $$I=\int_0^{\infty}\frac{x+\frac{1}{x}}{x^2+\frac{1}{x^2}+2} dx=\int_0^{\infty}\frac{x+\frac{1}{x}}{(x+\frac{...
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The accountant is responsible for recording expenditures and liabilities when goods and services are a. billed by the vendor. b. received. c. accepted for payment. d. Both received and accepted for payment.
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In microeconomics, how does an increase in the price of good X affect the budget line? A. The budget line pivots around its Y-intercept. B. The budget line pivots around its X-intercept. C. The budget line shifts outward (upward). D. The budget line shifts inward (downward).
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A company is considering two mutually exclusive projects. Project A has an initial outlay of $7,000 and its expected cash inflows are $10,000 in year 1 and $2,000 in year 2. Project B has an initial outlay of $7,000 and its expected cash inflows are $2,000 in year 1 and $10,000 in year 2. Both projects have WACCs of 10...
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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. language ability c. semantic ability d. associative ability
d
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Walter uses his 15 percent margin account to purchase 200 shares of Fidelity mutual funds, at $15 per share. The market price of the mutual fund shares falls to $10 per share, at which price he sells the shares. What is Walter's loss, assuming he has no other holdings in the margin account? A. $1,000. B. $2,000. C. $50...
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Project S costs $10,000 and its expected cash flows would be $5,000 in Year 1 and $4,250 in Year 2. Mutually exclusive Project L costs $10,000 and its expected cash flows would be $6,500 in Year 1, $3,000 in Year 2, and $1,000 in Year 3. Both projects have WACCs of 10%. If the decision is made by choosing the project w...
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In 2011, Bentley Company sold 20,000 units of its only product for $120,000 and incurred a total cost of $198,000, of which $36,000 is fixed costs. The flexible budget for the sales level of 26,000 units showed total costs of $212,400. Of the $212,400, how much is the fixed cost? a. $38,400 b. $20,400 c. $42,000 d....
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Which of the following statements is most correct? a) If a bond's Yield to Maturity exceeds its coupon rate, the bond's current yield must also exceed its coupon rate. b) If a bond's Yield to Maturity exceeds its coupon rate, the bond's current market price must also exceed its maturity value. c) If two bonds have t...
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Why do changes in company strategy often require changes in the way an organization is structured? A) Structure dictates how objectives and policies will be established. B) Structure dictates how resources will be allocated. C) Structure should be designed to facilitate the strategic pursuit of a firm. D) All of th...
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What is the degree of the field extension $\mathbb{Q}(\sqrt{(2+\sqrt{2})(3+\sqrt{3}}))/\mathbb{Q}$?
8
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Cole Corporation has a machine that it purchased for $133,000. The machine is being depreciated over a four-year period using the straight-line method, at which point it will have a zero estimated salvage value. The machine was purchased to make a product that can be sold for $59 each. The variable costs of manufacturi...
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Jasper Company uses the perpetual inventory method and engaged in the following transactions: 1. Purchase of $3,000 of merchandise on account, terms n/30. 2. Purchase of $3,000 of merchandise on account, terms 1/10, n/30. 3. Payment of the amount due on account from transaction #1. 4. Payment of the amount due on a...
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A firm has a net income of $159,500, depreciation of $23,100, and taxes of $22,200. What is the operating cash flow? A. $182,600 B. $159,400 C. $157,300 D. $162,700 E. $144,000
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Susan had a $1,500 car accident, which totaled her 2001 Toyota. She tried to sell the damaged car on Craigslist for $2,000. Three days later, the owner of the other vehicle in the accident showed up. The owner demanded to see the person who sold the Toyota (Susan) and tried to press charges for vehicle damage. In this...
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Beagle Inc. received {eq}\$120,000 {/eq} in cash from its owner and issued common stock. How would this transaction be recorded? a. {eq}\$120,000 {/eq} increase in Cash and a {eq}\$120,000 {/eq} increase in Common Stock. b. {eq}\$120,000 {/eq} increase in Cash and a {eq}\$120,000 {/eq} decrease in Common Stock. ...
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