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The common stock of the Blue Teal Corporation is selling for {eq}\$150 {/eq} per share. The stock recently paid dividends of {eq}\$6 {/eq} per share and has a projected constant growth rate of {eq}5 \ \% {/eq}. If you purchase the stock at the market price, what is your expected rate of return?
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Snider Company purchased 40 bonds of Parker Company for $5,200.00 on January 1. The bonds pay 9% semiannual interest on July 1 and January 1. How much cash will Snider receive on July 1? a. $900.00 b. $2,600.00 c. $5,200.00 d. $4,680.00 e. $1,800.00
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A company's current assets were $69,000 at the beginning of the year and $74,000 at the end of the year. Its current liabilities were $32,000 at the beginning of the year and $36,000 at the end of the year. What is its current ratio at the end of the current year? a. 2.25 b. 0.45 c. 1.95 d. 1.70 e. 3.13
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Assume that a company produced 5,500 units during an accounting period and sold 4,900 units. At the end of the period, the number of units in inventory was 600. Each unit in the ending inventory has a per unit cost of $10. If a periodic inventory system is used and the cost of goods sold is reported at $56,000, how muc...
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In a set of 10 questions, 6 are multiple choice and 4 are true/false. If a student guesses at every question, using a different randomization method each day for two weeks, what is the probability that he gets exactly 5 correct on a given day?
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Assume you are to receive a stream of payments of $2,400 per year for the next five years. Given a discount rate of 15%, what is the PV of these cash flows?
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Why do the personal net-worth figures for 2013 include assets such as gold and antiques, which were excluded from the 2012 personal net-worth figure? a. People tend to buy more expensive items in 2013. b. They are excluded from the 2012 personal net-worth figure. c. They were misclassified in the 2012 personal net-w...
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Suppose an asset with an initial cost of $110,000 is depreciated straight-line to zero over 10 years. For tax purposes, the asset falls into the five-year MACRS category. Calculate the cash flow from assets for the first year assuming the firm uses 35% tax rate, EBIT equals $16,000, and the depreciation expense equals ...
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In a simple model of the human eye, the aqueous and vitreous humors and the lens all have a refractive index of 1.40, and the tear layer has a thickness of 0.40 mm and a refractive index of 1.30. As part of a vision correction procedure, a tear layer of thickness d is placed over the cornea. The tear layer has an index...
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On January 1, 2014, Apple Inc. bought a trademark from Microsoft Inc. for $20,000,000 cash. Apple paid no legal or other professional fees in connection with the acquisition of the trademark. The remaining life of the trademark is 20 years. The straight-line method of depreciation is used for the trademark. For income ...
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A statistics professor receives an average of five e-mail messages per day from students. Assume the number of messages approximates a Poisson distribution. What is the probability that she will have 3 or fewer messages on a day?
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A voltage of {eq}{{V}}_{{{I}}}{{{=}}} {/eq} {eq}100 {/eq} {eq}\text{V} {/eq} rms is applied to a half-wave rectifier with a resistance load of {eq}1\text{ k}\Omega {/eq} with a large smoothing capacitor, {eq}{{C}} {/eq} added in parallel with the load. The rms output voltage is {eq}75.4 {/eq} {eq}\text{V} {/eq}....
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Duchess Corporation's September direct labor cost was {eq}\$22,000 {/eq} actual and {eq}\$23,800 {/eq} at standard. What is the direct labor rate variance? A. {eq}\$1,800 {/eq} unfavorable. B. {eq}\$2,800 {/eq} favorable. C. {eq}\$2,800 {/eq} unfavorable. D. {eq}\$1,800 {/eq} favorable.
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What is the value today of $4,200 to be received 8 years from today if the discount rate is 8%?
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A common stock priced at $58.50 pays an annual dividend of $4.70 which is expected to grow 13.5 percent annually. What is its expected return if the flotation cost are 3.3 percent?
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Consider a stock with the following characteristics: Price = $100; Return = 10% is the beginning price of the stock in the table below. Number of shares = 1,000; Dividend = 5% is the dividend yield. Your wealth is made up of your stocks and a riskless bond. You currently hold $25,000 of bonds, which pay the rate of in...
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Your deposit $1,000 today and the investment grows to $1,300 in two years. If inflation average of 5% over that time period, what is the per year real rate of interest did you earn? A. 8.03% B. 5.50% C. 7.64% D. 8.59%
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Alfalfa Company has the following information for the year 2015: Net income $250,000 Dividends paid to common stockholders $20,000 Dividends paid to preferred stockholders $10,000 Stock repurchases $30,000 Beginning stock price (per share) $28 Number of shares repurchased 40,000 Number of shares outstanding aft...
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I know that positive torque will increase the angular speed and negative torque will decrease the angular speed. I also know that if torque is clockwise, it's negative and if it's counterclockwise, it's positive. However, I'm not sure about the directions of the forces acting on the pulley (due to the hanging weights) ...
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Gardner Company sells a product at $35 per unit. Variable manufacturing costs are $21 per unit, and fixed manufacturing costs are $7000. Variable selling and administrative expenses are $6 per unit, and fixed selling and administrative expenses are $2000. If the planned sales volume is 5500 units, the number of units t...
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Find the number of atoms of H and O in the formula {eq}\rm (NH_4)_2SO_4. {/eq}
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At time {eq}t = 0 {/eq}, container A has 1500 grams of radium and container B has 2500 grams of radium. At {eq}t = t_1 {/eq} days, both containers have 1000 grams of radium. Find {eq}t_1 {/eq}. Assume that the half-life of radium is 1690 days. {eq}t_1 \approx {/eq} _____ days.
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Companies ABC and XYZ are in the same business. XYZ, however, is much larger than ABC. As a result of a careful analysis, you conclude that XYZ's assets have a higher degree of liquidity than ABC's assets. Based on the analysis and this information alone, what is the most likely impact on the companies' cost of short-t...
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Evaluate the line integral {eq}\int_{c}z\,ds{/eq} where {eq}c{/eq} is defined by {eq}\vec{r}(t)= 6t\vec{i} + 4t\vec{j} + 4\vec{k}{/eq}, {eq}0\leq t\leq 1{/eq}.
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What is the determinant of #((3, 0, -1, 3), (-1, 1, 0, 2), (0, 3, 2, 4), (4, 1, -1, 0))#?
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With a one-tailed test, we reject the null hypothesis if the Z-score is: a. Greater than 1.645 b. Less than 1.645 c. Either less than -1.645 or greater than 1.645 d. Between -1.645 and 1.645
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You manufacture precision ball bearings for industrial use. The opening of the current fiscal year has arrived, and you are considering the purchase of a new machine for this purpose. There are two machines that you can consider purchasing, and you have assembled the following data: Machine X Mach...
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Given the following information, calculate the beta for Stock J: Standard Deviation of returns for Stock J 35% Standard Deviation of market returns 20% Covariance between Stock J and market returns 0.16 Risk-free rate 3% Expected return on the...
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Eudaley, Inc. issues $220,000 of 9%, 10-year bonds for 96. Eudaley uses the straight-line method to amortize any bond discounts or premiums. The bonds pay interest semiannually. On the maturity date of the bonds, what is the journal entry for the final interest payment and the redemption of the bonds? a) Cash $203,2...
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A factory contains a machine, which can be set to one of three different speeds. The machine is always started at the lowest speed and then the speed is changed only when the required output is not achieved. The probability that a required output is achieved at the lowest speed is 0.8, at the medium speed is 0.9, and a...
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Water flows at 0.61 L/s through a 9.0-m-long garden hose 2.4 cm in diameter that is lying flat on the ground. The temperature of the water is 20 C. What is the gauge pressure of the water, where it enters the hose?
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An investor buys $16,000 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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I need to calculate $$I=\int_C \frac{dz}{z-2}$$ where C is the circle $|z|=3$. I have a problem with the fact that the function $\frac{1}{z-2}$ is not analytic in 2, so I can't use the theorem $\int_C f(z)=0 \forall z \notin C$. I've tried to use the Cauchy theorem instead: $$\int_C \frac{dz}{z-2}=\int_C \frac{f(z)dz}{...
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Derive the result of the CAPM using both of the following approaches: a) Directly use the single index model together with the risk minimization approach. b) By generalizing the derivation of the 2-asset portfolio.
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C and D are constants. {eq}\int^{2x}_0 x^2 \cos (cx^2 + d) dx = 5{/eq} Find the values of C and D. (c = 10, d = -3)
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What is an upper bound for the price of a 2-month European call option on a nondividend-paying stock when the stock price is $58, the strike price is $65, and the risk-free interest rate is 5% per annum?
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At 300 K, a molecule of methane gas ({eq}CH_{4} {/eq}) has a root mean square velocity of 480 m/s. At the same temperature, hydrogen chloride ({eq}HCl {/eq}) has a root mean square velocity of: a. 240 m/s. b. 645 m/s. c. 737 m/s. d. 120 m/s. e. 360 m/s.
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$$\lim_{n \to \infty} \frac{n}{\sqrt{n^2 +1}} = 1$$ $$\frac{n}{\sqrt{n^2 +1}} -1 = \frac{n -\sqrt{n^2 +1}}{\sqrt{n^2 +1}}$$ I was told I should use the conjugate but I don't see how that helps me
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This question already has answers here: Proving that $x(1-x)y'(x)+y(x)=1$ has at most one solution in $x\in[0,1]$ (5 answers) Closed 6 years ago. I need to show that the ODE $y'-\frac{y(1-y)}{x(1-x)}=0$ has at most one solution on $(0,1)$. I have shown that $F(y,y'(x))$ is $y$-dependent. I also have that for any $y_1,y...
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Zapata Corporation will pay dividends of $5.00, $6.00, and $7.00 in the next three years. Thereafter, the company expects its dividend growth rate to be a constant 10%. If the required rate of return is 15%, what is the current market price of Zapata stock?
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The real interest rate is: A. always equal to the nominal interest rate B. always equal to the percentage change in the money supply multiplied by the velocity of money C. always equal to the nominal interest rate minus the percentage change in the money supply D. the nominal interest rate minus the inflation rate
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Assume that you are trying to value a firm that has current profits of {eq}\$3 {/eq} million. Assume that the opportunity cost of funds is {eq}5\% {/eq} and the constant profit growth rate is {eq}2\% {/eq}. What is the present value of the firm?
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A company makes two products using the same production line. The line can produce up to 10,000 units of each product per month without overtime. The production line is operated 8 hours per day, 20 days per month. Each unit of product 1 takes 30 minutes to produce, while each unit of product 2 takes 20 minutes. The ...
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How does advertising under perfect competition differ from advertising under monopoly? a. monopolies advertise more. b. perfect competition never advertises. c. perfect competition advertises more. d. monopolies never advertise.
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Find the area of the region between the curves {eq}y=\frac{x}{2}+2{/eq} and {eq}y=\frac{x^2}{2}+1{/eq} for {eq}0 \leq x \leq 1.{/eq}
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McNair Company has decided to lease a machine to Southern Division. The initial cost to produce a machine of this type is $10,000. The lease has a five-year term. The machine is expected to have a useful life of 5 years with no salvage value. However, the machine can be sold at the end of the lease term to Southern Div...
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Davis Corporation's relevant range of production is 3,000 units to 9,500 units. The unit costs when it produces and sells 6,250 units are provided. If 7,000 units are produced, what are the total amounts of direct manufacturing costs incurred to support this level of production? Amount Dollars ...
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An infinite wire carries current {eq}i_{1} {/eq}. In the presence of this current, a particle of mass m and charge q moves parallel to the wire with a constant velocity v. The initial distance between the wire and the particle is {eq}d_{1} {/eq}. Find {eq}d_{2} {/eq} if the velocity of the particle is doubled, but t...
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What is the probability that a random sample of 12 components will exceed the guaranteed mean life of 1000 hours, given that the life length of a component is a random variable with an exponential distribution with a mean of 1000 hours?
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The following information is available for Marshall's Resort. Total cash collected from customers during the year $356,000 Depreciation expense during the year 42,000 Gross margin 92,000 Net income 27,000 Increase in accounts receivable 7,500 Accounts payable at the beginning of the year 22,000 Accounts payable at th...
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Given the following spot rates: 1 year 2% 2 years 3% 3 years 4% Calculate the 1-year forward rate starting in year 2.
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Patel, Inc. is an all-equity firm that has 250,000 shares of stock outstanding. The company is in the process of borrowing $2,500,000 at 7% interest to repurchase 78,125 shares of the outstanding stock. What is the value of this firm if you ignore taxes? A. $8,571,429 B. $10,000,000 C. $8,750,000 D. $9,375,000 E. ...
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Consider that there is a semistrong form of efficiency in the markets. A pharmaceutical company announces that it has received FDA approval for a new allergy drug that completely prevents hay fever. The consensus analyst forecast for the company's earnings per share (EPS) is $4.50, but insiders know that, with this new...
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If the Fed makes an open market _____ of government securities, in the quantity theory M _____ and V _____. A: sale; decreases; does not change B: purchase; does not change; does not change C: purchase; increases; increases D: sale; increases; decreases
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Determine the area of the region common to the circles {eq}r=2 \cos \theta{/eq} and {eq}r=2 \sin \theta{/eq} by using an integral in polar coordinates.
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Does there exist a power series $\sum_{n=0}^\infty a_n(x+5)^n$ that converges at $x = 7$ but not at $x = 2$?
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Estimating Cost of Debt. Diamond Inc. has a $1,000 par value bond outstanding that pays an annual coupon of 7 percent. The current market price is $1,023. If the bond has 10 years until maturity, what is the yield to maturity of the bond?
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Baltimore Company sold a long-term investment (cost $56,000) for $104,000 cash. What is the effect of the sale on Baltimore's stockholders' equity? a. Decreases by $56,000 b. Increases by $48,000 c. Increases by $104,000 d. Increases by $56,000
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A firm has a bond outstanding with ten years to maturity and a coupon rate of 6% Interest. If the required return is 8%, what is the price of the bond with a $1,000 par value?
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In 2012, 10% of a sample of 46,000 US adults who smoke indicated that they smoke at least 51 cigarettes per day. This is almost twice the percentage reported in 2006. Let p be the population proportion of US adults who smoke at least 51 cigarettes per day and let {eq}\hat {p} {/eq} be the corresponding sample proportio...
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Find the proportion of observations of a standard normal distribution that fall in the region between z = -1.54 and z = -0.15.
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Osceola Co. provides the following information for 2012: Inventory 3/1/12$90,000 Inventory 12/31/12$110,000 Purchases $400,000 FIFO cost 50% of LIFO cost An employee of the company accidentally omitted to include the LIFO reserve in the company's income statement. What is the difference between the FIFO and LIFO net ...
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A fire totally destroyed the office equipment and furniture which Monica uses in her business. The equipment had an adjusted basis of $15,000 and a FMV of $10,000 before the fire. The furniture's adjusted basis was $5,000 and its FMV was $2,000 before the fire. Monica's AGI for the year is $60.000. Monica recovered $10...
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A machine now in use was purchased four years ago at a cost of $30,000. It has a book value of $7,689. It can be sold for $6,000, but could be used for three more years, at the end of which time it would have no salvage value. What is the current amount of economic depreciation for this asset?
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If people's expectations of the price level rise, then which of the following will happen? a. the money demand curve shifts right, the price level rises, and there is a movement along the money demand curve b. the money demand curve shifts right, the price level falls, and there is a movement along the money demand c...
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Wolsey Industries Inc. sold $240,000 of its accounts receivable to Castleville Factors Inc. on a without recourse basis on November 1, 2012. The receivable is a 1-year, 10%, note with a December 31, 2013, maturity date. The sales price was $225,000. (Assume a 360-day calendar for interest computations). Prepare all of...
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Currently, you work as an accountant earning $32,000 annually. You recently inherited a piece of commercial real estate bringing in $16,000 rent annually. You decided to leave your job and operate a car-wash business in the inherited office space. At the end of the first year, your books showed total revenues of $72,0...
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Davenport Inc.'s bonds currently sell for $1,020 and have a par value of $1,000. They pay a $100 annual coupon and have a 10-year maturity, but they can be called in 5 years at $1,125. What is their yield to call (YTC)? a. 9.91% b. 8.89% c. 9.65% d. 6.60%
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The $12$-hour clock is a mark (or a remainder) of a cyclic group. If $x$ is any integer, then $\bmod 12$ the expression $3x$ means the remainder of $3x$ divided by $12$. Find the values of $x$, $0\le x\le 11$, for which $$3x\equiv 1\pmod{12}.$$
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The flexible budget for July showed expected sales of $64,000, variable costs of $34,000, and fixed costs of $28,000. Actual sales were $71,000, with variable costs of $40,000 and fixed costs of $28,000. How much is the sales volume variance? a. $5,250 unfavorable. b. $5,250 favorable. c. $2,500 unfavorable. d. $2...
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Calculate the chi-square, given the following table. Pretest Posttest 110 115 105 110 100 105 105 110 115 120 120 125 125 130 a. 0.89 b. 0.12 c. 0.25 d. 0.37
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Estes Park Corp. manufactures revolution chairs in two departments, Cutting and Assembly. The following information was taken from the company's accounting records: Estimated manufacturing overhead costs $350,000 Allocation base for each department: Cutting Assembly Estimated direct labor-hours 16,000 DLH 80,000...
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The U.S. nominal interest rate is 5%, and the nominal interest rate in Japan is 2%. If purchasing power parity holds, then the U.S. price level will __________ at the same rate as the Japanese price level. a. increase b. decrease c. remain constant d. vary in an unpredictable manner
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The following information is available for Farwell Corporation for the year just ended: Actual results Budgeted results Units produced 35,000 30,000 Fixed overhead 128,500 120,000 Variable overhead 367,500 375,000 Direct materials (per unit) $3.20 $3.50 Direct labor (per unit) $7.10 $7.00 The actual overhead rate fo...
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If the price level is below the equilibrium price, which of the following is false? a. {eq}I > Y {/eq}. b. {eq}S > I {/eq}. c. {eq}S < I {/eq}. d. {eq}Y < AD {/eq}.
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As unemployment rates increase, what happens to the prices of labor and capital? a. Prices of labor and capital both rise. b. Prices of labor and capital both fall. c. Price of labor rises; price of capital falls. d. Price of labor falls; price of capital rises.
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The money demand curve slopes downward because a rise in interest rates causes _____. (a) bonds to become more attractive (b) the Fed to decrease the quantity of money in circulation (c) the opportunity cost of holding money to decrease (d) investment spending to decrease (e) consumption spending to decrease.
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Assume the interest parity holds and the expected future exchange rate equals $2/C$. If the current exchange rate is $1.8/C, then the real interest rate in the United States must be_____ percent, given that the real interest rate in Germany is 1 percent. a. 1 b. 5 c. 6 d. -4
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Stocks A and B have a correlation of -0.50, Stock A has a beta of 1.50, and Stock B has a beta of 0.75. The standard deviation of returns for Stock A is 15 percent, and for Stock B, it is 20 percent. Portfolio P has 60 percent invested in Stock A and the balance in Stock B. The standard deviation for Portfolio P is: ...
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Find the number of students needed to estimate the population mean to within 10 units given that the population standard deviation is 90. Use a confidence level of 90%.
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For the following problem, assume that x and y are both functions of time t that are related by the given equation. Use the given values of dx/dt to find dy/dt. Equation: y = 6x^2 + x; Given Value: dx/dt = 5 when x = 4
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The proprietor of the Geneva-Heidenescher case is the sole owner and manager of the Geneva-Heidenescher Hotel. She reports the following information for 2013: Units of occupancy 65,000 Revenues $1,625,000 Operating expenses $1,100,000 Accumulated depreciation $140,000 Depreciation expense $75,000 Cash $15,000 A...
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Let $p_{k} : \mathbb R^k \rightarrow \mathbb R$ be defined by $$p_{k}(x_1, x_2 , . . . , x_k) = x_1 x_2 \cdots x_k,$$ for all $(x_1, x_2 , . . . , x_k) \in \mathbb R^k.$ Find $d_k = \sup\{ |p_{k}(x)|: x \in \mathbb R^k , |x| \leq 1\}.$
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An investment of $10,000 today will return $20,000 at the end of 6 years. What is its internal rate of return? A. 12% B. 13% C. 14% D. 15%
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The cost of equity for a firm: a) equals the after-tax cost of debt for a firm. b) increases as the unsystematic risk of the firm increases. c) equals the risk-free rate plus the market risk premium. d) equals the pre-tax cost of debt for a firm. e) equals the risk-free rate plus the firm's own beta times the mark...
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An all-equity firm currently has 110,000 shares of common stock outstanding at a market price of $51 a share. The company wants to issue some debt, face value of $1 million, with a coupon rate of 5 percent, and use the proceeds to buy back 20 percent of the firm's common stock. The debt will be issued at a market yield...
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A firm is considering dropping product X100. Product X100's revenue, costs, and expenses appear below for 2015: Sales revenue$210,000 Variable manufacturing expenses$90,000 Fixed manufacturing expenses$70,000 Allocated fixed manufacturing expenses$30,000 Variable selling and administrative expenses$40,000 Allocated f...
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If X is normal with mean 0 and variance 1, compute P(X > 1).
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Assume the random variable x is normally distributed with {eq}\mu{/eq} = 400 and {eq}\sigma{/eq} = 43. Find P(x < 468)
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I have a binary string such as '11111100000' in 64-bit format. I want to count the number of set bits (1s) in that binary string. How can I do that?
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A company's net cash flow from operating activities for the current year is $650,000. This is $250,000 more than last year's cash flow from operating activities. On the statement of cash flows, this would be shown as: A) cash provided by operating activities, $650,000; net increase (decrease) in cash, $400,000. B) ca...
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Durstel Company purchased new equipment for $37,000 and sold old equipment with a book value of $5,000 for $3,000 cash. The new equipment is being depreciated on a straight-line basis over 10 years to a zero estimated salvage value. Annual operating cash inflows are $35,000 and outflows are $12,000. Based on this infor...
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Roberto Company has a Bottling Department that begins work on 5,000 ounces each day. The department has a beginning work in process inventory of 2,000 ounces and an ending work in process inventory of 3,000 ounces. During the period, 4,000 ounces were started and completed. If the process is complete at the end of the ...
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Clover City has decided to sell a $1,000,000 bond with a 7% coupon rate. The bonds mature in 8 years and pay interest semiannually. The market interest rate is 8%. Required: How much is the price of the bond in the market?
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Using Spector's model, this meeting should focus on A) clearly outlining the new strategy and its implications for people and structures. B) developing a step-by-step process for measuring client service. C) aligning the internal, external, and employee environment. D) involving everybody in a shared diagnosis firs...
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An increase in the price level and a decrease in real GDP in the short run could be the result of: A. a prolonged period of very good weather. B. a decrease in the money supply. C. a decrease in consumer confidence. D. an increase in consumer confidence. E. an increase in the money supply.
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Suppose that 8% of manufactured parts are defective. If you select 6 manufactured parts, what is the probability that at least one of them is defective?
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Find the present value of $6,000.00 due in 4 years at an interest rate of 8% compounded quarterly. a. $4,339.62 b. $3,407.40 c. $6,497.23 d. $6,378.69 e. $4,751.94
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Peterson Co. acquired an 80% interest in the Hill Corporation on January 2, 2012, for $440,000. Hill reported the following balances in the accounts at that date: Cash $20,000 Non-current assets 300,000 Total assets $320,000 Liabilities ($50,000) Common stock 160,000 Additional paid-in capital 10,000 Retained ...
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The magnetic field in a region of space is given by the expression {eq}B = b_1zi + b_2x^2j - b_3xyk {/eq}, where {eq}b_1 = 2 T/m, {/eq} {eq}b_2 = 3 T/m^2 {/eq}, and {eq}b_3 = 5 T/m^2 {/eq} are constants and x, y, and z are in meters. The dimensions of the area in the xy plane shown are 2m by 4m. Find the net magnet...
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