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A tax cut increases aggregate demand in the short run because A. it reduces the cost of labor, B. it decreases the price level and therefore the interest rate, C. it increases the current income and hence current consumption, D. it increases current investment.
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A firm has 100 million shares outstanding with a price of $5 per share. The firm has a beta of 1.2, the market risk premium is 6%, and the risk-free interest rate is 2%. The company also has $1 billion in debt outstanding, the average maturity of this debt is ten years, and the debt has an YTM of 6.4%. How much does th...
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Perine Company has 2,526 pounds of raw materials in its December 31, 2010, ending inventory. Required production for January and February of 2011 is 4,270 and 5,750 units, respectively. 3 pounds of raw materials are needed for each unit, and the estimated cost per pound is $8. Management desires an ending inventory equ...
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Nelson Company has the following data: Inventory conversion period 40 days Receivables collection period 65 days Payables deferral period 10 days What is the firm's cash conversion cycle? Assume a 360-day year for calculations, and if needed, round your answer to the nearest whole day. a. 95 days b. 115 days c. 12...
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Which is not an input parameter to the 'Biotic Ligand Model'? a) {eq}Fe {/eq} b) {eq}pH {/eq} c) {eq}Ca {/eq} d) {eq}Na {/eq} e) {eq}SO_4 {/eq}
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The internal rate of return (IRR) does not take account of cash flows over a project's full life. True or False
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Delilah partnership had a capital balance of $400,000 on January 1, 20x1. During 20x1, the partnership generated net income of $72,000 and distributed cash of $90,000 to the partners. The partnership agreement provided that all cash distributed should be treated as a return of capital. No additional investments were ma...
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Davis Advertising Company uses a job-costing system. Direct labor hours are allocated to jobs based on estimated direct labor hours of 500,000 and $750,000 in total direct labor cost. Actual results show the following: Estimated direct labor hours 40,000 Actual direct labor hours 50,000 Estimated direct labor cost $...
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Company A currently has $1,500 of net income and $1,200 of free cash flow. If the company spends $500 on capital expenditures and $100 on working capital, and makes $100 in dividend payments, what is the firm's economic value added (EVA)?
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Quasar Corporation acquired a trademark in exchange for 100,000 shares of its $2 par value common stock. On the date of the exchange, the market value of the shares was $68 per share, and the trademark had a fair value of $6,400,000. The journal entry to record this transaction would include a: a. credit to Trademark ...
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In its first month of operation, Jobber, Inc. purchased 250 units of inventory for $5, then 330 units for $6, and finally 340 units for $7. At the end of the month, 300 units remained. Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO.
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Find the flaw in the following calculation: {eq}\displaystyle A^2 = \sum_{i = 1}^n (a_i - \bar{a})(a_i - \bar{a}) = \sum_{i = 1}^n a_i^2 - 2 a_i \bar{a} + \bar{a}^2 = \sum_{i = 1}^n a_i^2 - 2 \bar{a} \sum_{i = 1}^n a_i + \sum_{i = 1}^n \bar{a}^2 = \sum_{i = 1}^n a_i^2 - 2 \bar{a} \cdot n \bar{a} + n \cdot \bar{a}^2 = \...
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Which company has the highest operating profit margin, and what is that margin? a. Cross Country, 14.5% b. Frontier, 8% c. United, 4.5% d. Southwest, 25%
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Log-log regression, where both the dependent and independent variables are transformed using the logarithm, is more commonly known as?
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You own shares of CD Supplies and currently earn a return of 10%. The company is expected to maintain a constant dividend growth rate of 5% and recently paid dividends of $1.20 per share. If you decide to sell your shares and move your money into government securities earning 6%, what is your capital gain/loss per shar...
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The current yield on U.S. Treasury bills is 3%. The risk-free real rate of return is expected to be 2%. What is the average expected inflation rate over the coming year? a. 1% b. 2% c. 3% d. 4%
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Winchester Corp.'s revenue per month from sales is $10 million and doesn't change from month to month, no matter what the price of its output is. What is the price elasticity of demand for Winchester's output?
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Nowlin Co. is considering investing in a project that requires an initial investment of $10,400. The project will return $8,000 after one year and $3,000 after two years. Assuming a 12% discount rate, what is the net present value of this project? A. $(2,917) B. $(100) C. $800 D. $1,100
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Each of the following situations creates an accounting problem that must be solved in order to prepare the financial statements except a. when cash is paid to suppliers, but the purchase is not recorded until the next year on the statement of cash flows. b. when cash is collected from customers prior to providing a s...
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How many moles of electrons are needed to reduce 4.7 moles of \(\rm Co^{3+}\) to Co metal? {eq}\rm Co^{3+}(aq) + 3e^-\longrightarrow Co(s){/eq}
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When a corporation sells shares of its stock below their original issue price, a) it should not record a gain. b) it should record a gain equal to the difference between the amount received and the par value of the shares sold. c) it should record a gain equal to the difference between the amount received and the or...
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Sapp Trucking's balance sheet shows a total of $30 million long-term debt with a coupon rate of 9%. The yield to maturity on this debt is 11.11%, and the debt has a total current market value of $25 million. The balance sheet also shows that that the company has 10 million shares of stock; the total of common stock and...
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Niobium metal becomes a superconductor when cooled below {eq}9 K {/eq}. Its superconductivity is destroyed when the surface magnetic field exceeds {eq}0.100 T {/eq}.In the absence of any external magnetic field, determine the maximum current a {eq}3.92-mm {/eq}-diameter niobium wire can carry and remain superconduct...
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I am trying to evaluate the polar curve $r=\sqrt{|\sin(n\theta)|}$ between $0$ and $2\pi$. Wolfram returns a constant value 4 for any $n$. My manual calculation gives me $$\textrm{I}=\frac{1}{2}\int_{0}^{2\pi}|\sin(n\theta)|= \left[\text{sgn}(\sin(nx))\frac{\cos(nx)}{n}\right]_{0}^{2\pi} $$ which can't be evaluated at ...
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Use Green's Theorem to find the counterclockwise circulation and flux for vector field F = (y-x^2)i + (x + y^2)j and C the triangle made by the lines y=0, y=x, and 2x+y=4. Evaluate by both direct integration method and the normal form of Green's Theorem.
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Peterson Corp. has decided to invest in a new machine that costs $67,908. The machine is expected to save $22,000 per year in cash operating expenses for three years, after which time the machine will be discarded. If the discount rate is 8%, what is the net present value of this investment? (Ignore income taxes.)
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_____ is generally accepted as being the best measure of capital budgeting projects. A) Net present value B) Internal rate of return C) Payback D) Accounting rate of return
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A profit-maximizing, perfectly competitive firm uses labor (L) and capital (K) to produce its output, according to the production function q = 6 L^{2/3} K^{1/3}. Currently, the price of labor is $4 and the price of capital is $1. The firm can sell its output for $6 per unit. In the short-run, the firm's capital stock i...
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A thin, square piece of sheet metal has sides of length L. The center of the square is at the origin, and the sheet has a uniform surface charge density s. A square hole of side L/2 is cut out of the sheet. Find the magnitude of the surface charge density in terms of s on the remaining (shaded) area. Express your answe...
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On December 31, the cash payments journal was not balanced. An examination of the general ledger accounts showed a $24,000 balance in the Accounts Payable control account. A comparison of this account with the individual accounts payable subsidiary ledger showed that the ledger accounts had a total balance of $204,000....
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By recognizing the series {eq}1 - \frac {1}{5} + \frac {1}{5^2} - \frac {1}{5^3} + ... + (-1)^n \frac {1}{5^n} + ... {/eq} as a Taylor series evaluated at a particular value of x, find the sum of the convergent series.
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At an effective annual interest rate of 14%, how much would you have to deposit today to fund five annual payments of $5,000 each? a. $18,000.00 b. $17,831.01 c. $19,375.41 d. $22,467.24
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High Flyer Airlines has a zero-coupon bond issue outstanding with a face value of $56,000 that matures in 8.5 years. The bond is selling for $34,320 today. The bond makes no coupon payments, but it is customary to declare coupons at the beginning of each year. What will be the amount of the coupon that the high flyer ...
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Compute {eq}\int_C e^z dz {/eq} along the path C: segment from 0 to 2, followed by the quarter circle from 2 to 2i, followed by the segment from 2i to 0.
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I have to calculate $$ P(X_1 \lt X_2 \mid X_1 \gt 0 , X_2 \gt 0) $$ where $X_1, X_2$ are standard normal distribution random variables and independent. I have to use conditional probability to calculate this. I have found that $F_{X_1,X_2}(x_1, x_2) = \frac {1}{2\pi} \int_0^{x_1} \int_0^{x_2} e^{\frac {-u^2 - v^2}{2}} ...
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A stock has a beta of 1.12, the expected return on the market is 10.6 percent, and the risk-free rate is 4.6 percent. What must the expected return on this stock be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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{eq}Na_{2}SO_{4}(s) + 4C(s) = Na_{4}C_{2}S_{3}(l) + 2SO_{2}(g) {/eq}? The enthalpy of the reaction is {eq}+2477\ kJ/mol {/eq}. What is the enthalpy change if 25.0 grams of {eq}Na_{2}SO_{4} {/eq} is decomposed?
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Let $n$ be a natural number and $k$ an integer. Evaluate the polynomial $P_{n}(x)=\sum_{i=0}^{n}x^{i}\frac{k^{i}}{i!}$ at $x=-k$. Is there a name for such polynomials?
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Millet Manufacturing Corporation, a manufacturer of telephone switches, has provided the following information concerning its single product. Direct materials$54 Direct labor$80 Variable manufacturing overhead$18 Fixed manufacturing overhead$32 Variable selling & administrative expenses$12 Fixed selling & administrat...
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Calculate the magnitude of the bonding energy (in eV) for KCl, which has the sodium chloride crystal structure, and a lattice parameter of 0.281 nm. The atomic radii of K and Cl are 0.138 nm and 0.181 nm, respectively.
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Jorge Company is considering issuing a 15-year bond with a face value of $100,000. The current market yield is 4%, compounded semi-annually. If the bond pays interest semiannually and the company issues the bond at its face value, what is the stated annual interest rate on the bonds? a. 5.47% b. 4.00% c. 3.95% d. 4...
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A company that manufactures bicycles has to pay $200,000 per year in interest and $100,000 per year in workers' wages. Which of the following best describes this payment stream? a. Simple cash flow b. Revenue stream c. Expense stream d. Neither a revenue nor an expense stream
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Sally hires three types of labor: white-collar, blue-collar, and service staff. Each labor type has a different price per hour (wage rate), as does each type of work. If the last hour of white-collar labor hired adds $40 to Sally's profit, the last hour of blue-collar labor hired adds $20 to profit, and the last hour ...
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Bongo Boards, Inc. plans to pay an annual dividend of $1.20 a share on its common stock next year. This year, Bongo paid a dividend of $1.15 a share. The company adheres to a constant rate of growth dividend policy. What will one share of Bongo's common stock be worth 7 years from now if the applicable discount rate is...
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Use implicit differentiation to show that the derivative of y with respect to x for the equation ln (x + y) = y(1 - x) is y' = 1/y - x/(y + x^2)
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The Haslam Corporation just issued a $1,000,000, 6% bond for $1,040,000. The bonds are due in 10 years. The first interest payment is due a year from today. The bonds are appropriately priced at issuance. What will the company report on its income statement for the first year ended Dec. 31?
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The cumulative frequency distribution indicates the percentage of data items with values a. less than or equal to the class midpoints. b. equal to or greater than the class midpoint. c. less than the class midpoint. d. equal to the class midpoint.
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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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Suppose that trucks arrive at a receiving dock with an average arrival rate of 3 per hour. What is the probability that no more than 2 trucks will arrive in a two-hour period?
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Find the derivative of the function: {eq}y = 2 \text{ arctan} (4x) + 3 \ln (1 + 2x) {/eq}
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End A of the 2-mm-diameter wire has been attached to a rigid support while end B is fitted with a rigid cap. Determine the smallest elastic core diameter d which will develop maximum stress in the outer region of the plastic. The wire is subjected to an axial load P = 6 kN. Assume that G = 46 GPa and σ = 56 MPa. Round ...
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Consider the titration of 100.0 mL of 0.50 M {eq}\rm CH_3NH_2 \ (K_b = 5.2 \times 10^{-4}) {/eq} with 0.50 M {eq}\rm HClO_4 {/eq}. Calculate the pH after 80.0 mL of {eq}\rm HClO_4 {/eq} has been added.
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Given the recurrence equation: $T(n) = 2T\left(\frac{n}{2}\right) + n\log n$, $T(1) = 1$, $T(2) = 2$. Show that $T(n) \leq an\log n$.
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The yield to maturity on a coupon bond can be written as a single-factor model: the excess return from the bond return over that from a comparable zero coupon bond. Which of the following is true about the sensitivity of the bond return to the factor? a) the return depends on the market price of the bond b) the retur...
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Pye Company expects to operate at maximum capacity of 20,000 units per month. At maximum capacity, variable costs are $80,000 and fixed costs are $60,000. The selling price is $18. Which of the following statements is true? A. Net income will be $70,000 at 15,000 units sold. B. Income will be $40,000 at 10,000 units...
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For a single period, the possible return for a stock is 20% with a probability of 0.3 and -5% with a probability of 0.7. What is the standard deviation of this stock?
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A stock is expected to have a dividend of {eq}\$1.20 {/eq} per share for the next {eq}2 {/eq} years and a dividend of {eq}\$1.50 {/eq} per share for the following {eq}2 {/eq} years. What should be the current price of the stock given that the required rate of return for stocks like this is {eq}11\% {/eq}?
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Elliott Company makes organic fertilizer. Its production cycle starts in Department 1 and ends in Department 2. The following information is available about the direct materials in Department 1: The company uses the average cost method to cost process. 1. In the current period, the equivalent units of direct material...
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A $5,000 mortgage is to be repaid over 8 years with an annual interest rate of 8.75%. Find the annual payment. a. $809.94 b. $917.66 c. $815.64 d. $827.36
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Assume you have a 12-year investment horizon and are considering two bonds with 10% yields to maturity. Bond X has an 8% annual coupon, while Bond Y has a 12% annual coupon. If market interest rates decline from 10% to 8%, which of the bonds will have the greater percentage increase in price? a. The two bonds will hav...
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Benton Corporation produces annual reports and published balance sheets for widespread distribution to stockholders and the general public. A group of shareholders has sued Benton claiming that the published balance sheet contains misstatements and that the company is thereby liable to the shareholders for the losses i...
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How can I calculate the length of an ellipse with an online calculator, knowing that the length of an ellipse is given by the integral $I = 4 a \int_{0}^{\pi / 2} \sqrt{1 - e^2 \sin^2{\theta}} d\theta$?
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In 2017, Bronfren, Inc., a manufacturer of cerebral palsy treatments, switched from the FIFO to the LIFO inventory method. On January 1, 2017, inventory was $500,000 (based on FIFO). If the inventory at the end of 2017 (based on FIFO) is $450,000, what amount should Bronfren report as inventory on the balance sheet as ...
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The market price of 1,000, 10-year, 5% bonds is $100,000. Which of the following is not a characteristic of the bonds? a) The bonds were sold for a premium. b) The cash interest payment is $50,000. c) The semiannual stated interest rate is 2.5%. d) The market rate of interest is 5%.
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Compute the flux of the vector field \(\vec F =3y \vec {\mathbf i} + 5\vec{\mathbf j} - 3xz \vec {\mathbf k}\) through the surface \(S\), which is the surface \(y = x^2 + z^2\), with \(x^2 + z^2 \leq 1\), oriented in the positive \(y\)-direction.
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How can I find the fundamental set of solutions of the O.D.E. $\mathbf {y}'=\left( \begin{array}{cc}1 & 2 \\ 3 & 4\end{array} \right)\mathbf {y}$?
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Agrava Ltd. provides the cost for its single product using process costing. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process. Physical units Materials Conversion Work in process, August 1 ...
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A uniform rod of mass $m$ and length $L$ makes a rotational motion in the horizontal plane with angular speed $\omega_0$ about a vertical axis passing through its center of mass and perpendicular to the plane of the rod. A small sphere of mass $m$ is suspended by a light string of length $L$ from the center of mass of ...
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Find the maximum of f(x,y) = 4y^2 - 16y + 6x^2 - 3 using the Lagrange Multipliers method given the constraint 2x^2 + y^2 = 16.
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You have just started work and have a pension fund into which you are making annual payments. The applicable discount rate is 11.12%. At the end of 51 years, when you retire, you expect to withdraw $114,000 per year for 18 years. How much must you deposit annually to fund your retirement? (Do not round intermediate cal...
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John purchased a 30-year par value bond with an annual coupon rate of 7% compounded semiannually at a price of 1075.13. The coupons begin paying 1.5 years after the bond is purchased, and the bond can be called at par value X on any coupon date starting at the end of year 20, after the coupon is paid. If the price guar...
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Suppose we have two fair dice, with six sides (numbered 1 to 6) and with four sides (numbered 1 to 4). Suppose we pick a die at random and throw it, the result is announced to be 2 and the die is discarded. Then we pick the remaining die and throw it. What is the expectation of the second throw? Why do two different ap...
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Given $a_n = 1+2+3+...+n = n(n+1)/2$ and $b_n = 1^3+2^3+3^3+...+n^3 = n^2(n+1)^2/4$, solve this system of recurrence relations and initial values: $a_1=b_1=1, a_{n+1} = a_n + (n+1), b_{n+1} = b_n + (n+1)^3$.
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The equilibrium output for a competitive firm is 1,800 units. At this output level, the marginal cost is $6, the price is $10, and the average total cost is $5. What is the total profit of the firm? A. $10,800 B. $21,600 C. $6,480 D. $3,240
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The circle {eq}x^2 + y^2 = 25 {/eq} is inscribed in a rectangle that is not a square. Use the formula for the area of a rectangle to find the dimensions of the rectangle with the maximum area that can be formed in this way.
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A manufacturing company reports the following information for the year. Beginning Ending Direct materials $30,000 $50,000 Direct labor 36,000 40,000 Variable overhead 30,000 45,000 Fixed overhead 24,000 30,000 ...
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A firm has $5 million of debt outstanding with a coupon rate of 9%. It is considering a new project which will increase the firm's EBIT by $500,000 per year for the next 5 years. What is the value of this project to the firm's shareholders if the firm's unlevered cost of capital is 13%? Ignore taxes.
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A company had cash revenues of $46,000 and cash expenses of $40,000. During the year, the assets of the company increased by $34,000 and the liabilities increased by $30,000. Refer to the table. What was the net income or loss for the year?
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An electron in a one-dimensional box of length 0.99 pm is excited from the ground state to the n = 3 excited state. What is the photon energy of this transition?
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New Bond Issues by Corporations The table below provides data concerning the characteristics of bonds issued by four different corporations. AAA-rated bonds 2-year 5-year 10-year Nash Corporation $51,319 $69,412 $87,500 Flynn Corporation 56,343 90,148 103,150 Eagle Corporation 49,712 60,242 75,375 Scribble Corporati...
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Find the average value of f(x, y) = x^2y over the triangular region with vertices (0, 3), (1, 1), and (3, 3).
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Suppose that a firm's annual earnings (EPS) per share are $3.00 (this is 12 times per year of $0.25). The discount rate to determine the value of a share is 10%. The firm can increase the EPS by $1 per share, but only if they spend $2.50 per share on an advertising campaign. The advertising campaign would be an additio...
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New Age Theatres is evaluating a project that will increase revenues by $35,000 per year. The project will also increase expenses by $20,000 per year. New Age Theatres's tax rate is 21 percent. The project will be carried out over five years and will have an initial cash outlay of $30,000. No other cash flows are expec...
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The Royal Company has a marginal cost of capital of 12.00% and expects to have $540,000 of retained earnings available in the coming year. If the company follows the residual distribution policy, what will be its payout ratio? A. 60% B. 66% C. 56% D. 44% E. 40%
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Machine A costs $30,000 and has life of 5 years, Machine B costs $20,000 and has a life of 4 years. Benefits from Machine A are estimated at $6,500 per year, and benefits from Machine B are estimated at $4,600 per year. The salvage value of Machine A is estimated at 25% of the original investment cost, and the salvage ...
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Approximate the sum of the series $\sum_{n = 1}^{\infty} \dfrac{(-1)^{n - 1}}{n^{9}}$ correct to four decimal places.
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A major appliance firm is considering marketing a new line of small household refrigerators in Arizona. After a marketing study of the proposed line, the selling price for the new line has been established at $690 per unit. The relevant accounting data from the firm's records for 2012 are provided below: - The variabl...
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On June 26, Ivy Company had 7,400 units of inventory on hand that were purchased on June 5 for {eq}\$63 {/eq} per unit. During June, 5,700 units were purchased on June 15 for {eq}\$59 {/eq} per unit and 8,300 units were purchased on June 27 for {eq}\$55 {/eq} per unit. A physical count of inventory on hand on June 3...
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Keira Mfg. is considering a rights offer. The company has determined that the ex-rights price would be $59. The current price is $73 per share, and there are 43 million shares outstanding. The rights offer would raise a total of $77 million. What is the subscription price?
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You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.40 a share at the end of the year (D1 = $2.40) and has a beta of 0.75. The risk-free rate is 2.75%, and the market risk premium is 5.50%. Justus currently sells for $32.00 a share, and its dividend is expected to ...
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I want to find the volume between $z=x^2+y^2$, $x=0$, $x=2$, $y=0$, and $y=3$. Here's my attempt: I set up the integral $\int_{0}^{2} \int_{0}^{3} (x^2+y^2) \, dy \, dx$. I solved the inner integral first: $\int_{0}^{3} (x^2+y^2) \, dy = [x^2y + \frac{1}{3}y^3]_{0}^{3} = 3x^2 + 9$. Then I integrated the result with res...
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A firm currently faces the following capital structure: Bonds: $20 million face value, 6 years maturity, yield to maturity of 7.5 percent, price of 110.00 Common stock: 400 million shares outstanding, par value of $1, beta of 2.5 Additional information: Rf = 5 percent Market risk premium = 8 percent Tax rate = 40...
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Susan wants to save up a lump sum of money to pay for her new house. If she invests $2000 per month for 5 years and the account earns 5% interest, how much money will she have in her account at the end of the 5 years?
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Jagger Corporation uses direct labor hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $198,624. At the end of the year, actual direct labor hours for the year were 23,900 hours, manufacturing overhead for the year was underapplied by $17,100, and the...
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Mural Inc. has sales of $40,500, costs of $15,000, depreciation expense of $2,100, and interest expense of $1,650. If the tax rate is 35%, what is the operating cash flow (OCF)?
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Yanker Corporation manufactures part EEE1 for use in its production. The company makes 20,000 units of the part each month. The part is sold on the open market for $27.30 per unit; however, it is currently being purchased from an outside supplier for $16.00 per unit. An analysis of the company's existing manufacturing ...
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Winthrop, Inc. bought all outstanding shares of Lepage Corporation on January 1, 2014, for $700,000 in cash. This amount of the consideration transferred results in a fair value allocation of $35,000 to equipment and goodwill of $88,000. At the acquisition date, Winthrop also agrees to pay Lepage's previous owners an a...
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$$\lim_{n\to +\infty} \frac{(n!)^{\frac{1}{n}}}{(n+1)}$$
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Maestas Industries has the following sales and costs data: Sales $1,850 Variable costs 520 Fixed costs 870 Earnings before interest and taxes (EBIT)?? The firm can borrow at 7.2% per year. What is the firm's EBIT if sales increase by 20%? (Please answer in the following format : X,XXX,XXX.23 - Comma Separated For...
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Chrysler, Inc. produces 100 tires and sells them to Ford Motor Company for $500 each. Ford uses the tires to produce its Ford Explorer trucks, which it sells for $25,000 each. Suppose the entire Ford assembly plant is destroyed by a hail storm. Ford has no further use for the tires, and so it buys them back from Chrysl...
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