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Zeta Company started the year with inventory of $275,000. During the year, the company purchased inventory worth $350,000, sold inventory for $450,000, and ended the year with inventory valued at $280,000. What was Zeta's gross profit margin?
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What will be the pH if you add 2.5 mL of 0.1 M HCl to 10 mL of the phosphate buffer in Part B? Assume a final volume of 12.5 mL. (Part B: Use 40 mM NaH2PO4 and 60 mM Na2HPO4. The pH of this buffer is 6.80. )
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The Waddell Company has a project that will reduce expenses by $10,000 per year for 3 years followed by $5,000 per year for 8 years. If the project's discount rate is 10%, what is the project's net present value?
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Both firms had negative operating cash flows last year, but firm A's cash from operating activities was $8,000 more than that of firm B. What could account for this difference?
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Dillman Corporation purchased a new machine for $150,000. The machine has a 10-year service life and will be depreciated to zero using the straight-line method. The machine is expected to generate annual revenues of $110,000 and annual costs of $50,000 in each of the 10 years. The required rate of return for the compan...
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Assume we are doing a study with a continuous dependent variable and a binary independent variable (i.e., is "treatment" received). We specify the model as: $$ y_i = \beta_0 + \beta_1 x_i + u_i $$ and assume that $u_i$ is serially uncorrelated with $E(u_i) = 0$ and $Var(u_i) = \sigma^2$. We have a sample of 10,000 and ...
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Given the following information for Huntington Power Co., calculate its WACC. Assume the company's tax rate is 40%. Debt: 5,000 6 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 97 percent of par; the bonds have a $3,000,000 face value. Common Stock: 100,000 shares outstanding at a...
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When she was 30 years old, Anna decided that she wanted to start investing for retirement. Her investments were expected to earn an annual return of 8%. At the end of each year, she projected that she would save $25,000. How much will she have at the end of 35 years? a. $639,630 b. $5,784,447 c. $6,802,139 d. $7,17...
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A US-based importer, who will need to pay 35 million Japanese yen in 6 months, expects that the 6-month forward rate of the Japanese yen is too low, relative to today's spot rate, and plans to "cover" the expected future yen payments with a 6-month yen forward contract. Assuming that the importer is correct about the ...
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We are evaluating a project for The Farstroke golf club, guaranteed to correct that nasty slice. You estimate the sales from this project to be {eq}\$730,000 {/eq} per year for 4 years. Expenses including equipment depreciation are {eq}\$530,000 {/eq} per year. The project's cost of capital is {eq}14\% {/eq}. The eq...
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The Gordon Corporation has a deferred tax liability of $12.4 million created in 2013 as a result of a temporary difference that will be reversed in 2014. In 2014, the enacted tax rate is increased from 35% to 38%. The balance in Deferred Tax Liability at December 31, 2014, should be A. $13,496,000 B. $12,760,000 C. ...
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If an organization plans to maintain the current ratio it must: a. keep its debt levels constant. b. maintain a positive cash flow. c. generate enough cash flow to meet its financing requirements. d. maintain its return on assets at its current level.
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Between August 2011 and August 2012 the number of economic part-time workers decreased from 8.8 million to 8.0 million. Assuming the change resulted from economic part-time workers transitioning to full-time jobs, this change created which of the following? a. no change to the U-3 unemployment rate. b. a decrease to ...
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Suppose that the marginal cost of production is a constant $10 and the demand schedule is as follows: Price Quantity $110 1 $100 2 $90 3 $80 4 $70 5 $60 6 Assuming that the monopolist engages...
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A call option that expires in 3 months with a strike price of $35 sells for $4. The underlying stock price is $30 and the stock pays no dividends. Assuming a risk free rate of 6%, what is the risk free rate of return on the stock? a. 8% b. 10% c. 12% d. 15% e. 16%
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The amount of cash paid by suppliers during an accounting period is equal to: A. the cost of goods sold plus the ending inventory B. the cost of goods sold plus the beginning inventory C. the cost of goods sold minus the ending inventory D. the cost of goods sold minus the beginning inventory
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A US firm has a debt obligation of Euro 10 million payable in one year. Currently the exchange rate is $0.90/Euro. The firm can buy one-year futures for Euro at $0.91/Euro. The firm can buy one-year call options on Euro at $0.04/Euro and put options at $0.02/Euro. What is the best strategy for the firm?
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A regional branch of a major bank wants to evaluate the current service level in the mailroom and in the financial advisers department. There are 10 mail room clerks, and they receive an average of 1200 pieces of mail per 8-hour day. It takes the average clerk an average of 2 minutes to open and sort the mail. Assume a...
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Pluto Corporation is considering an investment in a new project with a net present value of zero. The only initial cash outflow for the investment project is the purchase price of a machine costing $200,000. Pluto has a 12% cost of capital. The internal rate of return for this project is: A) 6% B) 10% C) 12% D) ...
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A spherical ball of radius 1 m rolls without slipping down an inclined plane of inclination {eq}\theta {/eq}. Find the linear acceleration of the ball.
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You have just purchased a new warehouse. To finance the purchase, you have arranged for a 40-year mortgage loan for 70 percent of the $4,500,000 purchase price. The monthly payment on this loan is $41,403.11. The loan calls for equal monthly payments based on an annual interest rate of 6.25 percent. What is the amount ...
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A uniformly charged insulating rod of length {eq}9.6 cm {/eq} is bent into the shape of a semicircle. The value of the Coulomb constant is {eq}8.98755 \times 10 ^9 \frac{Nm^2}{C^2} {/eq}. If the rod has a total charge of {eq}-6.05 \mu C {/eq}, find the horizontal component of the electric field at {eq}O {/eq}, the ...
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Angler Tackle Company is evaluating a capital expenditure proposal with the following predicted cash flows: Initial investment $92,700 Annual cash flow $30,000 Required rate of return 12% Determine the proposal's internal rate of return.
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Net working capital management primarily concerns: A. long-term investments. B. cash balances. C. short-term debt management. D. short-term asset management. E. both short-term asset management and short-term debt management.
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New Age Adventures, Inc. (NAA) purchased a water park last year for $1,850,000. The annual net cash inflows are $385,000 for 8 years. There is no residual value at the end of the 8 years and NAA has to use straight-line depreciation. Stockholders demand an annual return of 10 percent on investments. What is the cash pa...
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Assume an ideal gas system at 2.0 atm and 20 degrees Celsius is heated to 100 degrees Celsius. What will the final pressure of the system be?
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The cost of direct materials used in manufacturing is increased when: A. there is a favorable direct materials price variance B. there is an unfavorable direct labor efficiency variance C. the actual cost of direct materials is less than the standard cost D. there is an unfavorable direct materials efficiency varia...
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What journal entry would you make if you were an accountant in charge of recording transactions for Martha's Plant Shop when it purchased $5,000 of office supplies by issuing a 6-month note payable for $100 interest? a. Debit accounts payable $4,900, credit inventory $4,900. b. Debit notes payable $5,000, credit acco...
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If the company makes a 5% profit on its sales, how much will profits increase if it must improve the utilization of capacity by 10%? a. 2.5% increase b. 5% increase c. 10% increase d. 15% increase e. 20% increase
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Which of the following is not a typical control over purchases? a. Comparing invoice price with the price in the computer files b. Discussing and comparing purchasing prices with suppliers c. Separating authorization of purchases from custody of goods d. Processing requisitions to purchase only those items needed
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If the government gives firms a temporary investment tax credit: a. firm will invest now rather than in the future. b. it will increase {eq}\bar a_1 {/eq} c. it will increase {eq}\bar a {/eq} d. All of these answers are correct. e. None of these answers are correct.
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Use the following to answer question: (1) {eq}\downarrow {/eq} P and {eq}\uparrow {/eq} Q (2) {eq}\uparrow {/eq} P and {eq}\downarrow {/eq} Q (3) {eq}\downarrow {/eq} P and {eq}\downarrow {/eq} Q (4) {eq}\uparrow {/eq} P and {eq}\uparrow {/eq} Q Which of the above changes in price and quantity is c...
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You are to buy a used car for {eq}\$6,000 {/eq}. The dealer offers you {eq}\$1,000 {/eq} cash back and a {eq}3 \ \rm{year} {/eq} interest-free loan. Your money can earn {eq}6 \ \rm{percent} {/eq} interest compounded monthly. How much will your monthly payments be?
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Unearned revenue is understated by $6,400 and land is overstated by $17,600 at the end of the first year of operations. There are no other errors during the year. The first-year net income is $156,700. The second year net income is computed without regard to the errors. The second year end assets are overstated by: a....
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Stock in CDB Industries has a beta of 1.10. The market risk premium is 7.9 percent and the risk-free rate of interest is 3.1 percent. What is the expected return on the company's stock?
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A convertible bond has a 4.5 percent coupon and is priced to yield 6.5 percent. The conversion ratio is 20.84 and the stock price is $29.02. What is the bond's current yield to maturity?
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Tito's Markets has a cost of debt of 5.5 percent and a cost of equity of 12.2 percent. The firm uses a debt-equity ratio of .45 and its tax rate is 32 percent. What is the firm's weighted average cost of capital (WACC)? a. 8.35 percent b. 9.34 percent c. 9.87 percent d. 10.67 percent e. 11.19 percent
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Find the sum of the convergent geometric series \(\sum_{n=0}^{\infty} \frac{(0.9)^n}{4}\) if possible. Choose the correct answer below, or state that the answer is divergent. A) 2.25 B) 1.8 C) \(\frac{4}{9}\) D) The answer is divergent.
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The last dividend paid by Wilden Corporation was $3.75. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which, dividends are expected to grow at a rate of 8.0% forever. The firm's required return is 12.0%. What is the best estimate of the current stock price?
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The average unlevered beta of publicly traded sodium chlorate businesses is 0.94. Assume zero debt beta. The target capital structure that is appropriate for the Collinsville plant is 35% debt and 65% equity. Assume a risk-free rate of 9.5% and a market risk premium of 7.5%. The firm could issue debt for this investmen...
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Find an equation of the tangent line to the graph of the function {eq}y = \ln (x^4) {/eq} at the point where {eq}x = e^2 {/eq}.
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Fiserv Inc. sells two versions of its product: standard and deluxe. The standard model has a 25% profit margin and the deluxe model has a 30% profit margin. The standard model has a 28% contribution margin and the deluxe model has a 30% contribution margin. If other factors are equal, which product should Fiserv emphas...
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Evaluate the surface integral $\int\int_SF\cdot dS$, where $F(x, y, z) = \langle 1, 1, 1 \rangle$ and $S$ is the hemisphere $x^2 + y^2 + z^2 \leq 1$, $y \geq 0$ oriented in the direction of the positive y-axis.
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The 2014 income statement for Taylor's Steakhouse shows that depreciation expense was $220,000, EBIT was $555,000, and the tax rate was 35 percent. At the beginning of the year, the balance of gross fixed assets was $1370,000, and net operating working capital was $435,000. At the end of the year, gross fixed assets we...
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The Bottling Department of Rocky Springs Beverage Company had 7,600 ounces in beginning work in process inventory (50% complete). During the period, 81,600 ounces were completed. The ending work in process inventory was 8,800 ounces (20% complete). What are the total equivalent units for conversion costs?
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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 U.S. dollar is falling in value against the Japanese yen. As a result, which of the following economic series will increase? A) U.S. imports from Japan B) U.S. exports to Japan C) U.S. demand for Japanese goods D) Japanese demand for U.S. goods E) a and c
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Sally purchases 300 shares of stock at the beginning of the year for 24 dollars per share. During the year, she receives $1.50 in dividends per share. The price of the stock increases to $30 per share. She sells 200 shares at this new price at the end of the year. At the end of the year, the remaining shares are worth ...
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The European central bank sets interest rates in euros (e.g., the euribor rate). For much of 2008, the euribor rate was negative. In that case, banks earned interest by: A. borrowing euros. B. buying euros forward. C. selling euros forward. D. investing in the euro. E. holding euros.
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The minimum-cost curve is the lower boundary of the expansion path. The minimum-cost curve is the boundary of the _____. a) U-shape of the short-run cost curve b) concave shape of the short-run total cost curve c) convex shape of the short-run total cost curve d) concave shape of the long-run total cost curve e) c...
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Tri-Country Distributors had gross receivables at the end of 2012 and 2011 totaling $558,000 and $442,000, respectively. The allowance for doubtful accounts had a credit balance of $42,000 and $28,000, respectively, at the end of 2012 and 2011. What is the amount of cash collected from customers during 2012, assuming t...
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Suppose there are two markets for milk: the market for chocolate ice cream and the market for vanilla ice cream. The demand curve for milk from both markets is downward sloping. Which market will have the higher price elasticity of demand? a. The demand for milk in the market for vanilla ice cream. b. The demand for...
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A non-dividend-paying stock is currently priced at $50. Use a three-period binomial tree with an 18 percent annual risk-free rate and a 20 percent standard deviation to calculate u and d, where u is the factor by which the stock price goes up and d is the factor by which the stock price goes down.
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Hoobastink Mfg. is considering a rights offer. The company has determined that the ex-rights price will be $60. The current price is $67 per share, and there are 30 million shares outstanding. The rights offer would raise a total of $60 million. What is the subscription price?
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For a normal distribution with μ = 500 and σ = 100, which of the following values for the population standard deviation would cause X = 470 to have the most extreme position in the distribution? a. 10 b. 20 c. 25 d. 40
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The "break-even" quantity for the cost function C(q) = 10,000 + 5q and the revenue function R(q) = 10q is: a. 1000 b. 2000 c. 5000 d. 10,000
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Which of the following could increase the divisional ROI? a. Decreasing average total assets. b. Increasing revenues. c. Increasing operating expenses. d. Increasing average total assets.
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Wilden Corporation issued $100,000 of 5%, 10-year bonds for 93. Assuming the bonds pay interest semiannually, what is the present value of the bond interest payments? a. $32,488 b. $35,531 c. $30,000 d. $43,949 e. None of the above.
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Approximate {eq}\int^{1.5}_{-1.5} 2 \sqrt{x^2 - 1} dx using {eq}N = 3 {/eq} rectangles by partitioning the interval {eq}[{-1.5,1.5}]{/eq} into three sub-intervals of equal length and using the left-hand endpoints to compute the height of each rectangle. State your answer rounded to three places of decimal.
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Mitchell Airlines is using a predetermined overhead rate of $23.10 per direct labor hour. This predetermined rate was based on a cost formula that estimated $277,200 of total manufacturing overhead for an estimated activity level of 12,000 direct labor hours. Mitchell also had $35,000 of fixed manufacturing overhead t...
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Let {eq}F(x,y) = 2xy^2 \ i + 7x^2y \ j{/eq}. Find the line integral of {eq}F{/eq} around the perimeter of the rectangle with corners {eq}(4, 0), (4, 4), (-4, 4), (-4, 0){/eq}, traversed in that order.
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A current of 2.0 A flows through a resistor when it is connected to a battery of emf 4.0 V. The internal resistance of the battery is 0.10 Ω. Find the potential difference across the resistor.
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Assume a firm hires only two kinds of workers -- skilled and unskilled. It produces more efficiently if the ratio of skilled to unskilled labor is the same in all its plants. The marginal product of a skilled worker is 30, while that of an unskilled worker is 10. The wage rate for a skilled worker is $30, while that of...
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S Corp. is evaluating a proposed capital budgeting project (project Delta) that requires an initial investment of $1,600,000. The CFO wants to use the IRR method to make the decision. The company's WACC is 8%, and project Delta has the same risk as the firm's average project. The project is expected to generate the fol...
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Tiffany's wants to maintain its dividend payment at $1.50 per share. The stock is currently selling for $40.00 a share. The last annual dividend paid was $1.00 a share. The growth rate on dividends is constant at the rate the stock price has been growing. What is the cost of equity for this company? A. 4.69% B. 15.00% ...
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Evaluate the double integral using Green's Theorem, where the square with vertices (-2,2) (2,2) (2,-2) (-2,-2) is oriented counterclockwise. {eq}\int_C \int x^2 - y^2 dxdy{/eq}
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Which of the following statements is correct? A) The theory of purchasing-power parity predicts that, in the long run, a rise in a country's money supply will be accompanied by an increase in its price level that equals the increase in the money supply. B) Purchasing-power parity breaks down when the price levels of ...
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To increase cardiac output, the _____ branch of the autonomic nervous system _____ in cells of the sinoatrial (SA) node. a. parasympathetic, increases K{eq}^+ {/eq} permeability b. sympathetic, increases cyclic AMP c. sympathetic, increases Ca{eq}^{2+} {/eq} release from the sarcoplasmic reticulum d. parasympathe...
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Actual manufacturing overhead costs, minus underapplied or overapplied manufacturing overhead costs, equals A. total budgeted manufacturing overhead costs. B. total actual manufacturing overhead costs. C. total applied manufacturing overhead costs. D. actual fixed manufacturing overhead costs plus actual variable m...
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Compute the flux of {eq}F = 5x i + 5y j + 5z k{/eq} over the quarter cylinder S given by {eq}x^2 + y^2 = 4,\ 0 \le x \le 2,\ 0 \le y \le 2,\ 0 \le z \le 1{/eq}, oriented outward.
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Determine the present value of a $100,000, 6% annuity due in payment of $1,500 per year for 10 years.
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An investor buys a five-year coupon bond that pays 6% coupons semiannually for $975.37. The yield to maturity of the bond is 6.4%. She plans on selling the bond after receiving the 10th coupon payment. If the bond's price is 86.40% of par when she sells it, what is her yield to the date the bond is sold?
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ABC Co. has the following inventory data: November 1, Beginning inventory of 25 units at $12 per unit, November 7, Purchases of 75 units at $16 per unit, November 18, Sale of 50 units, November 30, Purchases of 15 units at $18 per unit. Assuming that a perpetual inventory system is used, what is ending inventory on a L...
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A ground-state hydrogen atom absorbs a photon of light having a wavelength of {eq}94.96 \ nm {/eq}. It then gives off a photon having a wavelength of {eq}1005 \ nm {/eq}. What is the final state of the hydrogen atom?
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Chastain Company is in its first year of operations and made the following journal entries in their general journal. a Cash 28,000 Sales revenue 28,000 b Inventory 15,000 Accounts payable 15,000 ...
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Find the volume of a solid with base R, where R is the triangular region bounded by the graph {eq}y = \sqrt {6x - x^2}, y = 0, x = 5 {/eq}, and the cross sections perpendicular to the x-axis are squares.
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Which of the following would be correct at a 1% level of significance, given that the attention span of small children (ages 3-5) is claimed to be Normally distributed with a mean of 15 minutes, a sample of 10 children had an average attention span of 17.5 minutes with a standard deviation of 4 minutes, and a test is p...
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Stable Equipment Company. Use the following information to prepare a statement of cash flows for Stable Equipment Company for the year ended December 31, 2015. Use the indirect method for the operating activities section of the statement. a. Net income for the year 2015 was $5,000. Accounts receivable decreased $2,000,...
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Value discrimination pricing can be effectively used only when a. The firm has some market power b. It can price-discriminate effectively c. It is legal to use value discrimination pricing d. All of the above
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Saturated refrigerant-134a vapor at 160 kPa is to be isobarically condensed to saturated liquid in a 1-shell, 2-tube pass condenser, as shown in the figure below. The tube side is an array of 1000 thin-walled copper tubes, each with an internal diameter of 0.8 cm and a length of 2 m per pass. The tubes are arranged in ...
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The target capital structure for Jowers Manufacturing is 49% common stock, 12% preferred stock, and 39% debt. If the cost of common equity for the firm is 20.1%, the cost of preferred stock is 11.1%, and the firm's tax rate is 34%, what is the weighted average cost of capital (WACC) for Jowers Manufacturing?
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Matt derives all of his utility from consuming milk shakes. He devotes his entire $20 allowance to milk shakes each week. Suppose the price of milk shakes rise from $2 to $4. Compute Matt's Consumer Surplus before the price change.
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Compute the residual dividend payout. Assume all balance sheet items reflect the current year's amounts. Sales $5,700,000 Cost of goods sold ($4,100,000) Depreciation ($300,000) EBIT $1,300,000 Interest expense ($285,000) Taxable income $1,015,000 Taxes (at 22%) ($223,300) Net income $791,700 Dividends $316,680 Additi...
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A certain spring-mass-dashpot system is set into oscillation by an initial displacement of {eq}A {/eq} cm from its equilibrium position. The mass is released at time {eq}t = 0 {/eq}. The dashpot provides a frictional force with a coefficient {eq}b {/eq}. If the initial displacement is {eq}A {/eq} cm and the maximum...
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Company recently sold $150,000 of its products on the credit. The credit terms were 1/10, n/30. In order to receive the cash discount, the seller should a) make a direct reduction to the accounts receivable b) make a cash sale for $148,500 c) return $1,500 of the credit sales d) reduce accounts payable for $1,500
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A firm evaluates all of its projects by applying the IRR rule. The required return for the following project is 18%. The IRR is _____ and the firm _____ the project. Year 0 Year 1 Year 2 Year 3 Cash flow - $27,600 $12,100 $19,400 $10,300 a. {eq}23.46 \t...
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A manufacturer of clay pottery at a certain kiln determines that the cost of the production of the n-th piece of pottery is $0.1n^2$ - $2.2n + 10$ (in dollars). Find the minimum marginal cost.
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Is there an elementary proof of the formula $$\int_0^1\frac{\ln(x)\ln(1-x)\ln(1+x)}{x}dx=\frac{\pi ^2\ln(2)}{2}\ln(2)-\frac{59\pi ^2}{48}-\frac{\pi}{4}\ln^2(2)?$$
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What is the maximum number of elements of order 2 in a non-cyclic abelian group of order 20?
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Jared Company has determined the following per unit amounts: Per Unit Variable manufacturing cost$81 Fixed manufacturing cost$21 Variable selling and administrative expenses$25 Fixed selling and administrative expenses$15 Desired ROI per unit$10 Use the absorption-cost approach to determine the markup percentage.
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Sweeter Factory has the following budgeted factory overhead costs for 2016: Expenses: Indirect materials$4,000 Indirect labor34,000 Power21,000 Straight-line depreciation62,000 Factory property tax51,000 Factory insurance22,000 Total$195,000 Prepare a flexible budget for factory overhead at 5,000 unit levels.
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A heat pump operating on a Carnot cycle has a power output of 15kW. The heat pump has a coefficient of performance of 1.67. What are the temperatures of the hot and cold heat reservoirs, in {eq}^oC {/eq}?
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Find the minimum sample size you should use to ensure that your estimate of \(\bar{x}\) is in error by no more than one IQ point, given a population with a standard deviation of 15 IQ points.
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Company C has a new machine that has an estimated life of five years and a $5,000 residual value at the end of that life. Assuming an 8% interest rate, what is the present value of the estimated residual value?
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Edward's Manufactured Homes purchased some machinery 2 years ago for $43,000. The assets are classified as 5-year property for MACRS. The company is replacing this machinery today with newer machines that utilize the latest in technology. The old machines are being sold for $12,000 to a foreign firm for use in its prod...
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A long straight wire carries a current of 50.0 A. An electron, traveling at {eq}1.0 \times 10^7 \ m/s {/eq} is 5.0 cm from the wire. What force (magnitude and direction) acts on the electron's velocity, is directed toward the wire? A) {eq}7.5 \times 10^{-16} \ N {/eq} parallel to the current B) {eq}3.2 \times 10^{-...
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Suppose you have a {eq}50\%{/eq} chance of winning, a {eq}40\%{/eq} chance of losing and a {eq}10\%{/eq} chance of ending up bankrupt. The expected wealth of a person who is in this situation will be the same as the expected wealth of a person who: A. has a {eq}50\%{/eq} chance of gaining {eq}\$100{/eq}, a {eq}40\%{/e...
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Good Morning Food, Inc. is using the profitability index (PI) when evaluating projects. The company's cost of capital is 13.39 percent. What is the PI of a project if the initial costs are $2,259,110 and the project life is estimated as five years? The project will produce the same after-tax cash inflows of $594,364 pe...
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If you have an opportunity cost of $60 and a sunk cost of $30, and the opportunity cost rises to $70 while the sunk cost rises to $40, the difference between the two costs has a. increased by $10. b. increased by $40. c. increased by $20. d. not changed.
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On May 31, Krueger Corporation received notice from the bank that its non-interest-bearing note receivable was due. The face amount of the note was $100,000, and the maturity date was December 31. The entry to record the receipt of cash will include a: a. debit to Cash for $100,000. b. credit to Interest Income for $...
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