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A company has a bond issue outstanding that matures in 16 years and pays an 8.75% coupon rate (with semiannual payments). The bond currently sells for $984.76. What is the pretax cost of debt for this company?
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Why does the expression $\text{Cov}(\hat{\beta}_1, \hat{\beta}_2) = E[\hat{\beta}_1 \hat{\beta}_2] - E[\hat{\beta}_1]E[\hat{\beta}_2]$ simplify to $\text{Cov}(\hat{\beta}_1, \hat{\beta}_2) = \frac{E[\hat{\beta}_1 \hat{\beta}_2] - \beta_1 E[\hat{\beta}_2] - \beta_2 E[\hat{\beta}_1] + \beta_1 \beta_2}{1}$ after adding $-...
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If the cost function is {eq}c(x) = 6000 + 400e^{0.01x} {/eq}, find the cost of producing {eq}1000 {/eq} units.
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A light, rigid rod of length 1.00 m rotates about an axis perpendicular to its length and through its center, as shown in the figure below. Two identical masses m = 4.15 kg are hung symmetrically from the ends of the rod. The moment of inertia of the rod is negligible compared to the moment of inertia of the masses, wh...
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Suppose a sample is taken from a normally distributed population whose standard deviation is 10. Consider the following levels of confidence: 90%, 95%, and 99%. Which of the following statements correctly describes the relationship between the confidence level and the margin of error? Explain your answer. a) As the co...
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$$\left( \frac{a+2b}{a+2c}\right)^3+\left( \frac{b+2c}{b+2a}\right)^3+\left( \frac{c+2a}{c+2b}\right)^3 \geq3$$
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Suppose a country that sells a significant quantity of goods and services abroad experiences a _____ in the exchange rate. The country's domestic _____ will decrease. A) dollar depreciation; real income B) dollar appreciation; net exports C) devaluation; demand for its domestic currency D) devaluation; net capital ...
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Suppose an investment offers to double your money in 12 years. a. What annual rate of return are you being offered if the investment is risk-free? b. What annual rate of return are you being offered if the investment is considered risky?
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If Project A has a higher payback than Project B, then it is not necessarily correct to say: A) Project A has a higher NPV than Project B. B) Project A has a shorter projected payback than Project B. C) Project A has a higher IRR than Project B. D) All of the above are correct.
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The market price for low-end laser printers is well established at $400 per unit. ABC Technologies is considering entering this market and has enough available space in its plant to accommodate a new production line. However, several pieces of new manufacturing equipment would be required, which are estimated to cost $...
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Find the maximum value of n for which the integral {eq}\int^{4n}_{n}\frac{dt}{t} \leq 2{/eq} is true.
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An analyst has gathered the following information for a 10-year corporate bond: Redemption value $1,000 Face value $1,000 Current market price $926 Maturity 10 years Yield to maturity 4% The company's tax rate is 40%. The bond makes semiannual coupon interest payments. Calculate the after-tax cost of debt.
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Assume that every time a group of firms becomes technologically mature, there is a shift toward a more labor-intensive production process. If so, we might expect that: A. the elasticities of labor demand with respect to the wage rate have increased since 1960. B. total employment has increased since 1960. C. the ela...
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Although psychotherapy may be applied to anything from a brief crisis to a full-scale psychosis, most psychotherapists do not treat patients who suffer from a. dissociative disorders, such as multiple personalities. b. generalized anxiety disorder or post-traumatic stress disorder. c. major depressive disorders or s...
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What is the p value for the following repeated measures ANOVA test statistics: 740 and 170 respectively?
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Consider the following information: Congress increases government spending (G) by $100 in an attempt to boost the economy. Assume that consumers spend 90% of their additional income (MPC = 0.9). Consider only the initial change in income (i.e. the first round of the multiplier) and suppose that there are no changes in ...
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Assume a firm has a marginal cost of $2.50, a selling price of $12.50, a tax rate of 40 percent, and a profit of $150,000 (after taxes). The number of units sold is: A) 10,000 B) 12,000 C) 24,000 D) 30,000
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An average of 32 customers arrive per hour at a grocery store checkout counter. What is the probability that exactly 10 will arrive in the next 90 minutes?
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Which of the following would not appear on a firm's accounting statement? a. Insurance costs b. Sunk costs c. Explicit costs d. Implicit costs e. Fixed costs
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Assume that during 2015, Apple Inc. reported net cash provided by operating activities of $8,024 million, net cash used in investing activities of $20,305 million (including cash spent for plant assets of $5,871 million) and net cash used in financing activities of $1,616 million. Dividends of $1,242 million were paid....
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Edward's Manufactured Homes purchased some machinery 2 years ago for $54,000. 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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Kramer & Sons, Inc. is considering buying a new machine costing {eq}\$37,000 {/eq}. Its management is estimating the following cash inflows from the investment: Year 1 {eq}\$10,000 {/eq} Year 2 {eq}\$12,000 {/eq} Year 3 {eq}\$20,000 {/eq} Year 4 {eq}\$6,000 {/eq} Year 5 {eq}\$6,000 {/eq} The straight-line m...
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You are considering expanding your business and need to have additional funds. Which of the following actions would generally result in a higher cash flow, assuming all else equal? A. Raise the retention ratio B. Decrease the debt-equity ratio C. Decrease the profit margin D. Decrease the equity multiplier E. Incr...
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If the Fed buys government bonds from the public, thereby increasing the money supply, how will this action affect interest rates, if the public does not change its holdings of currency and demand deposits in the banking system? (a) It will increase interest rates. (b) It will reduce interest rates. (c) It will have...
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What sum must be taken in the partial sum of the convergent {eq}p{/eq}-series {eq}\sum_{k=1}^\infty \frac{1}{k^{1.5}}{/eq} to estimate its value to within an error of at most {eq}10^{-5}{/eq}?
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Stock A has settled into a constant dividend growth pattern of 5%. The current dividend is $.50 and its current price is $5.50. You are an analyst and believe that the required return on stock B is the same as that of stock A. If stock B pays a constant (flat) dividend of $2.00, what is the estimate of stock b's price?
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Palmiero Corp., a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (4,200 units) $180,800 Variable expenses $136,800 Contribution margin $44,000 Fixed expenses $34,000 Net operating income $10,000 If the company sells 4,500 units, its cont...
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Which of the following allows for the greatest increase in EBIT? A) a 1% decrease in fixed costs and a 1% increase in revenue. B) a 1% decrease in variable costs and a 1% decrease in revenue. C) a 1% increase in fixed costs and a 1% increase in variable costs. D) a 1% increase in fixed costs and a 1% decrease in va...
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What is the correct statement about the following reaction? Br NaOCH2CH3 Br- CH2CH3OH A. The correct product is shown B. The order of the mechanism is S2 C. The nucleophile is a neutral molecule D. The leaving group is better than a typical halide
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Assume a small open economy in recession with an export demand elasticity greater than 1 in absolute value ( |(Ed)| > 1). If the government in this small country reduces its transfer payments, then we would expect that: A. exports will fall by more than imports. B. real GDP will increase but the price level will decr...
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Dilip is considering two different annuity plans, one from Pacific Mutual and one from HDFC Standard Life Insurance. Both plans offer an annuity for $150,000 for life. Pacific Mutual's plan will pay out $15,462.03/month. Pacific Mutual's plan charges a $100,000.00 premium up front. Pacific Mutual's plan has a cash valu...
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The management of Fannin Corporation is considering dropping product H61K. Data from the company's accounting system appear below: Sales $960,000 Variable expenses $367,000 Fixed manufacturing expenses $375,000 Fixed selling and administrative expenses ...
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I want to solve this integral $\int_0 ^\infty e^{-iwx}e^{-α|x|} dx$
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The following data was collected on the relationship between annuity values and annuity durations. Duration Value 5 47500 6 50500 7 54500 8 59000 9 64000 10 69500 What is the missing value fo...
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Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division's return on investment (ROI). Assume the following information relative to the two divisions: Alpha Division: Case 1 Case 2 Case 3 Case 4 Capacity ...
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The Baking Department started April with 13,000 units in process, 30% complete. The department completed and transferred out 50,000 units. Its ending Work in Process Inventory consisted of 7,000 units 60% complete. How many equivalent units will be used in calculating the cost per unit for the month? (FIFO method)
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The figure below gives a boxplot of the 50 retirement ages in data set 3. Based on this boxplot and not on any formal calculations, state which of the following is the greatest: a. The standard deviation. b. The interquartile range. c. The range. d. The median.
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What would be the total cost if the factory operates at 82% of the normal level of activity, given the following budgets: Indirect materials $47,000, Indirect labor $126,000, Depreciation of plant and equipment $52,000, Property tax $23,500, and Factory insurance $20,000 at a normal activity level of 84,000 machine hou...
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A year ago, you purchased a $1,000 face value bond with 5 percent coupon interest (paid semiannually) for $1,046.98. If the inflation-adjusted return on this bond is 8 percent, what actual rate of return did you earn on this bond? A) 3.00% B) 4.02% C) 4.50% D) 6.12% E) 13.00%
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Henderson Corporation has received a request for a special order of 8,200 units of product XYZ for $45.60 each. The normal selling price of this product is $50.70 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product XYZ is computed as follows: Direct materia...
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For the following account (assuming a single, continuous income stream of the given rate r over T years), find the present value and total income. r(t)=$5,200, T=10 years
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Business Summary Report. A partnership whose income for a year is $150,000. The capital of each partner at the beginning of the year was as follows: Smith $100,000; Jones $50,000; and Goldsmith $40,000. The partnership agreement specifies the following allocations. Profit: Smith 25%, Jones 35%, Goldsmith 40%. Loss: S...
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Andors Company borrows {eq}\$60,000 {/eq} at the beginning of the year for one year at an interest rate of {eq}9\% {/eq} compounded quarterly. How much interest will Andors pay for the year? a. {eq}\$5,400 {/eq}. b. {eq}\$4,665 {/eq}. c. {eq}\$5,151 {/eq}. d. {eq}\$5,409 {/eq}.
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Calculate the integral $\int_{[0,2\pi]^n}\frac{\cos x_1\cos x_2\cdots\cos x_n}{2\pi}d\lambda_n$.
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The government purchases goods and services amounting to $100 billion, transfer payments are $100 billion, and taxes are $200 billion. If the government increases purchases by $1 billion, GDP will increase by: A. More than $1 billion. B. Less than $1 billion. C. $1 billion. D. None of the above
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The table below shows the quarterly data for the quantity demanded and quantity supplied in the market for tickets to a city's baseball games. Assume the price of related goods has not changed, the number of buyers in the market has not changed, and the number of sellers in the market has not changed. The equilibrium p...
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At the beginning of 2008, Grant Products' Inventory was $38,600 based on a physical count before considering the following transactions and adjustments. The sale of goods at a selling price of $8,100 was recorded, but the goods had not been shipped and title passed to the buyer until received by the buyer at the end of...
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A firm's total assets equal $1 million and its balance of current assets equals $200,000. The firm's net working capital equals $150,000 and its firm's current liabilities equal $125,000. The firm's long-term debt equals: a. $450,000 b. $300,000 c. $650,000 d. $200,000 e. None of the above
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Isogen Ltd. pays its employees on a biweekly basis. On January 1, Year 1, the Cash account had a debit balance of $13,660 and on December 31, Year 1 the Cash account had a debit balance of $17,820. During Year 1, 100 checks totaling $4,870 were issued against employee earnings. What was the amount of payroll tax expens...
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Isosceles trapezoid KLMN has bases KN and LM. What is the length of arm KN if |LM| = 24 cm, height = 5 cm, and |KN|>|LM|? A. 15 cm B. 17 cm C. 20 cm D. 22 cm
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Campion Corporation makes a product with the following standard costs: Direct materials 3.3 grams per unit $ 8.00 per gram Direct labor 1.5 hours per unit $ 18 per hour Variable overhead 1.5 hours per unit $ 7 per hour In February the company produc...
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Suppose you know a company's stock currently sells for $60 per share and the required return on the stock is 13 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its d...
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In 2012, the overhead rate for Whitman Manufacturing Co. was budgeted to be $50 per machine hour. The total amount of budgeted overhead was $250,000. The factory operates four 8-hour shifts with an average of 50 machine hours per shift. What are the predetermined overhead rates for the three activities? E...
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On January 1, 2014, the outstanding preferred and common shares of Teal Corporation were converted into 20,000 shares of $100 par value, 6% cumulative convertible bonds having a total face value of $2,000,000. The bonds were issued on July 1, 2013, for $2,080,000 plus accrued interest. On December 31, 2014, the total i...
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James Company has sales of $100,000, a net income of $8,000, and the following balance sheet. Cash $1,000 Accounts receivable 5,000 Inventories 20,000 Total current assets $26,000 Net fixed assets 50,000 Total assets $76,000 Current liabilities $20,000 Long-term debt 30,000 Stockholders' equity 26,000 Total...
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Find the current in the inductor in the circuit in the figure if the ideal battery has a terminal voltage of 9.0 V , {eq}R_1 = 100\ \Omega {/eq} , {eq}R_2 = 10\ \Omega {/eq} , and {eq}L = 450\ mH {/eq}.
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What would be the effect of replacing the existing manually operated machinery (with a salvage value of $400,000) and labour costs (at $100,000 per year) with an automated machine (with a first cost of $2,000,000) that will operate with negligible maintenance? a) Costs will increase by $200,000 per year b) Costs will...
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Using the theorem of Pappus, find the volume of the solid of revolution obtained by rotating the region bounded by the curve y = 2x^2, the line x = 3, and the x-axis about the line x = 6.
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During 2012, Rothlisberger Corp. had retained earnings of $350,000. During the year, the company earned a net income of $145,000 and paid cash dividends of $60,000. There were no other changes in stock ownership. Required: Prepare the retained earnings statement for the year ended December 31, 2012.
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When the audience does not care about the outcomes, using a combination of _____ can help lessen negative reactions to the feeling that one is dictating outcomes. A) ingratiation and personal appeals B) pressure and exchange C) legitimacy and ingratiation D) exchange and rational persuasion E) inspirational appeal...
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Let x be a random variable that represents the pH of wastewater treated at a specific plant prior to discharge into a river. Assume that x has a normal distribution with a mean of 6.5 and a standard deviation of 0.15. A simple random sample of n = 12 discharge periods is selected. What is the probability that the sampl...
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Find net cash flow from operating activities for the current year, given the following financial information: Prior year Current year Net income $750,000 Depreciation expense 150,000 Dividends paid 550,000 Accounts receivab...
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Determine whether the integral \(\displaystyle \int_{-\infty}^0 e^{2x}\ dx\) converges.
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C & D Corp., a U.S. company, acquired all of the outstanding common stock of Merchandising Inc. for $300,000 on January 2, 2015. The fair values of the net assets of Merchandising were as follows: Land $70,000; Building $120,000; Inventory $160,000. The book values of these items were $55,000, $70,000, and $100,000, re...
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This year, Alvarez Inc., sold a business property and it had on since 1981 and again at {eq}\$600,000 {/eq}. It also sold a shopping center he developed in 1987 at a loss of {eq}\$900,000 {/eq}. If Alvarez has no other section 1231 transactions for the year, as a result of these two transactions it will have what amo...
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Goofy Inc. bought 15,000 shares of Crazy Co.'s stock for $198,000 on May 5, 2015, and classified the stock as available for sale. The market value of the stock declined to $113,000 by December 31, 2015. Goofy reclassified this investment as trading securities in December of 2016 when the market value had risen to $152,...
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If an asset costs $80,000 and is expected to have a net cash flow of $30,000 per year for five years and a net cash flow of $20,000 per year for three years beyond that, what is the payback period? 5 years 6 years 7 years 8 years
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An organization has 10,000 shares of $100 par value 6% cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding. Dividends have not been paid for the past three years. In the current year, $100,000 in dividends are declared and paid. What is the total amount of dividends that will be paid...
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The Glade Company recently paid its utility bill for $150 and debited Utilities Expense for $150. However, the company received a utility bill for $200 and credited Utilities Expense for $200. The company also failed to record a utility payment for $100, debiting Rent Expense for $100. Which of the following statements...
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Olmec Company uses a process-costing system for its single product. Material A is added at the beginning of the process; in contrast, material B is added when the units are 75% complete. The firm's ending work-in-process inventory consists of 4,000 units that are 80% complete. Which of the following correctly expresses...
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A project has a cost of $65,000 and its expected net cash flows are: $15,000 in year 1, $10,000 in year 2, and $10,000 in year 3. What is the profitability index if the cost of capital is 12%?
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Data concerning the recent performance of Ulwelling Corporation's single product appear below: Per Unit Percent of Sales Selling Price$180100% Variable Expenses$4525% Contribution Margin $13575% Fixed Expenses are $1,048,000 per month. The company is currently selling 9,400 units per month. The marketing manager wou...
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A constant net torque of 36 N-m is applied to a disk (I = 700 kg-m²) which is initially at rest. What will be its angular velocity after it has turned through 5 revolutions?
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Identify the market structure for most cable television service. Why? What is the source of market power in this market? How do suppliers use their market power?
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For the annulus $1 < |z - 2i| < 2$, consider the function $f(z) = z^3 - 3z^2 + 2z$. To determine the number of zeros in the annulus, I've observed that the degree of the polynomial is 3, and the number of zeros inside the inner circle ($|z - 2i| = 1$) is 1. This leaves 2 zeros to account for in the annulus, but I'm uns...
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Paqu bought a single-family residential home for $100,000 in 2015. He sold the home for $320,000 in 2017. How much gain should Paqu recognize from the sale? a. $220,000 b. $120,000 c. $80,000 d. $0
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What is the probability that the mean body temperature of 64 healthy adults is less than 98.5 F, given a mean of 98.22 F and a standard deviation of 0.55 F?
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For which of the following values of {eq}k {/eq} does the vector {eq}\langle 10, k, 2 \rangle {/eq} lie in the plane {eq}4x + 3y - 2z = 0 {/eq}? A. 0 B. {eq}-\frac{10}{3} {/eq} C. 20 D. -20
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Determine the number of years in which the S & P 500 will equal its present value if it increases at an annual rate of 4%, its present value is $3,000, and your required rate of return is 5%.
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You have two regression models that you are interested in testing for a difference in their slope coefficients. In model A you run an equation that has independent variables of X1 and X2 (essentially a standard OLS regression). In model B you run a regression with the independent variables of X1, X2, and X1*X2 (essenti...
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An investor purchased a stock for $100,000, sold it one year later for $103,500, and received a $2,500 dividend. The investor's real rate of return on this stock was {eq}-1.6\% {/eq} during that year. What was the inflation rate during that year?
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Find the number {eq}k{/eq} such that {eq}\lim_{n\rightarrow \infty} \frac{a_n}{n^k}{/eq} is finite and non-zero for the sequence {eq}a_n=\frac{2\sqrt n}{(\ln n)^{100}}{/eq}. (Input 0 if the limit does not exist.)
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Shore Co. provides for doubtful accounts based on 4% of gross accounts receivable. The following data are available for 2011. Credit sales during 2011 $5,500,000 Bad debt expense $65,000 Allowance for doubtful accounts 1/1/11 $22,000 Collection of accounts written off in prior years (customer credit was reestablished...
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Kleeman Manufacturing Company had the following results for the year 2014: Units produced and sold $128,000 Sales price per unit $92 Variable manufacturing cost per unit $75 Fixed manufacturing cost per unit $13 Variable selling and administrative cost per unit $8 Fixed selling and administrative cost per unit $10 As...
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I want to calculate the integral $$\int_{\pi}^{2\pi} \frac{1}{2-\sin ^{2}(\theta)} d \theta$$ In my textbook there is the statement "By making the substitution $\theta \to \theta + \pi$ we get $$\int_{\pi}^{2\pi} \frac{1}{2-\sin ^{2}(\theta)} d \theta = \int_{0}^{\pi} \frac{1}{2-\sin ^{2}(\theta)} d \theta$$ I don't un...
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If you observe an object in the universe that is roughly 8 megaparsecs in size, what is the object most likely to be? A. elliptical galaxy B. irregular galaxy C. ultra-compact dwarf galaxy D. galaxy group E. galaxy cluster
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Mathy has long and short-term debt outstanding of $819,000 and $500,000, respectively. During 2015, Mathy paid interest totaling $125,000 on its long-term debt and $45,000 on its short-term debt. What is the amount and direction of the cash flow from the financing activities section of the 2015 cash flow statement? a....
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A survey indicated that 68% of US office workers travel more than 3 miles to work. In a sample of 100 US office workers, what is the probability that more than 50% of them travel more than 3 miles to work?
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A healthy patient was just admitted into the ICU after a trauma injury. The interdisciplinary team has completed the first comprehensive assessment of the patient. What should be the next step? a. Obtain HbA1C b. Obtain baseline hemoglobin, hematocrit, and MCV c. Obtain a complete blood count with differential d. Obtai...
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You are considering investing in one of two well-diversified portfolios. Portfolio A has an expected return of 10% and a beta of 1.58, while Portfolio B has an expected return of 13.8% and a beta of 1.69. Assuming that you are a rational risk-averse investor, and the risk-free rate is 3.5%, which of the two portfolios ...
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What is the arc length for the curve r=3sin^2 (theta/2)?
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Bramble Company has 14,500 shares of 6.5%, $100 par value, cumulative preferred stock and 29,000 shares of $1 par value common stock outstanding at December 31, 2017. There were no dividends declared in 2015. The board of directors declares and pays a $155,250 dividend in 2016 and in 2017. What is the amount of dividen...
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Thomson is an all-equity firm that has 280,000 shares of stock outstanding. The company is in the process of borrowing $2.4 million at 5.5 percent interest to repurchase 75,000 shares of the outstanding stock. What is the value of this firm if you ignore taxes? A. $8,960,000 B. $9,240,000 C. $10,710,000 D. $12,500,...
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If I know that I will receive $100 at the end of the next 10 years, what is the present value of that amount? a) $55.84 b) $67.56 c) $72.43 d) $75.37 Please specify your answer in decimal terms to two places to the right of the decimal. Present Value=
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Solve the following equation on the interval {eq}0 \leq x < 2\pi {/eq} using Newton's method with an initial guess of x=3. (Round the answer to two decimal places): {eq}2\sin(x)=\pi x^3 {/eq}
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Glavine Company issues 6,000 shares of its $5 par value common stock having a fair value of $25 per share and 9,000 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $310,000. The total number of shares issued is _____.
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Daisy Corp sold its only asset on Jan 1 for $100,000 cash. The asset's carrying value was $110,000. The asset was originally acquired for $60,000 and had a 10 year expected life. On Dec 31st when the asset was sold, no depreciation has been recorded for the current year. Assume the company reports on a calendar year ba...
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Given the demand function P=75-Q, find the price and quantity demanded when the price is set equal to marginal revenue.
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South Shore Energy Company bonds are currently trading at $1,045.39. The bonds have a face value of $1,000, an 8 percent coupon with interest paid annually, and they have 8 years to maturity. What is the yield to maturity on this bond?
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What is the minimum yield that you would accept on a 30-year zero-coupon bond for which you must pay $325 for a $1,000 bond?
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