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A factory acquired a piece of equipment on January 1, 2015, for $74,400. The expected life of the equipment is 8 years. The estimated salvage value is $6,800. What is the depreciation expense for 2015 if the company uses the straight-line method? a. $8,475 b. $7,525 c. $9,750 d. $8,800
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During Heider Corporation's first year of operations, the following transactions occurred: 1. Raw materials were purchased on account, $146,000. 2. Raw materials were requisitioned and used in production, $103,000. 3. Factory labor costs incurred, $489,600. 4. Factory labor costs paid, $380,000. 5. Manufacturing o...
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Write the first non-zero term of the Maclaurin series for the function {eq}\displaystyle f(x) = \frac{\sin 4x - 4x}{x^2} {/eq}
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Compute the expected return for a stock that has a beta of 1.1 if the expected return for the market is 12% and the risk-free rate is 4%.
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Given $x^2+y^2=4$, use implicit differentiation to find $y''$. Show that $y''=-\frac{1}{y^3}$.
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When production is interrupted for a period of time, a: A. labor contract B. job order C. written report D. revised standard cost E. deferred charge
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In May, Garland recording company had cash receipts of $51,000 and cash disbursements of $88,000. Garland had no investments in marketable securities during May. On May 1, 2014, the cash balance was $21,000. Prepare a cash budget for May using the following format: Cash Balance, May 1, 2014 $21,000 ...
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Find the current flowing through an inductor in series with a 60 {eq}\Omega {/eq} resistance from t = 0 to t = 20 ms, if the voltage across the inductor is {eq}V_L = 120e^{-1000t}\ V {/eq} and the initial current is i(0) = 0 A.
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You purchase 1,000 shares of 2nd Chance Co. stock on margin at a price of $66. Your broker requires you to deposit $21,000. What is your return if the stock price is $62 when you sell the stock? (Negative amounts should be indicated by a minus sign. Round your answer to 2 decimal places.)
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Is the statement "A 3.0 net asset value means that $3.00 of the firm's stock price is earned in dividends" true or false?
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Katie just paid an annual dividend of $3.50 per share and is expected to increase that amount by 3 percent per year. If you are planning to buy 1,000 shares of this stock next year, how much should you expect to pay per share if the market rate of return for this type of security is 14 percent at the time of your purch...
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Assume the spot rate of the British pound is $1.73. The expected spot rate one year from now is assumed to be $1.66. What percentage depreciation does this reflect?
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Let $x,y,z>0$ and $xy+yz+zx=1$. Prove that: $$\frac{1+x^2}{1+y^2}+\frac{1+y^2}{1+z^2}+\frac{1+z^2}{1+x^2}\ge 4.$$ Given hint: Use the substitutions $a=\frac{1}{\sqrt{1+x^2}}$ ... what would be the next step?
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Allen Company is evaluating a proposed capital budgeting project (project Delta). The projected net cash flows from the project are shown below. The company's cost of capital is 10 percent. Year Cash Flow 0 ($78,000) 1 $20,000 2 $40,000 3 $40,000 4 $40,000 Use the net present value method to make a recommendatio...
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The line integral of the electric field intensity {eq}\int E\cdot ds {/eq} is taken from infinity to a point P a distance {eq}r {/eq} from a positive point charge q. What is the correct expression for this integral? a. {eq}-q/4\pi \epsilon_0r {/eq} b. {eq}q/4\pi \epsilon_0r^2 {/eq} c. {eq}-q/4\pi \epsilon_0r^2 ...
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Fabulous Fashions has a line of credit with their bank and must keep a $10,000 minimum balance each month. There is no outstanding loan at the beginning of January. Loans can be borrowed and repaid in any amount. The cash balance on January 1 is expected to be $13,000. Sales were $40,000 in December and are budgeted to...
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Ramsey Corporation reports the following selected account balances at the beginning and end of its fiscal year ending December 31, 2018: Cash = Beginning Balance: 14,000 and Ending Balance: 18,000 Accounts Receivable = Beginning Balance: 62,000 and Ending Balance: 40,000 Inventory = Beginning Balance: 150,000 and En...
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The common stock of Flavorful Teas has an expected return of 8 percent and a beta of .83. The expected return on the market is 10.4 percent. What is the risk-free rate?
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In a monopolistically competitive industry, a firm expects to sell 5,000 units of product at $50 per unit. It estimates that a 1% increase in price would result in a 0.4% decrease in the number of units sold. The price elasticity of demand is _____. a. -0.080 b. -0.040 c. -0.800 d. -1.000 e. -1.250 In order to ma...
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Khowe Corporation plans to issue equity to raise $50 million to finance a new investment. After making the investment, Kohwe expects to earn free cash flows of $10 million each year. Kohwe currently has 5 million shares outstanding, and it has no other assets or opportunities. Suppose the appropriate discount rate for...
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Calculate the economic profit if the average cost of the next best alternative is $2 trillion, revenue is $3.5 trillion, and explicit costs are $2 trillion.
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Lester, Inc., had a net income for 2012 of $250,000. The firm had a net cash flow to stockholders of ($50,000) and a net cash flow to creditors of ($80,000). Lester, Inc., reported that their cash flow from operating activities was $270,000. What is their net capital spending for 2012? A. $320,000 B. $150,000 C. $2...
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What is the mean annual interest rate the chief executive officer paid on the funds borrowed? Year Fund borrowed Fund used for the program 2016 $20.0 million $20.0 million 2017 $40.0 million $25.0 million 2018 $40.0 million $30.0 million ...
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A firm has the production function {eq}f(x, y) = x^{1.30}y^{0.80} {/eq}. This firm has: a. constant returns to scale and increasing marginal product of factor x. b. decreasing returns to scale and increasing marginal product of factor x. c. constant returns to scale. d. decreasing returns to scale and diminishing...
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Which of the following statements about the M1 money supply is true? A) The largest component of the money supply is currency, but demand deposits are also important. B) Coins and paper money is issued by the U.S. Treasury, while demand deposit accounts are held in Federal Reserve Banks. C) The largest component of ...
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Ottawa Publishing has a line of credit with their bank and must keep a $10,000 minimum balance each month. There is no outstanding loan at the beginning of January. Loans can be borrowed and repaid in any amount. The cash balance on January 1 is expected to be $12,000. Sales were $35,000 in December, and are budgeted...
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A total of {eq}1.00 {/eq} mole of an ideal gas ({eq}C_{V,m} = 2.5 R {/eq}) at {eq}25 ^{\circ} C {/eq} and {eq}1.00 \ atm {/eq} expands adiabatically against a constant external pressure of {eq}0.500 \ atm {/eq} until the piston stops moving. How much heat, work, and change in internal energy are associated with t...
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Find the standard matrix of the linear transformation {eq}T: R^3 \rightarrow R^3{/eq} defined by {eq}T(x, y, z) = (y, z, x).{/eq} What is {eq}T(1, 0, 1)?{/eq}
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Calculate the finance charge for a 4-year new car loan if the amount borrowed is {eq}\$20,000 {/eq}, the monthly payment is {eq}\$532.72 {/eq} and the APR is {eq}8 \% {/eq}.
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You buy a new piece of equipment for $5,535, and you receive a cash inflow of $1,000 per year for 8 years. What is the internal rate of return?
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Adams Furniture receives a special order for 20 sofas for a special (total) price of $13,600. The materials and direct labor for each sofa are $180. In addition, the setup, supervision, and other overhead costs are $200 per sofa. Assume Adams is currently operating at full capacity. What would be the opportunity cost ...
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Acklac Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 2,800 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Mate...
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Use Stokes' Theorem to evaluate {eq}\int_C F \cdot dr{/eq}. C is oriented counterclockwise as viewed from above. {eq}F(x,y,z)=4xi+2yj+5zk{/eq} C is the circle {eq}x^2+y^2=16{/eq} in the plane {eq}z=1{/eq}.
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A company purchased a water park for $1,975,000. The annual net cash inflows are $361,500 for 8 years. There is no residual value and the straight-line depreciation method is used. Stockholders demand annual return of 10% on investments. How do I determine accounting rate of return of ARR?
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Combustion gases with k = 1.33 enter a converging nozzle at stagnation temperature and pressure of 350{eq}^\circ {/eq}C and 400 KPa, respectively and are discharged into the atmosphere at 20{eq}^\circ {/eq}C and 100 KPa. The lowest pressure that will occur within the nozzle is a) 13 KPa b) 100 KPa c) 216 KPa d) 2...
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How would the issuance of additional shares of stock for cash affect the current ratio and the quick ratio, respectively? a. No effect on current ratio; no effect on quick ratio b. Increase in current ratio; increase in quick ratio c. No effect on current ratio; increase in quick ratio d. Decrease in current ratio;...
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Lester Corporation has bonds with a 7% coupon, maturing in 8 years, with a current market price of $1,025.25. What is the YTM on Lester's bonds? a. {eq}6.13\% {/eq} b. {eq}7.00\% {/eq} c. {eq}7.23\% {/eq} d. {eq}6.50\% {/eq}
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Which of the following statements is true? a. At equilibrium, the value of marginal revenue product equals the value of marginal revenue times marginal product. b. At equilibrium, the value of marginal product equals the value of marginal revenue times marginal product. c. At equilibrium, marginal revenue product is...
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Determine whether or not the random variable {eq}X {/eq} is binomial. {eq}X {/eq} counts the number of heads in a sequence of 100 coin tosses, where the coin has a {eq}3/5 {/eq} chance of being heads.
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Compute the intersection of the sets $$\left\{ (x,y,z) \mid x+y+z = 0 \right\} \cap \left\{ (x,y,z) \mid x^{2} + y^{2} + z^{2} = 1 \right\}$$
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Gini Company reported the following information for the year ended 12/31/15: Interest earned$8,500 Interest receivable 12/31/15700 Interest receivable 12/31/14400 What amount of interest expense did Gini report on its income statement for the year ended 12/31/15?
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As the number of the shares outstanding is reduced, under the assumption of an efficient market, the share price: a) will increase proportionally. b) will decrease proportionally. c) will increase or decrease in a fluctuating manner. d) will remain constant. e) may increase, decrease, or remain constant, in a fluc...
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Gormley Precision Tools has the following inventory data: Jan. 1: Beginning inventory of 20 units at $15 Jan. 10: Purchase of 70 units at $16 Jan. 25: Sale of 30 units Jan. 30: Purchase of 10 units at $17 Using FIFO, the value of Gormley's ending inventory at December 31 is: A) $340 B) $330 C) $210 D) $300
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Assuming that marginal cost curve is a smooth J-shaped curve, the corresponding total cost curve has a (an) a. linear shape. b. S-shape. c. U-shape. d. reverse S-shape.
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You have just started your summer internship at the Pittsburgh Research Center of the Pennsylvania Refining Company. Your first task is to estimate the market value of the firm's common stock, sis. You have collected the following information for Pittsburgh: Intangible assets $70 million Net working capital $100 mill...
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Department A had 4,000 units in work in process that were 60% completed at the beginning of the period, 14,000 units of direct materials were added during the period, 15,000 units were completed during the period, and 3,000 units were 40% completed at the end of the period. All materials are added at the beginning of t...
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Over the past year, productivity grew 1%, capital grew 4%, and labor grew 2%. If the elasticities of output with respect to capital and labor are 0.5 and 0.5, respectively, how much did output grow? A) 3% B) 4% C) 5% D) 6%
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A spaceship is traveling at a speed of 0.720 times the speed of light, as measured from earth, when it jettisons a load of trash. If the captain of the spaceship sees the trash fall behind the ship at a speed of 0.350 times the speed of light, what speed (as a fraction of c) does an Earth observer measure for the trash...
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The net cash flows from three alternatives are given in the table below. The minimum attractive rate of return is 10%. Assuming that only one alternative can be selected, which alternative should be selected? Year 0 1 2 3 4 5 6 A -7000 3500 3500 3500 0 0 0...
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The Fisher equation states that the real interest rate equals the nominal interest rate a. minus the rate of inflation. b. minus the inflation expected next year. c. plus the rate of inflation. d. plus the inflation expected next year.
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A market consists of two types of consumers. One of them, whose demand is {eq}Q1 = 300 - 20P, {/eq} always buys the product, while the other type of consumer, whose demand is {eq}Q2 = 150 - 5P, {/eq} buys the product only if the price is less than or equal to {eq}\$10. {/eq} The good can be produced at a constant ma...
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Thisselites Corporation recently used $43,000 of direct materials and $6,000 of indirect materials in production activities. The journal entries reflecting these transactions would include: a. a debit to Raw-Material Inventory for $49,000. b. a debit to Manufacturing Overhead for $6,000. c. a debit to Work-in-Proces...
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The mass of a molecule can be determined by measuring the rate of effusion of the gas through a small opening into a vacuum. The effusion rate, r, is found to be 20.0 molecules s{eq}^{-1} {/eq}. Under the same conditions of temperature and pressure, the effusion rate of Kr(g) is found to be 12.5 molecules s{eq}^{-1} ...
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For fixed costs of $500,000 and variable costs per unit of $2.00, the break-even point is 50,000 units. At a volume of 250,000 units, the total cost per unit is? a) $4.00 b) $3.00 c) $2.60 d) $5.00
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Your firm, Agricultural Consolidators, Inc. (ACI), is considering the purchase of a new machine for $150,000. ACI can take out a 6-year installment loan at an APR of 10% to finance the machine. The loan agreement requires six equal annual payments, with the first payment due immediately. Fortunately, ACI has a loan und...
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Book Bunch Inc issued $600,000 of 9%, 10 year bonds on June 30, 2008, for $562,500. This price provided a yield of 10% on the bonds. Interest is payable semi-annually on December 31 and June 30. Determine the amount of interest expense to record if financial statements are issued on October 31, 2008.
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Which of the following tactics might public sector unions use to increase management's cost of disagreeing with the union position during bargaining? A. Threatening to release information about the dollar amount of liquor bills for government officials that are paid by taxpayers. B. Threating to not endorse or work...
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Laramie Trucking's CEO is considering a change to the company's credit terms from 1/10, net 30 to 2/10, net 30. The CFO thinks that such a change will improve both the company's profit margin and its cash flow due to the higher accounts receivable balances that will result from the longer time allowed to collect from c...
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Determine the minimum value of {eq}f(x,y)=x^2+y^2+2x-4y+5{/eq} subject to {eq}x+2y=6{/eq}.
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Given the following information for the stock of Foster Company, calculate its beta. Standard Deviation Correlation Return on Foster Company stock market 0.40 1.00 Return on market portfolio 0.25 0.40 a. 1.03. b. 1.20. c. 1.34. d. 1.57.
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As of 2006, the present discounted value of the long-run fiscal imbalance of Social Security and Medicare programs is approximate: a. $6 trillion b. $40 trillion c. $102 trillion d. $106 trillion e. $143 trillion
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Consider a competitive market. The elasticity of demand for the market is {eq}-\frac{1}{4} {/eq}. The elasticity of supply for the market is {eq}\frac{1}{5} {/eq}. Which of the following statements is true? a. {eq}E_s > E_d > 1 {/eq} b. {eq}E_d > 1 > E_s {/eq} c. {eq}E_s > E_d {/eq} d. {eq}E_d > E_s {/eq}
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The percent of retention in a batch crystallizer is best defined as _____. a. the ratio of current batch yield to current batch yield. b. the ratio of current batch yield to the maximum yield possible at that time. c. the ratio of previous batch yield to the maximum yield possible at that time. d. the ratio of curr...
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Valdez Products sells its product to customers for $59 per unit. Valdez has marginal costs of production of $37 per unit and fixed costs of $94,000. If Valdez sells 12,000 units, what would its operating income be? a) $230,000 b) $226,000 c) $110,000 d) $156,000
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Assume that Microsoft has a $1,000 face value bond outstanding with a coupon rate of 6.25%. The current date is January 1, 2013. How much would this bond cost an investor if the interest rate in the marketplace is 6% and the bond matures in 20 years? Round your answer to the nearest $100.
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A common stock is priced at $66.80. The stock is expected to pay a $3.30 dividend at the end of the year and have a 6% growth rate. What is the cost of equity for this stock?
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The GPAs of all students enrolled at a large university have an approximately normal distribution with a mean of 3.02 and a standard deviation of 0.29. Find the probability that the mean GPA of a random sample of 20 students selected from this university is between 2.99 and 3.12. Round your answer to four decimal place...
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A Carnot engine operating on a closed cycle has a maximum pressure of 600 kPa and a maximum temperature of 800 K. The heat rejected is 40% of the net work input. What is the lowest pressure in the cycle?
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Suppose a company had $21,500 in sales on its credit account in March 2015 and $25,300 in April 2015, and its accounts receivable at the end of March 2015 and April 2015 were $16,300 and $18,500, respectively. If accounts receivable collection lag is 37 days, then the firm's total sales for the month of May 2015 would...
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Suppose a manufacturing company wants to estimate the proportion of defective items in its inventory. A sample of 100 items is selected, and 16 are found to be defective. A 90% confidence interval is to be calculated for the proportion of defective items in the entire inventory. The Standard Error for this confidence i...
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If you purchase a zero coupon bond with 10 years to maturity for $622.78, how much will it pay you at maturity if it has an 8% yield to maturity? Assume face value of $1,000.
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Marginal cost _____ when diminishing marginal product sets in. A. Decreases B. Increases C. May increase or decrease D. Has no relation to marginal product E. None of the above
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Use the divergence theorem to find the flux of the vector field $F(x,y,z) = xi + yj + zk$ through the sphere $S$ of radius $a$ centered at the origin.
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Use the following information to compute residual income: Sales: $338,000 Operating Income: $51,000 Average Current Assets: $268,000 Cost of Capital: 12% Return on Investment: 15% A. $32,160. B. $10,800. C. $50,700. D. $10,200.
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For the following multiple regression model, which statement is correct? {eq}y = 8 + 3x_1 + 4x_2 - 5x_3 {/eq} a. When {eq}x_1 {/eq} increases by 3 units, then y decreases by 5 units, if all other independent variables are held constant. b. When {eq}x_1 {/eq} increases by 3 units, then y increases by 3 units, if a...
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Compute the indicated ratio for the following company and classify it as either strong or weak. Show your work. Dividends per Share of Common Stock: $1.93 Market Price: $75.40 1. Price/Earnings Ratio (P/E)
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The Wall Street Journal reports that the rate on 3 -year T-bonds is 7.00% and the 6-year T-bonds rate is 7.25%. The real risk-free rate is 2.70% and the average inflation premium is 2.05%. If the maturity risk premium is zero for a 1 -year T-bond but 0.05% for a 2 -year bond, what is the yield on this 2 -year T-bond?
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A firm has a market capitalization of {eq}\$500 \, \mathrm{million}. {/eq} Currently, the risk-free rate is {eq}8 \, \mathrm{percent} {/eq} and the expected return on the market is {eq}18 \, \mathrm{percent} {/eq}. It currently has a yield to maturity on debt of {eq}6 \, \mathrm{percent} {/eq} and its debt has a ma...
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What is the expected number of dice rolls until we get three 6's in a row?
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First Nite Corporation stock is currently selling for $41 a share. The stock is expected to pay $1.2 a share next year when the annual dividend is distributed. The company's stock has a beta of 0.7. The market has a 10% rate of return. What is the dividend growth rate expected by stockholders? A. 7.02% B. 9.60% C. 1...
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Good Firm Corporation is a firm with $1 million in equity and $5 million in debt. They have decided to change their capital structure to 60% equity and 40% debt. Their cost of debt is 10%, and their cost of equity is 15%. The company's tax rate is 30%. What would the company's WACC be if they made this change in capit...
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An investor buys $16,000 worth of a stock priced at $20 per share using a 60% initial margin. The broker charges 8% on the margin loan and requires a 35% maintenance margin. The stock pays a $0.50-per-share dividend in 1 year, and then the stock is sold at $23 per share. What was the investor's rate of return?
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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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You must analyze a potential site for a shopping center (parking, building, and land). The mean annual temperature is 51 degrees F with a standard deviation of 6. You estimate that the amount of heat (cooling and heating) required for the center will be directly tied to the annual temperature. The cost for providing th...
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Edwards Manufactured Homes purchased some machinery 2 years ago for $51,000. 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 $13,000 to a foreign firm for use in its produ...
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Which of the following measures market power? a. Rothchild index. b. Herfindahl-Hirschman index. c. Lerner index and Rothchild index. d. Lerner index.
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If the first person to win 6 games wins the match, what is the probability that A will win the match, given that A has won 3 games and B has won 2 games when the match was interrupted?
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Banner Corporation will not pay dividends until year 3, whereby it is expected to pay $5 in dividends. Dividends are then expected to grow at 20%, 10%, and 5% in years 4, 5, and 6. Afterward, dividend growth will stabilize at 2% consistently. If the rate of return is 10%, determine the stock price in year 3. a. $83.84...
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The following table contains information on the demand for margarine, and the supply curve is given by {eq}Q_S = 2P {/eq}. Price Elasticity of Demand Margarine Price in Cents per Unit Quantity Demanded -0.2 $10.50 1,000 -0.1 $10.00 1,400 +0.5 $9.50 1,900 +0.8 $9.00 2,500 +0.9 $8.50 3,100 At a price of $9.50, the gov...
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You are the manager of a firm that receives revenues of $25,000 per year from product X and $70,000 per year from product Y. The own-price elasticity of demand for product X is -2.0, and the cross-price elasticity of demand between product Y and X is -1.5. How much will your firm's total revenues (from both products) c...
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The beginning work-in-process inventory had 3,000 units. This is its only production department. Beginning WIP units were 50% complete to conversion costs. The ending work-in-process inventory had 5,000 units, which were 30% complete to conversion costs. There were 15,000 units transferred to the next processing depart...
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Evaluating Projects. McKnight Video, Inc., is considering two mutually exclusive projects, A and B. Project A concerns a new type of flat screen TV that will be ready for sale in one year. The company believes that this TV will be revolutionary, and its introduction will put the company at the top of the market for fla...
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Consider that there is a semistrong form of efficiency in the markets. A pharmaceutical company announces that it has received FDA approval for a new allergy drug that completely prevents hay fever. The consensus analyst forecast for the company's earnings per share (EPS) is $4.50, but insiders know that, with this new...
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Tannen Industries sold inventory to Hartt Enterprises on account. Payment was not made at the time of sale, so Tannen granted Hartt a 20 percent discount and issued a sales invoice with a 30-day payment due date. How long after the original sale is it before accounts receivable is shown in Hartt Enterprises accounting ...
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Assuming that marginal cost curve is a smooth J-shaped curve, the corresponding total cost curve has a (an) a. linear shape. b. S-shape. c. U-shape. d. reverse S-shape.
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What is the economic service life of a machine having a salvage value of $25,000, if its first cost is $120,000 and its annual M & O cost is $30,000 in year one, increasing by $5000 per year, if the before-tax MARR is 12% per year? A) 4 years B) 5 years C) 6 years D) 7 years
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Assume that the relationship between the market price of a stock and its expected rate of return is linear. Which of the following portfolios would you prefer? a. A portfolio with a standard deviation of 20% and an expected return of 25%. b. A portfolio with a standard deviation of 10% and an expected return of 16%. ...
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Which choice below gives the correct formula for the present value of a four-year annuity whose annual payments are {eq}c_1, c_2, c_3, \ \text{and} \ c_4 {/eq} respectively, assuming an annual discount rate of {eq}r {/eq}? A. PV = {eq}\frac{c_1}{(1+r)^1} + \frac{c_2}{(1+r)^2} + \frac{c_3}{(1+r)^3} + \frac{c_4}{(1+r)...
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Find the volume of the solid generated by revolving the region bounded by the curves $y=6x$ and $y=3x^2$ about the line $y=0$. Use the disk method.
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Use a parameterization to find the flux {eq}\displaystyle \iint_{S} F \cdot n \;d \sigma {/eq} of {eq}\displaystyle F = 5xy i + 5yz j + 5xz k {/eq} upward across the portion of the plane {eq}\displaystyle x + y + z = 6a {/eq} that lies above the square {eq}0 \leq x \leq a, 0 \leq y \leq a {/eq} in the {eq}xy\text{-plan...
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