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Contractionary monetary policy is most effective when _____. (a) unemployment is high (b) the economy is operating at the natural rate of unemployment (c) Congress is deficit spending (d) the price level is high (e) interest rates are low.
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Assume that you purchased a home on January 1, 2010, at $100,000 with an interest rate of 6% using a 30 year mortgage. Your first payment is due on June 1, 2010. How much of your June 1, 2013 payment will be applied to principal? A. $672.52 B. $500.00 C. $644.29 D. $368.75
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Your investment club has only two stocks in its portfolio, $20,000 is invested in a stock with a beta of 0.7, and $35,000 is invested in a stock with a beta of 1.3. What is the portfolio's beta? a. 0.73 b. 0.80 c. 1.03 d. 1.17 e. 1.24
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U.S. Steel Corporation reports $150 million of sales, $75 million of cost of goods sold, and $20 million of operating expenses. 30% of its operating expenses are fixed costs. What is US's operating leverage if its sales increase by 10%?
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Use the ratio test to find the values of {eq}r{/eq} for which the series {eq}\sum_{n=1}^{\infty} \frac{8^n}{(2n)!} {/eq} converges.
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Lynn's Furniture uses the perpetual inventory method and engaged in the following transactions: Purchases of inventory: 3/1 50 tables @ $72 3/7 75 tables @ $60 3/19 60 tables @ $48 3/26 80 tables @ $56 Sales of inventory: 3/10 ...
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The adjusted trial balance data for Monster Manufacturing Company is given below: Debit Credit Sales - $120,000 Income taxes expense 11,200 - Depreciation expense 14,500 - Interest expense 14,000 - Interest...
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A company estimates the following production for the first four months of the year: Month: Production January: 900 units February: 1,200 units March: 1,350 units April: 1,600 units Accounts payable for materials in January was $30,000, all of which was paid in February. Each unit produced requires 3 pounds of mat...
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You are given the following Keynesian cross diagram and the information: * Equilibrium income equals $13,000. * Government purchases are $3,000. * Taxes are $2,000. * Net exports are $1,000. * Government transfer payments are $2,000. * Consumption function is: C = 1,400 + (0.8)YD. Calculate governmen...
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A coupon bond that matures in 10 years sells for $950. The bond has a face value of $1,000 and a yield to maturity of 6.08%. The bond pays coupons semiannually. What is the bond's current yield?
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Why are the tibial and fibular fractures so common in a road traffic accident? a. The bony barrier, that includes the right thigh and lower leg, is a long, narrow target area b. The powerful femoral muscles provide tremendous force in the event of an accident c. During an accident, the shins provide a huge area of i...
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On July 1, 2017, Ramos Co. sold 15,000 of its $1,000 face value bonds at 98. Each 5% stated rate bond is due on June 30, 2022. The organization uses the straight-line method of amortization and has a December 31 year end. If the bonds were sold for 96, what is the amount of interest expense on the December 31, 2017, fi...
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A firm estimates its marginal revenue to be (6 - 3Q) and its marginal cost to be 2 + Q. Find the profit-maximizing level of output.
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Capital Co. wants to invest in a new project with an initial cost of $64,000. The investment will have a 5-year life and produce the following cash flows. Determine the internal rate of return. Capital Co. wants to earn at least 12 percent on this investment. Based on the internal rate of return, should the project be ...
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You have the following information on the securities of three firms: Firm Market value of securities Beta J \text \text { } $25 million 1.25 K $35 million 1.75 L $50 million 2.00 The risk-free rate, {eq}r_{RF} {/eq}, is 4 percent and the market risk premium, (RP M), is 5 percent. What is the expected return...
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Compute the Eulerian number: {eq}\int_{-5}^{25}(x-2)^{17} dx{/eq}
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Suppose the wage rate is $25 and the price of output (i.e., final good) is $5. The marginal product of labor is 100. The marginal revenue product of labor is: a. 100 b. 2,000 c. 2 d. 50
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Linke Motors has a beta of 1.30, the T-bill rate is 3.00%, and the T-bond rate is 6.5%. The annual return on the stock market during the past 3 years was 15.00%, but investors expect the annual future stock market return to be 13.00%. Based on the SML, what is the firm's required return?
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If the price elasticity of demand for a good is 1.2, then what will happen to the total revenue if price increases? a. Total revenue will not be affected. b. Demand will become more elastic. c. Total revenue will decrease. d. Demand will become less elastic. e. Total revenue will increase.
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Anderson Corporation has 100,000 shares of $100 par common stock outstanding and $200,000 of retained earnings. What is the maximum amount that can be declared on a common stock dividend? a. $10,000 b. $200,000 c. $5,000 d. $1,000,000
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A charge of 6.0 C is at the origin. How much energy would be applied to or released from a 2.0 C charge if it is moved from (-2, 5) to (1, 3)?
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Expenses of $2.30 per unit can be reduced by {eq}x^{\frac{2}{3}} {/eq} units per day by a training program that costs {eq}0.5x^{1.5} {/eq} dollars per day. How many workers should be in the training program in order to minimize total expenses, assuming that the plant can employ up to 2000 workers?
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Iridium metal is used in computer microprocessors. The density of iridium metal is 22.56 g/cm3. A microprocessor is made of 357 microg of iridium. How many cubic centimeters of iridium metal are used to make the microprocessor?
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Assume that interest rate parity holds. U.S. interest rate is 13% and British interest rate is 10%. The forward rate on British pounds exhibits a of %. a. Discount; 2.73 b. Premium; 2.73 c. Discount; 3.65 d. Premium; 3.65
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A machine now in use was purchased four years ago at a cost of $20,000. It has a book value of $6,246. It can be sold for $7,000, but could be used for three more years, at the end of which time it would have no salvage value. What is the current amount of economic depreciation for this asset?
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Suppose an electronic sensor has a mass of 175 grams. Find the lowest energy uncertainty, in eV, for this sensor when it detects a temperature change of {eq}5.0 x 10^{-6}K {/eq}. Assume that the system has an initial temperature of 300 K.
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Set up and evaluate the triple integral in cylindrical coordinates that represents the volume of the solid ball {eq}x^2 + y^2 + z^2 \leq 49 {/eq} and above the cone {eq}z = \sqrt{3x^2 + 3y^2}{/eq}.
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A 4-to-1 ratio of fixed to variable costs means that: A) if volume increases by 4 units, total fixed cost will increase by 1 unit. B) if volume increases by 4 units, total variable cost will increase by 1 unit. C) if volume increases by 4%, total fixed cost will increase by 1%. D) if volume increases by 4 units, to...
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A stock is expected to have a 20% return. The risk-free rate is 7%, and the market risk premium is 4.5%. The beta of the stock is 0.7. What percentage of the stock's risk is diversifiable?
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In order to keep a firm's growth at the rate of 8% per year, management must maintain a payout ratio of: a) 30% b) 45% c) 55% d) 63% e) Cannot be determined
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You have gathered the following information on Penelope's penny pressing machines: Cost of new equipment $200,000 Current market value of equipment $100,000 MACRS life 7 years Applicable tax rate 35% Relevant opportunity cost of capital 10% The old equipment costs $50,000 and has a 7-year remaining life. The new ...
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An Atwood's machine, which has 2 containers are connected by a cord (of negligible mass) passing over a frictionless pulley (also of negligible mass). At time t = 0, container 1 has mass 1.30 kg and container 2 has mass 2.70 kg, but container 1 is losing mass (through a leak) at the constant rate of 0.240 kg/s. At wha...
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Consider the function f(x) = e^x, a = 0, n = 2, and 0 ≤ x ≤ 0.5. Use Taylor's Inequality to estimate the accuracy of the approximation f(x) ≈ Tn(x) when x lies in the given interval. (Round your answer to eight decimal places.)
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I have to prove that $\left|\frac{n!}{n^n}\right|$ converges to 0 by making an estimate using the Squeeze theorem. I have that $$\left|\frac{n!}{n^n}\right|= \left|\frac{n(n-1)\cdots2\cdot1}{n\cdot n\cdots n\cdot n}\right|\leq \frac{n}{n}\cdot\frac{n}{n}\cdots\frac{n}{n}\cdot\frac{n}{n}.$$ Where is the $n$ coming from?
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What are the most fundamental relationships in a firm's financial statements, and how do they affect a firm's financial reporting? In particular, what impact on a firm's reported earnings would a $1 million cash balance that was unrecorded by the accountants have? a) one-to-one relationship between revenues and expens...
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A portfolio is composed of two stocks A and B. Stock A has a standard deviation of 17% while stock B has a standard deviation of return of 30%. Stock A comprises 65% of the portfolio while stock B comprises 35% of the portfolio. If the variance of return on the portfolio is .0380, the correlation coefficient between th...
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Which is not an approach to measuring creativity? a. linguistic b. case study c. psychometric d. cognitive
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Two years ago, Coda Company issued 5-year, 9%, bonds payable at a premium of $1 million. The market interest rate for similar issues changed to 10% at the end of the second year. How would this change be shown on the financial statements at the end of the second year? A. A decrease in current liabilities of $500,000 ...
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The supply function and the demand function for a certain brand of novelty hats are given by: $$p = \frac{1}{4}x + 7 \quad \text{(supply function)}$$ $$p = 10 - \frac{1}{5}x \quad \text{(demand function)}$$ where {eq}p{/eq} is in dollars and {eq}x{/eq} is the number of hats. Determine the equilibrium point, that is,...
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Suppose that a firm in a competitive market faces the following prices and costs: P=$20 Fixed Costs=$10 Variable Costs=$8 Quantity= 50 Refer to the above table. What is the firm's total revenue? A. $20 B. $80 C. $1,000 D. $1,020
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When the cost of a job appears on the cost sheet and is being accumulated on the books, the: a. work-in-process control account is debited. b. work-in-process control account is credited. c. cost of the job is transferred to the finished goods control account. d. finished goods control account is debited. e. cost ...
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Calculate the flux of $F=(y,z,x)$ over the hemisphere $x^2+y^2+z^2=1$, $z\geq0$, with $dS$ pointing outward.
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The consignment for clothes and shoes at a shop that sells them at 20% above the cost price was $5000. If clothes and shoes were sold at a loss of $2500 and a profit of $1500 respectively, find the total loss or profit.
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A battery has a 9.0-V emf and an internal resistance of 0.6 {eq}\Omega {/eq}. A variable load resistor is connected to the battery. Determine the current in the circuit when the load resistance is 10 {eq}\Omega {/eq} .
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Cliff Corporation's balance sheet and income statement appear below: Comparative Balance Sheet: Ending Beginning Assets: Current assets: Cash and cash equivalents$60 $40 Accounts receivable26 60 Inventory120 120 Total current assets106 120 Property, plant, and equipment280 260 Less accumulated depreciation218 2...
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What is the uncertainty in the velocity of an electron if its uncertainty in position is 10 A? Express your answer using 2 significant figures.
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Evaluate the triple integral {eq}\iiint\limits_E zdV, \ where \ E \ is \ bounded \ by \ the \ cylinder \ y^2 + z^2 = 9 \ and \ the \ planes \ x = 0, \ y = 3x, \ and \ z = 0 \ in \ the \ first \ octant.
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A project has the following cash flows: initial outlay of $8,000, inflows of $6,000 in year 1, $5,000 in year 2, and $4,000 in year 3. What is the internal rate of return for the project? a. 10.28% b. 17.40% c. 23.38% d. 25.48% e. 29.11%
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ABC company is considering opening a new manufacturing facility in St. Paul. The estimate for the project is $18,000,000 and it is expected to generate annual cash flow of $5,400,000. The expected life of the project is 6 years. The discount rate is 10%. If the company opens the new manufacturing facility, then what i...
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Which of the following is an example of an information source that an individual might turn to for information about a particular brand? A. The store's sales clerk. B. An ad for the brand in a local newspaper. C. A television show that happens to be on the same night the product is available. D. A brand-counter fri...
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Rearden Motors has a beta of 1.50, the yield to maturity on its outstanding bonds is 9.25%, its tax rate is 40%, the risk-free rate is 4.50%, and the expected annual return on the market is 10.25%. What is the firm's cost of common stock equity?
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The unemployment rate in the US is currently high, as a result Congress might choose to _____ in an effort to reduce it. a. Increase taxes b. Decrease government spending c. None of the above
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What is the present value of $7,000 to be received at the end of each of 20 periods, discounted at 5% compound interest? a. $91,054 b. $91,964 c. $68,203 d. $87,234
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My grandma has been tested for breast cancer, and the test said she has it. I know that 1 in 32 women get tested for it each year, and of those, 1 in 2000 actually has it. The test is 95% accurate. What's the probability that she actually has it?
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_____ is the output of goods and services demanded at different price levels. a. Aggregate demand, b. Aggregate expenditure, c. Aggregate spending, d. Aggregate supply.
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At the beginning of the current fiscal year, the Accounts Receivable account had a credit balance of $35,000. During the year, the company recorded total sales of $367,000, including $3,500 on account. Collections of accounts receivable during the year amounted to $280,000. A year-end aging of the accounts receivable i...
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Shown here are data taken from the records of Crunchy Corn Cereal Company for the first quarter of the past fiscal year: Direct materials: Standard cost $0.45 per case Actual cost $399,000 Quantity of materials purchased 980,000 lb Actual unit cos...
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C is the part of the ellipse {eq}4x^2 + 25y^2 = 25{/eq} in the first quadrant above the line {eq}y = 0{/eq}. Find {eq}\int_C 5y \, dx + 4x \, dy{/eq}. Is it correct to represent the ellipse as {eq}x^2 + \frac{y^2}{25/4} = 1{/eq} and the line as {eq}y = 0{/eq}, and then use {eq}\theta{/eq} as the parameter in the vector...
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Calculate the present value of an annuity given the following information: number of periods = 3, interest rate of 6%, and a payment of $200.
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Show that if x is an odd integer and y is an even integer, $$ x^2 -2y^2 = 1 $$ can be written in the form $$n^2 = \dfrac{1}{2}m(m+1) $$ where m and n are integers.
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The town of Brittainville has two Enterprise Funds - one for its water and wastewater operations and another for its cable television operation. The Water and Wastewater Enterprise Fund issued $11,000,000 of 6%, 15-year refunding bonds at par during the year. It also received a $175,000 federal grant to expand water an...
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Find the LCM of the following. {eq}x^2 + 2x - 3, x^2 - x - 2 {/eq}
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Universal Foods' stock is trading at $50, with an expected constant growth rate of 4%. If the company's expected dividend yield is 8%, what is the expected year-end dividend?
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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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Net income for 2010 was overstated by $25,000. Assuming no other errors, the error of omission of the $25,000 warranty expense at year end will cause an overstatement of 2010 retained earnings by what amount? a. $0 b. $12,500 c. $25,000 d. $50,000 Explain.
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The annualized yield on a 3-month T-bill is 6.5% and the yield on a 1-year T-bill is 7.3%. Based on the expectations hypothesis, what is the expected 3-month yield 3 months from today?
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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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Cost and Management Accounting AB Corporation's Assembly Department had the following information for the month: Physical units in process 6,000 Units started during the month 12,000 Units completed during the month 12,000 Units in process at the end of the month 6,000 The units in process at the end of the month...
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Novak Inc. bought all outstanding shares of Rocky Corporation on January 1, 2020, for $620,000 in cash. This portion of the consideration transferred results in a fair value allocation of $20,000 to equipment and goodwill of $78,000. At the acquisition date, Novak also agrees to pay Rocky's previous owners an additiona...
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Please determine what the cash flow will be to the stockholders in the following scenario for Meston's Steel using the following financial data. Meston's spent $205 on fixed assets and increased net working capital by $55. Net Income was $84 and interest paid was $37. A dividend of $47 was paid. Meston's also had long-...
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The Bottling Department of Rocky Springs Beverage Company had 5,200 ounces in beginning work in process inventory (85% complete). During the period, 38,000 ounces were completed. The ending work in process inventory was 3,600 ounces (25% complete). What are the total equivalent units for direct materials if materials a...
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Consider a uniform electric field E = (8.0 N/C.m) i. What is the magnitude of the flux of this field through a square surface of 4.0 m{eq}^2 {/eq} whose plane is 45{eq}^{\circ} {/eq} to the field?
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Find a piecewise smooth parameterization of the curve $y = -x^2$ from $(2, -4)$ to $(1, -1)$ and evaluate the integral $$ \int_C x^2 y \, dx + xy^2 \, dy, $$ for this parameterization.
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Find the center and radius of convergence of the following power series: {eq}\sum_{n = 0}^{\infty} \frac{(x - a)^n}{3^n} + \sum_{n = 0}^{\infty} \frac{(x + a)^n}{2^n} {/eq}.
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A new treatment is successful in curing a common ailment 71% of the time. If the treatment is tried on a random sample of 75 patients, approximate the probability that fewer than 51 will be cured. Use the normal approximation to the binomial with a correction for continuity.
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A certain company experienced the following production costs in the current year: Actual units produced300,000 units Actual machine hours31,000 hours Actual fixed overhead$425,000 Standard overhead rate per machine hour$27 The fixed overhead production variance was: a) $18,000 unfavorable b) $18,000 favorable c) $...
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A truck costing $45,000 with an estimated salvage value of $4,500 and an original life of five years is exchanged for a new truck. The cash price of the new truck is $57,000, and a trade-in allowance of $22,500 is received. The old truck has been depreciated for three years using the straight-line method. The new truck...
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The general corporate objective is to: A) maximize return on investment. B) maximize current period profit. C) maximize total wealth for the corporation's shareholders. D) maximize stock price per share.
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When the rate of expansion was 6 percent, the dollar exchange rate was 0.054 Euros per dollar. If the rate of expansion rises to 7 percent and the dollar exchange rate becomes 0.056 Euros per dollar, what happened to the dollar? a. The dollar appreciated. b. The dollar depreciated. c. The dollar remained strong. d....
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Suppose the term structure of interest rates is such that {eq}t {/eq}-year risk-free bonds yield: {eq}t {/eq} ({eq}\% {/eq}) yield {eq}1 {/eq} {eq}2 {/eq} {eq}3 {/eq} {eq}4 {/eq} {eq}5 {/eq} Yield 10.1 10.5 10.9 11.3 11.6 What is the present value of an annuity of {eq}\$1000 {/eq} paid at the end of each of...
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Calculate the present value of $50,000 to be received in 5 years at an annual discount rate of 12%. a. $150,000 b. $120,000 c. $100,000 d. $36,000 e. None of these
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A company is analyzing a potential project with the cash flows shown below. The cost of capital is 8%. Determine the project's net present value. Year 0: -4,000 Year 1: 2,000 Year 2: 2,000 Year 3: 1,000 Select one: a. 1,128.59 b. 939.16 c. 495.57 d. 29.25 e. 384.48
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Calculate the time it will take to double your investment if interest is 6% per annum and compounding is continuous.
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The sum of two numbers is $32$. The sum of their squares is a minimum. Determine the two numbers.
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E Ltd. deducted the following reserves on its income statement for the current year: $10,000 reserve for doubtful accounts, $15,000 reserve for warranty claims, and $75,000 reserve for amounts due after the end of the year for merchandise sales with two- and three-year payment terms. Determine the amount that is not d...
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To the nearest whole percent, what is the yield to call of a 15-year, 12% coupon bond selling for $920.50 with a call price of $1,100 if the bond is callable in 8 years? A) 9% B) 10% C) 12% D) 13% E) 14%
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Landmark Packaging has 15,000 bonds outstanding that mature in 12 years and make semi-annual coupon payments of $70 each. The bond currently sells for 97% of par value. The corporate tax rate is 34%. What is Landmark's after-tax cost of debt?
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Jekyll & Hyde Corporation has a Marginal Cost of Capital of 13%. They are currently analyzing a project with the following expected free cash flows: YEAR 0 - $42 million YEAR 1 - $8 million YEAR 2 - $10 million YEAR 3 - $12 million YEAR 4 - $14 million What is the internal rate of return of this project?
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The owner of Maumee River Cruises determined that the time needed to serve each guest was normally distributed with a mean equal to 45 minutes and a standard deviation of 10 minutes. Based on this distribution, determine the probability that the average time to serve a sample of 25 cruise guests is between 40 and 50 mi...
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Does the following integral converge or diverge? {eq}\int_{0}^{e}\ln (x^2)dx {/eq}
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A bond has an annual 8 percent coupon rate, a maturity of 10 years, a face value of $1,000, and makes semi-annual payments. If the price is $934.96, what is the annual nominal yield to maturity on the bond?
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How much energy is stored by the electric field between two square plates, 8.0 cm on a side, separated by a 1.6-mm air gap? The plates are charged to a potential difference of 400 V. Express your answer using two significant figures.
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The RedRanger Company recorded revenues of $45,000 and recaptured depreciation of $2,000 for the year just ended. During the year, the firm incurred cash expenses of $27,500 and depreciation expenses of $15,575. RedRanger's taxable income is:
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Boomerang, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will then begin a policy of paying annual dividends of {eq}\$2.60 {/eq} per share. It is estimated that the first dividend will be p...
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Suppose the spot exchange rate for the Canadian dollar is Can$1.19 and the six-month forward rate is Can$1.16. Assuming absolute PPP holds, what is the current cost in the United States of a meal in a Canadian restaurant if the price of a comparable meal in a U.S. restaurant is $3.75?
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The portion of the total contribution margin that equals fixed costs plus a target net income is referred to as the: a. contribution margin ratio. b. margin of safety. c. desired margin. d. return on investment. e. required margin.
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If there is an increase in the productivity of capital, a) employment will decrease, and output will increase. b) employment will increase, and output will decrease. c) employment will increase, and output will increase. d) employment will decrease, and output will decrease.
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How many of the first 100,000,000 fractions of the form $\frac{1}{n^2 + 1}$ and $\frac{1}{n^2 + 2}$ have terminating decimal expansions?
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Is it true that for a natural number $n\geq 1$ the inequality $2nH_n>n^2$ holds, where $H_n=\sum_{k=1}^n \frac{1}{k}$ is the $n$-th harmonic number?
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Calculate the mass of iron(III) oxide you would obtain when 1.50 g of iron metal is converted to iron(III) oxide (Fe2O3).
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