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Consider the two (excess) demand curves {eq}q_{d1}(p) = 10 - p {/eq} {eq}q_{d2}(p) = 20 - 2p {/eq} Suppose the market clearing condition is {eq}q_{d1}(p) = q_{d2}(p) {/eq}. What is the competitive equilibrium price? a. p = 4 b. p = 10 c. p = 20 d. p = 50
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Use the integral test to determine whether the infinite series: {eq}\sum_{n=1}^{\infty} \frac{3}{e^n-1} {/eq} is convergent or divergent. Fill in the corresponding integrand and the value of the improper integral. Compare with: {eq}\int_1^{\infty} \frac{3}{e^x-1}dx {/eq}
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ABC Company has asked you to help them determine the value of their stock based on the following data: D1 = $1.44 ROE = 16% b = 0.40 r = 13% a. $18.00 b. $13.79 c. $15.69 d. $16.50 e. $12.45
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You are the marketing manager for Marathon Wax, which has developed a new product - a garlic-laced hand and body wax. The weekly demand for this wax in Londonderry, New Hampshire, is $Q_{L} = 160 - 80P_{L}$, where the price of the wax is $P_{L}$. The weekly demand in Boston is $Q_{B} = 400 - 100P_{B}$. The current pric...
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For the following reaction conditions select the correct statement regarding the reaction below. OH Cl OTs OTs N TsCl W X Y Z N a. W is the correct product. b. X is the correct product. c. Y is the correct product. d. Z is the correct product since pyridine acts as a nucleophile. e. Both X and Y are both formed...
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Commonwealth Construction (CC) needs $3 million of assets to get started, and it expects to have a basic earning power ratio of 20%. CC will own no securities, so all of its income will be operating income. If it so chooses, CC can finance up to 45% of its assets with debt, which will have a 10% interest rate. If it ch...
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A slender rod is 80.0 cm long and has a mass of 0.270 kg. A small 0.0200 kg sphere is welded to one end of the rod, and a small 0.0500 kg sphere is welded to the other end. The rod, pivoting about a stationary, frictionless axis at its center, is held horizontal and released from rest. What is the linear speed of the 0...
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Let $f(R)=\int_{-R}^{R}e^{-x^2}dx$. Find $\lim_{R\to\infty} f(R)$. Represent $f^2(R)$ as a two-dimensional integral over the square $S=\{(x,y) \in \mathbb{R^2}:|x| \leq R, |y| \leq R\}$. Show that the same function computed over the disk of radius R converges to the same limit using polar co-ordinates, and explain why ...
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Investors are risk averse because: A. they are concerned with a stock's expected return. B. they like diversification. C. they prefer long-term investments to short-term investments. D. they dislike fluctuations in the stock's rate of return. E. they require a higher expected return from stocks with greater expect...
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With regard to the relationship between the C + I + G + X curve and the aggregate demand curve, changes in the price level cause: A. a movement along both the aggregate demand and C + I + G + X curves. B. a shift of both the aggregate demand and C + I + G + X curves. C. the aggregate demand curve to shift while it c...
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Determine the arc length of the polar curve r = 2 - 2 \sin \theta.
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The internal rate of return: a) Rule uses cash flows from the project, not the accounting income from the project. b) Rule does not consider differences in the sizes of the projects. c) Rule will always agree with the npv rule. d) Rule will always agree with the profitability index rule. e) Rule will give a correc...
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Your firm is considering relaxing its current credit policy. Currently, the firm has annual sales (all credit) of $17 million and an average collection period of 42 days. The firm is considering a change in credit terms from the current terms of net 42 to 2/30 net 60. The change is expected to generate additional sales...
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Assuming all counterparties have the same credit rating, which of the following transaction should a gas trading company preferably execute? a. buying gas from a trading firm b. buying gas from a gas producer c. buying gas from a distributor d. indifferent between a, b, and c
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Parker Co. purchased a machine costing $45,000 by issuing a note payable for $45,000. The machine has an estimated life of 5 years. At the end of 1 year, Parker Co. traded in the old machine for a new machine with a market value of $52,500, receiving a trade-in allowance of $10,500. On this date, the old machine was 80...
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Problem: Whittier Company makes two products in a single facility. These products have costs: Product A Product B Variable manufacturing cost $20.00$12.00 Fixed manufacturing overhead$10.00$16.00 Total unit product cost $30.00$28.00 Additional data concerning these products are listed below: Product A Produc...
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Assuming a 100-percent-reserve banking system, if a new customer deposits $10,000 cash, then: A) The money supply increases by $10,000. B) The money supply does not change. C) Bank reserves increase by $10,000. D) B and C.
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In the long run, which of the following is not a determinant of the interest rate? A. the total volume of loanable funds available B. the market value of the financial assets purchased C. the marginal propensities to consume and save D. All of the above are determinants in the long run.
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Compute the residual income for a division with the following information: Sales $150,000 Operating income $25,000 Net assets $80,000 Cost of capital 13% A. $11,500 B. $7,500 C. $25,000 D. $13,500
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A portfolio is composed of two stocks A and B. Stock A has a standard deviation of 34%, while stock B has a standard deviation of 18%. Stock A comprises 60% of the portfolio weight, and stock B comprises 40% of the portfolio weight. If the variance of return on the portfolio is .0380, what is the correlation coefficien...
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Management authorized the purchase of a large quantity of inventory for early December. The purchase will have credit terms of 2/10, n/30. They will authorize payment by the discount rate. How will this decision affect the period's cash flows from the operations indirect method? A. It will increase this period's cash ...
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Consider the following cash flows: Cash Flow Beginning of year 0 -$1000 End of year 1 $400 End of year 2 $400 End of year 3 $400 What is the internal rate of return for the project? A) 8.7000% B) 10.6243% C) 13.4630% D...
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In 2015, XYZ reported gross sales of $750,000, cash sales of $200,000 and accounts receivable of $80,000 at year end. Their total assets were $2,400,000. What is XYZ's asset turnover ratio for the year ended December 31, 2015?
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Company wants to have the functional areas of production, marketing, and accounting follow the budgeting process. Which type of budgeting would be best for this company? a. master budget b. flexible budget c. zero-based budget d. continuous budget
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Compute the internal rate of return for the cash flows shown below. Year 1: 90 Year 2: 360 Year 3: 125 Year 4: 305 Year 5: 210 a. 16.08% b. 13.44% c. 21.99% d. 24.24% e. 10.71%
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If $S_{1}=\frac{3}{2},S_{n+1}=\frac{3S_{n}}{2S_{n}+3}$ and $T_{n}=\frac{1}{S_{n}+1}$. Find $\lim_{n\to\infty}T_{n}$.
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In the Solow growth model, a steady-state equilibrium refers to A) an equilibrium in which the stock of physical capital remains constant over time. B) an equilibrium in which the GDP per capita remains constant over time. C) an equilibrium in which the poverty rate remains constant over time. D) an equilibrium in ...
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The {eq}\mathrm{pH} {/eq} of a solution that contains {eq}0.420 \ \mathrm{g \ of \ HNO_3} {/eq} in 275 mL of solution is _____.
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Calculate the flux of the vector field {eq}\mathbf F = (x + cos(y)) \mathbf i + (y + sin(x)) \mathbf j + (z+3) \mathbf k{/eq} through the surface {eq}S{/eq}, where {eq}S{/eq} is the upper half of the sphere of radius {eq}3{/eq} centered at the origin, oriented outward.
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Appliance for Less is a local appliance store. It costs this store $23.93 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to be 613 units. Each order costs $91. The company is using Economic Order Quantity model in placing the orders. What is the ave...
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Consider a firm that has a marginal product of labor (MPL) of 50 and a marginal product of capital (MPK) of 100. What is the slope of the firm's isoquant at these levels of employment? a. MPL/MPK b. -MPL/MPK c. MPK/MPL d. -MPK/MPL
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Let $a,b$ be non-zero constant vectors, and let $k>0$. Find the surface area of that portion of the plane $a \cdot x = k$ which lies inside the cylinder $x \cdot x = b \cdot b$.
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A company has a base sales volume of 30,000 units and a contribution margin ratio of 70%. It is considering an increase in advertising of $15,000. The break-even point will: a. decrease by $15,000. b. decrease by $21,000. c. increase by $15,000. d. increase by $21,000.
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Yanik purchased a zero-coupon bond one year ago for $223.89. The market interest rate is now 6.2 percent. If the bond had 18 years to maturity when you originally purchased it, what was your total return for the past year? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal...
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Laramie Trucking's CEO is considering a change to the company's capital structure, which currently consists of 25% debt and 75% equity. The CFO believes the firm should use more debt. Specifically, the CFO is considering a capital structure with 40% debt. Under this capital structure, the company's weighted average cos...
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In my understanding, there can be four possible types of current liabilities, when reporting current liabilities in a balance sheet: 1) Some current liabilities may have been classified as noncurrent in the preceding year but are due to mature in the current year. 2) Some noncurrent liabilities are expected to mature...
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All-Nite Company's forecasted 2011 financial statements, including a 2011 income statement, balance sheet, and a 2011 and 2010 common-size income statement and common-size balance sheet, are shown below. Income Statement For 2011 2011 2010 Net Sales $11,000,000 $9,000,000 Less Variable costs 4,000,000 3,600...
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Brian Industries is considering a project that has the following net cash flows and WACC data. What is the project's NPV? WACC = 11% Time: 0 = -$1,400 Time: 1 = $750 Time: 2 = $450 Time: 3 = $600 a) $297.39 b) $321.13 c) $253.01 d) $158.88 e) $197.77
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A 26.3-kg child is standing on the outer edge of a merry-go-round which has a moment of inertia 1173 kg{eq}\cdot{/eq}m{eq}^{2}{/eq} and a radius of 2.40 m. The entire system is initially rotating at 0.190 rev/s. Find the angular velocity if the child moves to a final position 1.10 m from the center of the merry-go-roun...
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find the derivative: {eq}g(x) =\int_0^{x^2} r^2 cos r dr{/eq}
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A search engine is searching for the 10th spam e-mail on a computer. Which of the following is the most reasonable approximate probability of finding the 10th spam at position 45? Select one: A. {eq}e^{-10} {/eq} B. 45e^{-10} C. {eq}e^{-0.5} {/eq} D. 45e^{-0.5}
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At December 31, before adjusting and closing any of its accounts, Honeydew reported the following balances: Accounts Payable $117,000 Accounts Receivable 220,000 Accumulated Depreciation - Equipment 70,500 Cash 62,000 Common Stock 52,000 Equipment 327,000 Land 125,000 Notes Payable (due in five years) 180,000...
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What is the minimum cash balance in period 4 if the cash requirement in period 4 is $12,000, and a constant interest rate of 5% is charged on the cash balance in each period? Assume the cash balance at the beginning of period 4 is $8,000.
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When selling a forklift for $6,000 to a company that buys for resale, Chou Inc. has a cost of $4,000. Chou should: a. report a gain of $2,000 as income. b. report a gain of $2,000 as additional paid-in capital. c. report a gain of $6,000 as income. d. report a gain of $2,000 as a deferred charge.
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Winchester Corp.'s revenue per month from sales is $10 million and doesn't change from month to month, no matter what the price of its output is. What is the price elasticity of demand for Winchester's output?
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The tank initially contains {eq}500\ \text{gal} {/eq} of brine in which {eq}10\ \text{lb} {/eq} of salt is dissolved. Pure brine is being poured into the tank at the rate of {eq}5\ \text{gal/min} {/eq}. If the mixture is being pumped out of the tank at the same rate, find when the brine remaining in the tank will be...
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Bamboo Beach is currently all-equity financed with 20,000 shares. The stock price is $25 per share. It has decided to borrow $100,000 at 7% interest rate and use the proceeds to repurchase 4,000 shares at $25 per share. What will be the EPS of the firm? a. $1.78 b. $2.25 c. $2.78 d. $3.25
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Rabel Company sells units for $9.00 each. The company's variable cost per unit is $6.00, and its fixed costs per unit are $3.00. If the company decides to increase the selling price to $10.00 per unit, what will happen to the breakeven point? a. It will not change b. It will decrease c. It will increase d. It is im...
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The accounts payable balance decreased by $25,000, the inventory balance increased by $75,000, and the accounts receivable balance increased by $60,000. Prepare the cash effects of the operating activities for the period.
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This year, there were about _____ percent more Americans aged 65 and over than when the space shuttle Columbia was first launched. a) 30 b) 45 c) 60 d) 75 e) none of the above
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Accounting income (A) can differ from net cash flow (C), but operating income (B) and cash flow (D) must be the same. Discuss. a. C b. D c. A d. B
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Rent expense is always debited to the rent expense account when it is paid. Is this statement true or false?
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Cannavo, Inc. purchased a patent from Vania Co. for $1,500,000 on January 1, 2014. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2024. During 2016, Cannavo determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisitio...
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Use cylindrical coordinates to calculate the triple integral {eq}\iiint_W(x^2+y^2) dV, where {eq}W is the solid lying above z=0 and below {eq}z=x^2+y^2.
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You are considering an investment in Justus Inc's stock, which is not listed on any stock exchange. The stock has no dividends and an expected return of 21%. Its beta coefficient is 1.5, and the risk-free rate of return is 10%. Calculate the risk premium on the stock investment.
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Compute the integral of the function f(x) = 4x over the interval [1, 4] using the limit of the sum definition: $$\int_a^bf(x)dx = \lim_{n \to \infty}\sum_{i=1}^nf(c_i)\Delta x_i $$ with the partition $$x_i=a+i\Delta x=1+i\frac{b-a}{n}=1+i\frac{3}{n}$$ and $$c_i=x_i-\frac{\Delta x}{2}=1+i\frac{3}{n}-\frac{3}{2n}=1+i\fra...
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If I and II are closed and III is short, which light bulb (or bulbs) is/are brightest? A. None of the bulbs is brightest B. I is brightest C. II is brightest D. I and II are equally bright E. III is brightest
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Evaluate {eq}\int_C F \cdot dr{/eq}, where {eq}F(x, y, z) = 2xz + 3y \enspace i + x \enspace j + y^2 \enspace k{/eq}, and the curve {eq}C{/eq} is the line segment from {eq}(2, 0, 0){/eq} to {eq}(4, 3, 1){/eq}.
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What is the price of a 10% coupon bond with a par value of $1,000, 8 years remaining to maturity, and a yield to maturity of 8%?
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Consider a monopolist that faces the following inverse demand: {eq}\rm P = 10 - Q {/eq} This monopolist's marginal cost is constant and is equal to 2, and its fixed cost is equal to 20. Refer to Monopolist. What is the monopolist's profit? a. {eq}\rm $12 {/eq} b. {eq}\rm $14 {/eq} c. {eq}\rm $20 {/eq} d. {eq...
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Alpha Corp., which has a required rate of return of 10%, has just paid a dividend of $2.50. The dividends are expected to grow at 20% for 4 years and 5% forever thereafter. What is the expected value of Alpha Corp.'s stock? A. $24.97 B. $30.31 C. $38.42 D. $42.02
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Jardine Company applies overhead based on direct labor costs. For the current year, Jardine Company estimated total overhead costs to be $500,000, and direct labor costs to be $250,000. Actual overhead costs for the year totaled $520,000, and actual direct labor costs totaled $280,000. At year-end, the balance in the ...
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The Sweet Acacia Beverage Company has a bond issue outstanding with 15 years to maturity and a coupon rate of 8 percent. The par value of the bonds is $1,000. The yield to maturity is 9 percent. What is the present value of the interest payments?
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The management of CdP Inc. wants to have $2,100,000 in its bank account at the end of 5 years. The bank currently offers 8% interest, compounded semiannually. The company has the option to deposit one lump sum amount now, or $600,000 at the end of the first year, and an additional $450,000 at the end of the second year...
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Vega Corporation developed the following standards for its product: Direct labor 1 hour per unit at $11 per hour Variable overhead $4 per hour Vega Corporation computed the following variances: Variable overhead efficiency variance $120 F ...
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Gontier Corporation is expected to pay the following dividends over the next four years: $2.90, $7.00, $9.00, and $5.50. Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends forever. If the required return on the stock is 12 percent, what is the current share price?
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California Corporation, a single member LLC, has $150,000 of passive losses, $70,000 of taxable income from its active operations, and $10,000 of portfolio income. California must allocate its income and losses to its sole member, Alan, as follows: California Alan a) $100,000 passive loss $20,000 portfolio income $7...
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Toro Company is considering the purchase of new equipment costing $36,000. The equipment will be purchased if it results in a rate of return of at least 10%. The expected life of the equipment is five years, with no salvage value at the end of this period. The annual net income from the new equipment is expected to be ...
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What is the future value of $3,600 in 7 years at 6% interest compounded semiannually?
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When originally purchased, a vehicle had an estimated useful life of eight years. The vehicle cost $26,000 and its estimated salvage value is $3,000. After four years of straight-line depreciation, the asset's total estimated useful life was revised from eight years to six years and there was no change in the estimated...
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On December 31, 2013, Fidelity Co. leased a machine from Collins for a 5-year period. Equal annual payments under the lease are $5,000 (including $1,000 annual executory costs) and are due on December 31 of each year. The first payment was made on December 31, 2013, and the second payment was made on December 31, 2014....
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I need to prove that $$\lim_{n\to\infty}\frac{\alpha^n}{n!}=0\quad\text{for }\alpha>0.$$ The hint says that it's enough to prove that there exists $m\in\mathbb{N}$ such that $$\frac{\alpha}{n}<\frac{1}{2}\quad\text{for }n\geq m.$$ Then $$\frac{\alpha^m}{m!}\frac{\alpha^n}{n!}=\frac{\alpha}{m+1}\frac{\alpha}{m+2}\cdots ...
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What is the yield to call of a {eq}15 {/eq}-year, {eq}10\% {/eq} annual coupon, {eq}\$1,000 {/eq} par value bond selling at {eq}\$1,080 {/eq} if the bond is callable in ten years at a call price of {eq}\$1,100 {/eq}?
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According to a study published in the New England Journal of Medicine in 1995, when adults are given a choice of a healthy, less expensive alternative or more expensive, higher-calorie alternatives, they consistently choose the healthy, less expensive one. This choice is consistent with a model of rational consumer beh...
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Suppose Richard Branson withdraws $5 million from his checking account at Bank of America. If the required reserve ratio is 25%, what is the maximum change in deposits in the banking system?
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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 firm with market power has an individual consumer demand of Q = 20- 4P and costs of C = 4Q. What is optimal price to charge for a block of 20 units? A. $18 B. $36 C. $72 D. $90
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I have a binomial distribution with $n=40$ and $p=0.1$. I'm interested in the probability that $X \leq 5$. I've calculated the exact probability using R as $0.9452065$. If I use a normal approximation with the $CLT$, I end up with $\Phi(2.15)$ which is $0.9842002$. What am I not understanding?
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Suppose that $$\tan(\theta) = \frac{10}{y},$$ where $y$ measured in feet and $\theta$ measured in radians are functions of time $t$, measured in hours. Given $\frac{d\theta}{dt} = \frac{\pi}{12} \text{ radians/hour},$ find $\frac{dy}{dt}$ when $\theta = \frac{\pi}{6}.$
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Given {eq}\displaystyle I=\int_{0}^{5} \int_{2x}^{5} e^{y-x}\ dy\ dx. {/eq} Sketch the region of integration and evaluate the integral. (a) After changing the order of integration {eq}\displaystyle I=\int_{0}^{5} \int_{0}^{y/2} e^{y-x}\ dx\ dy, {/eq} we get {eq}I=e^5-e {/eq}. (b) After changing the order of integr...
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According to recognition by components theory, an object's features must be _____ to be recognized. A) weighted B) repeated C) separated D) connected E) All of these
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The Owen's Store has 5,500 shares of common stock outstanding at a price of $77 a share. It also has 200 shares of preferred stock outstanding at a price of $50 a share. There are 2,500 bonds outstanding that have a 6.5% semiannual coupon. The bonds mature in 5 years, have a face value of $1,000, and sell at 96% of par...
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How much energy is stored by the electric field between two square plates, 8.6cm on a side, separated by a 2.0-mm air gap? The charges on the plates are equal and opposite and of magnitude 19 {eq}\mu {/eq}C.
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An organization that relies on one single supplier may be at risk of: A) poor product differentiation B) excess capacity of the supplier C) organizational stagnation D) poor vertical integration E) a supply chain breakdown
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I have been asked to find the derivative of $x^4 \sin x$ at $x=2$. My approach is to use the first principle: $$f'(2) = \lim_{x \to 2} \frac{f(x)-f(2)}{x-2} = \lim_{x \to 2} \frac{x^4\sin x-16\sin2}{x-2} = \lim_{x \to 2} \frac{x^4\sin x-2\sin x+2\sin x-16\sin2}{x-2}.$$ I have factorized the first two terms but am unsur...
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Keenan Co. is considering a project that will produce cash inflows of $27,100 a year for four years followed by $19,500 in year five. What is the internal rate of return if the initial cost of the project is $76,000? 5.30% 4.64% 6.27% 5.48% 5.02%
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Which of the following would you classify as a debt security? A. Proceeds from the sale of shares of stock in your company. B. A line of credit against which you borrow cash. C. Proceeds from the sale of a mutual fund share. D. U.S. Savings Bonds. E. An account receivable.
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Find the first three nonzero terms in the Maclaurin series for the function {eq}\displaystyle y = (x + 4) \ln 2{/eq}.
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Leisure Lodge Corporation reports the following for the month of June. Beginning inventory of 80 units at $30 Purchase of 400 units at $28 Purchase of 280 units at $25 Purchase of 160 units at $24 Ending inventory of 220 units Assuming that a perpetual inventory system is used, what is the average cost per unit f...
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Assume that the utility function is U = X1 · X2. The price of X1 increases, while the price of X2 stays constant, and the level of utility is to remain unchanged. Can the increase in the price of X1 be fully offset by a decrease in income? a. Yes. b. No. c. Maybe. d. Maybe, if the prices are not too high. e. None ...
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Assume the desired reserve ratio is 10% and the currency drain ratio is 30%. A $10000 increase in reserves would result in: a. A maximum increase in money of $14,000. b. A maximum increase in money of $13,000. c. A maximum increase in money of $10,000. d. A maximum increase in money of $7,000. e. An increase in mo...
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Which of the following would not require the use of the present value concept? a) Determining the value of a stock. b) Calculating the maturity value of a note. c) Establishing a lump sum retirement benefit for a defined-benefit pension plan. d) Buying a stock with funds generated from a retirement plan.
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Which of the following options is correct? An open market operation decreases the money supply when the Federal Reserve a. sells bonds to banks, which increases bank reserves. b. buys bonds from banks, which increases bank reserves. c. buys bonds from banks, which decreases bank reserves.
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Stephenson & Sons has a capital structure that consists of 20 percent equity and 80 percent debt. The company expects to report $3 million in net income this year, and 60 percent of the net income will be paid out as dividends. How large can the firm's capital budget be this year without it having to issue any new comm...
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Multiple choice. Mitchell Corporation retires its $100,000 face value bonds at 105 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $103,745. The entry to record the redemption will include a: a. debit of $3,745 to Premium on Bonds Payable. b. debit of $5,000 ...
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Sally purchased a used car for $8,000. She financed the purchase at 10 percent interest with quarterly payments. The loan required 4 years (16 payments) to amortize. Find the quarterly payment Sally must make. (Round your answer to the nearest cent.)
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Between 1926 and 2014, the average annual return on U.S. small-company stocks was 16.2 percent, as compared to 10.8 percent for U.S. Treasury bills. Suppose the standard deviation of returns for small-company stocks is 31.9 percent, and the standard deviation for Treasury bills is 3.1 percent. Which of the following st...
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A sample of {eq}Ca(OH)_2 {/eq} is added to 50.00 mL of water, and the pH of the solution is measured to be 12.22. What mass of {eq}Ca(OH)_2 {/eq} was added?
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At December 31, 2013, before adjusting and closing the accounts, the ledger of Vaughn Company contained the following selected accounts. Property and equipment $5,600,000 Accumulated depreciation - property and equipment 2,640,000 Patent 960,000 Accumulated amortization - patent 120,000 Repair expense (prep...
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Bonds issued by the Coleman Manufacturing Company have a par value of $1,000, which of course is also the amount of principal to be paid at maturity. The bonds are currently selling for $900. They have 10 years remaining to maturity. The annual interest payment is 10 percent ($100). Compute the yield to maturity.
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