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Cline Company had net income of $100,000 based on the following data: Gross profit 200,000 Depreciation expense 50,000 Rent expense 30,000 Interest expense 4,000 Taxes 5,000 Cline's cash flows from operations were: a. $126,000. b. $106,000. c. $119,000. d. $111,000.
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Suppose you know that the current spot exchange rate equals 0.91 euros per dollar, the risk-free interest rate in the US is 5%, the risk-free interest rate in Europe is 4.5%, and the forward exchange rate is set up for 1 year from now. What is the implied forward rate in euros per dollar?
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Suppose there are two periods (t = 0, 1), and three countries (Home, Foreign, and the World). The world real interest rate is {eq}r {/eq}. Home has a Cobb-Douglas production function {eq}F(k,n)=k^{1/3}n^{2/3} {/eq}. Foreign has a Perverse-U production function {eq}F(k,n)=-k^{1/2}n^{1/2}+k+n {/eq}, with identical ini...
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A study has been conducted to determine if Product A should be dropped. Sales of the product total $200,000 per year; variable expenses total $140,000 per year. Fixed expenses charged to the product total $190,000 per year. The company estimates that $40,000 of these fixed expenses will continue even if the product is ...
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Grind Co. is considering replacing an existing machine. The new machine is expected to reduce labor costs by $135,000 per year for 5 years. Depreciation on the new machine is $85,000 per year compared with $50,000 on the old machine. In addition, inventory will increase from $200,000 at t=1 to $249,000 at t=2 and remai...
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According to the quantity theory, what would happen in the U.S. if velocity and output remained constant but the money supply increased by 5%? A. prices would increase by 5% B. prices would decrease by 5% C. inflation would increase but by less than 5% D. real GDP would grow by 5%
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Evaluate the double integral {eq}\iint_D \frac{xy^2}{x^2+1} \,dA{/eq} where {eq}D{/eq} is the region bounded by the triangle with vertices (0,1) , (1,2), (4,1).
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ABC company has the following information: Sales: $50,000 Net Income: $7,500 Total Assets: $25,000 Total Equity: $10,000 DE ratio: 1.5 Profit Margin: 15% Assume the company adds $5,000 in debt to its current capital structure, what will be its new ROE? a. 50.50% b. 45.67% c. 36.73% d. 25.00%
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Assume a model with no foreign sector, no income taxation, and a consumption function defined as C = 400 + (0.75)YD. If government transfer payments decrease by 200, then: a. income will decrease by 600 b. income will decrease by 800 c. income will increase by 800 d. income will increase by 200 e. income will in...
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The current exchange rate between the U.S. dollar and the euro is $1.25 to 1 euro. The euro is trading at a 6% discount on its forward rate. If interest rate parity holds, what is the dollar's interest rate?
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Alpha Company produced 200,000 units in 80,000 direct labor hours. Production for the period was estimated at 202,000 units and 81,200 direct labor hours. A flexible budget would compare budgeted costs and actual costs, respectively, at: A. {eq}80,000 {/eq} hours and {eq}81,200 {/eq} hours B. {eq}81,200 {/eq} hour...
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A 2.00 gram sample of a radioactive isotope has a half-life of 15.4 days. What percentage of the original sample will remain after 51.2 days?
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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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A 116.5-kg horizontal circular platform rotates freely with no friction about its center at an initial angular velocity of 1.51 rad/s. A monkey drops a 9.88-kg bunch of bananas vertically onto the platform. They hit the platform at 4/5 of its radius from the center, adhere to it there, and continue to rotate with it. T...
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Your company is planning to borrow $1,000,000 on a 5 year, 15%, annual payment, fully amortized term loan. What will your annual loan payment be? (Round to the nearest $100.) Select one: a. $300,000 b. $298,322 c. $199,378 d. $243,773
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Cash provided (used) by operating activities is usually shown: a. First on the statement of cash flows b. Last on the statement of cash flows c. Along with net income on the income statement d. In a separate schedule following the income statement
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Titan Football Manufacturing has the following utility function: {eq}U(I) = \sqrt I {/eq} Where U(I) is utility in terms of thousands of dollars and I is income in terms of thousands of dollars. Calculate the increase in utility when income increases from 16 to 25.
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The chemical formula for nitrous acid is {eq}HNO_2 {/eq}. Write the reaction that occurs when nitrous acid dissolves in water.
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Two constant growth stocks are in the same risk class and have the same required rate of return. The 2 stocks have the same price, but stock A has a higher dividend yield than stock B. Which of the following statements is correct? a. Stock A must have a higher expected growth rate than stock B. b. Stock B must have ...
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If a seller has no good at all and the buyer values the good at {eq}\$10 {/eq}, then according to the Coase theorem: a. the good will be sold if transaction costs are sufficiently low. b. the buyer will pay {eq}\$10 {/eq} for the good. c. the seller will charge {eq}\$10 {/eq} for the good. d. the good will not b...
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R&M Co. expects to maintain the same inventories at the end of 2011 as at the beginning of the year. The cost of these inventories is budgeted to be $750,000 on a cash basis in 2011. If the direct method of presenting cash flows from operating activities is used, the amount of cash flow to be classified as cash flows f...
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Zippy claims he can save $3,000 a year for 10 years and then $2,000 a year for the following 10 years simply by transferring money from his savings account to his checking account. If Zippy's savings account earns 5% compounded annually and his checking account earns 1.5% compounded annually, then how much better off w...
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Carter Company manufactures two products that it sells for $50 and $75, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 100,000 units of each product. Its unit costs for each product at this level of activity are given below: Al...
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The imposition of a maximum price at the point where the monopolist's SMC curve intersects the D curve causes the monopolist to A) break-even B) incur losses C) make profits D) Any of the above
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Suppose we have a cation and an anion that have charges of +1 and -1, respectively and they are separated by a distance of 0.34 nm. Estimate the energy needed to break up the ion pair and separate the ions infinitely apart.
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Two professors and three graduate assistants are responsible for the supervision of a physics lab, and at least one professor and one graduate assistant have to be present at all times. Two coordinates such as (1, 3) for example, are used too represents the event that one professor and 3 graduate assistants are present...
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Prove that $\int_{1}^{t}\frac{1}{\ln x} \ dx \geqslant \frac{\ln t}{t}$ for $t \geqslant 1$. (Assume that $\ln x$ is the natural logarithm function.)
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For the line integral ∫_C x^3 \sin y \, dx + x^2 \cos y \, dy, where C: x = t^2, y = \pi t, -1 \leq t \leq 1, find the function f(x, y) such that \nabla f = F.
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At the beginning of 2014, Robotics Inc. acquired a manufacturing facility for $16 million. $12 million of the purchase price was allocated to the building. Depreciation for 2014 and 2015 was calculated using the straight-line method, a 25-year useful life, and a $2 million residual value. In 2016, the estimates of usef...
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Project K costs $62,000, its expected cash inflows are $11,000 per year for 11 years, and its WACC is 9%. What is the project's MIRR?
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The demand function for a certain brand of CD is given by {eq}\; p = -0.01 x^2 - 0.2 x + 8 \; ; \; (0 \leq x \leq 20) {/eq}, where {eq}p {/eq} is the wholesale unit price in dollars and {eq}x {/eq} is the quantity demanded each week, measured in units of a thousand. Determine the consumers' surplus if the current ma...
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Sally loves chocolate so much that she is always willing to substitute 1 oz of vanilla for 1 oz of chocolate. If she purchases 4 boxes of chocolates for $40, how much are 4 boxes of chocolates worth to Sally in total? A. $20 B. Between $40 and $80 C. Between $0 and $80 D. Between $40 and $60 E. $40
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Between August 2011 and August 2012 the number of economic part-time workers decreased from 8.8 million to 8.0 million. Assuming the change resulted from economic part-time workers transitioning to full-time jobs, this change created which of the following? a. no change to the U-3 unemployment rate. b. a decrease to ...
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A company developed the following data for the current year: 1. Beginning work in process inventory $125,000 2. Direct materials used 127,000 3. Actual overhead 126,000 4. Overhead applied 137,000 5. Cost of goods manufactured 681,000 6. Total manufacturing costs 533,000 How much is Harlee Company's direct labor...
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Use Simpson's rule with n=2 (so there are 2 intervals of equal length) to estimate the value of the integral {eq}\int^{8.1}_{2.1} \tan(z) dz{/eq}
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Assume that the demand curve for a good is downward sloping. Now suppose that firms in the industry become less productive because of a labor strike. The strike has the following effects: -Everything else remaining unchanged, the supply curve shifts to the left -A lower price of the good results. -Consumers purchase...
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If you wanted to prepare a phosphate buffer at pH = 6.25, how many mL of concentrated HCl would you need to add to make 1 L of final buffer? Assume you have 1 M NaOH and solid Na{eq}_2 {/eq}HPO{eq}_4 {/eq} available to you. Show your work.
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NASA is modeling the 1D straight line motion of a rocket sled which will start at rest and provide a constant acceleration of {eq}a = 200\text{ m/s}^{2} {/eq} for a time of {eq}3\text{ s} {/eq}. They want construct a simple, but accurate, data table with the following equations: {eq}v_{i+1} = v_{i} + at {/eq} and {e...
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Suppose the variable {eq}y {/eq} has a linear relationship with the independent variables {eq}x_1 {/eq} and {eq}x_2 {/eq} given by the model {eq}y = 4x_1 - 2x_2 {/eq}. The sample regression equation for this model is: a. {eq}\hat y = b_0 + b_1 x_1 + b_2 x_2 {/eq} where {eq}b_1 = 4 {/eq} and {eq}b_2 = 2 {/eq}. ...
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Find the unit tangent vector to the curve r(t) = (e^t, e^{-t}, t) at the point (1, 1, 0).
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A spaceship is traveling at a speed of 0.780 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 0.260 times the speed of light, what speed (as a fraction of c) does an Earth observer measure for the trash...
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Find the volume of the region bounded by {eq}y = \sqrt{z - x^2} and {eq}x^2 + y^2 + 2z = 12.
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During a business cycle recession when income and wealth are falling, the demand for bonds _____and the demand curve shifts to the _____, everything else held constant. A) falls; right B) falls; left C) rises; right D) rises; left
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The Chippewa Company decided to change from FIFO to Weighted Average late in Year 20X3. Year 20X1 was the first year of operations. The Statement of Retained Earnings for year-end 12/31/X3 shows two columns, 20X2 and 20X3. 20X2 20X3 Retained Earnings, Jan 1, previously reported ...
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You are given a sample size n = 50. You are asked for a 90% confidence interval. What value of t or z do you use?
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McGee Supply sells office chairs. The company's income statement showed the following information for the year ended December 31, 2009: Sales 1,050,000 Cost of goods sold 735,000 Gross margin 315,000 Expenses 161,400 Net income $153,600 McGee Supply's inventory turnover for 2009 is: a) 0.93 times b) 1.15 times...
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Let E be the solid between the two spheres {eq}x^2 + y^2 + z^2 = 4{/eq} and {eq}x^2 + y^2 + z^2 = 9{/eq}. Compute {eq}\iiint_E \frac{1}{(x^2 + y^2 + z^2)^{3/2}}dV{/eq} by finding limits in spherical coordinates.
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Omega produces two products: good and poor. During a recent period, 100,000 units of good were produced at a cost of $2.40 each, and 900,000 units of poor were produced at a cost of $1.40 each. Omega's management would like to sell both of these products together as a single package at a price of $2.65. What is the max...
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A sample of 25 students was selected and asked about their GPA. The results are as follows: $x-\bar=3.20, s=0.60$. At a 0.05 significance level, does the evidence show the students' mean GPA is more than 3.00?
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Suppose that in a typical month, an average of 6 cell phone calls are made from a particular set of numbers. Find the probability that 3 or more calls are made in a given month from this set of numbers.
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Data concerning Fidan Inc.'s single product appear below: Per Unit Percent of SalesSelling price$150100% Variable expenses$6040% Contribution margin$9060% Fixed expenses are $445,800 per month. The company is currently selling 8,700 units per month. The marketing manager would like to cut the selling price by $11 ...
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The Ford Company developed the following standards for the manufacture of its product: Each unit should have 4 pounds of direct materials purchased at $12 per pound. Each unit should be produced in 3 hours at a direct labor cost of $18 per hour. Actual production was 40,000 units using 162,800 pounds of direct material...
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Zapata Corporation will pay dividends of $5.00, $6.00, and $7.00 in the next three years. Thereafter, the company expects its dividend growth rate to be a constant 10%. If the required rate of return is 15%, what is the current market price of Zapata stock? Do not round intermediate computations and round your answer t...
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You borrowed $6000 for 4 years at an annual interest rate of 12%. The loan agreement calls for 4 equal payments, to be paid at the end of each of the next 4 years. The Annual Payment that will fully pay off (amortize) the loan is a. $1,790.62 b. $2,160.00 c. $2,460.00 d. $2,660.65 e. $2,700.00
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Sleeper Manufacturing uses a job-costing system at its Sydney plant. The plant has a machining department and a finishing department. The company uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost categories (the machine department w...
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Which of the following is not an outcome of a recession? a) Fewer businesses open and existing businesses close. b) Fewer jobs are available. c) Wages stagnate. d) Unemployment rates fall.
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Texann Industries has an opportunity to invest in a new machine that would cost $400,000 and have a life of five years. The new machine would reduce operating costs by $100,000 per year. The straight-line depreciation method would be used for the machine, for a five-year period with no salvage value. The new machine wo...
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1. Your neighbor has a tree that blocks your view of a distant hill. Your neighbor values the tree at $100. You value the tree's removal at $150. Tree removal costs $60. In this case, property rights are clear. Your neighbor owns the airspace extending above his house for some distance. Transaction costs in this case:...
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Adams and Co. has the following capital gains and losses: Long Term Short Term Capital gain $25,000 $15,000 Capital loss $50,000 $35,000 What is the amount and character of Adams' capital loss carryover to 2014? a. $40,000 in long-term capital loss carryover and $35,000 in short-term capital loss carryover. b. $15,...
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An unknown compound, X, is known to possess two groups that ionize as the pH changes. One of these groups is a carboxylate with a pKa of 2.0. When 75 mL of 0.1 M NaOH is added to 100 mL of 0.1 M solution of X at pH 2.0, the pH increases to 6.72. What is the pKa of the second ionizable group of X? A. 4.3 B. 6.0 C. ...
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You are considering an investment in Justus Corporation's stock, which is not listed on any stock exchange. The beta of Justus's stock is 0.85, the risk-free rate is 3.30%, and the market risk premium is 5.20%. Based on the CAPM, what is the expected return on Justus Corporation's stock?
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If Congress eliminates the investment tax credit, it will most likely A. increase aggregate demand B. decrease aggregate demand C. increase aggregate supply D. decrease aggregate supply E. decrease the wealth effect
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In the Crane Company, indirect labor is budgeted for $84,000 and factory supervision is budgeted for $30,000 at a normal capacity of 125,000 direct labor hours. If 130,000 direct labor hours are worked, the flexible budget total for these costs is: a. $127,000 b. $114,000 c. $131,000 d. $124,000
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The 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 12% ($120). Compute the yield to maturity. (Round...
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The index of refraction in a certain substance is 2.0. What would be the speed of light in this substance?
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Jepson Manufacturing is considering a project that will produce a rate of return of 15% over a four-year period. Which of the following options is correct, assuming all cash flows are received at the end of each year? a) The project is expected to produce a net present value equal to the initial cost of the project. ...
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Your brother offers you the opportunity to participate in his investment, which will pay you {eq}\$10,000 {/eq} per year for the next {eq}10 {/eq} years or he will deposit one lump sum today and you can take the money today. If he is offering you a {eq}12.00 \% {/eq} return on your investment, how much should he dep...
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Edward's Manufactured Homes purchased some machinery 3 years ago for $49,000. The assets are classified as 5-year property for MACRS. The company is replacing this machinery today with newer machines that utilize the latest in technology. The old machines are being sold for $12,000 to a foreign firm for use in its prod...
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Cavendish Inc., had a {eq}\$20 {/eq} per-unit variable cost and {eq}\$100,000 {/eq} of fixed costs. Its product currently sells for {eq}\$50 {/eq} per unit. A proposal is being considered to spend {eq}\$40,000 {/eq} to buy a new machine that would produce {eq}5,000 {/eq} units per year, at an additional {eq}\$5 {...
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Company A has 5% coupon (m=1) and sells for par. Company B has 6% coupon (m=1) and sells for par. Company C has 7% coupon (m=1) and sells for par. Company D has 10% coupon (m=1) and sells for par. All bonds have the same maturity. If inflation expectations for year 2 increase from 4.5% to 5.5%, then which bond(s) will...
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According to financial theory, the method(s) that should be used to evaluate most cases of replacement projects are: A. use the EAA method, if the required investment is different. B. use the EAA method, regardless of the required investment. C. reject all mutually exclusive replacement projects when MARR > IRR ...
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Use the Remainder Estimate for the Integral to determine the smallest N so that the remainder {eq}\displaystyle R_N = \left| \sum_{n = N +1}^\infty \dfrac {(-1)^n}{n^2} \right| {/eq} is less than {eq}10^{-4}{/eq} for the alternating series {eq}\displaystyle \sum_{n = 1}^\infty \dfrac {(-1)^{n +1} }{n^2} {/eq}.
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A competitive market like that for wheat is most likely to experience a. upward-sloping supply and downward-sloping demand. b. downward-sloping supply and upward-sloping demand. c. downward-sloping supply and demand. d. upward-sloping supply and demand.
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Evaluate the surface integral {eq}\displaystyle\int \int_{S} F \cdot dS{/eq} for the given vector field {eq}F{/eq} and oriented surface {eq}S{/eq}. Find the flux of {eq}F{/eq} across {eq}S{/eq} where {eq}F(x,y,z)=xz \hat{i} + x \hat{j} + y \hat{k}{/eq} and S is the hemisphere {eq}x^2 + y^2 + z^2=64, z \geq 0{/eq}, orie...
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State of Overstatement or Understatement Cost of goods sold (for year ended 2016) __________ Inventory (2016) __________ Net income (2017) __________
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A neutral solid conducting cylinder rotates about its axis with angular speed 1600 rad/s. In addition, there is an external magnetic field of induction B directed along the cylinder's axis. What must the magnitude of the magnetic field in Teslas so that no electric field is created inside the conductor? Hint: The mate...
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Assume that you are trying to value a firm that has current profits of $1 million. Assume that the opportunity cost of funds is 10% and the constant profit growth rate is 5%. What is the present value of the firm?
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A uniform electric field of magnitude 385 V/m is directed in the negative y direction. The coordinates of point A are (-0.250, -0.650) m and those of point B are (0.250, 0.500) m. Calculate the electric potential difference {eq}V_B - V_A {/eq} using the path A {eq}\rightarrow {/eq} (-0.250, 0.500) {eq}\rightarrow {/...
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Which of the following is not a reason why corporate bonds are attractive to many people? a. Bond prices move up when interest rates go down b. Bonds are generally less risky than stocks c. Corporate bonds pay regular interest d. Coupon payments are always tax-free
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Due to increased government regulation, a firm's cost of capital increased, which is likely to: a. decrease its return on assets and increase its earnings per share. b. increase its return on assets and decrease its earnings per share. c. decrease both its return on assets and earnings per share. d. increase both i...
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Graham Corp sells two products. Product A sells for $200 per unit, and has unit variable costs of $150. Product B sells for $50 per unit, and has unit variable costs of $20. Currently, Graham sells three units of product B for every two units of product A sold. Graham has fixed costs of $760,000. What is Graham's break...
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A firm located in a small town in East Coast relocates to West Coast. Workers in that town cannot sell their homes to move with the firm. The resulting unemployment is called: a) Frictional unemployment b) Structural unemployment c) Locational unemployment d) Cyclical unemployment
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At the macroeconomic level, aggregate demand is: a. the spending side of the market. b. the production side of the market. c. both the spending and the production sides of the market. d. neither the spending nor the production sides of the market.
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Calculate the sustainable growth rate for the retention ratio is .60, net income is $88,000 and total assets are $1,580,000.
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Compared to hiring a white worker, an employer is $5 less happy when he hires a black worker and is $6 less happy when he hires a Hispanic worker. The frim faces hourly wage rates of $20 for whites, $16 for blacks, and $14 for Hispanics. Which of the following describes the firm's hiring decision? a. The firm hires al...
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You work for a company that makes organic fertilizer. As part of your job, you must review two recently submitted sales forecasts. Both are for the same year, show the same figures for sales, and are presented in the same order. The only difference is that one is presented as a percentage of capacity, and the other is ...
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A company's preferred stock pays an annual dividend of $2.00. It trades at a price of $52.00. What is the preferred stock's required rate of return? (Round to 2 decimal places)
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Harrison Company acquires 100 percent of the outstanding common stock of Dayton Company by issuing bonds with a par value of $250,000. On that date, Dayton had common stock of $75,000 and retained earnings of $125,000. At that date, equipment was undervalued by $50,000 and buildings were undervalued by $75,000. The equ...
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Which of the following statements is false? a. When the nominal wage is stuck at a level below the equilibrium value, there is downward pressure on the real wage, b. The price and wage stickiness is central to the Keynesian explanation of the upward-sloping short-run aggregate supply curve, c. The velocity of circul...
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Appliance for Less is a local appliance store. It costs this store $26.73 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to be 766 units. Each order costs $97. The company is using Economic Order Quantity model in placing the orders. What is the ave...
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Direct labor costs of 380,000 were incurred on December 31, 20X2, under a bonus plan in which direct labor wages are 10% of the net income after deducting the bonus. What would have been the direct labor cost if a bonus of 10% of net income before deducting the bonus had been provided? a. 420,000. b. 418,000. c. 422...
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Consider a square sheet of side 3 {eq}m {/eq}. If a mass {eq}m {/eq} is placed at (0, 0) and mass {eq}2m {/eq} is placed at (3, 0) and at (1.5, 1.5), what is the gravitational potential at (0, 3)?
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Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division's return on investment (ROI). Assume the following information relative to the two divisions: Alpha Division Case 1 Case 2 Case 3 Case 4 Capacity in units 57,000313,000107,000200,000 Num...
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What is the sum of 7x + 3y, 8x - 5y, and 13x + 2y?
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Which of the following is a form of restricted stock? A) A stock option plan B) A stock appreciation right plan C) A stock rights issue plan D) A deferred stock bonus plan E) A stock purchase right plan
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Evaluate the surface integral {eq}\int \int_{S} F \cdot dS{/eq} for the given vector field {eq}F{/eq} and the oriented surface {eq}S{/eq}. Find the flux {eq}F{/eq} across {eq}S{/eq} where {eq}F(x,y,z)=e^{xy}\hat i + e^{xz}\hat j + e^{yz}\hat k{/eq} and S is the hemisphere {eq}x^2+y^2+z^2=25,\enspace y\leq 0{/eq}, orien...
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Paycheck Company makes the following journal entry to record the issuance of its common stock. Cash330,000 Common stock ($1 par)310,000 Additional paid-in capital-Common stock20,000 The correct statement of the transaction is: a. Cash of $20,000 and common stock of $310,000 was received for 10,000 shares of common...
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Stephenson Corporation is considering replacing a technologically obsolete machine with a state-of-the-art numerically controlled machine. The new machine would cost $250,000 and would have a fifteen-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $36,000 per yea...
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Suppose that a cashier at a large retail checkout counter is able to handle 5 customers per minute on average (i.e., X ~ P(5)). Determine the probability that the cashier can handle all customers in a minute during a particular period of time if: a) There are 4 customers in a minute. b) There are 10 customers in a mi...
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To get a 5% return if cash is received at the end of 2016, how much should be invested today if the expected return from the investment is 15%? A) $70,000 B) $76,935 C) $80,000 D) $87,234 E) $90,000
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