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Accounting for convertible debt is both a theoretical and practical problem in accounting. Is it a debt instrument, an equity instrument, or both? Under the accounting standard APB Opinion 14 the amount of the conversion feature of convertible debt should be shown as: A. a liability B. equity C. a special item betwe...
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Dividen buys a plot of land for $200,000. The land appreciates at a constant annual rate of 8%. On his next-door neighbor's plot, the land appreciates at a constant annual rate of 8%, but the value of the land increases by $30,000 each year. If Dividen is primarily concerned with the annual rate of appreciation, after ...
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Given the following information for the stock of Foster Company, calculate its beta. Standard Deviation of Stock Returns 30% Standard Deviation of Market Returns 18% Covariance between the Stock and Market Returns 7% a. 2.08 b. 1.11 c. 1.90 d. 0.58
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Consider the following cash flow. What is the present worth in year 0 if the interest rate is 10% per year compounded annually? Year Cash Flow 1 - $3,000 2 4,000 3 6,000 4 8,000 a) $9,864 b) $11,442 c) $12,287 d) $10,324
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Regency Health's financial manager has estimated that the firm's capital structure contains 31% debt, 3% preferred stock, and 66% common stock. To the nearest whole percent, what is the firm's cost of common equity if the after-tax cost of debt is 7%, the cost of preferred stock is 10%, and the firm's tax rate is 30%? ...
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Information on the demand for light bulbs manufactured by the Nabisco corporation in the last year appears below. Price $1.35 Quantity 9,920 Price $1.52 Quantity 9,690 Price $1.74 Quantity 9,350 Price ...
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An investment of $50,000 resulted in uniform income of $10,000 per year for 10 years and a single amount of $5000 in year 5. The rate of return on the investment was closest to: a. 10.6% per year b. 14.2% per year c. 16.4% per year d. 18.6% per year
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Consider a game with two players (Alice and Bob) and payoffs: BobBob $$s_1$$$$s_2$$ Alice$$s_1$$3,-30,0 Alice$$s_2$$0,02,-2 This game has: a. A dominant strategy equilibrium, b. An iterated dominant strategy equilibrium, c. A Nash equilibrium in pure strategies, d. A Nash equilibrium in mixed strategies
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Matthews, Inc., budgeted production of 42,900 units in June. Actual production was 42,600 units. At the beginning of the month, there were 3,200 units in inventory. During June, 45,200 units were manufactured and the ending inventory was 2,700 units. The standard materials cost for one unit of inventory is $4.00. The m...
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The cost method of accounting for the retirement of bonds is similar to the redemption of preferred stock in that the: a. entering of a new note or a new stock certificate is necessary in both situations. b. loss on retirement is computed in the same manner for both bonds and preferred stock. c. gain or loss is dete...
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A company using FIFO to assign cost to its products has the following information: Units started during the month: 30,000 units Beginning WIP (40% complete): 10,000 units Units completed during the month: 35,000 units Ending WIP: 5,000 units (80% complete) Materials are added at the beginning of the process in the ...
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Cendant Corporation's results for the year ended December 31, 2015, include the following material items: Sales Revenue $5,500,000 Cost of goods sold 3,200,000 Selling and administrative expenses 1,150,000 Gain on sale of investments 300,000 G...
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What is the pH of 50 mL of a solution that is 0.10 M in NaH2PO4 and 0.25 M in Na2HPO4?
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Let $E$ be the region bounded by $x = 0, y = 0, z = 0,$ and $x + y + z = 1$. Evaluate the triple integral $\iiint_ExydV$.
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The financial statements of Pilgrim Home Services report net income of $6,250,000. Selected information from the financial statements is as follows: Balance sheet: Current assets $22,500,000 Total assets $128,750,000 Income Statement: Cost of goods sold $24,000,000 Interest expense $3,000,000 Based on the data a...
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A fund earns 8% per year compounded annually. How many annual payments of $500 must the fund receive if the fund is to grow from $1,000 today to $2,000 five years from now?
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The government chooses to decrease spending to control inflation. This is an attempt to move the economy from a point on the Phillips Curve to a point _____. a) where the short-run Phillips Curve is upward sloping b) to the right along the short-run Phillips Curve c) on the long-run Phillips Curve d) to the left al...
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The most popular form of forecasting is a. statistical modeling. b. scenario writing. c. Delphi technique. d. brainstorming. e. trend extrapolation.
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Compute the smallest sample size required to determine the population proportion to within 0.08 of its true value with 95% confidence, assuming that the proportion is at least 0.70. A) 54 B) 158 C) 247 D) 369
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Two events occur in an inertial system at the same time, but 7635 km apart. However, in another inertial system, these two events are observed to be 14585 km apart. What is the time difference between the two events in this second inertial system?
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What is the yield to call for a 12% bond priced at $1,050 that matures in 10 years but can be called in 3 years at a call price of $1,100? Assume semiannual coupon payments. A. 8.34% B. 11.20% C. 11.48% D. 13.90% E. 14.12%
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Fly Away Company owns a single restaurant that has a bar primarily used to seat patrons while they wait on their tables. The company is considering eliminating the bar and adding more dining tables. Segmented contribution income statements are as follows and fixed costs apply to both segments are allocated on the basi...
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Company A has a market value of equity of $500 million. It has invested $100 million in a project with an IRR of 8%. Company B has a market value of equity of $250 million. It has invested $100 million in a project with an IRR of 10.5%. Both companies have costs of capital of 9.5%. Which project has the higher NVP? a....
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Consider the following Balance Sheets and Income Statement for ABC Corporation with year ended December 31 (both in $ million): BALANCE SHEET 2006 2005 Assets 2006 2005 Liabilities & Stockholder's Equity 2006 2005 Current Assets Current Liab...
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Given sample size = 30, sample mean = 7.7, st dev = 2.33, 95% confidence, what is confidence interval lower limit?
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Maurice purchased an investment that offered substantial tax deferral. The investment allows him to defer $100,000 for a 6 year period if the after-tax rate of return on the investment is 10%. What is the present value of the tax deferral benefit?
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Assume that the aggregate labor market is such that the labor demand curve is upward sloping and steeper than the labor supply curve. If pessimistic expectations are widespread among workers in an economy with this type of labor market: a. real wages will fall while aggregate output will increase. b. aggregate output...
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Find the flux of F(x,y,z) = xi + yj + zk across the total surface of the tetrahedron in the first octant formed by coordinate planes and the plane x+y+z=1
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An insulating solid sphere of radius R has a uniform charge density p. Using Gauss's law, find the magnitude of E at r = {eq}\frac{R}{2} {/eq}. Express your result in terms of {eq}\frac{p}{(4\pi \epsilon _{0}R)} {/eq}.
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In a scenario where a particle of mass {eq}m {/eq} is acted upon by a force {eq}\overline{F}=\overline{v} \times \overline{a} {/eq}, where {eq}\overline{a} {/eq} is a constant vector in the horizontal direction and {eq}\overline{v} {/eq} is the velocity of the particle, and the particle is projected with an initial...
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Assume the following values for an electron orbiting a proton in the n=2 energy level: me=9.1 x10^-31 kg, ke=8.99 x 10^9 Nm^2/C^2, r2=0.212 x 10^-9 m, and e=1.6 x 10^-19 C. If the uncertainty in measurement of the radius is 2.00%, what is the uncertainty in measurement of the electron's momentum? Answer in scientific n...
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In a collisionless gas of identical molecules, the ratio of the number of diatomic molecules to the total number of molecules is f at temperature T. For the same gas at temperature 2T, this ratio will be: A) f B) 2f C) f/2 D) f/sqrt(2)
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Ridiculousness, Inc. reported the following information for 2006: Beginning fixed manufacturing overhead in inventory $288,000 Fixed manufacturing overhead in production 960,000 Ending fixed manufacturing overhead in inventory 96,000 Beginning variable manufacturing overhead in inventory 24,000 Variable manufactur...
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An investor buys $40,000 worth of a stock priced at $50 per share using a 60% initial margin. The broker charges 10% on the margin loan and requires a 35% maintenance margin. The stock pays a $1 per share dividend in 1 year, and then the stock is sold at $54 per share. What was the investor's rate of return?
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How do I prove $$\lim_{n \to \infty} \frac{1}{n} \sum_{k = 1}^n f \left( \frac{k}{n} \right) = \int_0^1 f(x)dx$$ given the hint that $\lim_{n \to \infty} \frac{1}{n} \sum_{k = 1}^n a_k = \int_0^1 f'(x)dx = f(1) - f(0)$ and the definition of a sequence $f = f_n$?
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Lindstrom Corp. reported earnings after tax (EAT) of $1,920,000 last year along with basic EPS of $4. All of Lindstrom's bonds are convertible and, if converted, would increase the number of shares of the firm's stock outstanding by 20%. Lindstrom is subject to a total effective tax rate of 40% and has a TIE of 9. Com...
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Assume that during 2012, DeMott's Dockyard paid interest of $856 million and received dividend income of $182 million. It also paid dividends to its own common stockholders of $161 million and received dividend income from its investments of $23 million. DeMott's tax liability for 2012 on its ordinary income is $280 mi...
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Catawba Clothing Co. has a beta of 1.79, the expected return on the market is 13.3 percent, and the risk-free rate is 4.4 percent. What is the company's cost of equity? a. 18.29% b. 25.57% c. 9.11% d. 16.19% e. 22.73%
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Find the z-score so that the area under the standard normal curve to the left is 0.77.
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Wool Manufacturing Company had the following balances in its inventory accounts as of January 1: Cost Retail Goods in transit (20% complete) $6,000 $12,000 Inventory (including $3,000 of goods returned) $25,000 $50,000 During the month of January, the following purchases and other transactions occurred: Cos...
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The small cord-and pulley system carries a mass {eq}m = 42\ \rm kg {/eq}. The uniform slender bar AB is {eq}2.2\ \rm m {/eq} long and weighs {eq}50\ \rm N {/eq}. The spring constant {eq}k = 2200 \rm\ N/m {/eq}, and the spring is unstretched when the mass is at point C. The bar can swing freely in the vertical plane...
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Taxpayer, who is married and has three children, had the following income and expenses for 2013. Wages$80,000 Interest earned500 Income from restaurant3,000 Alimony paid (separate return by spouse)2,000 Charitable contribution (total of deductions)5,000 Income from regular child support paid (pendent by other source)...
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If both the adjusted trial balance and the income statement columns of the end-of-period spreadsheet reveal the same income before income taxes of $51,000, then the: a. adjusted trial balance must be correct. b. adjusted trial balance need not be prepared. c. adjusted trial balance may not be correct. d. income sta...
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What is the expected number of rolls to see all sides of a six-sided die?
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You observe the following prices in the wholesale market for building permits in Denver: quantity of permits 50, price per permit $100; quantity of permits 100, price per permit $95; quantity of permits 150, price per permit $90; quantity of permits 200, price per permit $85. Based on this information, the supply of bu...
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A firm is evaluating a potential project using the modified internal rate of return. The project has an initial investment of $15,000 and cash flows of $5,000, $6,000, and $7,000 for Years 1 to 3, respectively. If the firm's cost of capital is 9 percent, what is the modified internal rate of return? a. 11.67 percent ...
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Niles Company granted 111 million of its no-par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $22 per share on January 1, 2015, the grant date of the restricted stock award. When calculating diluted EPS at December 31, 2016, w...
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Assuming a uniform flow through an open channel, which of the following could be used to determine the average velocity if the discharge Q is known? a. {eq}Q=v_{max}A{/eq} b. {eq}Q=2v_{avg}A{/eq} c. {eq}Q=4v_{avg}A{/eq} d. {eq}Q=\dfrac{v_{avg}}{A}{/eq}
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Suppose X and Y are independent and uniformly distributed on [0,1]. Find P(X^2+Y^2\le 1).
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The common stock of Blue Ocean sells for $40 a share. The company recently paid its annual dividend of $1.60 per share and has a projected constant growth rate of 5 percent. If you buy the stock at the market price, what is your expected rate of return? a. 4% b. 5.55% c. 7.5% d. 8.25% e. 9%
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You have invested in several different stocks. If the expected market return is 12, and the expected return on your portfolio is 11, the beta of your portfolio must be: A. .92 B. .96 C. 1.04 D. 1.08 E. Not enough information to answer the question.
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A pregnancy test is accurate 97% of the time when someone is pregnant and 98% accurate when someone is not. Assuming that 60% of people who take the test are pregnant, and that someone tests positive twice in a row, what is the probability they actually are pregnant?
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What symbol represents the slope coefficient?
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Evaluate the following: {eq}\displaystyle \int_C (2xy + 2x) dx + (x^2 - 2y) dy {/eq} where {eq}C {/eq} is the line segment from (2,1) to (4, 3).
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You are analyzing the cost of debt for a firm. You know that the firm's 14-year maturity, 10.25% coupon bonds are selling at a price of $985.00. The bonds pay interest semiannually. If these bonds are the only debt outstanding for the firm, what is the after-tax cost of debt for this firm if the firm is in the 35% marg...
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We have the function $$f(x) = \left\{ \begin{array}{ll} 2\,\, , & x>0, \\ 0\,\, , & x=0, \\ -2\,\, , & x<0. \end{array}\right. $$ We have to calculate the integral $$\intop_{-1}^{1}f(x)\, dx$$ with sgn($x$) function: $$\intop_{-1}^{1}f(x)\, dx = \intop_{-1}^{0}-2\, dx + \intop_{0}^{1}2\, dx = -2x\Big|_{-1}^{0}+2x\Big|_...
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Find $\lim_{n\rightarrow\infty} \sin (\pi n!)$
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Dorchester, Inc., has the following inventory data: Jan. 1: beginning inventory of 50 units at $150 Jan. 10: purchase of 80 units at $160 Feb. 18: sale of 60 units Mar. 9: purchase of 100 units at $170 Mar. 27: sale of 70 units A physical count of inventory on April 12 reveals that there are 70 units on hand. As...
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What will the change in equilibrium GDP be (billion) if booming economies in the BRIC nations (Brazil, Russia, India, and China) cause net exports (NX) to rise by $75 billion and the MPC is 0.80?
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Of the following types of expenses, which is least likely to be classified as a fixed cost with respect to the number of units sold? a) Sales commissions b) Direct material c) Rent d) Manager's salary
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One month prior to the acquisition of land and a building, Roark Co. borrowed $600,000 from Chase Bank on October 1. The note requires annual interest payments of 12% on September 30 of each year and the principal is due on September 30, Year 4. Roark prepares quarterly financial statements on March 31, June 30, Septem...
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In a recent Audubon Society field guide, the earthworm is described as being 20-30 cm long and 1-5 cm in diameter. If an earthworm had the same width as a typical eukaryotic cell (10 μm), how many earthworms placed side by side would equal the length of a typical eukaryotic cell?
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What is the answer to this problem? {eq}\displaystyle \int_S F \cdot dS {/eq} where F = 4xj - 4yk and S is the portion of the surface of the cone {eq}\displaystyle z=\sqrt{x^2+y^2} {/eq} with {eq}\displaystyle 0 \leq z \leq 1 {/eq}. Use the positive (outward) orientation.
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It is determined that, for a given region, 60% of all sales are in cash. A random sample of 10 sales is selected. Using a binomial distribution, what is the probability that at least 5 of the sales are cash? Select the closest answer. A) 0.024 B) 0.033 C) 0.216 D) 0.512
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Calculate the value of Q when k = 10 Nm/rad, b = 2.2 kg/m, and M = 1.0 kg.
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Approximate the zero(s) of the function {eq}g(t) = t^2 - 4t + 1{/eq} using Newton's Method with one iteration for the given initial guess {eq}t_0 = 4{/eq}. Round your answer to three decimal places.
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An individual's demand for a public good can be derived from his or her private demand for a(n): A. inferior good. B. public good. C. private good. D. substitute good.
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Keizer Company carries product X in inventory on December 31, 2007 at its unit cost of $6.90. Because of a sharp decline in demand for the product, the selling price was reduced to $7.60 per unit. Keizer's normal profit margin on product X is $2.20, disposal costs are $0.70 per unit, and the replacement cost is $5.20. ...
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Assume the spot rate of the British pound is $1.73. The expected spot rate one year from now is assumed to be $1.66. What percentage depreciation does this reflect?
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You estimated that, as a result of the increased competition, the demand elasticity has increased from -2 to -3 (i.e. you face more elastic demand). You are currently charging $10 for your product. What is the price that you should charge, if demand elasticity is -3?
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Compute the present value of $20,000 to be received at the end of each of 20 periods, using a discount rate of 5% compound interest.
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A semicircular rod of radius R = 5.00cm is charged from -3.40×10-12 C to +3.40×10-12 C as shown in the figure(Figure 1). The magnitude of the electric field at the center of curvature is closest to A) 2.00×10-9 N/C. B) 4.01×10-9 N/C. C) 5.11×10-9 N/C. D) 8.02×10-9 N/C. E) 9.59×10-9 N/C.
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How many iterations are needed to approximate the integral $$\int_0^1 e^{x^2}dx$$ to an error less than {eq}10^{-6} {/eq} using Simpson's rule, given that the actual error in the {eq}n^{th} {/eq} iteration is $$E \leq \frac{h^4}{180}(\max |f^{(4)}(x)|)$$ and we have to find {eq}h {/eq}?
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A stock just paid a dividend of $1.00 and has a required rate of return of 11%. The constant dividend growth rate is 5%. What price should this stock be selling for?
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Which of the following is true? a) Cash provided by financing activities equals cash paid for long-term debt minus cash paid for short-term debt. b) Cash provided by operating activities includes all cash payments to suppliers. c) Cash provided by operating activities includes all cash payments to employees. d) Net...
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Let {eq}X_1, X_2,..., X_n {/eq} denote a random sample of size n from a distribution with the pdf f(x) = (1/θ)e^{-x/θ}, 0 < x < ∞, 0 < θ < ∞, zero elsewhere. Find the likelihood ratio for testing H0: θ = θ0 versus H1: θ = θ1, θ1 > θ0.
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Determine the inductance of a solenoid with 680 turns in a length of 30 cm. The circular cross section of the solenoid has a radius of 4.0 cm. Express your answer using two significant figures.
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Which of the following statements is false? a. If $x$ is in the null space of $A$, then $Ax = 0$. b. If $x$ is in the null space of $A$, then $x$ is in the solution set of $Ax = 0$. c. If $Ax = b$ is consistent, then $b$ is a linear combination of the columns of $A$. d. The null space of $A$ is the set of all solut...
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Getzels and Jackson (1962) used _____ to assess creativity by asking subjects to write as many meanings of the words: duck, sack, pitch and fair. (a) vocabulary ability (b) semantic ability (c) language ability (d) associative ability
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Demonstrating the content validity of a test can be accomplished by showing that _____. A) tasks performed on the test are general enough to apply to any type of job B) scores on the test indicate both internal and external reliability C) higher test scores are statistically equivalent to proven, long-term job succe...
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The government will spend $100 million to purchase goods and services from local producers. Producers will in turn pay some of this $100 million in wages and other inputs to households. Households will spend some of this income on consumption and some on saving. The government spending multiplier will be: A) greater t...
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One sunny day while walking across a field at 1.60 m/s, you notice a ball rolling toward you at an angle of 36.0 degrees north of east. The speed at which the ball rolls down the sloped field is 8.20 m/s. What is the speed of the ball relative to you?
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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? A. 9.20% B. 10% C. 8.5% D. 8%
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The current exchange rate is $2 per pound. The six-month forward exchange rate is $1.98 per pound. The six-month US dollar interest rate is 5%. Assuming that the forward rate is an accurate predictor of the future spot rate, determine the approximate six-month British interest rate.
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Iron(III) oxide can be reduced to iron by heating it with carbon. How many grams of iron can be obtained from $25.0 \mathrm{~g}$ of $\mathrm{Fe}_2 \mathrm{O}_3$ and $25.0 \mathrm{~g}$ of $\mathrm{C}$ ?
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A firm sells its $1,120,000 receivables to a factor for $1,075,200. The average collection period is 1 month. What is the effective annual rate on this arrangement?
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Arrow Distributors has a unionized workforce. The company has always been willing to meet a union wage demand on the condition that it be accompanied by an equal increase in output. However, Arrow knows from its own experience that a 10 percent wage increase will generate a 5 percent decrease in employment. The union ...
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Suppose that 1 hour of labor produces either 1 piano or 2 HDTVs in China, and 1 hour of labor produces either 1 piano or 3 HDTVs in Italy. If both countries start producing both goods and the world price of HDTVs is 1.5 HDTVs per piano, then we know that: A. China will have a comparative advantage in the production of...
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An analyst gathered the following data for Orswald, Inc.: Current assets $180,000 Current liabilities $70,000 Long-term debt $270,000 Common equity $550,000 Operating profit margin 22% Net profit margin 16% Based on this data, the long-term financial leverage is: a) 2.89 b) 1.75 c) 3.50 d) 2.35
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At December 31, 2016, and 2017, the comparative balance sheets of Mercury Supply Company showed the following: Dec. 31, 2017 Dec. 31, 2016 Assets Cash $ 192,680 $ 166,260 Accounts receivable (net) 103,680 101,000 Inventories 301,560 326,700 Prepaid expenses 14,820 15,540 Total current assets $ 713,020 $ 609,000 Cu...
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During the month of February, Julia Industrial Supply Corporation produced 1,200 units of a special metal gear used in the manufacture of gas grills. For the month of February, the company incurred the following actual overhead costs: Actual results: Variable overhead 132,800 Fixed overhead 49,440 Total 182,240 Stati...
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From a monetary policy point of view, the most important non-bank financial sector institution is: a) insurance companies b) pension funds c) mutual funds d) life insurance companies e) commercial banks
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You are trying to see if there is an arbitrage opportunity. Current US interest rate is 4%. The spot rate for US/EUR is 2.5 while the forward rate for a year is 2. If the current interest rate in Germany is 30%, what should be done? A. Borrow euros in Germany and invest in Germany, wait for a year and then convert to ...
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In your bucket you have 5 blue and 7 green marbles. You reach in and take out three marbles. Calculate the probability that two of them are blue. Give your answer as a decimal rounded to 3 places of intermediate calculations and your final answer to 3 places after the decimal point.
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ABC is considering an investment in a new project. The investment will require a capital expenditure of $357,000 and will have a life of 6 years. The firm estimates that the operating cash inflows from the project will be the following: Year 1 $120,000 Year 2 $150,000 Year 3 $180,000 Year 4 $190,000 Year 5 $170,00...
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Which of the following will result in a shift of the aggregate production function? A. a technological advance B. training of the workforce C. an increase in the country's capital stock
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Watkins Corporation reported the following information at December 31, 2017: Authorized common stock 120,000 shares Common stock (at par) $10.00 1,200,000 Paid-in capital in excess of par-value 140,000 Total paid-in capital 1,340,000 Retained earnings 560,000 In addition, the following information is available at...
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Titan Football Manufacturing has the following capital structure: Security Wt % Yield to Maturity Bonds 40 7% Preferred stock 15 10% Common stock 45 13% What is the company's Weighted Average Cost of Capital (WACC)? Assume the firm has a tax rate of 35%.
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A specialty food company sells five different types of cereal in 1-kilogram (1,000-gram) boxes. From a production run, the company randomly selected 1,000 boxes of each type of cereal and weighed them to the nearest gram. The data from the 5,000 observations follow: Cereal type Mean (g) Standard de...
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Walter paid $1,000,000 for a 10-year patent on a new type of flow meter. The patent expires at the end of year 10, and at that time, he estimates the remaining economic life of the patent to be 5 years. If Walter desires a return of 15% per year compounded semiannually, what is the maximum amount he should be willing t...
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