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The marginal cost of producing the {eq}q {/eq}th unit of output is {eq}\rm MC = 62 + \dfrac 6q {/eq}. Find the change in the total cost of production as the firm increases output from 50 units to 60 units.
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Suppose the current spot rate for the euro is $1.00/€. If the one-year forward rate for the euro is $1.10/€, then according to the IRP, the euro is expected to _____ by _____. A) depreciate; 10% B) appreciate; 10% C) depreciate; 13.1% D) appreciate; 13.1%
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You purchase a bond with an invoice price of $1,095. The bond has a coupon rate of 9.9%, semiannual coupons, a $1,000 par value, and there are two months to the next coupon date. What is the clean price of the bond?
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Last year, WH Co. reported total assets of $12 million, current assets of $2 million, fixed assets of $10 million, sales of $18 million, a profit margin of 6%, and a return on assets of 2%. How much total debt is it carrying, given that it has no preferred stock? Round your answer to the nearest million. Total debt:
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Assume a company that has invested in plant and equipment has excess capacity and is considering using the excess capacity to generate additional profits. It has two options, and management must make a choice. It can produce and sell either product A or product B. The data is given below: Product A ...
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M & M Proposition I with tax implies that a) The value of an unlevered firm is equal to the value of a levered firm plus the value of the interest tax shield. b) A firm's cost of equity increases as the debt-equity ratio of the firm increases. c) A firm's cost of capital is the same regardless of the mix of debt and...
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Assume that your firm is considering relaxing its current credit policy. Currently the firm has annual sales, ail credit, of $16 million and an average collection period of 30 days. The firm is considering a change in credit terms from the current terms of net 30 to 1/30 net 60. The change is expected to generate addit...
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A charge of #5 C# is at the origin. How much energy would be applied to or released from a # -2 C# charge if it is moved from # ( 3 , 6 ) # to #( -3 , 5) #?
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The equity of the PepsiCo business group as of December 31, 2014, was $16,922 million. The balance of the Merchandise Inventory account was $2,292 million. All of the merchandise inventory was in warehouse storage and had not been shipped to customers. Calculate the days' sales in inventory for PepsiCo for 2015, assum...
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Consider a software cost savings of $150,000 per year with no growth in cost savings. The initial investment for the software is $100,000, and the discount rate is 10%. What is the B/C ratio for the life of 4 years?
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Why does management accounting information need to be customized for different decision-makers? When might a top-level manager need information that is different from the information that would be useful to a divisional manager? When might a divisional manager need information that is different from the information tha...
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By recognizing the series {eq}\displaystyle -0.5+0.1-\frac{0.1^2}{2!}+\frac{0.1^3}{3!}- \cdots +(-1)^n\frac{0.1^n}{n!} + \cdots {/eq} as a Taylor series evaluated at a particular value of x, find the sum of the convergent series.
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Bogen Corp. currently has an EPS of $3.10. The risk-free rate is 7 percent and the market risk premium is 6 percent. The company uses a 30 percent tax rate. Currently, the debt ratio is 10 percent. The company will not issue any more equity. If the company changes its debt ratio to 50 percent, the new EPS will be _____...
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If a firm has a 7% target capital structure and the company will be selling new shares of common stock to raise the equity portion of its capital structure, then the firm should _____. a) use the CAPM to determine the firm's cost of debt. b) the bond yield plus the corporate tax rate. c) use the yield to maturity on...
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A pressure of 100 kPa is to be measured with an accuracy of 5 kPa. A 25 kPa gauge (A) and a 50 kPa gauge (B) are under consideration. Which one should be selected and why? a. Gauge A, because it gives higher accuracy. b. Gauge A, because the error is less than 5%. c. Gauge B, because the error is less than 5%. d. G...
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An Earth satellite with a 940-km orbit period circles Earth. A Moon satellite has a circular orbit 115 km above the lunar surface. The Earth's mean radius is 6370 km and the Moon's radius is 1737 km. Which of the following is closest to the ratio of the Moon satellite's period to that of the Earth satellite? A) 0.1 B...
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By the end of 20X1, the controlling entity had earned $200,000 of profit on this investment. At the end of 20X1, what amount should be reported as investment income? A. $150,000 B. $350,000 C. $200,000 D. $100,000 E. None of the above.
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Which type of surplus is given up by the government when the government imposes a price ceiling in a market? a) Consumer surplus, b) Producer surplus, c) Both consumer surplus and producer surplus, d) Neither consumer surplus nor producer surplus.
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Use Stokes' theorem to evaluate $\int_c F\cdot dr$ where $F= 3y^2 z\ i + 1x^2\ j + 4yz^2 \ k$ and C is the boundary of the portion of the paraboloid $z = 4 - x^2 - y^2$ with $z>0$, n pointing to the right.
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Waco Printing Company specializes in printing banners on a high-quality, nylon material that can withstand extreme temperatures. The company pays sales personnel a small base salary plus a large commission on each banner sold to encourage a large sales volume. The following is a summary of the revenue and cost data: ...
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Pierre's Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $356,100. A new salon will normally generate annual revenues of $72,792, with annual expenses (including depreciation) of $43,000. At the end of 15 years the salon will have a salvage value of $91,8...
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Your firm has an issue of 10 year bonds with a $1,000 face value that pays interest semiannually. The bonds are currently priced at $1,111.97 and have a yield to maturity of 9 percent. What is the coupon rate? A. 9 percent B. 8 percent C. 8.5 percent D. 7.8 percent E. 7.5 percent
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The nominal U.S. risk-free rate is 3.2%, and the expected real U.S. risk-free rate is 2%. The nominal Japanese risk-free rate is 5%, and the expected real Japanese risk-free rate is 1%. Based on the expected forward rates for the Japanese yen (Yen) to the U.S. dollar (USD), the yen is expected to _____ by about _____. ...
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Xytex Products paid a dividend of $2.42 per share, and the stock currently sells for $42. If the discount rate is 14%, what is the dividend growth rate?
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The First United Church of Believers operates along non-traditional lines. Each individual church is composed of twenty to thirty people who meet in a single home, under a pastor. Though each individual church functions almost independently, doctrinal beliefs and practices are common among all the churches and are only...
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Evaluate the surface integral {eq}\displaystyle \int\int_{S} F.n.dS for the given vector field {eq}\displaystyle F = \left \langle y,z,x \right \rangle and the surface {eq}S given by {eq}\displaystyle z=xy ,\ x\leq 0,\ 0\leq y\leq 1,\ 0\leq x\leq 1{/eq}.
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If a company allocates manufacturing overhead to a job based on machine hours and if the actual manufacturing overhead costs turned out to be less than the amount applied to jobs, then: A. The cost of goods manufactured will be higher than if the actual overhead costs had been higher than the amount applied to jobs. ...
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A very long insulating cylinder of charge of radius 2.00 cm carries a uniform linear density of 17.0 nC/m . If you put one probe of a voltmeter at the surface, how far from the surface must the other probe be placed so that the voltmeter reads 190 V ? d =....cm
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Given the table below, answer the question that follows. Bananas Pineapples Columbia 40 4 Philippines 20 32 Suppose each country has 2,000 plots of land and consumes the following (per season) without trade from allocating 1,000 plots of land to banana production and 1,0...
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Sabas Co. reported the following data for 2017: Income (per books) $1,210,000 Tax expenses 380,000 Tax refunds (cash) 55,000 Dividends received (cash) 42,000 Depreciation expense (books) 31,000 Depreciation expense (tax) 40,000 Dividends paid 100,000 During 2017, inventory was overstated by $23,000. There were ...
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The specific loss of a security depends on the: a. Security's correlation coefficient with the market portfolio b. Security's covariance with the market portfolio c. Security's beta d. A and B e. None of the above
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What must be the ratio of the marginal revenue product of labor to the marginal revenue product of capital (MP_L / MP_K) if the ratio of the wage rate to the interest rate is 3?
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Irene Company uses the FIFO inventory method. The following information was extracted from the inventory records during the year: Goods purchased, January 1 500 units @ $10.00 Goods purchased, June 15 2,000 units @ $12.00 Goods purchased, November 10 1,500 units @ $14.00 Goods sold, September 5 2,400 units @ $45.00 G...
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The production department of a major paper manufacturer finished and transferred 68,000 units of paper to the next process during November. Beginning inventory consisted of 15,000 units that were 40% complete in relation to direct conversion costs. Direct conversion costs in beginning inventory were $21,000. April Dep...
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An investor buys a bond with a face value of $1000 and a coupon rate of 4 percent, paid semiannually. The bond will mature in ten years. The investor pays $930.00 for the bond. What is the investor's rate of return? A. 4 percent B. Between 4 and 5 percent C. 5 percent D. Between 5 and 6 percent
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Z Corporation had retained earnings of $60,000 at the beginning of 2013. In 2013, the company had net income of $15,000 and it declared dividends of $25,000. What was the retained earnings balance at the end of 2013? a. $60,000 b. $40,000 c. $50,000 d. $75,000 e. none of the above
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The rate of return on a bond holding period is: A) the coupon rate. B) the ratio of coupon payments to the current price of the bond. C) the total return earned on the bond during a year. D) the ratio of coupon payments to the total payments received on a bond over a year.
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Which of the following regarding small corporations is correct? a) Corporations with net taxable income of less than $50,000 and fewer than 100 shareholders may be deemed eligible to elect S corporation status. b) To be deemed eligible, a corporation must be owned (directly or indirectly) by two or more individuals. ...
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The fourth stage of internationalization is marked by the company: a) expanding into foreign markets but retaining its production facilities in the home country. b) having production facilities in several countries of the world. c) having highly decentralized operations and showing little allegiance to the country o...
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A firm has fixed costs of $1 million and depreciation of $1 million. At a sales level of $3 million, the variable costs are $1 million. What are the total operating costs? What is the EBIT at this sales level?
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Gumble Corp. had a balance in the Accounts Receivable account of $858,000 on January 1, year 2. During year 2, the company had sales revenue of $3,896,000 of which 8% was for cash. There was also a $174,000 unadjusted refund liability in that account. An aging of the Accounts Receivable balance indicated that 6% would ...
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The following information is available for February at Wilden Corporation: Unit selling price: $80 Unit variable cost: $40 Total fixed costs: $47,600 Total sales: $280,000 Using this information, the break-even point in units is: a. 1,900 b. 340 c. 700 d. 1,440
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Find the sample variance s^2 of the data: 3, 5, 12, 3, 2.
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St. Paul Manufacturing Company is evaluating a proposal to buy a new machine. The new machine would cost $400,000, would have a useful life of 5 years, and would have no salvage value. The machine would reduce labor and other operating costs by $120,000 per year. The cash flows occur evenly throughout the year. The pay...
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A company is considering the purchase of a new machine for $47,000. Management predicts that the machine can produce sales of $19,400 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $5,600 per year including depreciation of $2,300 per year....
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Jays Co. is considering replacing an existing piece of equipment. This project involves doing the following: The New equipment will have a cost of $6 million and it will be depreciated on a straight line basis over a period of six years (years 1-6). The old machine is also being depreciated on a straight line basis. It...
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Consider a profit-maximizing firm that manufactures ballpoint pens in a competitive market. We will assume that this firm has a small amount of fixed cost ($75) which it must incur regardless of the level of production. The variable cost, consisting of materials and labor, changes along with production levels. ...
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You purchased a stock at the beginning of the year at a price of $38 a share. Over the year, you received $1.7 in dividends and inflation averaged 2.3 percent. Assume the ending share price was $45. What was your approximate real rate of return on this stock? a. 10.45% b. 12.24% c. 14.80% d. 15.61% e. 18.94%
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The Two Sisters has a 10% ROA and a 50% retention or plowback ratio. The ROE is 12%. At what rate can the firm grow its assets without the need for any external capital? a. 10.00% b. 5.00% c. 7.35% d. 6.00% e. 4.55%
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LD Corporation acquired a subsidiary in a transaction that has a tax effect. If the book value of the subsidiary's assets is less than the fair value, then consolidated retained earnings will be _____ the subsidiary's Retained Earnings, plus the subsidiary's Common Stock and additional paid-in capital, minus any goodwi...
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To close this year's books, Alistair Inc. wrote off $30,000 of receivables that were deemed uncollectible. Management had previously decided to estimate bad debt expenses based on 4% of accounts receivable. Assuming a 20% reduction in accounts receivable from this year's beginning to year-end, income before bad debts u...
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ABC company is going to have net income of $120,000. They will pay out $100,000 of this income to their common stockholders as dividends. The company's existing assets are $1 million. The change in the company's external financing requirements is expected to be zero. If the dividend payout ratio is held constant, what ...
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Using a 0.1 M phosphate buffer with a pH of 7.4, you add 0.4 mL of 0.3 M NaOH to 20 mL of the buffer. What is the new pH of the solution?
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Assume that a perfectly competitive firm's marginal revenue is equal to price. For this firm to maximize its profit, it should produce a quantity at which: a. price is equal to average fixed cost, b. price is equal to total cost, c. price is equal to marginal cost, d. price is equal to average variable cost.
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Two rectangular loops of wire are placed close together in the xy-plane. There is no current in loop 2. Loop 1 carries current I1 in the clockwise direction as viewed from the origin. What is the direction of the current I2 that should be passed through loop 2 so that there is no magnetic field at the origin?
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Munar Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-Machining, Order Filling, and Other. The costs in those activity cost pools appear below: Machining $10,695 Order Filling $24,520 Other $7,200 Machining costs...
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Fly Away's bonds have 5 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 8.5%. They pay interest annually and have a 9% coupon rate. What is their current yield? Round your answer to two decimal places.
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PREFERDIV Inc.'s preferred stock pays a $1.93 dividend every quarter forever. If the stock currently sells for $37.45, what is the investors' required rate of return?
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Good Company currently has 400,000 shares of $2 par value common stock issued and outstanding. The company declared a 20% stock dividend on April 10 when the stock was selling for $17 per share. The entry to record this stock dividend includes a: a. debit to Paid-in Capital from Stock Dividends for $136,000. b. debit...
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Compute the value of {eq}\int_C 2xy^2dx + 2x^2ydy{/eq} by using the potential function method, where C is a piecewise smooth curve from (1,1) to (2,2).
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Suppose Ford Motor Company had expected its pre-tax earnings last year to be $25 million, and its tax rate was 38%. However, Ford's earnings were $35 million due to increased demand for its vehicles. As a result, its actual after-tax income was $21.7 million. Assuming no change in invested capital or the use of debt fi...
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Clemmens Company applies overhead based on direct labor costs. Estimated overhead and direct labor costs for the year were $105,900 and $132,200, respectively. During the year, the actual overhead was $102,500 and the actual direct labor cost was $119,500. The entry to close the over- or underapplied overhead at year-...
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Lexis Company acquired a trademark for $45,000. Lexis paid legal fees of $7,000 and incurred $2,500 of unsuccessful defense costs before the trademark was finally registered. At what amount will Lexis report the trademark on its balance sheet? a. $54,000 b. $45,000 c. $47,000 d. $56,000
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Which of the following is not an example of an annuity? a. car loan b. retirement account c. insurance premium payments d. none of the above
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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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A long, straight wire carries a current of 5.2 A. What is the magnitude of the magnetic field at a distance of 1.0 cm from the wire?
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A company currently has net cash flows of $2 million (obtained by subtracting its expenses of $10 million from its revenues of $12 million) and its investments are $5 million. The company plans to spend $2 million for some new investment. If the company's current cash flows remain unchanged, what will its new total cas...
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On January 1, 2012, Harper Co. finances the purchase of equipment by issuing a $15,000 non-interest-bearing note payable. The note will be paid off in 10 equal annual installments beginning on December 31, 2012. The market rate of interest for notes of this type is 5%. Consider the information below, at what amount sho...
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Under which of the following conditions would a gain be recognized on an exchange of plant assets that has no commercial substance? a. When there is an inflow of cash b. When the fair value of the asset given up is known c. When there is a payment of additional cash d. When the asset received has no more than 10% of th...
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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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Let {eq}G(x) = \int^{\infty}_{-\infty} \frac{\sin(t) \sin(xt)}{t} \ dt {/eq}. Find {eq}G(0).{/eq}
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Use Stokes' Theorem to evaluate {eq}\iint_{S}\mathrm{curl \; F \cdot n \; dS} {/eq}, where {eq}\mathrm{F}(x, y, z) = -10y \, \mathrm{i} + 2x \, \mathrm{j} + 4xz \, \mathrm{k} {/eq}, and {eq}S {/eq} is the hemisphere defined by {eq}x^2 + y^2 + z^2 = 9, \; z \geq 0 {/eq}, oriented in the direction of the positive {eq...
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The overheads of a company are allocated based on the following information: Budgeted overhead $600,000 Budgeted machine hours 15,000 Budgeted direct labour hours 30,000 Budgeted direct labour cost $450,000 Budgeted sales $900,000 The actual results during the period are as follows: Actual overhead $650...
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Which of the following statements is true of the alternative minimum tax (AMT)? a. If a corporation does not expect to pay the AMT, its inclusion in gross income is deemed an expenditure for purposes of the AMT. b. The AMT eliminates many tax preferences and exclusions. c. If a corporation pays an amount to the gove...
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Manufacturing Costs The following data relate to production of products through a single process: Product A Product B Product C Production 10,000 4,000 6,000 Direct materials $3.50 $4.50 $4.50 Direct labor 3.00 4.00 ...
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By definition, $$\text{Hess}(f) := \sum_{i=1}^N\sum_{j=1}^N\frac{\partial^2 f}{\partial x_i\partial x_j}dx_idx_j = \sum_{i=1}^N\sum_{j=1}^N h_{ij}dx_idx_j,$$ where $h_{ij} :=\frac{\partial^2 f}{\partial x_i\partial x_j}$. If $h_{11}=h_{22}=\ldots=h_{NN}=1$, what is $\text{Hess}(f)$? Is it $\sum_{i=1}^N\sum_{j=1}^Ndx_id...
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Find the area of the surface obtained by rotating the curve {eq}y = \sqrt {4 x - x^2}{/eq} about the x-axis from x = 1 to x = 3.
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An investor wishes to protect a portfolio worth $10 million against a possible price drop over the next 4 months. The portfolio has a beta of 0.5 with the S&P 100 Index futures, and the current futures price is 1,000 points. If the investor were to hedge with one contract (each contract equals $25 times the index), how...
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Using the Newton-Raphson method, find the root of the equation {eq}x = e^{-x}{/eq} with an accuracy of {eq}10^{-4}{/eq}, starting with {eq}x_0 = 1{/eq}.
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What is the probability that when 15 customers arrive in a day, exactly 10 pay by credit card, given that on average 70% of customers at a shopping center pay by credit card?
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How much money must be invested now at 6% interest compounded continuously so that $1,000 per year can be withdrawn for 10 years, beginning 1 year from today? a) $7,111.18 b) $7,328.53 c) $5,981.37 d) $6,945.37
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A 1.50-cm-wide diffraction grating has 1,000 slits. If light with a wavelength of 540 nm is incident normally on the grating, what is the highest order fringe that is visible (on one side of the central bright fringe)?
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Mitchell Farms will need a new silo in 7 years. They estimate the cost to be $125,000. If they start setting aside money for the purchase and earn 6% interest compounded quarterly, how much must they deposit every quarter to accumulate the amount they need? a) $5,077.49 b) $5,807.12 c) $8,722.04 d) $6,262.78
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Alton, Inc. has the following information for the last year: Net income$350,000 Dividends paid$100,000 Interest expenses$60,000 Tax rate21% Debt ratio60% Total assets at the beginning of the year$5,000,000 What is Alton's sustainable growth rate? a) 8.40% b) 9.90% c) 10.20% d) 11.50%
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Find the real number $c$ so that $11 + 2i$, $-2 - 5i$, and $c + (c + 1)i$ are collinear.
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Which of the following statements is incorrect regarding Preferred stock compared to Common stock: a. Preferred stock is not a source of tax-deductible interest for the issuing corporation b. Dividends on preferred stock are not tax-deductible for the corporation c. Preferred stock generally has priority over common...
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B & B Computation, Inc., an 80% owned subsidiary, sold inventory to its parent, B & B Corporation, for $58,000 in 2015 and $73,000 in 2016. The inventory had a cost to B & B Computation of $43,500 in 2015 and $53,000 in 2016. The 2016 intercompany transactions were not settled in 2016. The consolidation entries to elim...
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Using the following data for process 430: Average inventory 450 units Annual production rate 3,500 units Setup cost per production run $200 Daily production rate 30 units Annual carrying cost per unit $1.50 Daily demand rate 27 units Determine the maximum inventory level in the production run.
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A company has an opportunity to invest in a new machine that will cost $20,000. The machine will generate after tax net income of $8,000 for three years. If the company's minimum rate of return is 8%, should the company invest in this machine? A. No, because the rate of return is less than the minimum rate of return. ...
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Edward and Muriel are married and live at 6423 Chokoloskee Circle, Tallahassee, Florida 32311. They file a joint return for the taxable year 2016. On March 4, 2016, they filed an amended return for the prior taxable year 2015. They reported interest income from an FDIC-insured savings account in the amount of $57,000. ...
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According to Lewin, {eq}\rule{1in}{.2mm} {/eq} believed that uniqueness (individual differences) was a distortion caused by external forces interfering with an organism's natural growth tendencies. A. Galileo B. Aristotle C. Newton D. Einstein
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Among the most useful and important documents that can be used to understand why actions were taken are A) news releases. B) product specification reports. C) its corporate history. D) annual reports. E) 10-Q forms.
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If the current price level is 1.25 and the GDP deflator is 125, the inflation rate is: a. {eq}-8 \% {/eq}. b. {eq}8 \% {/eq}. c. {eq}12 \% {/eq}. d. {eq}25 \% {/eq}.
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The cost of direct materials (DM) purchased during May amounted to $23,000. Direct labor (DL) cost for May totaled $14,000. The direct material quantity variance (DMQV) was $1,000 U and the direct labor efficiency variance (DLEV) was $4,000 F. The standard cost for the units produced during May was: a. $37,500. b. $3...
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Find the indefinite integral. {eq}\displaystyle \int \bigg( \sec\bigg(\frac{x}{16}\bigg) \bigg)^2 \tan \bigg(\frac{x}{16}\bigg) dx{/eq} (Use C for the constant of integration.)
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Junior ozark dresses for a job interview in bib overalls, a red lumberjack shirt, and torn basketball sneakers. He has been looking for a job as an investment banker ever since he dropped out of high school. He is now 46 years old and has never held a job. Mr Ozark is unemployed in what way? a. Frictionally b. Struct...
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How do you find the vertical, horizontal or slant asymptotes for f(x) =(x^3-8)/(x^2+2x)?
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Doyle, Inc. prepared the following allocation base usage for this year: Production line Production line Production line Product R Product S Fixed manufacturing overhead $36,000 $54,000 $72,000 $3,000 $2,000 Variable manufacturing overhead $31,000 $38,000 $50,000 $2,500 $1,750 The company's contribution margin per uni...
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Furnifax Company recently used up a portion of its available-for-sale investment portfolio. The cost of the securities sold was $59,000, and their fair value at the time of sale was $53,000. What is the correct accounting treatment for this transaction? a. Decrease Unrealized Loss on Available-for-Sale Investments by ...
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Find the error in the following calculation and correct it: $1+2+4+8+... = S$ so $2S = 2+4+8+16+...$ Thus, $S - 2S = 1 + (2+4+8+...)- (2+4+8+16+...) = -1$ so $-S = -1$ and $S = 1$.
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