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In a competitive market, if a price ceiling is set above the equilibrium price, then: A. the market price will be below the ceiling. B. this price ceiling is not binding. C. some consumers will not be able to buy all of the product they want at the market price. D. some consumers will be able to buy all of the prod...
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An insulating sphere is 8.00 cm in diameter and carries a 5.60 {eq}\mu C {/eq} charge uniformly distributed throughout its interior volume. Calculate the charge enclosed by a concentric spherical surface with a radius, r = 5 cm.
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Your firm is a U.K.-based exporter of bicycles. You have sold an order to a French firm for $1 million worth of bicycles. Payment from the French firm in euros is due in 12 months. Use a money market hedge to re-denominate this one-year receivable into a pound-denominated receivable with a one-year maturity. Contrac...
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On January 1, 2012, Jane purchased a $50,000 bond for $47,217. This 6-year, 8% bond pays interest semiannually. For 2012, Jane should report a gain on the bond of: a. $2,500. b. $1,560. c. $2,536. d. $2,876. e. $1,656.
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Suppose that ABC Corporation has $50,000 of debt outstanding with a coupon rate of 10% and a yield to maturity of 9.5%. If the corporate tax rate is 35%, then what is the annual interest tax shield? a) $1,750 b) $3,375 c) $2,425 d) $1,625 e) $1,225
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Assume that your firm's cost of debt is the average yield to maturity on U.S. government debt. Under the M & M Proposition I with tax, the value of a firm is: A. Higher when it uses leverage. B. Higher when it uses a mix of debt and equity. C. Unchanged when leverage is used. D. Higher when it uses only equity. E. Lowe...
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Suppose the Tasmanian state government is considering imposing additional taxes on cigarettes to curb health related problems. Assume there is no interstate trade of cigarettes. You have been hired by the state government to provide some analysis of the proposed policy. a) Previous studies indicate that the price elas...
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A company sells 20,000 pairs of jeans a year at an average price of $10. Fixed costs are $60,000 and total variable costs are $120,000. They estimate that a 10% increase in output would not affect fixed cost but would reduce average variable costs by 40 cents. Someone suggests reducing price by 5% to increase sales and...
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Use the information below to answer the following question You have cash on hand Property value $400,000 Down payment is $120.000 (i.e. LVR is 70%) Loan 1 = $200,000 Loan 2 = $80,000 Interest rate (nominal) for Loan 1 is 8.40% per annum compounded semi-annually Interest rate for Loan 2 is 9% per annum compounded...
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A 1-year, $1000 bond with 5% semi-annual coupons is trading at $1035.89. An arbitrageur wants to conduct an arbitrage with a 2-year spot rate of 3.8%. How much is the arbitrageur going to make? A. $2,101.19 B. $2,181.19 C. $1,701.19 D. $1,281.19 E. Arbitrage is not possible
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Select the statement that is true of noncontrolling interests (minority interests). a. Noncontrolling interest is added back to total comprehensive income to compute the controlling interest. b. Noncontrolling interest is excluded from the computation of total comprehensive income. c. Noncontrolling interest is cons...
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A local monopoly faces a demand of {eq}P = 10 - Q {/eq} and has constant marginal cost of 1. There are no fixed costs. Assuming the monopoly chooses an optimal price, the profit-maximizing price that it will charge is: A. $5.50 B. $6 C. $7.50 D. None of the above
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Partners B and I receive a salary allowance of $6,000 and $14,000, respectively, and share the remainder equally. If the company earned $8,000 during the period, the entry to close the income or loss into their capital accounts is: a. Income Summary 20,000 B, Capital 6,000 I, Capital 14,000 b. Income Summary 8,0...
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A change in which of the following factors will not result in a movement along a given aggregate demand curve? a) The interest rate b) The price level c) The wealth of consumers d) The number of buyers
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Managers may __________ their budgeted costs or __________ their budgeted revenue to create a budget target that is easier to achieve. A) understate; overstate B) overstate; understate C) understate; understate D) overstate; overstate
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What is the duration of a 5%, 3-year bond that pays coupons semiannually? The market interest rate is 6%.
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The cost to produce x units of a product is C(x) = 175 + 22x - 0.04x^2 and the revenue is R(x) = 100x - 0.06x^2. What is the production level that will maximize the profit? a. 90 units b. 1,000 units c. 800 units d. 175 units
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A company is considering an investment project which has a 6-year service life. The original investment cost for the project is $100,000. The depreciation deduction for the first year is $18,148. At the end of the first year the tax basis of the asset is: a. $18,148 b. $81,852 c. $100,000 d. $118,148
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A series RLC circuit has a 200 Ω resistor and a 25.0 H inductor. When the source frequency is 120 Hz, the power factor of the circuit is 0.400. Calculate the capacitance in the circuit.
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The government wants to raise a fixed amount of tax revenue by imposing an excise tax in the market for beer and/or in the market for wine. Assume that the supply is perfectly elastic in the two markets, that neither the demand for beer nor the demand for wine are perfectly elastic, but that the demand for wine is more...
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Suppose that a market is initially in equilibrium. The initial demand curve is {eq}P = 90 - Q_d {/eq}. The initial supply curve is {eq}P = 2Q_s {/eq}. Suppose the government imposes a {eq}\$3 {/eq} tax on this market. What is the change in consumer surplus due to the tax?
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The smallest surface area of a cylindrical can that will hold {eq}2000 \: cm^3 {/eq} of water is?
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Which of the following has the greatest probability? (a) P(t > 2) if t has 5 degrees of freedom. (b) P(t > 2) if t has 2 degrees of freedom. (c) P(z > 2) if z is a standard Normal random variable. (d) P(t < 2) if t has 5 degrees of freedom. (e) P(z < 2) if z is a standard Normal random variable.
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Consider a bond that makes two coupon payments per year of $100 and has a par value of $1000. The bond has 5 years before it matures. The yield to maturity is 8%. What is the duration?
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Find the limit of the sequence $$\displaystyle a_n = \left(1-\frac 2n\right)^n\left(1+\frac 3n\right)^n$$
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Mannes Co. provides for doubtful accounts based on 3% of gross accounts receivable. The following data are available for 2017: Credit sales during 2017 $2,500,000 Bad debt expense 47,500 Allowance for doubtful accounts 1/1/17 22,500 Collection of accounts written off in prior years (customer credit was reestablished...
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Find the potential difference $\Delta V$ between $x=1$cm and x=2cm in a dielectric slab with $d=0.25cm$, $\kappa =2$, which is placed in a uniform electric field of $E=3*10^6\frac{V}{m}$. Why does the formula $V=-\int_E^S Edl$ give a different result compared to $V=-\int_E^S \frac{E}{\kappa}dl$, and how is the potentia...
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Why does the integral of $\sin x$ from negative infinity to infinity diverge even though $\sin x$ is bounded between -1 and 1? Is it because the integral is unbounded?
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Assume the interest rate parity holds. U.S. interest rate is 4% and British interest rate is 3%. The 1-year forward rate on British pounds exhibits a: A) discount of 0.78% B) premium of 0.78% C) discount of 1% D) premium of 1%
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Find the P-value for the indicated hypothesis test. An attorney is testing a new method for determining the speed of automobiles based on the length of their skid marks. He decides to test this method by using a car he knows to be capable of traveling 50 mph. He drives the car this speed for 5 trials on a test track an...
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Frank's Dogs has beginning net fixed assets of $610 and ending net fixed assets of $590. Assets valued at $340 were sold during the year. Depreciation was $260. What is the amount of capital spending? A. $10 B. $60 C. $90 D. $250 E. $320
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Under absorption costing, when inventory decreases, operating income: a. increases b. may increase or decrease c. stays the same d. decreases
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Salem Steel Company uses a job order costing system and has established the following manufacturing overhead rates for 2003: Predetermined overhead rate based on estimated direct labor hours: $10.00 per DLHr Predetermined overhead rate based on estimated direct labor cost: 120% of direct labor cost During the month o...
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A portfolio's value on a particular day is $102,135, and its value one year earlier was $100,000. What is the holding period return for the portfolio?
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Harris Co. takes a full year's depreciation expense in the year of an asset's acquisition and no depreciation expense in the year of disposal. Data relating to one of Harris's depreciable assets at December 31, 2018, are as follows: Acquisition year 2016 Cost $350,000 Residual value $50,000 Accumulated depreciation $...
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Two small light spheres with equal mass are attached by a massless rod that rotates about its center of mass. One sphere has an excess charge +q; the other has an excess charge -q. The electrostatic repulsion causes the rod to form a 100.0° angle at the center of mass. The length of the rod is 1.5 m and each sphere has...
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A firm has a P/E ratio of 18 and a stock price of $22.50 per share. What is the company's EPS?
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Compute the cumulative sum of the series $\displaystyle \sum_{i=1}^\infty\frac{(-1)^{i+1}}{i}$ by hand until you find a sum that is correct to 5 significant digits. Compute the exact value of the sum and compare the exact sum to your approximations. How many terms of the series were required to find an approximation ac...
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If the economies of scale condition is met, then a reduction in output of more than 50% implies that a. Average total costs will fall by more than 50%. b. Average fixed costs will fall by more than 50%. c. Marginal costs will be higher than average total costs. d. Marginal costs will be higher than average fixed co...
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Using the provided data, perform a multiple regression analysis to estimate rent as a function of student population and number of bedrooms in the respective apartment buildings. Neighborhood Rent Student Pop # of Bedrooms University 1,200 3,500 20 College He...
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Find the coordinates of the centroid of the plate bounded by {eq}y = x^2 + 1, y = 0, x = 0, x = 2{/eq}
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A company makes two types of bars using the same machinery. Bar A sells for $6.00 per unit. It takes 1 hour of machine time to produce 100 Bar A's and the variable cost per 100 Bar A's is $3. Bar B sells for $5.00 per unit. It takes 1 hour of machine time to produce 100 Bar B's and the variable cost per 100 Bar B's is ...
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I just bought a new car, and the dealer offered to set up a financing plan for me. The finance charge for the 90-month plan is 8.70 percent APR. The monthly payment will be $390.26. If I had the money to pay for the car at the time of the sale, how much would I have had to pay?
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How many students must be randomly selected to estimate the mean weekly earnings of students at one college with a 95% confidence that the margin of error is no more than $7, given a population standard deviation of $92?
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Baker Company produced {eq}96,000 {/eq} units in {eq}44,000 {/eq} direct labor hours. Production for the period was estimated at {eq}100,000 {/eq} units and {eq}50,000 {/eq} direct labor hours. A flexible budget would compare budgeted costs and actual costs, respectively, at: A. {eq}48,000 {/eq} hours and {eq}44,...
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Suppose the Fed decides to use expansionary monetary policy to make up for a decrease in investment spending. Which of the following actions by the Fed would achieve this goal? A) The Fed could purchase government securities so that the money supply rises and the interest rate falls. B) The Fed could purchase governm...
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Home Builders Corporation sold 20,000 units of inventory at a price of $18 per unit. The COGS was $14 per unit. Home Builders has a marginal tax rate of 30%. A customer returned 100 units because they didn't fit the customer's needs. If the return occurred in 2013, the gross profit margin was: A. 26.67% B. 28.57% C....
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Consider the vector field $\mathbf{v}$ defined by $$\mathbf{v}(x,y,z) := \left(\frac{x}{\sqrt{x^2+y^2+z^2}},\frac{y}{\sqrt{x^2+y^2+z^2}},\frac{z}{\sqrt{x^2+y^2+z^2}}\right)$$ Compute the curl of $\mathbf{v}$ at the point $(1,1,1)$. I get $$\mathbf{v} = \left(\frac{x}{\sqrt{x^2+y^2+z^2}},\frac{y}{\sqrt{x^2+y^2+z^2}},\fr...
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What is the average number of arrivals in a Poisson process in the interval $[0,t]$ given that there is at least one arrival in $[0,t]$?
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Siam Bank loaned $25,000 to a customer for a 3-year period at an interest rate of 12% compounded annually. The customer made no payments during the 3-year period and the loan was repaid in full at the end of the term. What was the effective interest rate for the period, in percentage? a. 12% b. 13% c. 14% d. 15%
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On March 1 a company decided to start production of a new product. The cost analysis for this product revealed the following information: Direct materials $2 per unit Direct labor $3 per unit Variable overhead $3 per unit Fixed overhead $60,000 ...
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Which of the following is not an acceptable interpretation of $\int_{0}^{2} e^{x^2} dx$? a) the area under the curve $y=e^{x^2}$ from $x=0$ to $x=2$, b) the limit of $\sum_{i=1}^{n}f(x_i)\Delta x_i$ as the partition of $[0,2]$ gets finer, c) the total accumulation of the rate of change of an antiderivative of $f(x)=...
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Assume the following information relative to the Alpha and Beta Divisions within the same company. The managers of both divisions are evaluated based on their own division's return on investment (ROI). All transfer prices are negotiated. Alpha Division: Beta Division: Case 1 C...
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Which of the following is true about absorption costing? a. It generally leads to higher profit in the short term. b. It results in more accurate product costing than variable costing. c. It always leads to greater efficiency and productivity in manufacturing operations. d. All of the above.
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Bigbie's, Inc. just paid a dividend of $0.75 per share on its stock. The dividends are expected to grow at 20% per year for the next four years and then 5% per year thereafter. What is the expected dividend per share for the 11th year?
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This question already has answers here: What is the coefficient of $x^{20}$ in the expansion of $(1+x+x^2+\cdots )^3$? (6 answers) Closed 4 years ago. I found a combinatorial argument that gives an upper bound on the coefficient of $x^{20}$ in $(1+x+x^2+\cdots)^3$: We can find the coefficient of $x^{20}$ in $(1+x+x^2+\...
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A bond has a $1,000 par value, a current market value of $824, and a coupon rate of 7 percent. If the bond has 14 years to maturity, what is its yield to maturity?
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For the month of May 2018, Smith Appliances used the perpetual inventory system and had the following inventory, purchases, and sales activities for microwave ovens. Date Activity Quantity Unit Price May 1 Beginning inventory 32 $ 56 May 5 Purchase 68 $ 57 May 9 Sale 52 May 12 Sale 15 May 19 Purc...
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Assume the current spot rate for Japanese yen is 0.0080 dollars per yen. The next day, the yen is at 0.0074 per yen. What was the percentage change in the exchange rate? a) 6.25% b) 18.75% c) -18.75% d) -6.25% e) Cannot be determined.
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Complete the following statement regarding the cullinan diamonds. Check all that apply. A. The "large brilliant" has 208 facets B. The second largest stone is cut into a 216 facet star C. The largest natural diamond in the world is 3106.75 carats D. The "large brilliant" accounts for 65% of the weight of the cullin...
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What is the probability that at least 6 out of 11 randomly selected business department professors are part-time, given that the probability of a professor being full-time is 30%?
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Is my Riemann sum calculation for the integral $\int_0^4(2x^2+1) dx$ with four sub-intervals correct? I obtained 22.4 as my answer.
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Project S costs $1,025 and its expected net cash flows are $500 in year 1, $400 in year 2, $300 in year 3 and ($50) in year 4. Its WACC is 12.5%. Its MIRR is _____.
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Suppose that an individual's demand schedule for a product is as follows: Price Quantity demanded ($5) 2 ($4) 3 ($3) 4 ($2) 5 If the price were reduced from $5 to $4, what is the value of the price elasticity of demand? The value of the price elasticity of demand is?
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The Can Division of Marigold Corp. manufactures and sells tin cans externally for $0.60 per can. Its unit variable costs and unit fixed costs are $0.24 and $0.06, respectively. The Packaging Division wants to purchase 50,000 cans at $0.30 a can. Selling internally will save $0.03 a can. Assuming the Can Division has su...
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An increase in the price level will cause a movement: a) down the aggregate demand curve. b) along the aggregate demand curve. c) up the aggregate demand curve. d) None of the choices is correct.
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Assume a nominal interest rate of 8%, then based on Fisher's theory, the real return on an investment will be 6% in which of the following cases? A) inflation = 2% B) inflation = 1% C) inflation = 4% D) inflation = 5%
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Select all of the following that will increase the coupon rate of a bond. a. A decrease in the price of the bond b. An increase in the yield to maturity of the bond c. An increase in the time to maturity of the bond d. An increase in the face value of the bond
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For the current year, Company produced and sold 150,000 units. The contribution margin per unit was $50, and fixed costs were $1,100,000. Based on this information, the number of units Company would have had to sell in order to earn an after-tax profit of $300,000, assuming an income tax rate of 20%, would be _________...
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Solve for x: $\log_5 3 + \log_5 2x = \log_5 96$.
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Shares of ABC Corporation stock were selling for $50 per share three years ago. On top of this, the company has paid annual dividends of $1.00 per share for the past three years. Today, the stock is selling for $65.00 per share. What is the rate of return to an investor who bought 100 shares three years ago? a. 30% ...
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You have been asked to estimate the beta for a large South Korean company, with large holdings in steel and financial services. A regression of stock returns against the local market index yields a beta of 1.10, but the firm is 15% of the index. You have collected the average betas for global companies in each of the s...
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Use the ratio test to determine whether the series converges or diverges: {eq}\sum_{n=1}^{\infty} \frac{(n + 1)^2}{(n + 2)^2} {/eq} {eq}L = \lim_{n\rightarrow \infty} \frac{(n + 1)^2}{(n + 2)^2} = 1 {/eq} The series converges.
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A four-year $100,000 government bond makes annual coupon payments of $6,500 and offers a yield to maturity of 5%. Using annual compounding, what is the duration?
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How do you prove that the limit of the sequence {eq}\frac{n!}{n^n} = 0{/eq} using the definition of the limit of a sequence?
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Consider the following stream of cash flows: - Year 0: $1,000 - Year 1: $2,000 - Year 2: $3,000 - Year 3: $4,000 - Year 4: $5,000 The current market rate of interest is 7%. The future value (FV) of this stream of cash flows is closest to: a) $13,771 b) $11,476 c) $5,738 d) $18,362
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A company's preferred stock currently sells for $80 per share. The dividend is $8 per share. An appropriate discount rate for the stock is 10%. The initial dividend will be increased by 4% per year forever. What is the value of the stock?
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At Tiger Company, materials are added at the beginning of the manufacturing process. The company uses a weighted-average process costing. Tiger Company started and completed the following units during the period: Units Direct Material Conversion Work in process on July 1 (60%...
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Inventory is carried at the lower of cost and net realizable value under which of the following principles? a. Maturity. b. Conservatism. c. Revenue recognition. d. Matching.
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Bonds with a face value of $300,000 and a quoted price of 1021/4 are issued at: a. a discount, with a selling price of $306,000 b. a premium, with a selling price of $307,500 c. a discount, with a selling price of $306,750 d. a premium, with a selling price of $307,500
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What is the mean and standard deviation of the sample mean time to complete an employment test, given that the population mean is 40 minutes, the standard deviation is 8 minutes, and a sample of 64 test takers is administered the test? Round your answer to two decimal places.
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A small 20.0 g bug stands at one end of a thin uniform bar that is initially at rest on a smooth horizontal table. The other end of the bar pivots about a nail driven into the table and can rotate freely, without friction. The bar has mass 50.0 g and is 140 cm in length. The bug jumps off in the horizontal direction, p...
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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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The next four years will see annual cash inflows of $16,500, $27,500, $28,400, and $22,400, respectively. What is the discounted payback period if the initial cost is $45,000 and the required return is 15%?
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Which of the following choices is the correct functional form for estimating the demand for pizza, given that the total utility of eating pizza ({eq}TU_p{/eq}) is derived from a utility function {eq}U(C, P) = C^{3/5} \cdot P^{2/5}{/eq}, where C is the number of cups of coffee per day and P is the number of pizzas per d...
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A company is considering the purchase of a new machine for $60,000. Management predicts that the machine can produce sales of $17,200 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $6,800 per year including depreciation of $5,200 per year....
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A company that makes organic fertilizer has supplied the following data: Bags produced and sold : {eq}240,000 {/eq} Sales revenue: {eq}$1,896,000 {/eq} Variable manufacturing expense: {eq}$804,000 {/eq} Fixed manufacturing expense: {eq}$520,000 {/eq} Variable selling and administrative expense: {eq}$180,000 {...
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Regency Hospital's beginning cash balance was $340,000. During the month, the hospital collected $500,000 in patient accounts receivable. The following cash payments were also made: PURCHASES OF MEDICAL SUPPLIES $45,000 PAYROLL EXPENSE 125,000 PATIENTS' ADJUSTMENTS 15,000 ADMINISTRATIVE EXPENSE 35,000 What was the end...
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Find the minimum value for n when using the Trapezoidal Rule to evaluate the integral {eq}\int_{-2}^8 (2x - x^4)dx\ {/eq} such that the absolute error |E| is less than or equal to 0.001. Also, determine {eq}h(x) - |f "(x) |{/eq} on the interval (-2, 0).
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You are managing a $5 million portfolio that consists of $2 million invested in a risk-free asset and $3 million invested in a risky asset with an expected return of 12% and a standard deviation of 15%. You now receive another $500,000. How should you invest the additional funds in order to minimize the standard devia...
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Two thin rods of length L = 10.0 cm are rigidly connected and mounted with their center of mass at the origin of an x-y coordinate system. The first rod is placed along the x-axis, and the second rod is placed along the y-axis. Each rod has a mass of 0.0625 kg. A single particle of mass m = 0.125 kg is fixed at the loc...
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A company just purchased a new piece of equipment for $800,000. The equipment has a useful life of five years. For financial reporting purposes, the company is using the straight-line method of depreciation. If, for tax purposes, the company is using the Modified Accelerated Recovery System (MARS) which has a three-yea...
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Suppose that the yield on a 10-year zero-coupon bond (with a $1,000 face value) is 3.8%, and the yield on a 5-year zero-coupon bond is 4.7%. The yield on a 2-year zero-coupon bond is 5.2%. What is the implied 1-year forward rate 3 years from today? a) 4.88% b) 4.65% c) 4.22% d) 5.77% e) none of the above
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Find the work done by the force field $$\mathbf F(x,y) = \frac{x}{\sqrt{y}}\mathbf i + \sqrt{x}\mathbf j $$ on a particle moving along the curve $y = x^2$ from (0,0) to (4,16).
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If $\frac{X_n}{|X_n|} \xrightarrow{a.s.} 1$, and $X_n$ are iid with $X_n \sim U(-1,1)$, is it possible to show $\frac{X_n}{|X_n|}$ converges almost surely to $1$ using the Borel-Cantelli lemmas, given that $\sum_{n=1}^\infty P(|X_n| < 1) = \infty$, and $P(\frac{X_n}{|X_n|} = 1) = \frac{1}{2}$?
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Combustion gases with k = 1.33 enter a converging nozzle at stagnation temperature and pressure of 350 {eq}^o{/eq}C and 400 KPa, respectively and are discharged into the atmosphere at 20 {eq}^o{/eq}C and 100 KPa. The lowest pressure that will occur within the nozzle is a) 13 KPa b) 100 KPa c) 216 KPa d) 290 kPa e)...
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A factory produces two products, A and B. The unit profits are $3 for A and $1 for B. Each product requires three types of labor, which are available in limited amounts (see Table below). Assume that 100 units of A and 80 units of B have been produced. Calculate the total labor cost for these 180 units. TABLE: Labor...
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Firm C purchases labor in a perfectly competitive labor market and sells its output in a perfectly competitive product market. Management is considering hiring another worker given the following data: The worker will cost the firm $12, the market wage rate is $12, the worker can produce 100 units of output per week, a...
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I keep getting $\limsup{a_n}=1$ and $\liminf{a_n}=-1$, but the answer is supposed to be $\limsup{a_n}=0$ and $\liminf{a_n}=0$. I keep getting something wrong, but I'm not sure where.
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Calculate the expected return on a stock given that the beta is 1.40, the expected market risk premium is 9%, and the risk-free rate is 3.25%.
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