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A production quota set below the equilibrium quantity creates A. a decrease in supply. B. a decrease in marginal cost. C. a rise in price. D. inefficient underproduction. E. all of the above
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Imagine that you are the financial manager of Ducks Inc. You are evaluating a proposal to buy a new computer to be used for administrative purposes. This new computer would cost $15,000, and it would have a 10 year life. The computer is in the MACRS 3 year class and so will be depreciated over 3 years at the following ...
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I purchased a water park for {eq}\$1,910,000 {/eq}. The annual net cash inflows are {eq}\$481,000 {/eq} for {eq}8 {/eq} years. There is no residual value and I have to use straight line depreciation. Stockholders demand annual return of {eq}10 \% {/eq} investments. How do I determine cash payback period?
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Consider the following cash flow: End of Year Cash Flow 1 $11,700 2 $5,300 3 -$1,800 4 $1,300 5 -$1,600 If the appropriate discount rate is 5%, what is the present value of this cash flow stream?
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During 2015, Parker Company had this data related to its sales: net sales of $200,000, sales returns of $8,000, and sales discounts of $10,000. If the return policy on sales is expected to remain constant and any sales discounts result from poor credit sales, what would be the estimate of sales revenue to be used for f...
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Consider a bond that makes annual coupon payments of 7%, with par value of $1,000. The price of the bond is $1,022.22. A. 95.00 B. 6.83 C. 3.00 D. 5.63 E. None of the above
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The Brazilian product company whose stock was chosen by your instructor to form the benchmark for this project had a net income for the year of R$380 million and a dividend payout ratio of 50 percent. Your financial statements contain the following information: Selected Balance Sheet Data R$ m...
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Dagny Taggart's Rearden Metal Co. is considering opening a new location in Chalmers, Wyoming. The cost of building a new plant in Chalmers is $185,000. The plant will be depreciated on a straight-line basis over five years. The plant will have a market value of $50,000 at the end of five years. The new location will ge...
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Assume that interest rate parity holds, and the current risk-free rate in the U.K. is 2.2%, while the risk-free rate in the U.S. is 3.5%. Given this, the forward pound should trade at a premium if the exchange rate is expected to _____ by _____. A)appreciate; 1.3% B)depreciate; 1.3% C)appreciate; 2.9% D)depreciate;...
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Susan's credit card closes her account balance on the first day of each month. Susan's closing balances for January and February were $450 and $400, respectively. During February, her card charged 1% interest on her January balance and also assessed a finance charge of $2.50. If her February payment was $250, what was ...
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Practical Showtime, Inc. purchased {eq}180 {/eq} units of inventory for {eq}\$50 {/eq}, then {eq}380 {/eq} units for {eq}\$60 {/eq}, and finally {eq}260 {/eq} units for {eq}\$70 {/eq}. At the end of the month, {eq}400 {/eq} units remained. Compute the amount of phantom profit that would result if the company use...
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A uniform electric field of magnitude 345 V/m is directed in the negative y direction. The coordinates of point A are (-0.350, -0.650)m and those of point B are (0.250, 0.400) m. Calculate the electric potential difference Vb - Va using the path A - (0,0) - (0,0.650) m - B.
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What is the $2017^{th}$ derivative of $e^{x^2}$ at $x=0$?
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Goofy Inc. bought 15,000 shares of Crazy Co.'s stock for $198,000 on May 5, 2015, and classified the stock as available for sale. The market value of the stock declined to $113,000 by December 31, 2015. Goofy reclassified this investment as trading securities in December of 2016 when the market value had risen to $152,...
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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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Baker Co., a manufacturer, has provided the following information for the year 2010: Beginning finished goods inventory $20,000 Ending finished goods inventory 12,000 Beginning work-in-process inventory 15,000 Ending work-in-process inventory 18,000 Direct materials used 30,000 Direct labor 40,000 Overhead...
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Calculate the length of the curve given by the equation $y = (4 - x^{3/2})^{2/3}$ from $x = 1$ to $x = 8$.
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Quad Enterprises is considering a new project that will require an initial after-tax cash outlay of $3 million. The project will produce after-tax operating cash inflows of $1.40 million per year for 2 years followed by $1.25 million in year 3. The firm's cost of capital is 15%. The project has an IRR of: a. 3.24% b...
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A(n) _____ is a bond that has a detachable warrant attached to it. A. zero-coupon bond. B. income bond. C. conversion bond. D. Eurodollar. E. coupon bond.
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On November 10, the maturity date of a $10,000, 8%, 60-day note receivable, the balance in the Accounts Receivable account was $70,000. The maturity value of the note should be collected on December 11. On December 11, when cash was received, the receivables balance was $76,500. This means that: a. the note required i...
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Kelland Corporation uses the indirect method to prepare its statement of cash flows. Last year cash was paid to suppliers for $37,000, salaries were paid to employees of $23,000, and cash was received from customers for $67,000. Operating expenses that were paid in cash included rent expense of $10,000 and utilities e...
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In 2015, Miley Inc. recorded net sales of $115,000. In 2016, Miley recorded net sales of $125,000. Miley determined that the annual depreciation expense for 2016 was $11,500. In addition, Miley recorded $4,000 in expenses on its prepaid insurance account. Based on this information, Miley's 2016 net income would increa...
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A savings account has a nominal annual interest rate of 6% with interest credited monthly. What is the annual percentage yield (APY)? a. 6.12% b. 6.17% c. 6.00% d. 6.62%
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A 750W electric heater is designed to operate from a 120 V-rms AC source. a) How much energy does the heater consume in 5 hours? b) At $0.13/kWh, what does 5 hours of operation cost? c) What is the resistance of the heater? d) How much current does the heater draw? e) Calculate the maximum instantaneous power in t...
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The revenue generated from the sale of a stock (or other security) for the original purchaser. It is the amount received by the original purchaser less the amount paid for the stock plus any commissions charged. a. tax gain b. tax loss c. taxable gain d. taxable loss
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Which of the following statements is not a problem associated with executive ownership? A) It increases executives' exposure to risk. B) It causes executives to risk their reputation. C) It causes executives to risk their human capital. D) It may lead some executives to become risk seekers.
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Beginning book value of an asset is $56,000; end of the period book value is $38,885; tax depreciation is $20,000. What is the tax savings due to these tax depreciation? a. $5,000 b. $20,000 c. $25,000 d. $18,885 e. Some other amount
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Given {eq}\widehat{y}= 150 + 25x_1 + 40x_2 - 12x_3 + 15x_4 {/eq}, for this model is a significant linear relation present between y and the independent variables? X1 .24 X2 .90 X3 -.84 X4 .28
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What is the length of the curve y = 3x - 2 from x = 0 to x = 6?
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Toyota owns 20% of the voting common stock of Osaka Motors, its chief competitor in Japan. Toyota makes an annual cash payment to Osaka for the use of a trademark. Toyota's accounting policy is to account for its investment in Osaka Motors using the: a. cost method, with the payment for trademark use recorded as an ex...
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Find the mean, variance, and standard deviation of the sampling distribution for the sampling distribution of sample means using the formula {eq}\bar{x} \sim N\left( {40,\frac{{12.64^2}}{22}} \right).{/eq}
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Johnson Company uses standard costs for its manufacturing division, which began operations on January 1 of the current year. The following data were available for the past year: Actual cost of raw materials purchased$249,000 Actual direct labor cost$119,000 Actual variable overhead cost$62,000 Actual fixed overhead c...
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Calculate the flux of {eq}\mathbf F=3xyz \mathbf i - 9z \mathbf j +4x^2y \mathbf k{/eq} out of the closed, outward-oriented surface bounding the solid {eq}x^2+y^2 \leq 36, \; 0 \leq z \leq 6.{/eq}
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The ground-state wave function for the electron in a hydrogen atom is {eq}\displaystyle \Psi (r) = \frac{1}{\sqrt{\pi a_0^3}}e^{-r/a_0} {/eq}, where {eq}\displaystyle r {/eq} is the electron's distance from the nucleus and {eq}\displaystyle a_0 {/eq} is the Bohr radius {eq}\displaystyle 0.529 \ \mathring A {/eq}. (...
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Round corporation had the following sales and production for the past four years: Year 1Year 2Year 3Year 4 Production in units5,0006,0005,0005,000 Sales in units4,0005,0005,0007,000 Selling price per unit, variable cost per unit, and total fixed cost are the same each year. There were no beginning inventories in Yea...
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Horace Corporation's financial statements contain the following information: Income Statement Data Sales revenue$1,561 Cost of goods sold$906 Selling, general and administrative expenses$311 Depreciation expense$141 Earnings before interest and taxes$203 Interest expense$50 Net income$137 Balance Sheet Data Beginni...
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Olivia's office is a small nonprofit organization that generates most of its revenue from contributions. These contributions are usually mailed in the fourth quarter of the fiscal year (ending June 30). Since the contributions are generally very large, the company does not match them dollar for dollar. What is the app...
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Adams Furniture receives a special order for 10 sofas for a special (total) price of $6,800. The materials and direct labor for each sofa are $180. In addition, the setup, supervision, and other overhead costs are $200 per sofa. 1.) If Adams is currently operating at full capacity, what would be the opportunity cost p...
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This problem deals with interest rate parity. Assume the current six-month risk-free rate is 3.0% in the United States and the expected six-month forward rate of the pound is $1.90 and the current spot rate is $1.88. What must the six-month risk-free rate be in Great Britain? a) 3.0% b) 2.8% c) 2.9% d) 3.3% e) 2...
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A lower wage: A. has an income effect that is always negative with respect to the quantity of labor supplied. B. has an income effect but not a substitution effect on the quantity of labor supplied. C. means a higher income for any given level of labor supplied. D. has an income effect that is always positive with ...
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Granfield Company has a piece of manufacturing equipment with a book value of {eq}\$40,000 {/eq} and a remaining useful life of four years. At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently {eq}\$22,000 {/eq}. Granfield can purchase a new machine...
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An analyst gathers the following data about a company: - EBIT is $840 million - The company's corporate tax rate is 25% - The company currently has debt of $5.5 billion and equity of $3.2 billion - The cost of debt is 4.5% - The cost of unlevered equity is 10.25% The free cash flow and the cost of capital are exp...
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Which of the following must be true if Country X has a comparative advantage over Country Y in the production of both goods A and B? a) Country X has an absolute advantage over Country Y in the production of good A and a comparative advantage over Country Y in the production of good B. b) Country X has a comparative ...
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_____ include(s) the unit cost of a manufacturer's product under an absorption costing system. A) Opportunity costs B) Depreciation C) Insurance D) Variable costs
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Evaluate the limit (if it exists). If the limit does not exist, then explain why. Use a graphing utility to verify your result graphically. {eq}\displaystyle \lim_{t \to \infty} \bigg( \frac{1}{2}t - \sqrt{\frac{1}{4}t^2 + t} \bigg) {/eq}
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The regular price per unit of an item was $45.00. If the item was on sale for 75% off the regular price, what would the sale price be?
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An increase in which of the following would result in a movement along the aggregate demand curve? A) the value of money B) the money supply C) the price level D) investment E) government expenditures
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During 20X7, the Selkirk Company changed from the FIFO to LIFO inventory method. The cumulative effect on prior years of applying the change retrospectively is a loss of $205,000. Retained Earnings at the beginning of the current year was $950,000 and Sales Revenue for 20X7 was $3,450,000. Income Statement for the year...
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What is the total amount of cost that will be assigned to the units completed and transferred out if the following information was taken from the production data of a processing department? Cost of the beginning inventory $ 10,000 Units of beginning inventory 2,000 Units completed and transferred out 5,000 Equivale...
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I'm trying to compute the MacLaurin series for \sin x up to the 100th term in Maple, and I'm only getting 5 terms. What am I doing wrong with the following code? taylor(sin(x), x = 0, 100); convert(%, polynom);
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Sheridan Retailing purchased merchandise on September 29, at netted $13,000 from a supplier. Payment was made on October 8, when the invoice was received. Terms of the purchase were n/10, EOM. Assume a fiscal year ending on October 31. Using the perpetual inventory method, what would be the journal entry for the payme...
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A 0.50-kg body undergoes an acceleration of 4.0 m/s2. What is the net force acting on the body?
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The most significant factor affecting the difference between planned lead time and actual lead time for a specific order or batch in a shop is/are: (a) Priority (b) Capacity (c) Queues (d) Component availability
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Indicate the one characteristic below that is typical of a pure monopoly. A. Many competing sellers. B. Slight barriers to entry. C. Freedom to price the product. D. Sellers are price takers. E. Consumer sovereignty.
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ABC company is considering a project with an initial cash outlay of $15,000. The cash flows of this project are for 3 years, followed by a perpetuity of $5,500 per year. If the discount rate is 11.5%, then what is the project's IRR? You must show your work.
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An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has been warned not to ignore the cross-product between the real rate and inflation. If the real risk-free rate is 6.14% and inflation is expected to be 15.76% each of the next 5 years, what is the...
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On January 1, 20X1, Oriole Company acquired a patent that had a five-year remaining life. In accounting for the amortization of the patent on December 31, 20X1, Oriole should: a. debit the research and development expense account. b. debit the accumulated amortization account. c. credit the accumulated amortization ...
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Preferred stock is like a debt security in the sense that a) it represents a residual claim on the company's assets and earnings b) it has priority over common stock in the payment of dividends and the distribution of liquidated assets c) it generally pays fixed annual dividends that are not tax deductible d) it is...
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Which of the following statements is true? Select one: a. For convenience, the chief executive officer is usually the financial manager. b. The agents of a firm are its managers, while the principals are its stockholders. c. None of the answers is correct. d. Stockholders' wealth will be maximized when the firm's profi...
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Calculate the future value of {eq}\$2,000 {/eq} in: a. {eq}5 {/eq} years at an interest rate of {eq}5\% {/eq} per year. b. {eq}10 {/eq} years at an interest rate of {eq}5\% {/eq} per year. c. {eq}5 {/eq} years at an interest rate of {eq}10\% {/eq} per year. d. Why is the amount of interest earned in part (c)...
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A company has a {eq}15\% {/eq} MARR. In order to reduce operating expenses, the company plans to buy new software. The company will either lease the software or buy it and amortize the cost of the software over {eq}3 {/eq} years. The following estimates have been provided by the company: a. Software costs {eq}\$300,...
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How do I evaluate the integral $$ \int_0^1 \int_y^1 \frac{1}{2}ye^{x-y}\,dxdy $$ given that I have reduced it to $$ \int_0^1 \frac{1}{2}ye^y - \frac{1}{2}y^2e^y\,dy $$ and I am unsure how to integrate the second term, especially since it involves $e^y \cdot y^2$?
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Which of the following is true about a $1,000 discount bond with five years to maturity if the YTM increases to 6%? a. The price of the bond increases and the coupon rate remains constant. b. The price of the bond decreases and the coupon rate remains constant. c. The coupon payments increase and the price of the bo...
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Good Morning Food, Inc. is using the profitability index (PI) when evaluating projects. The cost of capital is 14.31 percent. What is the PI of a project if the initial costs are $1,999,000 and the project life is estimated as 5 years? The project will produce the same after-tax cash inflows of $520,000 at the end of t...
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Suppose the banking system does not hold excess reserves and the reserves ratio is 25%. Assume that the banking system is exactly meeting its reserve requirement, and the public wishes to hold no currency. If Molly deposits $1,000 cash into her checking account, the banking system can increase the money supply by: a) ...
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What is the present value of a 20-year, $100 per year annuity due if the discount rate is 8%?
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Which of the following are items that can be deducted? A. Unreimbursed employee expenses B. Alimony paid C. Unqualified moving expenses D. Interest paid on a personal residence loan
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Suppose sales increase by $10,000 and other things remain constant. If operating costs increase by $5,000, depreciation increases by $500, and the tax rate is 20%, what is the increase in free cash flow?
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Lott Company recorded the following transactions during December. Dec 4 Sold merchandise on account to Wildhorse Inc., $50,000, terms 2/10, n/30. Dec 7 Purchased merchandise for $30,000 from Wabasso Corp. Dec 9 Received an account receivable from Wildhorse Inc., $28,000....
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Cost standards for one unit of the product no. K62: Direct material: 4 pounds at $3.50 per pound $14.00 Direct labor: 7 hours at $7.50 per hour 52.50 Actual results: Units produced 4,800 units Direct material purchased: 20,200 pounds at $3 $60,600 Direct material used: 15,900 pounds at $3 $47,700 Direct labor: 34,...
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What is the value of the account in year 1, if we start with $1000 and the current interest rate is 2%?
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The future value of a $1,000 annuity due at the end of four years at a 6% annual interest rate would be: a. $4,095 b. $4,265 c. $4,375 d. $4,532
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Income from operations for a company in 2010 totaled $2,080,000. At the beginning of the year, long-term assets were $2,000,000. During the year, long-term assets increased by $400,000. What is the cash return on long-term assets for 2010? A) 104% B) 80% C) 75% D) 88%
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In the following structure, which set of protons is expected to appear farthest downfield? <img src="/cimages/multimages/16/chm_12575782321816655841.jpg" alt="NMR Structure" style="width:100px" />
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Coors Co. incurs a $32,000 loss on the disposal of a natural resource with a book value of $145,000. What is the journal entry for this transaction? a. Debit Cash, $113,000; debit Accumulated Depreciation, $32,000; credit Loss on Disposal, $205,000. b. Credit Cash, $113,000; credit Accumulated Depreciation, $32,000;...
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Growth of the Motor Neurons is mediated by? A) Acetylcholine B) Acetilcholinesterase C) All of these D) None of these
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Consider an economic profit of $200 to be earned by a single-price monopolist. The monopolist is earning a(n): a. above-normal profit b. zero economic profit c. minimum economic profit d. below-normal profit
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For each firm in the industry, the long-run cost of producing y units of output is c(y)=$100+y2 if y>0 and c(0)=0. The government imposes a quantity tax of $2 per unit of production on each firm. Firms can avoid this tax only by going out of business. There is free entry and exit into this industry. In the long run, th...
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If all used cars in a market with symmetric information about quality are sold at the same price, then A) sellers of good quality cars are subsidizing buyers of lemons. B) sellers of good quality cars are subsidizing sellers of lemons. C) buyers of good quality cars are subsidizing buyers of lemons. D) sellers of l...
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The President of Soto, Inc. has just announced the decision to replace all of the existing equipment with more efficient machines. The net book value of the existing equipment is $2,250,000, and its fair market value is $250,000. The Replacement cost of the new equipment will be $4,500,000. What is the amount of gain t...
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A company makes a special product that is sold for a profit of $6.00 per unit. The cost of manufacturing is given by {eq}C(x) = \sqrt{3x^2+12} {/eq}, where x is the number of units produced. Find the number of units X that must be produced to maximize profit.
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Direct materials purchased, 4,200 ounces at $6 per ounce Actual consumption of direct materials, 3,900 ounces Actual cost of direct labor, $39,000 Standard labor-hours for units produced, 1,300 hours The standard cost for one unit is $5 for direct materials and $5 for direct labor. The direct materials price variance i...
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Consider a {eq}30 {/eq}-year maturity {eq}8\% {/eq} annual coupon bond selling at a price of {eq}\$941.10 {/eq}. If the yield to maturity of the bond increases by {eq}25 \ \text{bps} {/eq}, the price of the bond will go down to {eq}\$914.38 {/eq}. The duration of the bond is closest to: (a) {eq}10.0 {/eq} years....
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Indifference curves: a. slope downward b. cannot be drawn in more than two dimensions c. represent a linear budget constraint d. cannot be intersected by another indifference curve
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A charge of +0.4 mC is at (-3, 0) meters and a charge of +0.9 mC is at (+1, 0) meters. Where on the x-axis is the total magnitude of the E-field equal to {eq}4 \times 10^6 \ N/C{/eq}? a. -4.00 m, -2.136 m, -0.34 m, 2.45 m b. -2.665 m, 27 m c. -4.55 m, 2.45 m, -2.445 m, -1.22 m d. -4.00 m, 2.45 m e. -2.136 m, -0.34 m
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Explain why you would expect to see a difference between the "usual" absorption costing income and variable costing income. Use the following information to answer the next two questions: Phil's Pest Services uses a standard cost system. The following information has been provided for the year just ended: Actual un...
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Determine the surface resistivity of a material used as a coating on a curtain rod. The rod is 5 ft long with a 1.2-in-diameter cross-section and has a 100 V potential difference when a 1-A current is flowing through it.
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Which of the following statements is correct? A. The basic earning power (BEP) ratio increases when a company's tax rates decline and other things are held constant. B. The debt ratio (total debt/total assets) increases when a company pays off some of its short-term notes payable. C. Other things held constant, a hi...
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In the current year, Springs Corporation (a regular corporation), which is not a personal service corporation, has $15,000 of passive losses, $12,000 of active business income, and $5000 of portfolio income. How much of the passive loss may Springs Corporation deduct in the current year? a. $0 b. $2,000 c. $5,000 d...
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Is the integral $\displaystyle \int_{\mathbb{R}} \frac{\sin(x)}{x^2} dx$ equal to the sum of the residues of $\frac{\sin(z)}{z^2}$ at $z = 0$, which is $\lim_{z \to 0} \frac{\sin(z)}{z} = 1$? If yes, what would be the residue of $\frac{\sin(z)}{z^2}$ at infinity? How can I show the existence of this integral?
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Use the single exponential smoothing model with alpha = 0.5 for forecasting. Exponential smoothing forecasts of sales in period 5 for Fred Adams Company, Manufacturer, were made using the sales data of the following four periods: Period Number Sales (millions of dollars) 1 3.5 2 3.6 3 4.0 4 4.7 Exponential Smoothing ...
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In an adjusting entry, which of the following is normally debited? a) a revenue or income account b) a liability account c) a prepaid asset account d) an unearned revenue account
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Property acquired by a taxpayer from a gift during the current year is always tested as to gain or loss at fair market value on the date of the gift. The basis of property acquired by the exercise of a call option or redemption right is generally equal to the: A. Fair market value of the property at the time of the ex...
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What is the probability that I have to make at least 5 rolls to get two 1's and two 6's in 4 rolls of a die?
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What is the price of a bond with 10 years to maturity and a 10% coupon rate if the required rate of return is 14% and coupons are paid semiannually?
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Which step in the STP process develops descriptions of the different segments, which helps firms better understand the customer profiles in each segment? a. Establish overall strategy or objectives b. Select segmentation method c. Develop positioning strategy d. Evaluate segment attractiveness e. Select target marke...
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A company plans to evaluate prospective employees using a test designed to measure intuitive decision-making ability. Data shows that the scores are normally distributed with a standard deviation of 13.1. How large should the sample size be so that we can be 95% confident that the estimate of the population mean is wit...
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The nominal interest rate is 8%. Expected inflation is 3%. The real rate of interest is closest to: A. 3% B. 5% C. 7% D. 8%
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A monopolist faces the following demand curve: Quantity Price 0 52 1 48 2 44 3 40 4 36 5 32 6 28 7 24 8 20 9 16 10 12 ...
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How can I determine the volumes of a solid by using integration when the solid is produced by revolving around the $x$ axis the region bounded by the curve $x^2+y^2=9$, the $x$ axis and the line $x=2$ using the disk method?
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