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Twone produces and sells three products. Last month's results are as follows: P1 P2 P3 Revenues $104,000 $208,000 $208,000 Variable costs 41,600 93,600 83,200 Fixed costs total $140,000. What is the number of units of P3 that need to be...
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The management of First National Bank has determined that its cash flow from operations is normally distributed, with a mean of $24 million per year and a standard deviation of $3 million per year. (This means that the probability is about 68 percent that next year's cash flow from operations will be between $21 millio...
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You have a $7 billion portfolio of stocks. Your broker suggests you shift a portion of your portfolio to a fund that invests in high-tech stocks. You are particularly concerned that your portfolio may have a large exposure to non-diversifiable risk. The fund has a beta of 1.10, and the market has an expected return of ...
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Stock A has settled into a constant dividend growth pattern of 6%. The current dividend is $1.65, its current price is $16.50. You are an analyst and believe that the required return on Stock B is the same as that of Stock A. If Stock B pays a constant (flat) dividend of $2.00, what is the estimate of Stock B's price?
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If a tax is imposed on a good with a perfectly elastic supply, the burden of the tax will be borne a. mostly by producers but partially by consumers. b. by both consumers and producers equally. c. by producers alone. d. mostly by consumers but partially by producers. e. by consumers alone.
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A country that reduces the tariffs it imposes on imports of goods from other countries may see: A) its domestic production of goods increase, and its domestic consumption of those goods decrease. B) its domestic production of goods decrease, and its domestic consumption of those goods increase. C) both its domestic ...
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Both Fairfield Corp. and Wintergreens Inc. produce and sell a single product. Operating data for the two companies follow: Fairfield Corp. Wintergreens Inc. Units produced and sold 14,400 units 27,600 units Sales $ 453,600 $ 522,000 Variable cost 220,500 290,400 Fixed cost 115,200 130,600 Net operating income $ 1...
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Merton Enterprises' bonds have 16 years to maturity, an annual coupon interest rate of 8 percent, and a $1,000 par value. Their yield to maturity is 7.25 percent. What is the total return on Merton's bonds from the perspective of an investor who purchased 100 bonds today and plans to hold them for 16 years?
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Three point charges, +3.0, +3.0, and +2.0 pC, are placed at the origin (0,0) +2.0 pC are placed at (2.0cm, 0) and -3.0 pC at (2.0cm, 2.0cm). What is the magnitude of the force on the charge at the origin?
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For the cost function {eq}C(x) = \frac{1}{2}x^3 - 3x^2 + 30x + 200 {/eq}, find the cost of producing the 5th unit.
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"Clicks and bricks" is another name for the _____ model of virtual organizations. A) star alliance B) virtual face C) virtual space D) virtual broker
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Evaluate {eq}\displaystyle \iint_{\large \partial w} \mathbf F \cdot dS {eq}, where {eq}\mathbf F = (x^2 + y, z^2, e^y - z) {eq} and {eq}W {eq} is the solid rectangular box whose sides are bounded by the coordinate planes and the planes {eq}x = 4, \ y = 4, \ z = 10 {eq}.
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The following information pertains to Owen Corporation: Annual production and sales of 5,000 units Direct materials used 2,000 pounds Direct labor hours incurred 3,000 hours Machine hours used 500 hours Direct materials used 6,000 pounds Direct labor hours incurred 4,500 hours Machine hours used 1,100 hours Estim...
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Blaine Freight Company uses the percentage-of-completion method for its process costing system. The first processing department has the following data available for the month: Work in process, beginning 5,000 units Started into production during the month 24,000 units Transferred completed and out during the month...
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The Goodyear Tire Company is considering a project with an initial after tax cost of $5,000,000. The project will produce after tax cash inflows of $1,000,000 in year 1, $2,500,000 in year 2, and $1,000,000 in year 3. The company uses the subjective approach to assign discount rates to its projects. Thus, it's cost of ...
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If the assumption is that both Miami and LaCross are functioning efficiently even if Miami's expenditures are higher at a given health level, then graphically a. their Health production functions (HPF) are the same b. HPF of Miami is higher than HPF of LaCross c. HPF of Miami is lower than HPF of LaCross d. we stil...
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A company had 1,728 units in opening WIP and started 8,665 during the month and completed 7,547 units and the closing WIP units were 100% complete in relation to direct materials (DM) and 69% complete in relation to conversion costs (CONV). The company's costs (including opening WIP and incurred during the month were: ...
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Show that the volume V of a right-circular cone that can be inscribed in a sphere of radius R is given by the formula V = \frac{\pi}{3} r^2 (2R - r) and determine the value of r for which V is maximum.
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If a tax is imposed on a good with a perfectly elastic supply, the burden of the tax will be borne: a) by consumers alone b) by producers alone c) mostly by consumers but perfectly producers d) mostly by producers but perfectly by consumers e)by both equally
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Dillo Corporation reports the following information for the current year: Cost of goods sold $420,000 Indirect labor $65,000 Selling expenses $240,000 Administrative expenses $160,000 Depreciation on plant assets $30,000 Sales revenue $900,000 Inventory of finished goods 12/31/13 $160,000 Inventory of finished goods...
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The total utility derived from x and y is U(x,y)=xy. Currently, you are consuming 24 units of x and 3 units of y. The price of x is $1 and the price of y is $3. If your income increases from $42 to $54, how much more x can you consume (holding utility constant)?
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According to the constant-growth dividend discount model, what is the value of a stock if the current dividend is $1.70, the growth rate of dividends is expected to be 10 percent, and the required rate of return on the stock is 15 percent? a. $34.00 b. $26.00 c. $28.90 d. $32.30
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Assume that body temperatures of healthy adults are normally distributed with a mean of 98.2 degrees F and a standard deviation of 0.62 degrees F. If you have a body temperature of 99.0 degrees F, what is your percentile score?
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Assuming -4x^3 - 5y^2 - 9xy = 0 defines y as a differentiable function of x, use the theorem \frac{dy}{dx} = - \frac{F_x}{F_y} to find \frac{dy}{dx} at the point (1, -1).
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The federal antitrust laws are designed to achieve all of the following goals except: A. Promote market competition. B. Deter vertical integration. C. Prevent monopolization. D. Achieve efficiency in the market.
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If a firm has $500 of sales revenue, $275 of variable costs, $120 of fixed costs and interest expenses of $50, how much is the EBIT?
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Find the Fourier coefficients of $$f(x) = \cos^4(nx)$$
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A company recently declared a stock split. Prior to the split, the stock had a market value of $90 per share. The company subsequently declared a 3:1 stock split. Determine the post-split market value per share. a. $30 per share. b. $45 per share. c. $60 per share. d. $90 per share. e. $120 per share.
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The quantity of a good or service demanded is a function of A. its price B. consumer income C. the price of related goods D. buyer expectations E. all the above
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Assume the elasticities of demand with respect to price (Edp) and income (Edy) for good X are equal to -1.5 and 2.5, respectively. Use this information to answer the question(s) that follow. Refer to the given scenario. At the current equilibrium price, which is less than $10, we know: A. a decrease in price will inc...
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On June 1, LMN corporation issued $300,000 of 9%, 5-year bonds. The bonds were issued at 97, pay interest on January 1 and June 1. The entry to record issuance of the bonds includes: a. A credit to bonds payable of $291,000. b. A debit to discount on notes payable of $9,000. c. A credit to interest payable of $9,000...
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How many eligible voters should be randomly selected to estimate the proportion of voters in favor of a tax increase for a public library with a margin of error of 0.06 at a 90% level of confidence, using a previous estimate of 0.78 as the population proportion?
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The cost of the semi-variable utility bill consists of a fixed charge of $50 and a variable charge of $0.20 per kilowatt hour. The firm pays $125 for 600 kilowatt hours and $140 for 800 kilowatt hours. The bill for 1,000 kilowatt hours would be: a) $0.75 per kilowatt hour b) $0.40 per kilowatt hour c) between $0.20 ...
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Taco Corporation is evaluating whether to make or buy a component part used in the manufacture of one of its products. The costs of making the part are $1.00 per unit (direct materials) plus $3.00 per unit (direct manufacturing labor). The costs of purchasing the part from an outside supplier are $4.00 per unit. The co...
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Stock A has settled into a constant dividend growth pattern of 6%. The current dividend is $1.59, its current price is $15.90. You are an analyst and believe that the required return on Stock B is the same as that of Stock A. If Stock B pays a constant (flat) dividend of $2.00, what is the estimate of Stock B's price?
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A company had 1997 units in opening WIP and started 19886 during the month and completed 13850 units and the closing WIP units were 100% complete in relation to direct materials (DM) and 52% complete in relation to conversion costs (CONV). The company's costs (including opening WIP and incurred during the month were: ...
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You deposit $1,000,000 in a bank account and withdraw $500 at the end of each year. The account pays 4 percent annual interest. How long will it take to accumulate $10,000,000 in the bank?
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Dithering is a technique used to: a. reduce the number of hues available in an image b. increase the number of hues available in an image c. increase the total number of colors available in an image d. decrease the total number of colors available in an image e. blur an image
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The deviation from the traditional methods used to interpret an accounting rule or standard is called: a. Aggressive accounting b. Creative Accounting c. Interpretive Accounting d. Deviate Accounting
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Dontte has an outstanding loan of $10,000,000 at 6% interest. She plans to pay back $2,500,000 of the principal every year and the interest due at the end of the year. Determine the loan balance at the end of Year 1.
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Assume that a call option has a strike price of $65 and a current stock price of $55. The option will expire in four months, at which time the stock price will either be $60 or $70. What is the option's delta?
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You have found that a stock's price has gone from $25 to $30. You know that a company stock has a beta of 1.5, and the market return went from 10 percent to 12 percent. What would the company's stock price be if the market return on Wednesday was 13 percent?
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Find the area of the region cut from the plane 6x + 2y + 3z = 6 by the cylinder whose walls are {eq}x = y^2{/eq} and x = 2 - y^2.
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When a company has a wide range of products, operations, and markets, its managers must use which of the following types of structure to effectively coordinate its work? A. Functional B. Divisional C. Matrix D. Strategic business-unit
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Sheldon Science Corp. expects to earn $40 per share next year. The firm's ROE is 10% and its plowback ratio is 40%. If the firm's market capitalization rate is 8%, what is the present value of its growth opportunities?
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Use Green's theorem in the vector form to evaluate {eq}\int_C \mathbf F \cdot d \mathbf r, {/eq} where {eq}\mathbf F(x, y) = \left \langle e^{-x} \sin 8y, e^{-x} \cos 8y \right \rangle {/eq} and C is the right-lateral loop of the lemniscate {eq}r^2 = \cos 2 \theta. {/eq}
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Cash Balance of Benito Corp., at the end of February 2011 is: Income Statement for January: Sales: $90,000 Cost of Goods Sold: $60,000 Wages Expense: $15,000 F & A Expense: $1,000 Selling and Administrative Expense: $3,000 Depreciation Expense: $100 Income Taxes Expense: $800 Total Expense: $79,800 Net Income...
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Nelson Company had a contribution margin of $12,000, a net operating income of $10,000, and sales of $50,000. Based on this information, net operating income is: A. 24% of sales and 20% of contribution margin B. 24% of sales and 80% of contribution margin C. 20% of sales and 24% of contribution margin D. 80% of sal...
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Evaluate the integral $\int \frac{e^{2x}}{\sqrt{1 + e^x}}dx$ using u-substitution.
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Anderson Inc., a company that sells its $1,200,000 in receivables to a factor for $1,154,000. The average collection period is 1 month. What is the effective annual rate on this arrangement? Do not round intermediate calculations. Give your answer as a percent rounded to 2 decimal places.
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Which of the following is not an accrual? (a) Crediting salaries payable for salaries earned to date (b) Debiting interest receivable for interest earned to date (c) Debiting interest expense for interest incurred to date (d) Debiting depreciation expense for depreciation incurred during the period.
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Two large, parallel, metal plates carrying opposite charges of equal magnitude are separated by 50 mm. The electric field between them is uniform and has a magnitude of 120 V/m. The plates are 100 cm wide, so the area of each plate is 100 cm x 50 cm. What is the total energy stored in this electric field? Express your ...
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Watkins Corp. expects its November sales to be 25% higher than its October sales of $200,000. Purchases were $50,000 in October and are expected to be $70,000 in November. All sales are on credit and are collected as follows: 30% in the month of the sale and 70% in the following month. 40% of purchases are paid in cash...
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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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What are two examples of financial instruments with both exchange and option features?
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A white billiard ball with mass of 0.154 kg is moving directly to the right with a speed of 3.14 m/s and collides perfectly elastically with a black billiard ball with the same mass that is initially at rest. The white ball ends up moving at an angle above the horizontal equal to 29.9 degrees and the black ball ends up...
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Which of the following best describes a plant asset's residual value? a. The amount at which a plant asset can be sold in the current year. b. The estimated selling price of a plant asset at the end of its useful life. c. The difference between a plant asset's cost and its fair market value. d. The amount at which ...
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What is the maximum safety stock level for this item? Use the following information to determine the maximum safety stock level for this item. Demand = 250 units per day Standard deviation of daily demand = 20 units Ordering and delivery lead time = 10 days The desired service probability = 98% z-value for 98% se...
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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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In 2011, Wise Company had net income of $600,000 and interest expense of $20,000. Average total assets were $6,000,000 and long-term debt was $2,000,000. The company's times interest earned ratio was: a. 30. b. 25. c. 3. d. 2.
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Southern is considering a project that will require a $40,000 investment in net working capital. The asset that will be purchased costs $920,000 and will be straight-line depreciated over its three-year life. The asset will be worthless at the end of its life. Included in the $40,000 of net working capital is $12,000 o...
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Patagonia creates a significant amount of waste during the manufacturing process. During the year, they produced 10,000 bags using 6,000 square meters of material. This year, they are able to produce the same number of bags using only 4,500 square meters of material. By what percentage has Patagonia decreased its inpu...
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Tudor Tile Company makes bathroom vanities. Each unit requires $800 of direct materials, and the variable manufacturing overhead per unit is $60. The average fixed manufacturing overhead per unit is $40. Suppose that Tudor plans to produce 10 units but only produces and sells 7. What is the cost of each unit under vari...
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Where are financial statement assertions directed? A) internal users B) external users C) management D) auditors
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A machine costs $50,000; it will be depreciated straight-line to zero salvage value over 10 years. Sales are projected to be 2,000 units per year; price per unit is $15; variable cost per unit is $6; fixed costs are $25,000 per year. The tax rate is 35%. What is the accounting break-even quantity for this project?
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Which of the following best describes why the graph of {eq}\displaystyle y=\frac{x^2}{x^2+1} {/eq} has a maximum point at {eq}\displaystyle (0,0) {/eq} ? a) Both {eq}\displaystyle y' {/eq} and {eq}\displaystyle y'' {/eq} are zero at {eq}\displaystyle (0,0) {/eq}. b) {eq}\displaystyle y' {/eq} is zero but {eq}\...
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P Corporation exchanged common stock having a fair value of $150,000 for 100 percent of the common stock of S Corporation and an investment in land (not held for productive use) having a fair value of $50,000. P Corporation also paid $20,000 in cash to S Corporation in conjunction with the exchange. Immediately prior t...
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The adjustment to record the bad debt expense is made to which of the following? Select one: a. The accounts receivable account. b. The bad debt expense account. c. The allowance for doubtful accounts account. d. The accounts receivable account and the bad debt expense account. e. The bad debt expense account and...
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If you purchased an annual interest coupon bond one year ago with six years remaining to maturity at that time and the coupon interest rate is 10 percent, what is your total return on investment if the bond sells for $985 today?
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Use Stokes' theorem to evaluate {eq}\displaystyle \int_C F \cdot dr{/eq} where {eq}F (x, y, z) = (2x + y) i + (z - x) j + (y + z) k{/eq} and C is the boundary of the part of the plane {eq}2x + 5y + z = 10{/eq} that lies in the first octant.
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What price does this regulated, non-price-taker natural monopoly produce? P=$_____? , Q=_____ units.
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New York Microbics Inc. paid $294,000 for the exclusive right to market and sell an antibiotic called Ultrapen in the United States. The annual profit (in dollars) from the sale of Ultrapen is given by {eq}\displaystyle P(x) = -\frac{1}{400} x^2 + 10 x - 294,000 \ \ \text{for} \ x \ge 0 {/eq} where x is the number o...
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A market-leading firm has a common stock value of $600 million, debt of $100 million, and preferred stock worth $50 million. Analysts have forecast a 10% annual growth rate for earnings for the foreseeable future. The firm's tax rate is 30% and the current return on equity is 15%. Required: Calculate the firm's WACC a...
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What is the slope of the tangent line of #(x-y^2)/(xy+1)= C #, where C is an arbitrary constant, at #(1,2)#?
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The typical run of a centrifugal pump consists of a straight section, a contraction to the impeller inlet (eye), the impeller itself, a diffuser, and a volute casing to the outlet. The conversion of kinetic energy to pressure in this typical run involves a number of losses, both irreversible and reversible. Assuming th...
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A treasury manager is in the process of developing cash transfer rules for the firm. Currently, the firm's bank charges $15 per wire and $0.30 per ACH. The ACH takes 1 day longer to clear. The firm's account earns an earnings credit rate of 0.50%, and the required reserve ratio is 10%. If the firm's opportunity cost of...
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Suppose you buy a certificate of deposit (CD) for {eq}\$1,000 {/eq} with a {eq}3 {/eq}-year term. If the CD pays a simple annual interest rate of {eq}10.5 \% {/eq}, how much total interest will you have earned at maturity?
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What is the 6th term of the Taylor series for the function $\frac{e^{4x} \sin(3x)}{x}$ centered at $x = 0$?
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Moe, Inc. paid a dividend yesterday of $3.25 per share. Moe's management expects the dividend to increase next year to $3.50 annually. If the dividend is expected to stay at 3.50 per year for the foreseeable future, what is the value of the stock to an investor with a required rate of return of 10 percent? a. $35.00 ...
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Bonds Payable has a balance of $900,000 and Premium on Bonds Payable has a balance of $10,000. If the issuing corporation redeems the bonds at 103, what is the amount of gain or loss on redemption?
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What is the pH of 100 mL of a solution that is 0.085 M in CN^- and 0.10 M in HCN? K_a for HCN is 1.0 x 10^-10.
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The after-tax cost of debt for a firm is 4.74 percent. You know the firm's tax rate is 35 percent, the risk-free rate is 5.0 percent, and the market risk premium is 7.25 percent. If the firm's cost of equity is 11.71 percent, what is its pre-tax cost of debt?
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I was given the following question: Let $x_n = (-1)^n/n$ and $y_n = 1-1/n$. Find $lim_{n \to \infty} (x_ny_n)$. I can see that $lim_{n \to \infty} x_n = 0$ and that $lim_{n \to \infty} y_n = 1$, so is it correct to assume that $lim_{n \to \infty} (x_ny_n) = lim_{n \to \infty} (0*1) = 0$?
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Suppose we wish to estimate the mean of the population by taking a sample. We should use the t distribution if: a. the sample size is large b. the population is symmetric c. the population standard deviation is unknown d. the population is normal and the sample size is small
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The table shows the one-way commuting times (in minutes) for a random sample of 50 residents of New York City and for a random sample of 40 residents of Baltimore, Maryland. A 90% confidence interval for $\mu_1 - \mu_2$ is 6.09 to 36.29, where $\mu_1$ represents the mean one-way commuting time in New York City and $\mu...
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Last year, a firm had $100,000 in assets and $50,000 in liabilities. However, the firm had no good loans, its nonperforming assets were 5% of total assets, and its problem loans were 3% of total assets. If this year the firm's assets increased to $115,000 and its liabilities increased to $55,000, but the percentage of ...
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Hanson Corporation's stock has a beta of 2.0. The risk-free rate is 6.5%, and the expected return on the stock market is 13.0%. What is the required rate of return on the company's stock?
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Swiss Furniture's net income for 2010 was $6,500,000. In 2010, the company had 580,000 shares of common stock outstanding. During 2010, the company also had 130,000 shares of 5%, $100 par value cumulative preferred stock outstanding for the entire year. Calculate Swiss Furniture's net income available to common stockh...
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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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Seether Corporation needs to raise $500,000 for one year to supply capital to a new store. Seether buys from its suppliers on terms of 3/10, net 90, and it currently pays on day 10 and takes discounts; but it could forgo discounts, pay on day 90, and get the needed $500,000 in the form of costly trade credit. Alternati...
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Suppose that the price level is fixed and that the interest rate is constant, thereby implying that the LM curve is horizontal. If there is a rise in consumer confidence, in the short run, we expect: a) an increase in output and an increase in the interest rate. b) an increase in output and a decrease in the interest...
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A company manufactures and sells a product with a seasonal sales pattern. Inventory management for this product is an important issue. The annual inventory holding cost is $200 per unit. The stock can be ordered in batches of any size. When the stock reaches a minimum level, a fixed quantity is ordered. The ordering co...
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Baker's Bookkeeping records current assets in order of liquidity. For this purpose, it places marketable securities first, followed by accounts receivable and finally cash. This approach is an example of: a. Fair value measurement. b. Relevance in financial statement elements. c. Materiality. d. Faithful representa...
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Computing the following: Contribution Margin Ratio Sales Revenue for Year 1 $100,000 Sales Volume for Year 1 10,000 units Fixed Costs for Year 1 $5,000 Sales Price for Year 1 $20 per unit Variable Cost per Unit for Year 1 $15 per unit Increa...
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Determine whether the improper integral converges or diverges, and, if converges, find its value. {eq}\int_{-1}^{1} \frac{1}{(x^2 - 1)^2}dx{/eq}
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The daily price of a stock was $50 at the beginning of the week and $54 at the end of the week. If the stock index rose by 2% during the week, then what was the holding period return for the stock? A) 4% B) 6% C) 8% D) 10%
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The role of corporate headquarters in a _____ is to constantly scan business operations across different countries for resources and capabilities that might be a source of competitive advantage for other divisions/country companies in the firm. A) centralized hub B) coordinated federation C) decentralized federation...
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Windsor Corp. just paid an annual dividend of $1.45 a share. The stock is selling for $38.90 a share and has a growth rate of 2.8 percent. What is the dividend yield, using the constant growth model?
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Your firm borrowed $1,000,000 for five years at an APR of 12%. You must repay the loan in equal payments at the end of each year, including principal and interest. What is the annual payment that will fully pay off the loan?
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Show that for any field $F$, $F(X, Y) = F(X + Y, XY)$. Here $F(X, Y)$ is the field obtained by adjoining two indeterminates to $F$.
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