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An insurance company has 10,000 automobile policyholders. The expected yearly claim per policyholder is $240 with a standard deviation of $800. Approximate the probability that the yearly claim exceeds $2.7 million.
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For which $a > 1$ does the integral $\int_{a}^{\infty} \frac{e^{ax}-e^{-ax}}{e^{ax}+e^{-ax}}dx$ converge?
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A firm with an 8% cost of capital is considering a project that will produce after-tax operating cash flows of $10,000 per year for 3 years followed by an additional $5,000 in the 4th year. The project's initial cost is $10,000. Use the discounted cash flow method to estimate the internal rate of return (IRR) of the p...
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A distribution of values is normal with a mean of 114 and a standard deviation of 40. From this distribution, you are taking random samples (with replacement) of size {eq}n = 28 {/eq}. What is the mean of this sampling distribution? (i.e. {eq}\mu_{\bar X} {/eq} = _____) What is the standard deviation of this sampli...
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Consider a Poisson probability distribution with $\lambda = 5.1$. Determine the probability of 65 or more occurrences.
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Appliance for Less is a local appliance store. It costs this store $35.32 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to be 1,052 units. Each order costs $60. The company is using Economic Order Quantity model in placing the orders. What is the a...
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Integrate $f(x,y,z) = z^2$ over the portion of the cone $x^2+y^2+z^2 = 2z$ that lies above the $xy$ plane. I parameterized the cone as $r(u,v) = 2\sin(\frac{v}{2})\cos(u)i + 2\sin(\frac{v}{2})\sin(u)j + 2\cos(\frac{v}{2})k$ where $0 \le u \le 2\pi$ and $0 \le v \le \frac{\pi}{2}$. Then I found the cross product of the ...
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In a perfectly competitive market, if the marginal cost curve is always rising and is above the market price, then the marginal revenue curve: a. is identical to the marginal cost curve, b. is a horizontal line equal to the market price, c. is a vertical line equal to the market price, d. is below the marginal cost...
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Two ratios that may be used to evaluate credit standards are a. current ratio and interest coverage ratio. b. profit margin and debt ratio. c. days sales in receivable and average collection period. d. return on investment and days sales in receivable. e. return on investment and debt ratio.
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Harrison Corporation sold $25,000 of inventory for $30,000 cash. The inventory was purchased two years ago for $20,000. The cost of the inventory sold was $22,000. Which of the following statements is true? a. Net income increased by $3,000. b. Net income decreased by $3,000. c. Cash increased by $3,000. d. Invent...
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You will be investing $6000 per year for 3 years. Your compound annual interest rate is 5.3% How much will be accumulated at the end of year 3? Use Excel to calculate your answer. a. $19,804 b. $20,250 c. $17,950 d. $18,448
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Calculate the current yield on a coupon bond with three years to maturity that sells for $102.75. The bond pays $38 in interest every six months. (Assume a face value of $1,000).
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Maximize {eq}z = 4x + 2y{/eq} subject to the constraints {eq}\displaystyle x \geq 0,\ y \geq 0,\ 6x + 3y \leq 18,\ x + y \leq 5.{/eq}
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So you buy a stock for $100. Over the course of the year the company pays out $5 in dividends and then you sell the stock for $102. What is your ROI?
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Last year, you purchased a stock at a price of $47.90 a share. Over the course of the year, you received $1.90 in dividends and inflation averaged 2.6 percent. Today, you sold your shares for $45.90 a share. What is your approximate real rate of return on this investment? A. 2.00% B. 2.21% C. 2.27% D. 2.28% E. 2.5...
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C.K.'s tax basis in the partnership was $86,000 on January 1. During the current year he withdrew $24,000 for personal use and received $32,000 of the partnership's income. C.K. was allocated $8,000 of partnership losses. What is his recognized gain or loss on the dissolution of the partnership? a. $26,000 gain. b. $...
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You are considering two mutually exclusive projects with the following cash flows: Year Project A Project B 0 -$46,500 -$46,500 1 31,500.00 38,700.00 2 13,200.00 35,500.00 3 23,700.00 14,500.00 If the required return is 12%, what is the MI...
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Determine the volume of the solid bounded by the surface {eq}z=\sqrt{x^2+y^2} {/eq} and the plane z = 10 by converting the integral to one in cylindrical coordinates.
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Kingston Firm's projected capital budget for the upcoming year is $1,000,000. The firm's target capital structure is 60% debt, 10% preferred stock, and 30% common equity. Kingston currently has $100,000 of bonds payable, 50,000 shares of $1 par value common stock, and $100,000 in additional paid in capital. On the pref...
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The following information is for Kinder Company: Total fixed manufacturing overhead $78,000 Per unit variable manufacturing costs $23 Selling price $68 Variable selling and administrative expenses $8 Fixed selling and administrative expenses $42,000 During its first year of operations, the company produced ...
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You are evaluating a proposed capital budgeting project (project Delta) that requires an initial investment of $2,000,000. Based on the following data, what is the discounted payback period of the project? Year Cash Flow 1 $750,000 2 $800,000 3 $900,000 4 $1,000,000 Discount Rate = 12%.
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A government bond with a coupon rate of 6% makes semiannual coupon payments on January 13 and July 13 of each year. The Wall Street Journal reports the asked price for the bond on January 28 at 100:13. What is the invoice price of the bond? The coupon period has 182 days.
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Suppose $\lim_{x\rightarrow 3} f(x) = 4$ and $\lim_{x\rightarrow 3} g(x) = 5$ $\lim_{x\rightarrow 3} h(x) = 2$. Find $\lim_{x\rightarrow 3} (4f(x) - h(3x))$.
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Moore Company carries product A in inventory on December 31, 2008 at its unit cost of $9.00. Because of a sharp decline in demand for the product, the selling price was reduced to $8.00 per unit. Moore's normal profit margin on product A is $1.60, disposal costs are $1.00 per unit, and the replacement cost is $5.30. Un...
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The resting blood pressures of a sample of 24 healthy adults average 123.5 mmHg with a standard deviation of 9.9 mmHg. Find the 90% confidence interval for the population mean, assuming a normal distribution.
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Roberto's record collection consists of 9 hard drives containing 2,400 songs each and 5 CDs containing 100 songs each. Assuming that all the music is equally likely to be selected, what is the probability that if he picks one song randomly from his collection of songs, it was a CD? Write your answer as a reduced fract...
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What is the expected value of $n$ if I keep replacing $x$ with $\frac{d}{dx}x$ in the expression $f^{(n)}(x) = x^ne^{-x}$ until the expression no longer changes, starting from $f(x)=x$ and taking the derivative 7 times?
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Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor hours. At the beginning of the year, it was estimated that 40,000 direct labor hours would be required for the period's estimated level of production. The company also estimated $524,000 of fixed manufacturing overhe...
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Abdul has the opportunity to spend the weekend at an all-inclusive resort. He values the option to spend the weekend at the resort at $500. He values spending the weekend at home at $200. If the resort offers a discount of $100, what is the largest discount he will take? a. $500 b. $100 c. $400 d. $300
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Assume a machine that fills cereal boxes with 16 ounces of cereal in any given day (n = 20) is operating properly (mean = 16 ounces). On a particular day, the average sample weight of the cereal box was 15.5 ounces with a standard deviation of .5 ounces. Assuming a normal distribution, approximately what is the probabi...
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Johnson Corporation purchased a copier for $10,000. The copier will be used for 5 years and has no salvage value. If the company uses the straight-line method of depreciation, what is the asset's book value at the end of Year 3?
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A large flat plate with area {eq}A=0.35\ m^{2} {/eq} is placed in a uniform electric field {eq}\overrightarrow{E} {/eq} pointing upward (see the following figure). The magnitude of the field is {eq}E=5.8 \times 10^{3} {/eq} {eq}\frac {N}{C} {/eq}. Assuming the area of the front and back surfaces of the plate is ver...
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You are the manager of a firm that receives revenues of $40,000 per year from product X and $90,000 per year from product Y. The own-price elasticity of demand for product X is -1.5, and the cross-price elasticity of demand between product Y and X is -1.8. How much will your firm's total revenues (from both products) c...
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A company invested $33,333 in new machinery six years ago. The investment was in net working capital and would be recovered at the end of the project. Today, the company is selling the machinery for $17,778. Today the book value of the machinery is $12,000. The tax rate is 34%. What are the terminal cash flows in Year ...
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Because of a recession, expected inflation this year is only 3%. However, the inflation rate in Year 2 and thereafter is expected to be constant at 2.5%. Assume that the expectations theory is valid, and that the real risk-free rate (r*) is 1.9%. If the yield on 2-year Treasury bonds equals the 1-year yield plus 0.3%, ...
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The pound has become heavily _____ as a result of the _____ theory. a. overvalued; efficient market b. undervalued; purchasing power parity c. overvalued; uncovered interest parity d. None of the answers are correct.
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A private company has had 10,000 shares of 6%, $100 par value preferred stock; and 50,000 shares of $10 par value common stock issued and outstanding for the last two years. During the most recent year, the board of directors declared a total dividend of $300,000 to be paid to the preferred and common stockholders. Dur...
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Assuming that marginal cost curve is a smooth J-shaped curve, the corresponding total cost curve has a (an) a. linear shape. b. S-shape. c. U-shape. d. reverse S-shape.
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Stock A's stock has a beta of 1.30, and its required return is 12.00%. Stock B's beta is 0.80. If the risk-free rate is 5.75%, what is the required rate of return on B's stock? A. 8.91% B. 7.77% C. 9.63% D. 10.49% E. 8.19%
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Pete's Bed Co. sells beds to retailers. It has a sales budget for the first 6 months of 2003 as follows: $100,000 in January, $150,000 in February, $200,000 in March, $180,000 in April, $220,000 in May, and $200,000 in June. Cost of goods sold is 60% of sales. Purchases are paid in full in the month following th...
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Given $$ \int_0^a\int_0^{a-x}\int_0^{a-y}\int_0^{a-z} dx\space dy\space dz\space dw = \frac {a^4}{24} $$ How would one arrive at this result analytically?
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Evaluate the integral {eq}\displaystyle \iint_D (8 x + y) \, \mathrm{d}A {/eq}, where {eq}D {/eq} is bounded by {eq}y = \sqrt x {/eq} and {eq}y = x^2 {/eq}.
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An individual makes annual payments of $20,000 to a mutual fund of stocks and bonds. The payment to the fund is classified as a(an): A. Interest expense B. Operating expense C. Deferred expense D. Investment expense
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D’Lite Co. has net income of $240,000. Stockholders' equity at the beginning of the year is $1,700,000 and, at the end of the year, it is $2,000,000. The only change to stockholders' equity came from net income. What is the return on equity ratio? (Round your answer to 2 decimal places.)
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Allied Shirts can sell 1000 T-shirts when the price is $10 each, but only 800 T-shirts when the price is raised to $15 each. Determine the elasticity of demand for Allied's T-shirts (use the simple formula for % change, not the mid-point formula).
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Prepare a statement of cash flows for 2014, using the indirect method of presenting cash flows from operating activities. Accounts payable ($56,000) Accounts receivable ($38,000) Cash ($194,000) Common stock ($31,000) Dividends ($4,000) Inventory ($46,000) Land ($269,000) Long-term debt ($15,000) Retained ea...
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How large is the price elasticity of demand for Uber drivers to switch to taxicabs when a) There is not much competition for them to drive for b) They have a flexible schedule c) None of the options apply d) There is a large opportunity cost to them taking a different job.
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Acme Corporation (acquire) purchases 100% of the outstanding common stock of Buy It Now Corporation (vendor) for $125,000. The book value of the net assets purchased in the subsidiary is $85,000. During the period prior to the acquisition, the subsidiary reported a loss of $5,000. The entry to record this transaction w...
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What is the variance of a binomial distribution for a given probability?
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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 (-0.200, -0.300)m and those of point B are (0.300, 0.500) m. Calculate the electric potential difference VB - V A using the path A (0.300, -0.300) m - (0.300, 0) m - (0.300, 0.500) m - B
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Suppose the price of a good has increased from $100 to $150 and consumer surplus has decreased from $2,200 to $1,800. What is the change in producer surplus? a. $300 increase b. $300 decrease c. $200 increase d. $200 decrease
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Suppose that the function $f: \mathbb{R}^2 \rightarrow \mathbb{R}^2$ is continuously differentiable and satisfies the equations $\frac{\partial f_1}{\partial x_1} \frac{\partial f_2}{\partial x_2} = 1 $ and $\frac{\partial f_1}{\partial x_2} \frac{\partial f_2}{\partial x_1} = 0 $. Here $f_1$ and $f_2$ are the two comp...
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What is the result of the following operation: {eq}\displaystyle \frac{2}{1 + x^2} \cdot \frac{d}{dx} \left ( x - \frac{x^3}{3} \right ) {/eq}.
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How many voters need to be sampled to construct a 97% interval with a margin of error equal to 0.05, given a pilot sample of 50 voters in which 36 indicated they intended to vote in the election?
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If the critical path for a project is 25 weeks, the probability that the project will be completed in 25 weeks or less is ___________, given that the variance along the critical path is 16 and the expected project completion time is 24 weeks. (Round your answer to 2 decimal places.)
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Suppose that the market for compact discs is perfectly competitive, with demand given by {eq}P = 100 - 2Q_D {/eq}, and marginal cost of production given by {eq}MC = 2Q_S {/eq}. In an efficient outcome, how much is each consumer willing to pay for the last CD sold? A. $100 B. $40 C. $50 D. $60 E. $80
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Find the area between the curves {eq}\displaystyle y = x^3 + 3,\ y = 9 - x^2,\ x = 1,\ and\ x = 2{/eq} (the picture that goes along with this problem looks like this)
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Alpha Company had the following account balances for 2010. Dec. 31Jan. 1 Accounts receivable $38,500 $29,500 Accounts payable 45,000 50,000 Alpha reported a net income of $240,000 for 2010. Assuming no other changes in current account balances, what is the amount of net cash provided by operating activities for 201...
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Consider a portfolio consisting of two stocks A and B. Stock A has a standard deviation of return {eq}16\% {/eq} while stock B has a standard deviation of return {eq}20\% {/eq}. Stock A comprises {eq}60\% {/eq} of the portfolio while stock B comprises the remaining {eq}40\% {/eq}. The variance of return on the port...
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Evaluate the following integral using the Fundamental Theorem of Calculus or, if not applicable, use another method: {eq}\int_{-1}^2 \left ( \dfrac 4x^2 - \dfrac 1x \right )\ dx{/eq}
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My brother and I both would like to open a small diner. In our first year of operation, the diner will have the following revenues and expenses: Burgers -$120,000 Popcorn $90,000 Sodas $45,000 Employee Wages $60,000 Lease $50,000 Equipment $200,000 We plan to hire a manager at $25,000 per year. We both invested ...
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Why is the arc length of the curve $y=\frac{4}{3}x^{\frac{3}{2}}$ from $x=0$ to $x=3$ calculated as the integral $\int_0^3 \sqrt{16x + 1}\,dx$ instead of $\int_0^3 \frac{4}{3} \sqrt{16x+1}\,dx$, given that the curve is obtained by rotating the line $y=\frac{1}{3} x^{3/2}$ around the x-axis?
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Zverev Corporation, a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (5,700 units) 162,900 Variable expenses 110,400 Contribution margin 52,500 Fixed expenses 36,400 Net operating income 16,100 If the Zverev Corporation sells 5,800 units,...
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Common Co. earned $8,000 during a period and distributed $3,000 in cash to its sole shareholder. The company's income tax rate is 40%, and the shareholder's personal tax rate is 35%. The shareholder will pay personal taxes of __________ on the dividends received.
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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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Roberts Company uses a standard cost system for its manufacturing division, which manufactures lawn mowers. The standard cost card for the company's leading product, a manual lawn mower, follows: Standard Quantity Standard Price or Rate Standard Cost Direct materials 2.60...
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Find the producer surplus for the supply function {eq}p = 0.3q + 10{/eq} at market equilibrium point if the market demand function is {eq}p = 10{/eq}.
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A short forward contract that was negotiated some time ago will expire in three months. The current forward price is 42, and the contract specifies a delivery price of 40. The three-month risk-free interest rate is 8%. The value of the short forward contract is closest to: a. $1.84 b. $2.08 c. -$1.84 d. -$2.08
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Division X of XYZ Inc., is operating at capacity and is currently making $150 of profit per unit. Division Y is currently purchasing 250 units per year from an outside supplier for $130 per unit. An opportunity has arisen to sell Division Y these units for $160 per unit. If Division X is offered $140 per unit, Division...
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A decrease in the value of the British pound (expressed in U.S. dollars) would make U.S. exports to Great Britain _____, and U.S. imports from Great Britain _____. a. More expensive; more expensive b. More expensive; less expensive c. Less expensive; more expensive d. Less expensive; less expensive
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A company's profit and owner's equity can be manipulated by: (i) recording capital assets to current assets. (ii) purposely misstating residual values. (iii) purposely misstating useful life. Select one: (a) iii only (b) i only (c) ii and iii only (d) ii only
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An insurance company has 10,000 automobile policyholders. The expected yearly claim per policyholder is $240 with a standard deviation of $800. Approximate the probability that the yearly claim exceeds $2.7 million.
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Over the past year, productivity grew 3 percent, capital grew 4 percent, and labor grew 2 percent. If the elasticities of output with respect to capital and labor are 0.5 and 0.5, respectively, how much did output grow? a. 3 percent b. 4 percent c. 5 percent d. 6 percent
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Choose the correct answer. The fourth stage of internationalization is marked by the company: A) moving some of its operations out of the home country. B) having production facilities in several countries of the world. C) having highly decentralized operations and showing little allegiance to the country of origin....
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Choose a control plan that would best prevent the following system failure from occurring. A file is mistakenly set up to allow multiple entries by the same user during the same time period. A. Batch sequence check B. Confirm input acceptance C. Programmed edit checks D. Manual agreement of batch totals E. Onli...
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An elasticity of labor supply with respect to wage of 1.50 means that a 1 percent increase in the wage will: a. decrease labor supply by 0.50 percent. b. increase labor supply by 0.50 percent. c. decrease labor supply by 1.50 percent. d. increase labor supply by 1.50 percent.
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Why is the demand for labor downward sloping, while the supply is upward sloping? A. The price of the good that labor is producing is typically higher than the wage B. At low levels of employment, when the quantity of labor demanded is low, the marginal revenue product of labor is relatively high, making it profitabl...
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You and Bob are enrolled together in a course on financial management. You missed the class last Friday, and Bob copied his lecture notes for you to study. Unfortunately, after reading the book, you believe the following statements in Bob's notes are incorrect: A - "The amount money needed to borrow and invest in the ...
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A sample of n = 25 scores produces a t statistic of t = 2.062. If the researcher is using a two-tailed test, which of the following is the correct statistical decision? A) The researcher can reject the null hypothesis with {eq}\alpha {/eq} = 0.05 but not with {eq}\alpha {/eq} = 0.01. B) The researcher can reject th...
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Company A Company B Income tax expense $450,000 $300,000 Net income $1,200,000 $1,500,000 Total assets $5,000,000 $4,000,000 Total liabilities $3,000,000 $1,500,000 Based on the information given, which of the following statements is true? a. Company A has a higher equity multiplier than Company B and a lower times in...
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A long wire carries current I. The wire is straight except for a semicircular section with radius R = 3.60 cm. What is the direction (in degrees counterclockwise from the +x-axis) of the magnetic field at the center of the semicircular section? (Note: The +x-axis is to the right, and the +y-axis is upward.) The wire...
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What was the general trend in the payment systems for the United States in the first half of the twentieth century? Answer A. check becomes the most commonly used payment system. B. federal funds transfers become the most commonly used payment system. C. currency becomes the most commonly used payment system. D. mo...
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ACME Company purchases for resale 1,000 widgets for $64 each. At year-end, the replacement cost is $63 per widget, the estimated selling price is $68 per widget, the disposal cost is $7 per widget, and the estimated markup is $10 per widget. If ACME uses LCM costing by item, at what amount will the widgets be reported ...
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Let X and Y be independent uniform (0,1) random variables. Let W = max{X,Y} and Z = min{X,Y}. Find the density of W and Z.
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Why does a typical mass spectrum of a molecule show a molecular ion peak and a peak at m/z = 28 even though this corresponds to the loss of a methyl group from the molecule?
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Which of the following can be assumed about the current stock price? A) The current stock price equals the PV of next year's dividends plus the PV of next year's stock price. B) The current stock price equals the PV of next year's dividends plus the PV of the stock price at the horizon date. C) The current stock pri...
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Renaissance Inc. reported the following information for 2014: Net Income for 2014: $200,000 Beginning Common Stock and Paid-In Capital: $1,400,000 Ending Common Stock and Paid-In Capital: $1,650,000 Beginning Retained Earnings: $1,150,000 Ending Retained Earnings: $1,350,000 Beginning Total Assets: $3,500,000 ...
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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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It is now January 1, 2009, and you are considering the purchase of an outstanding equity share of C Corp that was issued on January 1, 2001. C Corp bond pays an 8 percent coupon annually. Interest rates have declined since the bond was issued, and the bond is now selling at 108 percent of its par value ($1,080). If you...
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The total expenditure for social security programs in the United States during the years 1940-1999 can be approximated by the function defined by {eq}E(x) = 120e^{0.1x} {/eq} where E(x) is measured in billions of dollars, x = 0 corresponds to the beginning of 1940, x = 5 corresponds to the beginning of 1945, and so on....
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JENKINS COMPANY Income Statement for the Year Ended December 31, 2014 Sales $255,000 Cost of goods sold 123,750 Gross margin 131,250 Selling expenses 37,500 Administrative expenses 46,875 Total operating expenses 84,375 ...
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If $f(r)=0,\forall r\in \Bbb R$ then is it true that $\lim_{r\to \infty} f(r) =0$?
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The market demand function is {eq}Q_d = -2P + 120 {/eq} and the market supply function is {eq}Q_s = 2P - 60 {/eq}. What is the equilibrium quantity in this market? a. 50 b. 60 c. 70 d. 80
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Which of the following will cause the Aggregate Demand curve to shift to the right? A. When US tax rates decrease, both investment and consumer spending increase. B. When US import tariffs decrease, consumer spending increases. C. When US interest rates decrease, investment spending increases. D. When US tax rates ...
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A firm has the following demand curve: P = 10 - 0.5Q. If it produces 5 units of output, then its marginal revenue is: a. $0 b. $2.50 c. $5.00 d. $7.50
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McComas Company owns no plant assets, but did have the following activities in Year 1: - Earned revenue of $120,000. - Incurred and paid expenses of $70,000. - Recorded depreciation expense of $5,000. - Borrowed $10,000. - Paid dividends to shareholders of $4,000. What was the net cash flow provided by operating ...
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A long, straight wire carries a current of 7.5 A. A sheet of metal containing 3.0x10^28 free electrons/ m^3 is placed near the wire. The side of the metal sheet closest to the wire is 1.0 m wide and 2.0 m long, and the sheet is 0.10 m from the wire. Find the magnitude of the magnetic force exerted by the wire on this s...
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A corporation's current-year financial statements contain the following items: Net income: $250,000 Depreciation expense: 40,000 Preferred dividends: 60,000 Interest expense: 50,000 Common dividends: 15,000 Common stock: 100,000 Total stockholder's equity: 400,000 Calculate the corporation's return on stockhold...
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If an exchange has no commercial substance, a. both gain and loss are recognized. b. neither gain nor loss is recognized. c. only loss is recognized. d. only gain is recognized. e. exchange always has commercial substance.
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If a firm has 500,000 shares of stock outstanding, and it declared a 5% stock dividend when the stock was selling for $80 per share, what would be the journal entry for this transaction? a. {eq}\begin{align} & \text{Stock Dividends }{{100,000}} \\ & \text{Dividends Payable}{{\text{ 100,000}}} \end{align} {/eq} b....
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