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The (negative) feedback effect that a tax cut (or government spending increase) has on consumer spending through its effect on the current and future marginal propensity to consume is called the: a. risk/uncertainty multiplier. b. time-inconsistency multiplier. c. intertemporal substitution multiplier. d. Ricardian...
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The traditional practice at work has been for employees to "leave your baggage at the door" which means when at work, don't bring any personal emotions or problems. By asking employees to divorce themselves from the emotions from events in their personal lives while at work, what are employers trying to minimize? A) E...
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At _____ interest rates, the opportunity cost of capital _____. a. lower; increases b. higher; increases c. zero; is zero d. zero; is infinite
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Which is the most important assumption in the EOQ model? a. the number of stock-outs per cycle is constant b. the lead time for the reorder is constant c. the item is not price-sorted d. the order quantity received is the same as the quantity ordered e. none of the above
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According to the Fisher effect, if expected inflation rises from 5 to 6%, and if the central bank does not change the nominal interest rate, then the real interest rate: A) rises by 1%. B) rises by more than 1%. C) declines by more than 1%. D) remains unchanged.
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The mean of a normal probability distribution is 500, and the standard deviation is 10. What is the probability that x is between 450 and 550?
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Suppose your firm has been financed with a mixture of debt, preferred shares, and common shares. Which of the following statements is correct? a. The firm's after-tax cost of debt is the same as the firm's average cost of capital. b. The after-tax cost of debt that should be used as the component cost when calculatin...
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Suppose the demand for a good is {eq}Q_D = -p + 10 {/eq}. If the wage of the labor increases and the firm is maximizing its profits, the supply of the good will {eq}\_\_\_\_. {/eq} a. decrease b. increase c. remain the same d. increase by the amount of the wage increase
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A thin, uniform rod is bent into a square of side length a. If the total mass is M, find the moment of inertia about an axis through the center and perpendicular to the plane of the square. Use the parallel-axis theorem.
(1/3)Ma^2
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Find the work done by the force field F on a particle moving along the given path: F(x, y) = xi + 6yj; C: x = t, y = t^3, from (0, 0) to (6, 216).
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Why $\mathbb{R}^2$ is not a field?
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A 2-year Treasury security currently earns 6.25 percent. Over the next two years, the real interest rate is expected to be 2.26 percent per year and the inflation premium is expected to be 2.05 percent per year. What is the maturity risk premium on the 2-year Treasury security?
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If $L\left( G , \frac{1}{2} \right) = L\left( H, \frac{1}{2} \right) $ then, $G$ is isomorphic to $H$. Here, $$ L\left( X, \frac{1}{2} \right) =\{ x \in X |\left| x \right| \le \frac{1}{2} \} $$. Let $G = \left\langle X ,\circ\right \rangle$ and $H= \left\langle Y ,\circ\right \rangle$ be groups. Let $\left| x \right| ...
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Suppose that you have 75 ml of a solution of strong acid (any strong acid will do). The pH of the solution is 3.80. You add 8.3 ml of water to this solution to make a 83.3 ml solution. What is the pH of the solution now? Answer in the correct number of significant figures.
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The Timberlake-Jackson Wardrobe Co. has 10.3 percent coupon bonds on the market with eight years left to maturity. The bonds make annual payments. Required: If the bond currently sells for $1,132.17, what is its YTM?
8%
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MM Corp has a debt-equity ratio of .30. If it had no debt, its cost equity would be 9%. Its cost of debt is 7%. What is MM's cost of equity if the corporate tax rate is 40%?
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An economy has a current output gap of 4% and a natural rate of unemployment equal to 5%. Given the information below, which of the following is the current inflation rate? Expected inflation = 0.5 Actual inflation = 0.7 a) 0.8% b) 4% c) 5% d) 6%
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Find {eq}\displaystyle \int_{C}F \cdot dr{/eq} for the path {eq}r(t)=2t \, i+t^{2} \, j, \, 0\leq t \leq 3{/eq} , if {eq}F(x,y)=i+2yj{/eq}
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$$\int_{-1}^1 \int_{-1}^1 \int_{-1}^1 \frac{1}{1-xyz} \, dx \, dy \, dz = 7\zeta(3)$$
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As the manager of a waste recycling company, Ruth has been asked to attend a seminar on green living. At the seminar, she spends considerable time interacting with her colleagues from the industry and discussing the various events and innovations that are taking place. Ruth feels it is extremely important for her to re...
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Find the volume of the solid enclosed by the paraboloid z = 3x^2 + 4y^2 and the planes x = 0, y = 2, y = x, z = 0.
20
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Let $f(x) = \log_4x$. Evaluate $\lim_{x\to 0^+} f(f(f(x)))$. Find $m$ and $n$ so that $\lim_{x\to 0^+}\frac{f(f(f(x)))-x/m}{x/n} = 1$.
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A wire carrying current I is shaped as shown below. The radius is R = 50 cm, the circumference is 65 cm, and the semicircular contour is 20 cm. The magnetic field at the center of the semicircular contour is (μ0 = 4π × 10^-7 N/A^2)
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The line segment with endpoints (-3, 3) and (3, 3) can be expressed by the parametric equations x = 3t and y = 3, where 0 ≤ t ≤ 1. Using the same parametrization, find parametric equations in terms of a parameter s for the line segment with endpoints (-2, 2) and (2, 2).
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A company reports net income of $600,000. During the year, the accounts receivable increased by $36,000 and accounts payable increased by $100,000. There were no other current asset or current liability changes. Using the indirect method, what is the net effect of these changes on cash flow from operating activities?
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Find the area of the region bounded by r = 2 + 2 \sin(\theta)
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The longer the operating cycle the less cash invested in liquid assets. A) True B) False
B
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Calculate the double integral {eq}\iint_R (4x + 8y + 4) \, dA{/eq}, where R is the region {eq}2 \leq x \leq 6, 1 \leq y \leq 2{/eq}.
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A monopolist: A. can raise its price without losing any sales because it is the only supplier of a good for which there are no close substitutes for consumers B. can earn positive economic profit in the long run C. always charges a price that is lower than its marginal revenue D. both A and B E. both A and C
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Use the divergence theorem to evaluate {eq}\iint_S \mathbf F\cdot \mathbf NdS, {eq} where {eq}N {eq} is the outward unit normal vector to the surface of the sphere {eq}x^2+y^2+z^2\leq a^2 {eq} and {eq}\mathbf F=\langle x,y,z\rangle {eq}
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In using the indirect method to prepare the statement of cash flows, cash flows from operating activities are determined by: a. adding together the direct method cash flow computation and the adjustments for accrual basis accounting. b. adding adjustment for accrual basis accounting to the net income. c. subtracting...
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The demand curve is P = 110 - 2Q. The minimum point of the relevant U-shaped cost curve is {eq}(P = 26, Q = 42) {/eq}. The marginal cost curve is _____. a. less than $44. b. more than $44. c. equal to $44. d. {eq}MC = 44 - 0.5Q {/eq} e. {eq}MC = 22 - Q {/eq}
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When we focus on one risk only, we work with this matrix. It provides alternative financial action to undertake for each frequency/severity combination. Identify this matrix. a. A space risk matrix b. A forced matrix c. A risk map d. Kernel's risk matrix e. A risk management matrix
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Mercury Corporation's cost of equity is 20%, its tax rate is 30%, and its unlevered cost of capital is 12%. What does Mercury's debt-to-equity ratio have to be? Assume it has perpetual debt.
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Use partial fraction to find the integral: {eq}\int _ { - \infty } ^ { - 2 } \frac { 1 } { x ^ { 2 } + x } d x{/eq}
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Which of the following is not a journal entry that a company should make in recording a sales allowance on account? a. Debit Sales Returns and Allowances. b. Credit Accounts Receivable. c. Debit Allowance for Doubtful Accounts. d. Credit Merchandise Inventory.
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The government pays a real interest of 4% on its debt. Assume that it borrows $10 million this year. How much additional revenue would be necessary to pay back the principal and interest if inflation is 7%? a. $121,212. b. $137,700. c. $487,700. d. $322,335.
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The amount of snowfall falling in a certain mountain range is normally distributed with a mean of 60 inches and a standard deviation of 10 inches. What is the probability that the mean annual snowfall during 25 randomly picked years will be less than 62.8 inches?
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Find the integral: \(\displaystyle \int (10x^4 - 10). e^{(x^5 - 5x - 35)} \ dx\)
2e^(x^5-5x-35)+C
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Which of the following is an example of an opportunity cost? a. The interest on a bank account b. A business lunch when two managers meet to discuss a potential merger c. A MBA degree d. All of the above
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In order to determine how many observations to include in a preliminary sample, for which of the following sampling plans is a preliminary sample not needed? A. Simple Random Sampling B. Systematic Random Sampling C. Stratified Random Sampling D. Cluster Random Sampling
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Harris Corp. received proceeds of $423,000 on 10-year, 8% bonds issued on January 1, 2017. The bonds had a face value of $400,000, pay interest annually on December 31st, and have a call price of 102. Harris uses the straight-line method of amortization. What is the carrying value of the bonds on January 1, 2018? A. ...
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Shannon & Co. purchases a patent for $65,000 cash on January 2, 2013. The patent has a useful life of 10 years. On July 1, 2013, Shannnon & Co. pays $100,000 cash to an attorney to successfully defend the patent against a competitor's patent. Shannon & Co. is required to pay annual renewal fees of $3,000 for the patent...
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I would like to make a series of deposits, beginning 1 year from today. The first deposit will be $5000, the second will be $6000, the third will be $7000, and the fourth will be $8000. When a deposit is made, it will be invested to earn interest at 4%. The account will be closed 5 years from today. How much will be in...
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A building block of a competitive advantage can impact profitability by accomplishing one of three goals--increasing value as perceived by customers, allowing the company to increase the price it charges or reducing the costs of producing products. Which of these actions by a car manufacturer would be part of a short-t...
c
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Shore Co., which has excess capacity, received a special order of 4,000 units at a price of $15 per unit. Currently, production and sales are anticipated to be 100,000 units without considering the special order. Budget information for the current year follows. Amount Percent of Sales Sales$1,400,000 100% Variable ...
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Days' sales in inventory: a. Shows the buffer against out-of-stock inventory. b. Focuses on average inventory rather than ending inventory. c. Is used to measure solvency. d. Is calculated by dividing the cost of goods sold by the ending inventory. e. Is a substitute for the acid-test ratio.
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How large of a sample do you need for a 99% confidence interval for the average study time, given a normal distribution with a standard deviation of 25 hours, for the margin of error to be ± 5 hours?
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Let the curve C be the boundary of the region between the graphs of {eq}x^2 + y^2 = 25 \space and \space (x - 1)^2 + y^2 = 1{/eq}. Find the circulation of {eq}\vec{F} = z \vec{i} - 2xy \vec{j} + xy \vec{k}{/eq} around the curve C. Assume the z-component is 0 on the xy-plane.
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Which of the following forecasting method(s) can generate trend forecasts? I - Delphi Method II - Moving Averages III - Regression IV - Naive Method V - Sales Force Opinion Select one: a. only IV b. only V c. III and IV d. I, III, and V e. only III f. II, III, and IV
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How do I calculate the radius of the power sum of: $$\sum_{n=1}^\infty 2^n x^{n^2}$$
1
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Which of the following is a stressor? A. A positive life event B. A negative life event C. Work complexity D. Role overload E. Role ambiguity
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The comparative financial statements of Marshall Inc. are given in the following tables. The market price of Marshall's common stock was $82.80 on December 31, 20Y2. Determine the Price/Dividend Yield Ratio for 20Y2. Marshall Inc.'s Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and...
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Which one of the following is correct regarding dividend distribution by the company? (a) A company may distribute only profit as dividends. (b) A company may distribute surplus as dividends. (c) A company may distribute both profits and surplus as dividends. (d) A company may distribute reserves as dividends.
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The economic net present value for a project using a 12% discount rate is $45,934.70. The economic net present value for the same project using an 8% discount rate is $60,173.00. What is the economic net present value for the same project using a 10% discount rate? a. $67,187.90 b. $45,934.70 c. $54,567.17 d. $53,3...
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Which of the following is the correct statement of one of the criteria for classifying a lease as a capital lease? a. The lease transfers ownership of the property to the lessor. b. The lease contains a purchase option. c. The lease term is equal to or more than 90% of the estimated economic life of the leased prope...
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ABC Inc. is interested in minimizing their inventory cost. If the annual demand is estimated at $1,000,000 units, the ordering costs is $75 per order, the holding cost is $0.25 per unit, and the lead time for ABC Company was given as 2 days, what is the reorder point? A. 8,000 units. B. 24,500 units. C. 16,500 units...
A
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A local bank is studying the savings account customers who hold checking accounts. For this population, the checking accounts carry a 5 percent interest rate. The desired sample size for the study is 300. The population standard deviation is known to be 10. Using the 95 percent confidence level, what is the appropriate...
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Curly's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $50,000 per year forever. A representative for Curly's tells you the policy costs $760,000. At what interest rate would this be a fair deal? (Do not round intermediate calculations and enter your answer as a percent r...
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Compute the dot product of the vectors {eq}u= \vec{i} - \vec{j} + \vec{k} {/eq} and {eq}v= 5\vec{i} + 5\vec{j} - \vec{k} {/eq}.
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Today's customers want the _____ that they expect from other products or services they use, and they expect this level of service without additional cost. A. absolute price B. total value C. lowest price D. most quantity
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A microbrewery plans to conduct a study on beer consumption among men between the ages of 29 and 45. A pilot test indicated that men in this age category consume an average of 7.5 beers per week with a standard deviation of 2. How many men should be sampled to be within 0.5 beers of the actual average with 95% confiden...
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Determine whether or not S is a subspace of P_n. If S is a subspace, compute dim S, where S is the set of all functions that satisfy f(0)=f(1). Why is the dimension of S equal to n instead of n+1?
n
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How many parallelepiped-shaped boxes with interior dimensions of 10 inches wide, 20 inches long, and 20 inches high can be packed in a shipping container that is 60 inches wide, 100 inches long, and 100 inches high?
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Suppose the equilibrium quantity and the equilibrium price of gasoline are both $3.50 per gallon. Further suppose that the price of gasoline is set at $2.00 per gallon and at this price, there is a short supply of gasoline, which means that the equilibrium price level must be _____. a. greater than $3.50 b. equal to ...
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You have a $2 million portfolio consisting of a $100,000 investment in each of 20 stocks with an equal weight in each stock. The portfolio has a beta equal to 1.1. You are considering selling $100,000 worth of one stock that has a beta equal to 1.0 and using the proceeds to purchase $100,000 of stock with beta equal to...
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Use a linear approximation (or differentials) to estimate the given number. {eq}\dfrac{1}{\sqrt{99.7}} {eq}.
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A STAT 200 instructor is interested in the average weekly study time for UMUC STAT 200 students. She teaches two sections in Spring OL4, and randomly chooses 15 students from the first section and 18 students from the second section. This sampling method is called a. cluster b. convenience c. stratified d. systemat...
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What is the limit of (cos(3x)-cos(4x))/x^2 as x approaches infinity?
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Olsteen Electronics has a profit margin of 7.5 percent, a total asset turnover of 1.6, and a debt-equity ratio of 1.70. What is its ROE?
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Why do companies transfer value from their competitors? (Check all that apply) A. It gives them lower costs. B. It makes the company more sustainable. C. It makes the products or services less competitive. D. It gives them added differentiation.
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On January 1, 2013, Oness Company purchased a machine costing $45,000. The estimated useful life of the machine was 5 years, with no expected salvage value. At December 31, 2014, before its annual financial statements had been prepared, the company revised its estimate of the useful life to 10 years. What is the amou...
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Ceruloplasmin is an important protein for transport of which of the following metal ions in the blood? A. Cu2+ B. Zn2+ C. Al3+ D. Fe3+
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Jackson Corporation reported net cash provided by operating activities of $350,400, net cash used by investing activities of $124,000 (including cash spent for capital assets of $155,000), and net cash provided by financing activities of $70,600. Dividends of $112,400 were paid. Calculate free cash flow.
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Which of the following factors affects the exchange rate in the short run but not the long run? a. domestic interest rate. b. relative expected trade barriers. c. relative import demand. d. They all affect the short and long-run exchange rate.
a
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We are given the following information for the Coleman Machine Tools Corporation: Sales (credit) $7,200,000 Cash $300,000 Inventory $2,150,000 Current liabilities $1,400,000 Asset turnover 1.20 times Current ratio 2.50 time...
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Firms that are viable but not profitable can be a result of which of the following strategies? a. market penetration strategy b. market development strategy c. product development strategy d. diversification strategy e. All of the above
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An investor purchased a 3% coupon bond with 10 years remaining to maturity at the time the bond was issued. The investor sold the bond when the bond's yield to maturity had fallen to 2.5%. Given the following information, which of the following statements is correct? Par value: $1,000 Original maturity: 10 years Yie...
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An investor owns $15,000 of City Steel stock that has a beta of 3.6. He also owns $35,000 of Rent-N-Co (beta = 1.5) and $20,000 of Lincoln Corporation (beta = -1.0). What is the investor's overall portfolio beta? a. 3.34 b. 2.58 c. 2.34 d. 1.05
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Find {eq}\underset{x\to 0}{\mathop{\lim }}\,\frac{{{4}^{x}}-{{12}^{x}}}{x} {/eq}.
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Evaluate the integral: {eq}\int_{-2}^{2} \int_{1}^{2} \int_{1}^{e} \frac{xy^2}{z} \, \mathrm{d}z \, \mathrm{d}x \, \mathrm{d}y{/eq}.
8
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If {eq}x=uv^{2} {/eq} and {eq}y=\frac{u}{v} {/eq}, find {eq}\frac{\partial (x,y)}{\partial (u,v)} {/eq}.
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Which of the following is not a characteristic of a current liability? A) It may be an obligation to transfer a product or service in the future. B) It is an obligation that is not expected to be settled within one year or the operating cycle, whichever is longer. C) It is expected to be settled within one year or t...
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Assume: i=0.01 c=0.75 g=500 t=200 y=2500 mpc=0.6 mpc1=0.75 mpc2=0.9 a=100 b=1 c=0.5 d=0.25 i=100 k=1 l=100 m=0.1 n=0.25 x=100 z=200 y=1500 h=100 I=500 T=350 Yf=4500 Which would raise output Y the most: a) an increase in tax t by 100 units b) an increase in government spending I by 100 units ...
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Vree, Inc. has a net working capital of $60 million, current liabilities of $40 million, and inventories of $20 million. The current ratio is _____ times and the quick ratio is _____ times. a. 1.50; 1.00 b. 1.50; 2.00 c. 2.50; 1.00 d. 2.50; 2.00
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A company uses a process-costing system. All of its products go through the same production operations. Materials are added at the beginning of each operation. Information about the firm's two production departments follows. Department 1 Department 2 Direct materials added to work i...
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Hinck Corporation reported net cash provided by operating activities of $361,200, net cash used by investing activities of $148,900 (including cash spent for capital assets of $203,600), and net cash provided by financing activities of $79,700. Dividends of $128,000 were paid. Calculate free cash flow.
$157,600
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The last day to pick up your final exam at UMUC STAT Club is Friday, August 10. At 5 pm that day, TAs will collect and discard the exam boxes in the STAT Club hallway. Not only will you be disqualified for not submitting the exam on time, but it will also take a significant mark off your score. Which of the following ...
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Which one of the following statements about dividend policy is true? Choose the most correct response: A. A company with a very high ROE should generally adopt a low dividend payout. B. Company growth considerations, not tax considerations, should generally be the dominant factor in determining dividend policy. C. T...
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A mutual fund manager has a $20 million portfolio with a beta of 1.15. The risk-free rate is 4.5%, and the market risk premium is 7%. The manager expects to receive an additional $5 million. If the fund had to accept it, how much would the expected return on the fund change? Round your answer to 2 decimal places.
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A fair coin is tossed 200 times. Let X be the number of heads in the first 100 tosses, and let Y be the number of heads in the second 100 tosses. Which of the following is true? (A) X and Y are not independent, but their distributions are approximately normal with the same mean and standard deviation. (B) X and Y are n...
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Which of the following statements is most correct? A) If a firm's cost of debt is less than its cost of equity it will always choose to finance with debt. B) Of the two capital components a firm uses - debt and equity - equity is riskier. C) The cost of capital is the discount rate at which we calculate the net pres...
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The function {eq}\displaystyle f{/eq} has continuous second derivatives and a critical point at {eq}\displaystyle (-9,-10){/eq}. Suppose {eq}\displaystyle f\vec{xx}(-9,-10) = 8, f\vec{xy}(-9,-10) = 4, f\vec{yy}(-9,-10) = 13{/eq}. Then the point {eq}\displaystyle (-9,-10){/eq}: A. is a local maximum B. cannot be determ...
C
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A study is performed to assess whether there is an association between exposure to second hand smoke in infancy and delayed development. Fifty children with delayed development and fifty with normal development are selected for investigation. Parents are asked whether their children were exposed to second hand cigarett...
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Use the following information to answer this question. Income Statement For The Year Sales$38,800 Cost of Goods Sold$26,200 Depreciation$3,850 Earnings Before Interest and Taxes$8,750 Interest Paid$1,240 Taxable Income$7,510 Taxes$3,379 Net Income$4,131 Dividends$1,446 Retained Earnings$2,685 Balance Shee...
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Indicate the method that best determines an asset's fair value for accounting purposes. a. pre-tax cost to acquire the asset. b. fair value at the end of the last reporting period. c. independent appraisal. d. cost to replace the asset.
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A university spent $1.8 million to install solar panels atop a parking garage. These panels will have a 20-year life and will require essentially no maintenance. The expected scrap value of the panels is $80,000. The university expects that they will save $145,000 each year in fuel costs. What is the expected internal ...
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Which of the following statements regarding an assignment for the benefit of creditors is true? A. The assignment for the benefit of creditors is a remedy available only to secured creditors. B. In an assignment for the benefit of creditors, all of the debtor's property is transferred to the assignee at a price equal...
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What is the calculation to solve for the wage elasticity of labor? A. The % change in quantity of labor demanded divided by the % change in wage. B. The % change in quantity of labor supplied divided by the % change in wage.
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For the Markov chain $(X_n)_{n\geq 0}$ with state space $S=\{1,2,3,4\}$ and the given one-step transition matrix $P$, and assuming that $\pi=(1/6,1/3,1/2,0)$ is the stationary distribution, calculate $E_\pi[X_3]$ given the initial condition $X_0=1$.
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