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"Williamson trade-off Model" is related to which of the following: a) The merger of companies, b) The takeover of companies, c) Balance Sheet making of an MNC, d) All of the above.
a
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On December 31, 2012, Duryea, Inc., had 325,000 shares of common stock and 12,000 shares of 5 percent, $100 par value cumulative preferred stock outstanding. During 2013, Duryea declared and paid preferred dividends of $575,000 and dividends on common stock totaling $290,000. In addition, Duryea had a net income of $2...
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Which of the following would cause an increase in the quantity of labor supplied? a. an increase in the wage rate. b. an increase in the supply of job-related skills. c. an increase in the number of households with both members working outside the home. d. All of the above are correct.
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A person is considering buying the stock of two different companies. Company A is expected to pay a dividend of $2.45 per share in the upcoming year. Company B is expected to pay a dividend of $1.75 per share. Company A's stock price is $30, and Company B's stock price is $20. If the person buys one share of each stock...
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Hunt Corporation just purchased computing equipment for $10,000. The equipment will be depreciated using a five-year MACRS depreciation schedule. If the equipment is sold at the end of its fourth year for $15,000, what are the after-tax proceeds from the sale, assuming the marginal tax rate is 35 percent. (Round answer...
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The greatest amount of private saving will result from a budget surplus if (a) fiscal policy is expansionary and the Laffer curve is below its midpoint. (b) fiscal policy is contractionary and the Laffer curve is below its midpoint. (c) fiscal policy is expansionary and the Laffer curve is above its midpoint. (d) f...
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Which of the following is not part of the definition of internal control? a. Separation of duties. b. Safeguard assets. c. Encourage employees to follow company policy. d. Promote operational efficiency.
C
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Evaluate using L'Hopital's Rule if necessary: {eq}\lim_{x \to 0^+}( \frac{1}{x}-\frac{1}{\sin (x)}){/eq}
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CompuTronics, a manufacturer of computer peripherals, has excess capacity. The company's Utah plant has the following per-unit cost structure for item no. 89: Variable manufacturing $53 Fixed manufacturing 26 Variable selling 7 Fixed selling 10 Traceable fixed administrative 3 Allocated administrative 1 The trac...
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Which of the following statements is true about a C corporation? a. Its income is taxed once at the corporate level. b. The income is taxed twice at the corporate level and the stockholder's level. c. Its income is taxed once at the stockholder's level. d. Its income is taxed twice at the corporate level but no...
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ABC company leases equipment from XYZ. The cost of the asset to XYZ is $550,000. The lease term is 10 years and it has a residual value of $150,000. The lease calls for 5 annual payments of $50,000 beginning immediately and continuing for 10 years. The lease has a bargain purchase option and the implicit rate is 10%. W...
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The Hampton Company has the following inventory data: - April 1, beginning inventory of 20 units at $70 each - April 7, purchase of 70 units at $75 each - April 18, sale of 30 units - April 22, purchase of 10 units at $80 each - April 29, sale of 40 units Assuming that a perpetual inventory system is used and costs a...
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Let $$ T:V \to V $$ be a linear operator. And: $$ 0 \neq u,v \in V $$ such that: $$ T(v) = \lambda_1v, \quad T(u) = \lambda_2u $$ NOTE: It may be that $\lambda_1 = \lambda_2$. Under what conditions does $(u,v) = 0$ hold? The options are: (A) If $T$ is normal (B) Only if $T$ is normal (C) Only if $T$ is normal and $\lam...
C
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The following information relates to a company's Ending Inventory (based on a periodic inventory system): Quantity per Unit Item # 14 200 $4 Item # 24 50 $8 Item # 64 150 $6 What is the dollar value of the company's Ending Inventory?
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The two main classes of acquisitions transactions are: a. Cash purchases and account purchases. b. Merchandise purchases and services purchases. c. Inventory purchases and non-inventory purchases. d. Routine purchases and special purchases.
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An investor purchases a call option with a strike price of $50 for $5. If the current stock price is $40, what is the investor's profit if the stock price rises to $55 and the option is exercised? a. $10 b. $5 c. $0 d. $55
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When deciding whether or not to reject the null hypothesis, the decision rule is based on: a. the confidence interval. b. the p-value. c. the significance level. d. the alternate hypothesis.
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Which of the following is not an example of an intangible cost that may be an economic barrier to entry? a. potential legislation. b. advertising. c. brand name. d. an established distribution network.
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The purpose of the actual results comparison is to: A. evaluate performance reports by managers. B. permit managers to reduce the number of unfavorable variances that are reported. C. update the static planning budget to reflect the actual level of activity of the period. D. reduce the amount of conflict between de...
A
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Why do companies issue bonds at a discount? a. Interest on the bonds is fixed. b. The stated rate of interest is less than the current market rate of interest. c. The current market rate of interest is less than the stated rate of interest. d. The bond face value is more than the bond issue price.
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What is the difference between Economic Growth and Economic Development?
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The real risk-free rate is 3%, inflation is expected to be 4% this year and 5% next year, and the maturity risk premium is estimated to be equal to 0.1(t-1)%, where t equals the maturity of a bond in years. If the yield on 3-year treasury notes equals the 1-year yield plus 0.6%, what is the yield on 3-year notes?
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An investment cost $250,000, produces a revenue of $120,000, and an expense of $60,000. If the required return is 8%, then the investment's profitability index is: A. 0.69 B. 1.29 C. 1.08 D. 0.59
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Which of the following statements is correct? a. One advantage of dividend reinvestment plans is that they enable investors to avoid paying taxes on the dividends they receive. b. Despite its drawbacks, following the residual dividend model will tend to stabilize actual cash dividends, and this will make it easier fo...
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A rightward shift of the BP schedule is the result of a(n) a. increase in the foreign interest rate. b. a decrease in the foreign exchange rate. c. exogenous fall in export demand. d. increase in import demand
b
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Currently, a firm has a benchmark PE of 18.7 and an EPS of $4.18 (annual). Earnings are expected to grow by 3.20% annually. What is the percent change in the stock price after the first year? a. 3.67% b. 4.23% c. 4.08% d. 2.89% e. 0.20%
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Which dividend policy is most conducive to the interests of current stockholders? A. moderate steady growth of dividends B. dividend-payout ratio close to zero C. high dividend payout D. regular dividend payments plus some extra dividends
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Which of the following is not a function of money? A. Unit of account B. Medium of exchange C. Store of value D. Interest rate
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Collison and Ryder Company (C&R) has been experiencing declining market conditions for its sportswear division. Management decided to test the assets of the division for possible impairment. The test revealed the following: book value of division's assets, $29.3 million; fair value of division's assets, $22.4 million; ...
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Consider an economy that produces only two goods, good X and good Y. In 2015, the nominal price of X is $5 per unit, the nominal price of Y is $10 per unit, and the quantity of X produced is 150 units, while the quantity of Y produced is 50 units. In 2016, the nominal price of X increases to $7 per unit, the nominal pr...
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I need to find the residue at $\infty$ of $$f(z)=\frac{\sin(\pi z)}{z^2(z-1)}$$ I wrote the function as $$f(z)=\frac{g(z)}{z} \hspace{1cm} \text{given}\hspace{5mm} g(z) = \frac{\sin(\pi z)}{z(z-1)} \quad \text{which is analytic at z=0}$$ Since $z=0$ is a simple pole for $f(z)$ I evaluated the limit as $z\rightarrow0$ w...
$\pi$
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A chemical company's profit depends on both the sales volume and the price that it charges. With competition, the company can get higher prices by reducing its sales volume. But the company cannot raise its prices too much because customers would buy competitors' products. The operating profits are $52,000 when the sal...
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Find the volume of the solid in the first octant enclosed by the cylinder z = 9 - y^2 and plane x = 5.
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Which of the following is not a market structure? a. perfect competition b. monopoly c. monopolistic competition d. oligopoly
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All of the following are potential risks of using a direct materials quantity standard except for: A. costly product. B. materials counterfeiting. C. manufacturing errors. D. excessive time spent on inventory.
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The weights of a large number of fish in a certain lake are normally distributed with a mean of 19 lb and a standard deviation of 6. If 4 fish are randomly selected, what is the probability that the mean weight will be between 16.6 and 22.6 lb?
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Shelf registration allows a firm to register multiple issues at one time with the SEC and then sell those registered shares anytime during the subsequent: a. 3 months. b. 6 months. c. 180 days. d. 2 years. e. 5 years.
d
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A stock is currently selling for $25.00. A 9-month call option with a strike of $28.00 has a price of $1.20. The risk-free rate is 4 percent. A 9-month put with the same strike has a price of $3.91. Find the risk-free rate. The options are European style. Options' expiration is 270 days. Round the answer to two decimal...
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Everything else being equal a lower corporate tax rate: A. will increase the WACC of a firm with debt and equity in its capital structure B. will not affect the WACC of a firm with debt in its capital structure C. will decrease the WACC of a firm with some debt in its capital structure D. will decrease the WACC of ...
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The After-Tax Cost of Debt After-tax costs of debt: Cost of debt is 10% and the marginal tax rate is 40%. Find after tax cost of debt.
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________ is a repurchase of the firm's own shares of stock. a. A stock issue b. A dividend c. A share buyback d. A share of the table
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Which of the following drugs is a proglucagon receptor antagonist? A) Glycomet B) Glucophage C) Glucotrol D) Glucobay E) Glucerna
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Assuming relatively stable business conditions, a decline in the average number of day's sales in accounts receivable outstanding from one year to the next might indicate: a) a longer discount period and a more distant due date were extended to customers in the second year. b) a significant decrease in sales in the ...
c
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Retrovirus genomes consist of: a. double-stranded DNA and endonuclease. b. a 5'-UTR but no 3' UTR. c. an RNA genome that is transcribed into several mRNAs. d. the proteins involved in integration. e. reverse transcriptase.
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Yan Yan Corp. has a $2,000 par value bond outstanding with 5 years to maturity and a 6.5% YTC. The current rate of inflation is 4.7%. What is the real rate of return on this bond? a. 1.73% b. 2.58% c. 6.50% d. 4.70% e. 1.75%
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The final product of the exchange process in the foreign exchange market is: a. working capital. b. balance of payments. c. gross domestic product. d. net exports.
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A single-price monopolist faces the following market demand, as shown in the table below: Price $8.00 $7.50 $7.00 $6.50 $6.00 $5.50 $5.00 $4.50 Quantity 0 10 20 30 40 50 60 70 The monopolist has total fixed costs of $200 ...
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What is the value of the line integral $\int F\cdot dr$ along the curve $r(t)=(1+t^3) \hat x + (1+2t^3) \hat y + 2(1-t^3)\hat z$, where $F=2xy \hat x + (x^2+y^2) \hat y +2z \hat z$?
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What is the instantaneous velocity of an object with position at time t equal to f(t) = (te^(t^2-3t), t^2-e^t) at t=3?
(10, 6 - e^3)
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What is the limit of $\frac{x^2-16}{x^4-8x^2+16}$ as $x$ approaches 2?
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Two students took out loans to pay for their education. Their loans were based on the same data, and one of them paid more interest than the other. The reason that one paid more interest is because _____. A) his/her interest rate was higher B) he/she borrowed less money C) he/she borrowed the money for a shorter per...
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G&K is a computer manufacturing center that has a product-based organizational structure. Its teams are broadly categorized into laptop services, desktop services, and handheld services according to the specific kind of products each of them deals with. Further, it is segregated based on geographic segmentation. This i...
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You observe the following scenario for the stock market: Bear market Normal market Bull market Probability 0.20 0.60 0.20 Market return -20% 18% 42% Assume that the risk-free rate is 12%, and that the market's return can be genera...
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Which of the following statements is correct? a. It is appropriate to use the terminal value method to find the value of the cash flow stream from operations that begins 5 years from now in a DCF model of a firm's value. b. The terminal value method of finding the value of a cash flow stream assumes that the growt...
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Let $f$ be a function such that $|f(u)-f(v)| \leq |u-v|$. Assume that $f$ is integrable on $[a,b]$. Prove that $$\left|\int_{a}^{b} f(x)dx - (b-a)f(c)\right| \leq (b-a)^2/2$$ where $c\in [a,b]$
(b-a)^2/2
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Explain why opportunity costs are important, and give an example of an opportunity cost. How do sunk costs differ from opportunity costs? Can you give an example of a sunk cost? Why are sunk costs irrelevant in decision making? To fully understand and appreciate sunk costs, try the following experiment. Obtain a deck ...
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In applying the CAPM to estimate the cost of equity capital, which of the following elements is not subject to dispute or controversy? a. The expected rate of return on the market b. The stock's beta coefficient c. The risk-free rate d. The market risk premium (RPM) e. All of the above are subject to dispute.
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Compute the marginal profit from the following profit function given that {eq}x = 55 {/eq}. Round the answer to the nearest cent. {eq}P(x) = -0.04x^2 + 102x - 2,800 {/eq}
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Baltimore Company needs to have $30,000 in four years for a new machine. The present value of $1 and the present value of an annuity of $1 for four periods are 0.792 and 3.312, respectively at 10%, compounded annually. The amount that Baltimore Company must invest today is: a. $6,048 b. $6,925 c. $8,948 d. $9,000
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You have just purchased a parcel of land for $10,000. The land has an expected life of infinite duration, and based on the size of the land, it is expected to generate an annual net cash inflow of $1,000 indefinitely. The annual net cash inflows are expected to remain at the current level. Assuming a discount rate of 1...
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Use generating functions to determine how many four-element subsets of $$S = \{1,2,3,4,\dots,15\}$$ contain no consecutive integers?
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Using a plant-wide overhead rate based on machine hours to assign manufacturing overhead to a product line that uses relatively low machine hours is likely to: A. Overapply overhead to the product line. B. Underapply overhead to the product line. C. Understate direct labor costs. D. Overstate direct labor costs. E...
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The range of the quantities in a dataset is 20. If 5 were subtracted from every value in the dataset, what would the new range be?
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Consider a one period monopoly with demand given by the following equation {eq}p = 120 - 0.5y {/eq}. The monopolist has a plant where the marginal cost of production is constant and equal to 20. What is the profit earned by this monopoly in this market? a. 4800 b. 1200 c. 840 d. Not enough information to answer th...
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What is the maximum number of pieces of rope that can be knotted from a 10m length of rope, given that one length of 1m is used to knot each piece together and there can be no leftover rope from knotting?
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Which of the following statements is false regarding future or derivative contracts? a) They are usually long-term contracts. b) They are agreements to buy or sell an asset at a predetermined price on a future date. c) They are generally settled at maturity by the delivery or receipt of the underlying asset. d) The...
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Benton Corporation, The data below is for Benton Corporation for 2015. Accounts Receivable-January 1, 2015$334,000 Credit sales during 2015850,000 Collections from credit customers during 2015725,000 Customer accounts written off as uncollectible during 201512,000 Allowance for Doubtful Accounts {Credit Balance} (Aft...
b
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The current market price of a one-year discount bond with a face value of $1,000 and a price of $950 is: a) 5%. b) 950%. c) 105%. d) 5% per six months.
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If at a price of $1000 the quantity demanded is 5000 and the quantity supplied is 5500, in order to achieve equilibrium one could use either fiscal or monetary policy to increase demand or decrease supply. What other two options could one use in order to achieve equilibrium? a. Increase demand and increase supply. b....
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The price of goods and services in the goods market is determined by: a. the government, such as Congress. b. firms, given the demand for their products. c. the combined influence of demand and supply in the market. d. the natural rate of unemployment in the labor market.
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How do Sectoral Shifts in the economy affect Unemployment? a. They create Structural Unemployment. b. They reduce Unemployment. c. They increase Unemployment due to job search. d. Overall, they leave Unemployment unchanged.
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You are the trading desk for a major bank. Give the following information, can you exploit an arbitrage opportunity? $1= L2 L1= EUr 5 EUR 1= $0.1 A. Yes B. No C. Not enough information
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Consider the following two projects: ProjectYear 0 Cash FlowYear 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash Flow Discount rate A-100405060N/a0.15 B-73303030300.15 The profitability index for project B is closest to: a.12.64 b. 0.12 c. 0.17 d. 23.34
c
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Sour Cherry Inc. will pay a dividend of $3.17 per share next year. The company pledges to increase its dividend by 6.6% per year indefinitely. If you require a return of 14% on your investment, how much will you pay for the company's stock today? a. $55.60 b. $41.45 c. $45.38 d. $42.49 e. $47.88
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The return on stock A is .40, stock B is .30, and stock C is .20. Their standard deviations are .80, .50, and .60, respectively. The returns on stock A and B are positively correlated at .80, and the returns on A and C are positively correlated at .50. What is the expected return on the portfolio with 25 percent invest...
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Choose the most conservative estimate of the sample size that will ensure a margin of error of at most 0.06 for a 99% confidence interval for the population proportion, given the total number of red blood cells in a cubic millimeter of blood, assuming no prior information about the proportion.
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Evaluate the indefinite integral. {eq}\int \frac{5}{\sqrt {25 - x^2}} dx {/eq}
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The cost accountant for Wallingford MicroBrew is preparing a report for the president on the cost of producing 6,000 cases of beer. The accountant has completed the following table based on his estimates of fixed and variable cost categories. The table shows estimates for overhead, labor, and materials. The company has...
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Write \(\displaystyle\lim_{ n \rightarrow \infty } \sum _ { i = 1 }^n \left( 1 + \left( \displaystyle\frac{ 2 i } { n } \right) \right) \cdot \frac { 2 } { n }\) as an integral and evaluate it.
4
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The wages of materials handling personnel in a factory would usually be considered: Indirect labor / Manufacturing overhead A) No / Yes B) Yes / No C) Yes / Yes D) No / No
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In year 2000, the nominal GNP in some country was 1,300 at current prices. In year 2001, the nominal GNP in the same country was 1,320 at current prices. In addition, the GNP deflator was 120 in year 2000 and 125 in year 2001. Calculate the real 2001 GNP in terms of 2000 prices.
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A unfavorable variance resulting from the use of low-quality materials should be charged to: A) the production manager. B) the purchasing agent. C) manufacturing overhead. D) the industrial engineering department.
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The market demand function is {eq}Q_D = 60 - 0.75P {/eq} and the market supply function is {eq}Q_S = 4P - 15 {/eq}. The maximum per-unit price that a buyer is willing to pay is _____, which is less than the maximum per-unit price that a seller is willing to accept for the product, which is _____.
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Suppose that Apple and the investors buying the firm's bonds both expect a 4% inflation rate for the year. Further, suppose the nominal interest rate on bonds is 8% and the expected real interest rate is 4%. Now suppose that a year after the investors purchase the bonds, the inflation rate turns out to be 3%, rather th...
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The liquidity premium on a US Treasury debt security is normally considered to be: a- 4 percent b- 3 percent c- 2 percent d- 1 percent e- 0 percent
e
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If a seller extends a price discount for prompt payment within 10 days of the invoice date and a buyer takes advantage of the discount by paying within the specified period, the seller should reduce its accounts receivable and recognize a reduction in revenue (cash discount) and the buyer should reduce its accounts pay...
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X is normally distributed with mean 0 and variance $\sigma^2$. Find $E(X^2 I_{X<0})$.
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The share of GDP accounted for by final sales to domestic purchasers plus income received from abroad is: a) C + I + G b) C + I + G + NX c) C + I + G + X d) C + I + G + NX + M
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A bond that matures in 8 years sells for $950. The bond has a face value of $1,000 and a yield to maturity of 6.8764%. The bond pays coupons semiannually. What is the bond's current yield? a) 6.45% b) 7.21% c) 6.88% d) 6.12%
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INFORMATION OF OLD MACHINE: Original Purchase Price $550,000.00 Original Life 10 YEARS Remaining Life 5 YEARS Straight line depreciation in use Salvage Value $ 50,000.00 Current Fair Market Value $ 260,000.00 INFORMATION OF NEW MACHINE-A: Purchase Price $895,000.00 Estimated Life 5 YEARS Use Straight Line Depreciat...
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The minimum sales constraint that likely causes positively skewed data is consistent with a: a) Ceiling Effect b) Floor Effect c) Hawthorne Effect d) Placebo Effect
b
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Which of the following is responsible for partial specialization existing? a. Increasing costs can force the cost basis of two trading nations to converge b. Labor union contracts can make a firm responsible for employee benefits long after a plant is shut down c. Some products cannot be traded internationally d. A...
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The December 31, 2013, balance sheet of Schism, Inc., showed $151,000 in the common stock account and $2,670,000 in the additional paid-in capital account. December 31, 2014, balance sheet showed $161,000 and $2,920,000 for the common stock and additional paid-in capital, respectively. If the company paid a $26,000 cas...
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Jorge's mom said that he could have a 50 cent reward for every 4 B's on his report card. Which of the following equations represents this reward? A) 50 = x * (4 - B) B) 50 = x * (B - 4) C) B = x * (50 - 4) D) 50 = x * B ^ 4 E) none of these
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According to the Marris model, a firm maximizes its market share when: a. Its marginal revenue from producing and selling additional units of output equals its marginal cost. b. The marginal value of added investment is equal to the average value of added investment. c. The marginal benefit to managers of additional...
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What is the estimated standard error for the sample mean difference if the first sample has a variance of 10 and the second sample has a variance of 6, and both samples have n = 4 scores?
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The sampling unit in a test of controls pertaining to the existence of payroll transactions ordinarily is a(n): a) Clock card or time ticket b) Employee Form W-2 c) Employee personnel record d) Payroll register entry
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Braddock Construction Co.'s stock is trading at $20 a share. Call options that expire in three months with a strike price of $20 sell for $1.50. The company's stock price will either rise by 20 percent or fall by 8 percent over the next three months. Assuming the option is European, what is the risk-free rate? a. 3.3...
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X Corp. had 400,000 shares of $30 par common stock and 40,000 shares of $100 par $6 cumulative convertible preferred stock outstanding for the entire year ended Dec.31, 2010. Each share of preferred stock is convertible into 5 shares of common stock. Net Income for 2010 was $1,680,000. For the year ending 2010, what i...
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A firm sells a product at $42 per unit, with unit variable costs of $25. Fixed costs total $250,000. Assuming no change in the firm's sales mix, calculate the effect on income from operations of (a) a $2 increase in the product's selling price and (b) a $2 decrease in the product's unit variable cost. (c) Give a disadv...
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