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You have been managing a $5 million portfolio that has a beta of 1.35 and a required rate of return of 12%. The current risk-free rate is 5.25%. Assume you receive another $500,000. If you invest the money in a manner designed to optimize the reward-to-variability ratio, what will be the required return on your 5.5 mi...
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You have just purchased a new warehouse. To finance the purchase, you have decided to take out a 1 year loan for $3 million at a rate of 6% per annum. The loan calls for 4 payments equally spaced over the life of the loan. What is the amount of each payment?
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How do you find the integral of #int 1/(sqrt(x)*(1+x)) dx#?
2arctan(sqrt(x)) + C
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In a perfectly competitive market, which of the following statements is true about marginal revenue (MR) and price (P)? A. MR = P B. MR > P C. MR < P D. None of the above
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Abbot is considering adding one of two alternative machines to their manufacturing operations. Machine A has a five year useful life, a purchase price of $77,000, and net cash inflows of $24,000 in year one, $25,000 in year two, $26,000 in year three, $27,000 in year four, and $28,000 in year five. Machine B also has...
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In a closed economy, the domestic quantity of a good supplied exceeds the domestic quantity demanded at the world price. What is the effect of opening up to international trade in this situation? a. Quantity demanded will increase and the domestic price will decrease. b. Quantity supplied will decrease and the domest...
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Capital Budgeting Choices: Business Location Capital Investment Cost in $ Cumulative Investment Costs Net Present Value 1 25,000 25,000 27,500 2 28,500 53,500 35,000 3 32,500 86,000 35,000 4 ...
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Determine the point estimate of the population mean and margin of error for the confidence interval $69.64<x<78.82$.
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Operating budgets and financial budgets a. combined form the master budget b. are prepared before the master budget c. are prepared after the master budget d. have nothing to do with the master budget
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You are given the following information for Tannin Corporation in 2015: Net income$2,400,000 Interest expense$120,000 Tax expense$80,000 Current assets$5,000,000 Net fixed assets$10,000,000 Current liabilities$1,000,000 Total liabilities$3,500,000 Common stock$3,000,000 Retained earnings$3,500,000 Market price per sh...
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If net income = $412,000, Depreciation expense = $45,000, the Current ratio = 2.4, and the Quick ratio = 1.3, then Current liabilities = _____.
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Which of the following is not among the criteria for classifying a lease as a capital lease? A. The agreement specifies that ownership of the asset transfers to the lessee. B. The agreement contains a bargain purchase option. C. The noncancelable lease term is equal to 90% or more of the expected economic life of th...
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Metro Computer Inc. had the following balances and transactions during 2014: Beginning Merchandise Inventory as of January 1, 2014, 100 units at $75 March 10Sold 50 units June 10Purchased 200 units - at $80 October 30Sold 150 units What would the company's ending merchandise inventory amount be on December 31, 2014, ...
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Business cycles can be readily identified from a. unemployment-rate data. b. real GDP data. c. salary or wage data. d. unemployment-rate data and real GDP data. e. unemployment-rate data and salary or wage data.
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Currently, Bruner Inc.'s bonds sell for $1,390. They pay a $120 annual coupon, have a 15-year maturity, and a $1,000 par value, but they can be called in 5 years at $1,050. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal...
3.44%
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An instructor observed a very vocal and involved child during a school play and remarked to the child's mother, "That child is very engaged and wants to participate in everything. I love seeing him out on stage." The type of statement the instructor made was most likely a a. nonverbal statement. b. positive statement...
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In a perfectly competitive market, free entry and exit will result in which of the following long-run outcomes? (a) Firms will earn zero economic profit. (b) Firms will earn negative economic profit. (c) Firms will produce at the minimum of their average total cost. (d) A, C, and perhaps B. (e) A, B, and C.
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Isis, Inc. had the following balances and transactions during 2011: Beginning merchandise inventory 35 units at $75 March 10 sold 20 units June 10 purchased 160 units at $80 October 30 sold 130 units What would the company's ending merchandise inventory amount be on December 31, 2011, if the perpetual FIFO co...
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Messana Corporation is investigating an investment in equipment that would have a useful life of 12 years. The company uses a discount rate of 16% in its capital budgeting. The net present value of the investment, excluding the salvage value, is -$760,786. To the nearest whole dollar, the salvage value of the equipment...
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What is the rate of return on assets for Cabot Co.? a. 15.6% b. 14.7% c. 12.5% d. 7.0% Net Income $160,000 Interest Expense 80,000 Tax Expense 40,000 Dividends Paid 30,000 Current Assets 400,000 Long-Term Assets 8...
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If the AS-AD curves are in equilibrium in the vertical range of the AS curve, then: A) there is inflationary pressure in the price level B) the economy is experiencing unemployment C) the economy is producing at or near its potential GDP
C
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The {eq}x {/eq}-component of velocity in an incompressible steady flow in the {eq}x-y {/eq} plane is {eq}u = \frac{2}{x} \text{ m/s} {/eq}, where {eq}x {/eq} is in m. Find the simplest {eq}y {/eq}-component of velocity by applying the conservation of mass equation.
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Pat's Pool Supply Company is involved in a number of competitive bidding situations. The following costs are anticipated for a project to be bid for by: Direct materials used $440,000 Direct labor $1,580,000 Allocated variable overhead $430,000 Allocate...
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A stock has a current price of $50 per share, and it will pay a $2 per share dividend at the end of the year. The risk-free rate is 5 percent and the market risk premium is 8 percent. If the stock's dividend is expected to grow at a constant rate g, what is the stock's required return? (Do not round intermediate calcul...
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If the required reserve ratio is 15%, a new deposit of $5,000 into a bank system would have the potential to increase the total amount of money supply by: a. $25,000 b. $33,333 c. $35,000 d. $45,000
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Find the critical values X1 and X2 that separate the middle 80% from the rest of the distribution of a t-distribution with 6 degrees of freedom.
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Which one of these represents a cash outflow for a project? A. A sunk cost B. Increase in accounts receivable C. Depreciation D. Accrued expenses
B
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Assume that $W_t$ is a Wiener process ($W_0=0$ and $W_t\sim N(0,t)$). How to compute $E[W_{t+h}\mid W_s]$ where $0<s<t$ and $h\ge 0$?
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Who benefited the most from the import quotas and tariffs? a. Exporters. b. Workers in export-oriented industries. c. Domestic consumers. d. Consumers of imported goods. e. A and B. f. C and D. g. All of the above. h. None of the above.
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Evaluate the definite integral by using the fundamental theorem of calculus. {eq}\int\limits_0^4 {(e^{3t} + 9t^3)dt} {/eq}
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Find the minimal polynomial of $\sqrt{3}+\sqrt{2}$ over $\mathbb{Q}$.
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Find the convex conjugate of the function $f(x,y) = x+y$ on $\mathbb R^2$, and show that the biconjugate $f^{**}$ equals $f$. Also, how do we show the existence of a saddle point between $f$ and $f^*$?
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Which of the following activities is a financing activity? A. Purchase of land by issuing stock. B. Payment of cash dividends. C. Purchase of land for cash. D. Purchase of inventory for cash.
B
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A new project for bed packs has the following estimates: Best Case: $2.50 per unit, worst case $1.75 per unit. Probabilities: best case 0.3, base case 0.5, worst case 0.2. The accounts payable deferral is $400. Compute the cash flow from assets in the worst-case scenario, given fixed costs are $300, total sales is 500 ...
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Compute the integral $$\frac{1}{2\pi i} \int_{|z|=1} \frac{1}{z^{n+1}} e^{\frac{1}{z}} dz $$ where $n$ is a natural number and the integral is taken counter clockwise over the circle $|z|=1$.
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Suppose you buy a new piece of office equipment for $5,000. The equipment can be depreciated using MACRS over 5 years. The annual depreciation amounts for each of the 5 years are $1,000, $1,600, $800, $480, and $200, respectively. How do the annual depreciation amounts affect the cash flows of the investment?
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Let $G$ be a finite abelian group and $p$ be the smallest prime dividing the order of $G$. If $x^{p}=e$ for some non-identity element $x \in G$, how many solutions does the equation $y^{p}=e$ have in $G$?
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If $(1-\omega-\omega^2+\omega^3...)^n = 1$, where $\omega$ is the complex cube root of unity and $n \in \mathbb{N}$, then find the least value of $n$.
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Solve: {eq}lim_{x \rightarrow ∞} \frac{e^2x - 1 - 10x}{(10 x)^x} {/eq}
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Suppose the money demand function is $(M/P)^d = kY$, where $k$ is a constant. Assume that the money supply is growing at a steady rate of $20\%$ per year, while output grows at $3\%$ per year. If people hold a fixed amount of money ($k$ is constant), then it follows that: A. the velocity of circulation is rising by $3...
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Find the volume of the solid obtained by rotating the region bounded by the curves y = x^3, y = 8, x = 0 about the x-axis.
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Pat Cramer, a wine broker, deposited $100,000 into a savings account. This savings account pays 9% annual interest compounded semiannually. Beginning a year from now and continuing for 10 years, Pat will make equal annual withdrawals. What is the maximum amount Pat can withdraw at the end of each year?
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The Federal Reserve is using monetary policy to counteract a recessionary gap. The Federal Reserve is concerned that when the economy recovers there could be problems with inflation. What type of policy should the Federal Reserve use? a. Contractionary monetary policy. b. Expansionary monetary policy. c. Classical m...
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Which of the following are circumstances that can result in more favorable treatment of property owned by a closely held corporation in a complete liquidation? A. All of the distributions received are after tax distributions. B. There is a statutory disqualifying distribution. C. The corporation paid reasonable comp...
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A hollow metal sphere has 7 cm and 11 cm inner and outer radii, respectively, with a point charge at its center. The surface charge density on the inside surface is {eq}{\text{ - 150 nC/}}{{\text{m}}^{\text{2}}} {/eq}. The surface charge density on the exterior surface is {eq}{\text{ + 150 nC/}}{{\text{m}}^{\text{2}}}...
c
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Burr Corporation just paid a dividend of $0.75 per share. Its stock price is currently $15.50 per share. If the dividends are expected to grow at a constant annual rate of 6 percent into the foreseeable future, what is the expected return on Burr's stock?
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Consider a time-series regression model below: {eq}Yt = \beta_0 + \beta_1Y_{t-1} + ut, t = 1...T {/eq} a. What is the problem if {eq}\beta_1 = 1? {/eq} b. The variable Yt has a unit root. c. The variable Yt is not stationary. d. All of the above.
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For which value of p does the series $$\sum_{n=1}^\infty \frac{p^n}{1+p^{2n}}$$ converge?
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This problem would be very easy if it wasn't for the fact that the stock market has a 10% stock turnover cost, and my cap rate on my income property is 8.45%. I don't know how to account for the stock market turnover in this problem, can someone walk me through how to adjust the math to factor in the 10% stock turnover...
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For the current year, Pat Company has cost of goods sold of $450,000 and ending inventory of $90,000. Pat has chosen to use a periodic inventory system. What is the amount of the company's merchandise inventory account increase or (decrease) for the year? a. $180,000 b. ($360,000) c. ($180,000) d. ($36,000)
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During the financial crisis of 2007-2009 the U.S. Federal Reserve used it's powers in all but which of the following ways: a. lending to non-banks b. accepting very illiquid collateral against its loans. c. lower bank reserve requirements. d. lowers it's policy rate to zero
c
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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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What is the probability of selecting a sample of 15 adults and finding that exactly 6 have a college degree, given that 45% of adults over 25 have college degrees?
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The company's cost of debt is 7.20%, and its tax rate is 40%. Its target capital structure calls for 40% equity and 60% debt. The company's required rate of return on retained earnings is 11.50%. The next level of financing will be composed of retained earnings, at which time the company will issue new common stock. It...
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A college expended $2,475,000 on a new parking facility. How would this be reported in the statement of cash flows? a. As an investing activity by a public college. b. As a capital and related financing activity by a private college. c. As an investing activity by a private college. d. Both a and c are correct.
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Quasar corporation recently used $60,000 of direct materials and $5,000 of indirect materials in production activities. the journal entries reflecting these transactions would include: a. a debit to raw-material inventory for $72,000. b. a debit to manufacturing overhead for $3,000. c. a credit to manufacturing over...
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Company X uses a joint processing system for its 2 products, Y and Z. As a result of using the physical volume method of joint cost allocation instead of the net realizable value method, they have overstated the unit cost for product Z and understated the unit cost for product Y. If Company X prepares separate financia...
c
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The four-firm concentration ratio: a. gives equal weight to each of the four largest firms. b. ignores the actual market shares of the firms included. c. gives more weight to the smallest firms in an industry. d. is used more often in the United States than is the Herfindahl-Hirschman index. e. tends to overestima...
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A portfolio consists of two stocks P and Q. P is a stock that has a beta of 0.68, while Q's beta is unknown. If the portfolio beta is 0.77 and the proportion of stock P in the portfolio is 0.35, what is the proportion of Q in the portfolio?
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Cass & Company had the following inventory purchases during the year: Jan. 10: 10 units at $30 April 15: 30 units at $35 July 27: 30 units at $37 Nov. 16: 20 units at $40 A physical count of inventory on December 31 reveals that there are 33 units on hand. Using the LIFO inventory method, the ending inventory repo...
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ABC Corporation has an accounts receivable gross amount of $500,000. The company factored this accounts receivable with First Bank at a discount rate of 10%. ABC assigned 25% of its accounts receivable to First Bank. The balance of the accounts receivable was sold without recourse. First Bank charged a service fee of 2...
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The output of a company is currently 4 units. At this level of output, the total fixed costs are $30 and the total variable costs are $20. The total costs at this level of production if the output increases to 6 units is $60. This means that: a. The total fixed costs at this level of output are $40. b. The average va...
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Chow Company has gathered the following information, on the purchase of a new piece of equipment: Initial investment: $70,530 Annual cash inflows: $12,000 Internal rate of return: 16% Calculate the life of the equipment, in years. Enter your answer as a number (i.e., 30). Do not use the dollar sign, decimals, or ty...
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On December 31, 2011, Patriot Corporation borrowed $520,000 by issuing bonds with a stated rate of 8%, payable annually on December 31. The bonds mature on December 31, 2031. The market rate of interest at the date of issuance is 10%. What is the journal entry for the bond issuance? A. Bonds Payable 520,000 Cash 520...
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The demand function for a certain brand of CD is given by {eq}p = - 0.01 x^2 - 0.2 x + 11, \ (0 \leq x \leq 20) {/eq} where p is the wholesale unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. Determine the consumers' surplus if the unit market price is set at $10/disc.
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In a period of declining prices, which of the following inventory methods generally results in the lowest balance sheet amount for inventory? a. Average cost method b. FIFO method c. LIFO method d. The low and high prices method
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Let U, V, and W be independent random variables each uniformly distributed on [0,1]. Find the joint density of U, V and UV + W.
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Pete Corporation currently has a capital structure of 25% debt and 75% equity. The tax rate is 21%. If the pre-tax cost of debt is 9.5%, and the cost of equity is 13.2%, then what is the firm's Weighted Average Cost of Capital (WACC)? a) 10.96% b) 10.76% c) 12.01% d) 8.87%
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What is the minimum sample size that at 95% confidence level would confirm the significance of a mean shift greater than 8 tons per hour, given a standard deviation of 35 tons, if it is required to determine whether an operational adjustment in a shipyard will alter the process hourly mean by as much as 10 metric tons ...
74
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A $4000 face-value municipal bond maturing in 20 years is sold for $2673.18 to yield an 8% market interest rate. The semiannual coupon interest is: a) $272 b) $152 c) $104 d) $84
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Suppose you purchase a zero-coupon bond with face value of $1000 and price of $200. The bond has 25 years to maturity. If the bond's yield to maturity remains constant, into what category would the bond fall in terms of duration?
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Given the following MRSxy, which of the following statements is correct? a) MRSxy = dy/dx b) MRSxy measures the trade-off between good x and good y along a particular indifference curve c) MRSxy always equals Ux/Uy d) all of the above statements are true
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The MBA new-matriculants of a large urban private university are very concerned about their future. Specifically, they would like to know the average starting salary for their chosen program. For the first-year MBA program in 2013, at another university, the average starting salary was $60,000. Assume the size of the f...
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Z scored on Field Goal attempt = +2.20 Z-score on make vs. miss = +1.00 Yolanda made a field goal attempt and is considering whether to take a second attempt at the field goal. She is interested in the probability that she makes both field goals. Assuming that her probability of making each field goal attempt is repres...
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THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 7 AND 8. The management accountant for Martha's Book Store has prepared the following income statement for the most current year. Cookbook Travel Book Classics Total Sales $60,000 $100,000 $40,000 $200,000 ...
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The theory of constraints indicates that all of the following characteristics describe an accounting system for a lean manufacturing environment except for: A. A reporting focus on variances from standards B. A reporting focus on inventory and cost variances C. A reporting focus on the total effect on profit or loss...
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You own stock of Microsoft and are concerned that its value is about to plummet. Which of the following financial instruments would protect you against this loss? a) Currency futures contract b) Interest rate futures contract c) Stock index futures contract d) Employee stock options
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For a normal distribution with mean and standard deviation, consider the ratio of (probability of value between mean - kS & mean + kS)/(probability of value between mean - mS & mean + mS) . As m,k increases, the above ratio increases, decreases or remains unchanged?
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Compute the following quantities by hand (doing it the "long way"), then check your results by using Excel's NORMDIST function. a. P(X ≤ 62), given a mean μ = 60 and standard deviation σ = 4 b. P(X > 2), given a mean μ = 5 and standard deviation σ = 1 c. P(X ≤ 115), given a mean μ = 100 and standard deviation σ = 10...
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When a coupon bond's YTM > coupon rate, the bond's price will _____ as the number of years to maturity is decreased, and when a coupon bond's YTM < coupon rate, the bond's price will _____ as the number of years to maturity is decreased. A. decrease, increase B. decrease, decrease C. increase, decrease D. increase,...
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On January 1, 2014 Green Feet Corp purchased Red Fingers Inc for $300,000. Just before the purchase, the balance sheet for Red Fingers looks like: Current assets $78,000 PP&E 145,000 Total assets 223,000 Current liabilities $50,000 Long term debt 110,000 Equity 63,000 The excess paid by Green Feet includes a patent w...
$147,000
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The Sweet Acacia Corporation just paid a dividend of $2.00. They are expected to pay $2.50 next year and then $3.10 the following year. Their dividends are expected to stay at $3.10 for the foreseeable future. If the discount rate is 10.5%, what is the present value of this stock?
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If two plant assets of equal service lives are being depreciated by the straight-line method, which of the following would result in the greater total depreciation expense over the service life of the assets? a. The asset that has a higher salvage value. b. The asset that has the higher cost and a higher salvage valu...
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Which of the following are examples of long-run fixed costs? a. mortgage payments b. hourly wage costs c. payments for production inputs d. none of the above
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During 2017, the following cash transactions occurred at Paycheck Retail Store: Purchase of merchandise inventory $900,000 Purchase of store equipment $230,000 Cash sales $1,050,000 Cash payroll expenses $360,000 Payment of interest on notes payable $50,000 Cash refunds to customers $10,000 Payment of cash...
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A member of the phylum Ciliophora is commonly known as a(n) a. flagellate. b. ciliate. c. sarcodine. d. macrophage. e. amoeba.
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How is $N'(0)=(2u'(0),2v'(0),0)$ obtained in Do Carmo's Differential Geometry book, and is there a simpler way to derive this result than directly computing the derivative of $N$ along the curve $\alpha$?
N'(0)=(2u'(0),2v'(0),0)
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A given rate is quoted as 12% APR and has an EAR of 12.68%. What is the compounding frequency during the year?
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Alpha Co. expects to incur the following costs to obtain and prepare 150,000 pounds of direct material: Purchase price of raw materials: $360,000 Freight into the supplier's warehouse: $8,000 Receiving and storing the materials: $7,000 If Alpha's normal profit margin is 12%, what amount should Alpha charge its cust...
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We wish to estimate the present value of a $5,000 annual annuity payment over 10 years, with interest rates ranging from 2 to 12 percent. Which method should we use to compute the present value? A. A graphing calculator B. The financial formula method C. The total versus partial method D. The round-off adjustment m...
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The Sun has a mass of 2.0 * 10^30 kg and a radius of 6.9 * 10^8 m. You are designing a circular space station with an overall radius of 80 m, rotating to produce an equivalent of the Sun's gravitational field at its surface. Determine the required frequency of rotation of the space station in revolutions per minute.
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The gross profit margin is 45% and the variable cost ratio is 70%. The operating profit margin is 22%. The fixed costs are $1.5 million. Annual sales revenue is $7 million. What is the average total asset value?
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The way in which one firm in oligopoly reacts to a change in price, output, or quality made by another oligopolist in the industry is referred to as a. cooperative game. a. zero-sum game. b. the concentration ratio. c. the reaction function.
d
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A company with $280,000 of fixed costs has the following data: For Product A: Sales price per unit $5 Variable costs per unit $3 For Product B: Sales price per unit $6 Variable costs per unit $5 Assume three units of A are sold for each un...
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Find the limit: {eq}\displaystyle \lim_{x \rightarrow \infty} \left (\frac{9x + 1}{9x - 1}\right )^x {/eq}
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On December 31, Year 1, CTA Corp. had a two-year insurance premium paid in advance. This premium was originally recorded with a debit to insurance expense. Assuming that only one month of insurance has expired as of December 31, Year 1, CTA should: a. debit insurance expense and credit prepaid insurance b. debit insu...
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Use the chi-square test of independence to determine whether sampling method and preference are independent at the 0.05 significance level. The number of sampled adults who preferred each of four different cable television sources is shown in the table below. Assume that sampling was done with replacement. Cable U....
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The short-run aggregate supply curve shifts to the right when A. expected inflation is lower. B. output gap is lower. C. expected inflation is higher. D. output gap is higher.
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Sports Corp has 11.1 million shares of common stock outstanding, 6.1 million shares of preferred stock outstanding, and 2.1 million bonds. If the common shares are selling for $26.1 per share, the preferred share are selling for $13.6 per share, and the bonds are selling for 96.89 percent of par, what would be the weig...
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Zurn Corporation has a current ratio of 2.15 and a quick ratio of 1.40. The company's current assets total $207,000, and its current liabilities total $87,000. What is the company's inventory? a. $54,000. b. $112,000. c. $133,000. d. $178,000.
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