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Acme, Inc. incurred the following costs in developing a new product. Cost of external lab studies: $210,000 Duplicating computer software: $200,000 Materials used in external lab studies: $40,000 Patent application fee: $20,000 Cost of testing of new product: $40,000 Employee research and development time: $100,0...
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Preferred stock has a fixed dividend of $5 per share. If this stock is currently selling for $30 per share, then the implied rate of return on the preferred stock is A. 25%. B. 12%. C. 5%. D. 16.7%.
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Nano Seconds Inc. has a target capital structure of 30% equity and 70% debt. Its cost of equity is 15%, and the cost of debt is 5%. The relevant tax rate is 22%. What is the company's WACC?
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After a long trade war, which of the following is true? A. U.S. exports will increase and imports will decrease B. U.S. exports will decrease and imports will increase C. U.S. exports and imports will both increase D. U.S. exports and imports will both decrease
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Use polar coordinates to find the limit: {eq}\displaystyle \lim_{(x,y)\to(0,0)} \frac{1 - \cos(x^2 + y^2)}{4x^2 + 4y^2} {/eq} and note that {eq}\displaystyle (x, y) \to (0, 0) \text{ implies } r \to 0. {/eq}
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If there is an increase in net exports, then in the long run we would expect: A. inflation to increase and employment to increase B. inflation to increase and employment to remain constant C. inflation to remain constant and employment to increase D. inflation to decrease and employment to increase
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Find the limit: \[\displaystyle \lim_{x \to \infty} \frac{7\ln(x)-12x}{5\sqrt{x}-2x\ln(x)}\]
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Which of the following individuals are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization? a. Top managers b. Senior managers c. Middle managers d. All of the above
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Which organizational structure is most common in small firms? A. Functional B. Strategic business unit C. Divisional D. Matrix
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According to the VRINE model, what are the two criteria that must be satisfied in order to sustain a competitive advantage? A) inimitability and exploitability B) value and exploitability C) inimitability and nonsubstitutability D) value and rarity
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Durrant Corporation has provided the following data concerning its most important raw material, compound O96H: Standard cost, per litre $23.80 Standard quality, litres per unit of output 5.7 Material used in production in August, litres 2,350 Actual output in August, units 400 When recording the use of materials in p...
c
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The actual completion percentage of the units in ending Work in Process Inventory for direct material and conversion cost for a period is usually higher for the: A. Weighted average method than the FIFO method B. FIFO method than the weighted average method C. Average cost method than the standard cost method D. St...
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What is the name of the number sequence that is the dual of the sequence 2, 3, 6, 14, 40, 152, 784, ... where each term is defined as the sum of the previous term and the term k places before it, with $a_{0}=1$ and $a_{1}=2$ and $k=2$? For example, $a_{2}=a_{0}+a_{1}$, $a_{3}=a_{1}+a_{2}$, and so on.
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Why do consumers buy more output when the price of the good they purchase falls? Select one: a. Because the substitution effect and the price effect are both negative. b. Because the substitution effect and the price effect are both positive. c. Because the substitution effect is positive and the income effect is ne...
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On January 2, 2011, the accounts receivable balance was $58,000. During 2011, $804,000 of credit sales occurred. The January 31, 2011, balance of the allowance for doubtful accounts was $3,800 (credit). In the past, 3% of net credit sales become uncollectible. However, during 2011, the company had a change in its colle...
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Firm X has a margin of 10%, turnover of 2, sales of $1,000,000, and average stockholders' equity of $250,000. Calculate Firm X's return on investment (ROI). Enter your answer in millions. For example, an answer of 25% should be entered as .25.
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Olsteen, Inc., earned revenues of $62,000 and incurred expenses of $78,000. No dividends were declared. Which of the following statements is correct? A. The entry to close Income Summary is the same regardless of a net income or a net loss. B. The entry to close Income Summary requires a debit to the Income Summary acc...
D
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Consider the market for minivans. If this is an industry with constant long-run average cost, which of the following statements are correct? (A) Firms in the industry will always earn positive economic profits. (B) If there is an increase in demand in the short run, then market price will rise, and each firm in the i...
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AICPA members should use the AICPA Conceptual Framework for Independence to: a. come to different conclusions than the interpretations of the Code of Professional Conduct. b. evaluate independence matters not addressed in the Code of Professional Conduct. c. understand the rules on confidential client information an...
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The following data has been taken from the ledger of Moore Inc. for the year ended December 31, Year 1. Rent expense $30,000 Wages and salaries expense $100,000 Insurance expense $15,000 Depreciation expense $40,000 The data above are the only available data concerning expenses for Year 1. What is the total a...
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Find the result of the following statement using a 1% significance level: Given a one-independent variable linear equation that states cost in $k, and the company's experience in machine hours, can we conclude that at a 1% significance level the company's experience of machines hours is a cost driver for the company's ...
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Using your textbook tables, what are the critical values for a two-tailed t test with n = 30 at the .05 level of significance? a. t = 2.042 b. t = ±2.045 c. t = ±1.697 d. t = 1.697 e. t = ±2.447
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The opinion that "U.S. managers are more able to adapt to other cultures and environments than managers from other countries" has been attributed to the fact that: A) U.S. managers travel abroad more. B) U.S. managers have more foreign assignments. C) U.S. managers grow up leading a more diverse workforce at home. ...
D
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In an industry with many firms and free entry and exit, if each firm is currently earning economic losses, then the: A. price equals or is less than a firm's average total cost. B. number of firms in the industry will rise. C. demand in the market is perfectly elastic. D. market price will be greater than a firm's ...
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Cash Flows from Operating Activities Keenan Company Income Statement For the Year Ended December 31, 20XX Sales revenue $90,000 Cost of goods sold $55,000 Salaries expense 12,000 Rent expense 8,000 Insurance expense 2,400 Depreciation expense 4,000 Interest revenue 1,200 Income before taxes $18,800...
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Find the limit $\lim_{x \to 0^+} (1-\frac{\ln x}{x+1})^{\frac{1}{x}}$. Use the notable limit $\lim_{x \to 0} (1+x)^{\frac{1}{x}}=e$.
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Which of the following statements does not apply to intrastatement tax allocation? A) It is also referred to as intraperiod tax allocation. B) It includes showing prior period adjustments net of tax effect. C) It includes showing extraordinary items, changes in accounting principle, and operations of discontinued se...
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Which of the following is a government transfer? a. unemployment insurance payments b. tax refunds c. financial aid to students d. All of the above
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Which of the following is true when expansionary fiscal and expansionary monetary (easy money) policy are used at the same time? A. Unemployment will increase. B. Real GDP will decrease. C. Interest rates will remain relatively constant. D. Inflation will decrease dramatically. E. Investment will be crowded out.
C
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Find the probability that the sample mean weight of 100 bags of chips exceeded 13.6 ounces, given that the amount of corn chips dispensed into a 13-ounce bag by the dispensing machine is a normal distribution with a mean of 13.5 ounces and a standard deviation of 0.1 ounces.
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With the two-period model, if the interest rate rises from 25 to 50 percent, a 100 unit increase in current consumption implies that future consumption: a. increases by 75 units. b. increases by 100 units. c. decreases by 25 units. d. decreases by 75 units. e. remains unchanged.
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What type of ratio is Days' sales in inventory? A) profitability ratios B) asset management ratios C) liquidity ratios D) debt management ratios
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Evaluate the triple integral {eq}\; \iiint_{D} (z + 3) \, \mathrm{d}V \; {/eq} where D is the region in the first octant bounded by {eq}x^2 + y^2 = 4{/eq} and {eq}z + y = 2{/eq}.
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According to Keynesian theory, if equilibrium real GDP is below the full-employment level, then an increase in aggregate demand will result in which of the following changes in equilibrium? a. Real GDP will rise, but the price level will remain constant. b. Real GDP and the price level will both rise. c. Real GDP wi...
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Cost of merchandise sold reported on the income statement was $568,000. The accounts payable balance decreased by $28,000, and the inventory balance decreased by $39,000 over the year. Determine the amount of cash paid for the merchandise.
$557,000
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When the dividend yield is positive, the __________. a. a risk-free rate is not necessary to discount the dividend stream back to present value. b. cash flow from dividends exceeds the discount rate. c. one period valuation model cannot be used. d. initial cash flow is negative and must be discounted. e. discount ...
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Considering that the current ratio is one of the most commonly used ratios, which of the following items is most likely NOT an activity performed by a manager who is attempting to manipulate the current ratio? a. Deferring revenues and recognizing expenses b. Financing with long-term debt c. Accelerating collections...
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What is the probability that a sample of 50 students will have a mean score of at least 70, given that the total point score on a national professional certification exam is normally distributed with a mean of 75 and a standard deviation of 12, and the minimum passing score is 60?
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Assuming investment is unaffected by the interest rate, if income tax is reduced, the aggregate demand curve: A) shifts to the right. B) becomes steeper. C) shifts to the left. D) becomes flatter. E) does not change.
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The price elasticity of demand is calculated using the formula: a. {\overrightarrow{Q_D}}/{{\overrightarrow{P}}} b. {\overrightarrow{Q_D}}/{\overrightarrow{Q_D}} c. {\overrightarrow{Q_D}}/{\overrightarrow{P}} d. {\overrightarrow{P}}/{{\overrightarrow{Q_D}}} e. None of the above
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What is the pH at the equivalence point when 75.00mL of a 0.250 m solution of acetic acid (CH-3 COOH) is titrated with 0.10 M NaOH to its end point?
8.80
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Use a linear approximation (or differentials) to estimate the following number. {eq}\dfrac{1}{1,001} {/eq}
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In the month prior to the current month, Hot Teas' inventory decreased by $4,000 and its cost of goods sold was $28,000. If the company's inventory in the current month is valued at $6,000, then what is the company's inventory in the month prior to the current month under the LIFO inventory method?
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JL&P Co. wants to have $8,500 available in 3 years. Assume a discount rate of 9 percent. What amount must the firm invest today to have that amount in 3 years? A) $7,431.32 B) $6,404.07 C) $5,431.32 D) $4,468.69
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Pearson Products Company's inventory on December 31, 2014, was {eq}\$420,000 {/eq} as determined by a physical count before considering the following transactions. 1. Merchandise costing {eq}\$23,000 {/eq}, shipped FOB shipping point from a supplier on December 29, 2014, was received by Pearson on January 5, 2015. ...
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Rawlings Company sells specialty hats for $180 each and uses the perpetual inventory system. The following was taken from the inventory records during January. Rawlings Company had no beginning inventory on January 1st. Date Product activity Units Cost Jan 2 Purchase 30 $60 Jan 9 Sale 18 Jan 15 Purchas...
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Deflation causes the demand for bonds to _____, the supply of bonds to _____, and bond prices to _____, everything else held constant. A) increase; increase; increase B) increase; decrease; increase C) decrease; increase; increase D) decrease; decrease; increase
B
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Three cost categories are: a. marginal cost, average variable cost, and average fixed cost. b. marginal cost, total variable cost, and average cost. c. marginal cost, average fixed cost, and average cost. d. total variable cost, average cost, and marginal cost.
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The current ratio will always be lower than the quick ratio under which of the following conditions? a) when current assets exceed total assets b) when current assets equal total assets c) when accounts receivable comprise a significant portion of current assets d) when inventories comprise a significant portion of...
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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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The Economic Policy Institute reports that the average wage for male college graduates is $37.39 per hour, while the average wage for female college graduates is $27.83. An economist believes that the average wage for male college graduates is higher than that for female college graduates. What is the correct set of hy...
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Which of the following statements is correct? a. One of the major reasons that the Fed moved to the interest rate targeting approach (a flexible average inflation targeting approach) in the fall of 2012 is the increasing contribution of inflation expectations to actual inflation. b. One of the major reasons that the ...
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In 2015, Instar decides to add a 24-month warranty on its new product sales. Warranty costs are tax-deductible when claims are settled. In its financial statement for 2015, Instar incurs: a. A decrease in a deferred tax asset. b. An increase in a deferred tax asset. c. An increase in a deferred tax liability. d. A ...
b
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Approximately how long does it take a change in monetary policy to influence aggregate demand? a. 1 month b. 6 months c. 5 years d. 2 years
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If the economy is in long-run equilibrium, a decrease in aggregate demand will cause which of the following changes in the long run? a. no change in output or price level b. increase in output and decrease in price level c. increase in output and increase in price level d. decrease in output and increase in price l...
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A portfolio manager plans to use a Treasury bond futures contract to hedge a bond portfolio over the next three months. The portfolio is worth $100 million, and will have a duration of 4.0 years in three months. The futures price is 122, and each futures contract is on $100,000 of bonds. The bond that is expected to be...
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What is the elasticity of demand along the length of a linear demand curve? A. Elasticity is constant. B. Elasticity decreases as we move up and to the left along the curve. C. Elasticity increases as we move up and to the left along the curve. D. Elasticity is zero at the midpoint of the curve.
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A company has total capital equal to $450 million. 40% of its capital is borrowed and the rest is common equity. The required return on equity is 15% and on debt is 7%. Calculate the company's cost of capital, WACC, if the tax rate is 30%.
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A street vendor's annual license fee was recently increased by the city. The street vendor's: a)total variable cost curve will rotate upward. b)marginal and average variable cost curves will not be affected. c)marginal cost curve will shift in, along with her average variable cost curve. d)marginal cost curve will ...
b
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Suppose that we are interested in testing whether a particular drug affects GPA or not. The standard error of the estimated mean change in GPA is 0.325. Which of the following values for the t statistic would lead to the strongest evidence against the null hypothesis? A. -0.213 B. 1.64 C. 3.09 D. 4.507
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Bill Dukes has $100,000 invested in a 2-stock portfolio: $75,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta?
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An analyst has modeled the stock of a company using a Fama-French three-factor model. The risk-free rate is 3.3%, the market return is 8.3%, the return on the SMB portfolio (rSMB) is 2.8%, and the return on the HML portfolio (rHML) is 4.8%. If ai=0, bi=1.6, ci=-0.4, and di=1.2, what is the stock's predicted return? Rou...
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You own a portfolio invested 25 percent in Stock Q, 35 percent in Stock R, 20 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are 0.68, 1.41, 1.11, and 0.84, respectively. What is the portfolio beta?
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Your lease calls for payments of $1,000 in one year and $2,000 in two years. The annual interest rate is 5%. If the two payments are moved to the present, they have an equivalent value of _____.
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The dividend on Simple Motors common stock will be $3 in 1 year, $4.25 in 2 years, and $6.00 in 3 years. You can sell the stock for $100 in 3 years. If you require a 12% return on your investment, how much would you be willing to pay for a share of this stock today? A) $75.45 B) $77.24 C) $81.52 D) $85.66 E) $91.3...
C
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Marginal propensity to consume is 0.60 and investment spending increases by $1.5 billion. Real GDP increases by: a. $1.5 billion b. $2.5 billion c. $6 billion d. More information is needed.
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When the price is $40, the quantity supplied is 100, and the quantity demanded is 200. When the price declines to $30, the quantity demanded increases to 300, and the quantity supplied decreases to 50. Between these two points, the absolute value of the arc elasticity of supply is: A. 1 B. greater than 1 C. less th...
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Suppose two industries (Wool and Leather) use the same raw materials to produce their final products. If the price of raw materials decreases, which of the following is true: a. the prices of final products in both Wool and Leather will decrease. b. if the raw materials are an input in both final products the change ...
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An economy produces two goods, X and Y. Price and output data are as follows: Year Price of X Quantity of X Price of Y Quantity of Y Base Year $1 500 units $2 400 units Year 1 $2 400 units $2 300 units Year 2 $4 ...
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According to Ted Levitt, creativity is _____ new things. A) thinking B) doing C) corroborating D) emulating
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To compute the level of output that a firm would produce to maximize profits, you must compute the level of output where _____ equals the price of the product. a. marginal cost b. average revenue c. total cost d. average total cost
a
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An increase in the after-tax cash flow from sale of an old machine used in the operations of a company would: A. increase the net present value of the company's new machine purchase. B. decrease the net present value of the company's new machine purchase. C. have no effect on the net present value of the company's n...
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The average total cost is calculated by using which of the formulas below? A) Average Fixed Costs + Average Variable Cost B) Total Cost / Fixed Costs C) Total Revenue / Total Cost D) None of the above statements are true.
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Starr Supply paid a dividend yesterday of $2.00 per share (D0=$2.00). Its dividend is expected to grow at a constant rate of 7% per year. The price of this stock is $42.73 per share. Assuming the stock is in equilibrium, what is the expected rate of return on the stock?
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Evaluate the limit of the sequence $A_n= \frac{1}{n}\sum_{k=1}^{n}k\cos\frac{k}{n}$.
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The patient care units of hospitals (e.g., inpatients, emergency room, neonatal intensive care) are considered to be: A. Physical space resources. B. Labor resources. C. Intangible resources. D. Service resources.
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Evaluate the integral {eq}\int_0^1 (x^2 + 4)e^x \, dx
5e-6
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Cramer Company performed services in March for a customer who was unable to pay the invoice during March. Cramer has not received payment as of April 15. Which of the following statements is true? a. Cramer Company has neither recognized revenue nor has it incurred an expense as of April 15. b. Cramer Company has rec...
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Use the future value of $1 table at the back of the book to calculate the future value of $800 with a 6 percent interest rate for 10 years.
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What is the probability that the sample average is between 39,000 and 41,000? Explain. A. It is very likely because the standard deviation is greater than the distance between the mean and the desired range. B. It is very unlikely because the standard deviation is greater than the distance between the mean and the de...
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Which of the following statements is correct? a. The classification of a cost as direct or indirect depends on the cost object. b. The classification of a cost as direct or indirect depends on the allocation base. c. The classification of a cost as direct or indirect depends on the costing system. d. The classifica...
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The interest paid or received by a bank is what type of interest? a) nominal b) actual c) compound d) exact e) simple
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The mean height of a group of 500 non-smoking college students is 74 inches and the standard deviation is 5 inches. What is the probability that for a random sample of 25 students, the average height will be between 73 and 75 inches?
0.6826
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Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1.15 .17 Repete Co. 1.25 .14 Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
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$$\lim_{n\to\infty} \int_{[0,1]^2} \frac{x^2+y^2}{(x^2+y^2+1)(x^2+y^2+4)}\,d\mathbb{L}^2(n)$$ where $\mathbb{L}^2(n)$ is the Lebesgue measure on $[0,1]^2$.
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As the Fed increases the money supply by buying government bonds through open market operations, if the velocity of money remains constant, it will cause the price level to _____ and the aggregate demand curve will shift to the _____. a. increase; right b. decrease; left c. remain unchanged; right d. increase; left
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I have trouble calculating this integral with the residue theorem: $\int_\gamma \frac{z^2}{z^2+2z+2} dz$ where $\gamma$ is the circle of radius $2$ centered at the origin. The singularities are at $z_1=-1+i$ and $z_2=-1-i$. I calculated the residues as $Res(f,z_1)=1$ and $Res(f,z_2)=1$. Then I get $\int_\gamma f(z) dz ...
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If actual output equals potential output, A. aggregate demand equals aggregate supply. B. aggregate demand exceeds aggregate supply. C. aggregate supply exceeds aggregate demand. D. none of the above are correct.
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How many aluminum cans should be randomly sampled to estimate {eq}\hat p {/eq} to within 0.05 with {eq}95\% {/eq} confidence?
385
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A company has a margin of safety of 25,000 units. Its break-even point is 125,000 units, and its sales are $1,000,000. The amount of the company's fixed costs is __________.
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Suppose the nominal U.S. one-year rate on a specific bond is 5.00%, and the nominal rate on a comparable Canadian one-year government bond is 7.00%. What must be the expected exchange rate (in US$ per Canadian dollar) one year from now if the real rate of interest is 2% in both countries?
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How can the dividend-payout rate affect the sustainable growth rate? a. An increased dividend-payout rate increases sustainable growth rate. b. An increased dividend-payout rate decreases sustainable growth rate. c. An increased dividend-payout rate has no effect on sustainable growth rate.
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Suppose that domestic currency is going through a large devaluation. Which of the following will occur in the medium run as a result of this devaluation? a. an increase in net exports b. an increase in the price level c. an increase in output d. all of the above
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Suppose we know that 4% of employed adults in the US drive for work, while 6% of unemployed adults in the US drive for work. If the unemployment rate is 5%, what is the probability that a randomly selected employed adult drives for work?
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The cross elasticity of demand for good X with respect to the price of good Y is negative. X is a normal good and Y is an inferior good. The supply of good X is perfectly elastic. A rise in income _____ the equilibrium price of good X. a. might raise or lower b. will lower c. will raise d. will have no effect on e...
d
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The master budget includes forecasts for all of the following EXCEPT: a. sales. b. number of employees. c. balance sheets. d. cash disbursements.
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You observe the following information: GBP spot rate: $1.6 US 1-year interest rate: 4% 1-year forward rate: $1.5 UK 1-year interest rate: 6% The expected GBP forward rate implied by IRP is about _____. a. USD 1.568 per GBP. b. USD 1.632 per GBP. c. USD 1.696 per GBP. d. USD 1.504 per GBP. e. Cannot be determi...
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Presented is information for Stafford Company's three products: A B C Unit selling price $5 $8 $8 Unit variable costs (3) (4) (1) Unit contribution margin $2 $4 $7 With monthly fixed costs of $387,500, the company sells two units of A for each unit of B and three units of B for each unit of C. Determine the unit sale...
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If the Fed lowers the interest rate it pays on excess reserves (IOER), which of the following would we expect to happen? A. The demand for reserves would shift left. B. The demand for reserves would shift right. C. The demand for reserves would not shift. D. The demand for reserves would become steeper. E. The dem...
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Which one of the following is a forecasting method that minimizes the difference between actual demand and forecasts? a. Weighted moving average b. Naïve c. Exponential smoothing d. Linear regression
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