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A young investment manager tells his client that the probability of making a positive return with his suggested portfolio is 92%. What is the risk (standard deviation) that this investment manager has assumed in his calculation if it is known that returns are normally distributed with a mean of 6.8%? Use Table 1. (Roun...
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You have just been hired as the financial manager for a new firm and your boss tells you he is considering buying a new company car that will cost $28,000. The dealer offers you 4.9% APR financing for 60 months (with payments made at the end of the month). Assuming you finance the entire $28,000 and finance it through ...
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The personnel manager wants to determine if there is a difference in the average time lost due to absenteeism between two plants. From historical data, the estimated standard deviations of lost time are 200 and 250 minutes, respectively for plants 1 and 2. Assuming that equal sample sizes will be selected from each pla...
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Which of the following statements is correct? a. The yield to maturity of a bond is the rate at which the sum of the present values of the bond's interest payments and the present value of the bond's face amount (or par value) equals the market price of the bond. b. The supply of new bonds issued each year is positiv...
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A company that makes organic fertilizer has supplied the following data: Bags produced and sold: 250,000 Sales revenue: $2,400,000 Variable manufacturing expense: $810,000 Fixed manufacturing expense: $570,000 Variable selling and administrative expense: $150,000 Fixed selling and administrative expense: $240,000...
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Evaluate the triple integral {eq}\int \int \int_{E} xyz\, dV {/eq} where E is the solid that lies between the spheres {eq}x^2+y^2+z^2=1 {/eq} and {eq}x^2+y^2+z^2=4 {/eq} and above the cone {eq}z=\sqrt{3x^2+3y^2} {/eq}
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Which of the following is a correct statement? a) A decrease in the total cost will always increase the contribution margin b) A decrease in fixed costs will always increase the breakeven point c) An increase in the selling price will always decrease the breakeven point
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A monopolist faces the following demand curve: Price Quantity demanded $13 1 $12 2 $11 3 $10 4 $9 5 $8 6 If the monopolist charges $10, it will maximize profit by producing: a) 4 units b) 5...
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How would properties of the dirac-delta function (and its derivative) be relevant to calculating $$\displaystyle \lim\limits_{a\to0} \frac{2x}{a^3} e^{-\frac{x^2}{a^2}}?$$
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Which of the following is included as a subdiscipline by the Association for Psychological Science but not the American Psychological Association? a. rehabilitation b. behavioral genetics c. suicide d. measurement
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Consider $N$ points, one of which is special. The $N$ points are placed uniformly at random in a square $S$ with side length $L$. What is the expected number of points that lie within a distance $d$ from the special point?
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Muriel Whitmore invests $3,496.98 now for a series of $900 annual returns, beginning one year from now. The internal rate of return for this investment is 11%. How many annual returns will Muriel receive? a. 4 annual returns b. 3 annual returns c. 6 annual returns d. 5 annual returns
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Sams Company has provided the following information for 2012: Quantity Cost Retail Beginning inventory $2,000$4,000$6,000 Purchases (10 units) $40 $1,000$2,500 Gross sales (6 units) $3,500 Assuming FIFO inventory is used and the ending inventory is reported at market value of $50, what is the amount of ending inv...
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A company produced 5,000 units of product in the month of June. The following information is also available for June: Standard Actual Direct materials $26.00 $126,000 Direct labor $30.00 $170,000 Standard hours 4 12,500 Standa...
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Calculate the integral of f(x, y) = y over the region defined by x^2+y^2 \leq 1 and (x-1)^2+y^2 \leq 1.
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As _____, the relative difference in the authority possessed by managers at each level in the organizational hierarchy decreases. A) the number of shareholders of an organization decreases, B) the number of levels in the hierarchy increases, C) the total number of employees in the organization decreases, D) the deg...
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All other things being equal, the number of shares of common stock repurchased: a) Is unrelated to the amount of cash paid for the repurchase. b) Is highest when the stock is bought in the open market at a price above par. c) Is lowest when the stock is bought in the open market at a price above par. d) Is inversel...
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The length of the _____ lag is the reason why economists are reluctant to apply an across-the-board policy of increasing government spending and cutting taxes. A. implementation B. information C. decision D. recognition E. crowding-out
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X-Centric Energy Company has issued perpetual preferred stock, with a stated (par) value of $100 and a dividend of 9.00%. If the required rate of return is 12.00%, what is the stock's current market price?
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Company B pay its employees monthly salaries and offers benefits to them. Company B is a A. Merchandising business B. Manufacturing business C. Service business D. Non-Profit business
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Suppose that daily profit from the production and sales of x units of a product is given by p = 180x - (1/1000)x^2 - 2000. At what rate per day is the profit changing (dP/dt) when the number of units produced and sold is 100 and is increasing at a rate of 10 units per day?
1798
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Two items are commonly included in operating expenses: a. cost of goods sold and depreciation. b. labor and property taxes. c. depreciation and property taxes. d. interest and insurance. e. insurance and taxes.
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How can I find $\lim_{r\rightarrow 0} \frac{r^2}{zr}$ given that $z=r e^{i \theta} $, where r and $\theta$ are real numbers and $z \in \mathbb{C}$?
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An increase in the number of firms will: a) decrease the market price and increase consumer surplus b) decrease the market price but the effect on consumer surplus is uncertain c) have no effect on the market price but will increase consumer surplus d) increase the market price and reduce consumer surplus
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Assume the following information: 1. The legal reserve ratio is 15%. 2. There are no excess reserves in the banking system. 3. The Fed sells $100,000 worth of securities to the public. The final result of this Fed action will be a: A) decrease in the money supply of $66,667. B) decrease in the money supply of $15...
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Portfolio beta: An investor owns a $1 million portfolio that is invested in three stocks and a risk-free security. $350,000 is invested in Stock A, which has a beta of 0.75; $450,000 is invested in Stock B, which has a beta of 1.50; and $200,000 is invested in a risk-free asset, which has a beta of 0. The beta of the i...
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Minimize f(x,y,z) = xyz on the sphere x^2 + y^2 + z^2 = 8.
-16/3sqrt(2/3)
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All of the following are true regarding the cost of capital, except: a) increases as the firm's risk decreases b) increases as corporate income taxes decrease c) increases as the market risk premium increases d) decreases as the amount of debt increases e) a and d
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The Cloverdale Corp. provided the following information for 2016: Beginning fixed overhead in inventory $6,000 Ending fixed overhead in inventory $3,600 Total variable overhead $69,000 Fixed overhead $30,000 If management wants to get rid of all ending inventories for 2016, how much more or less operating income w...
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What is the exact solution of $$\lim_\limits{n \rightarrow \infty} \int_\limits{[0,1]} e^{nx} d \lambda $$
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Is there an easier way to solve: $$\int_0^\infty \frac{\ln(1+x^2)}{1+x^2}\,{\rm d}x$$ By substituting $u=1+x^2$, so ${\rm d}u=2x\,{\rm d}x$?
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Rafael receives an increase in the fair market value of the following items during the year. Which is not eligible for a Section 1231 gain? a. Stock investments. b. Property transferred by gift. c. Operating properties. d. Non-depreciable real property. e. All the above.
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In thermodynamics, partial derivatives state which variable is held constant. For example $\frac{\partial U}{\partial V}\vert_T$ means the partial derivative of the internal energy $U$ with respect to the volume $V$, keeping the temperature $T$ constant. What happens to the other variables in the function $U$ if they a...
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The demand for x wind surfboards is given by p = 150 - .2 x. If the supply function is p = 40 + .2 x, find the equilibrium quantity and equilibrium price.
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The Cemex Company has invested in a machine that cost $86,000, that has a useful life of sixteen years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the straight-line method, based on its useful life. It will have a payback period of eight years. Given these data, det...
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Chevelle Company produces two types of office chairs, Model A and Model B. It estimates the following results for next year. Model A Model B Sales revenue $600,000 $700,000 Variable cost of goods sold $340,000 $410,000 Variable selling and administrative expense $4...
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Given that $U$ is a unitary matrix such that $U\Bbb{C}^n=\Bbb{C}^n$, how can I show that the operator norm of $U$ is $1$, i.e. $\Vert U\Vert=1$?
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Use the following information to answer this question. An asset has a four-year life. It costs $1,000 and has no salvage value. It generates $500 in cash inflows for each of the next four years. Assuming a discount rate of 8%, what is the net present value (NPV) of the asset? a. $1,459 b. $259 c. $1,878 d. $258
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Suppose that the government wishes to balance the government budget by raising taxes. What effect will this have on investment? a. rise b. fall c. no change d. insufficient information
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How many households should you survey if you want to be 94% confident that your sample percentage has a margin of 4%, given a previous study suggests vehicles are owned in 86% of households?
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Find the interest rate of an annuity whose present value is one-half its future value. The annuity is to be paid at the end of each year for the next eight years. The interest rate is an annual rate compounded annually.
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A monopolist faces the following demand curve: Quantity Total Revenue Total Cost Price Demanded ($ per unit) ($ per unit) ($ per unit) $11.00 1 $11.00 $15.00 $10.00 2 $20.00 $18.00 $9.00 3 $27...
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A company had the following account balances at the beginning and end of November. What are its net cash flows from operating activities? November 1November 30 Accounts payable$26,000$15,000 Accounts receivable$28,000$20,000 Inventory$35,000$27,000 Net income$68,000 a. $93,000 b. $71,000 c. $65,000 d. $79,000 e...
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Suppose a firm increases its inventory of finished goods. Net cash flow from operating activities, under the indirect method, will be higher if the increase in inventory is A. financed by issuing common stock. B. accounted for as a current liability. C. ignored. D. deducted from net income.
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For the current year ($ in millions), Centipede Corp. had $80 in pretax accounting income. This included warranty expense of $6 and $20 in depreciation expense. Two million of warranty costs were incurred, and MACRS depreciation amounted to $35. In the absence of other temporary or permanent differences, what was Centi...
C
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P Company is considering the acquisition of S Inc. To assess the amount it might be willing to pay, P makes the following computations and assumptions: A. S Inc. has identifiable assets with a total fair value of $8,000,000 and liabilities of $5,300,000. The assets include office equipment with a fair value approximat...
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It was reported earlier in the year that the U.S. Dairy farmers have seen a "souring" or softening in their demand for their product. Which of the following would cause the global demand curve for milk to shift to the left? a. Domestic issues in Russia, Venezuela, and other countries, which have caused reductions in i...
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Boeing Inc., the manufacturer of commercial airplanes, is considering a new investment that would make it more difficult for labor unions to coordinate a strike and thereby reduce the likelihood of a work stoppage. This would have the effect of reducing costs by about $10 million per year. What is the relevant cash flo...
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Stocks A, B, and C have expected returns of 13%, 10%, and 15%, respectively. What is the expected return on a portfolio constructed to sell short $50,000 of Stock A and buy $150,000 of Stock C and $100,000 of Stock B? A. 12.50% B. 13.50% C. 14.00% D. 14.50%
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What is the probability that the mean salary of a random sample of 36 environmental compliance specialists is less than $60,500, given a population mean of $62,000, a standard deviation of $5,800, and a sample size of 36?
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How do I apply contour integral $I =\oint z^ndz$ where $n\in \mathbb{N}$ to solve the above diagram?
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Baker Sales earns 5% commission on the first $1 million of sales, 7% on the next $1 million, and 10% on all sales over $2 million. Assume Baker earned $4 million in sales this month. How much did Baker earn in commissions? a. $350,000. b. $400,000. c. $280,000. d. $275,000.
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Find the degrees of freedom (df) and mean square (MS) for treatment in an experiment comparing 6 groups with 10 participants in each group, given a sum of squares for treatment (SST) of 350.
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Why are sampling distributions important in statistics? a) Sampling distributions are used to determine standard deviations. b) Sampling distributions are used to determine probabilities for specific scores. c) Sampling distributions are used to determine extreme scores. d) Sampling distributions are used to determ...
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Sales revenue is: a. A temporary account b. An expense account c. A permanent account d. A liability account
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F & W is considering two alternatives which have no salvage value. If the company uses an after-tax MARR of 9% and the corporate income tax is 40%, which alternative should they select? A B Initial Cost $21,000 $16,000 Uniform Annual Benefit 6,300 5,600 ...
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Pareto Corporation owns 40% of Spring Corporation. During Year 3, Spring has net income of $60,000. What entry should Pareto record related to its investment in Spring during Year 3? a. Investment in Spring Corp. 24,000 Equity in Earnings of Affiliate 24,000 b. Dividend Receivable 24,000 Dividend I...
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How does one derive that $m=-3$ and $b=5$ in the expression $\frac{Y-X\beta}{\sqrt{X^2+a}}=m\cos(t)+b\sin(t)$ from the given regression analysis with $a=1$, $\beta=-0.3$, and a sample correlation of $-0.93$, and knowing that $m=\rho\frac{b}{\sqrt{a+b^2}}$ and $b=\rho\frac{m}{\sqrt{a+m^2}}$ with $\rho$ being the sample ...
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If marginal cost is greater than average variable cost, then: a. average variable cost is decreasing. b. average total cost is increasing. c. marginal cost is decreasing. d. average total cost is increasing.
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The revenue from the sale of x units of a product is {eq}R(x) = 62x - 0.06x^2{/eq} and the total cost is {eq}C(x) = 19x + 49{/eq}. Find the number of units that must be sold to maximize profit.
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Pat's Pilots, Inc. owns 128 commercial aircraft, each of which has its own financing plan. Each plane cost $61 million. Of that amount, Pat's Pilots owns 60% of the planes through a capital lease. The other 40% is a bank loan that the company will pay off in 3 years. Pat's Pilots issued $10 million of common stock 2 ye...
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A company determines that its marginal revenue per day is given by {eq}\frac{dr}{dx} = 50e^{-0.2x} {/eq} where r(x) is the total accumulated revenue, in dollars, on the x-th day. The company's marginal cost per day is given by {eq}\frac{dc}{dx} = 5 - 0.1x {/eq} where c(x) is the total accumulated cost, in dollars...
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What is the correct approach to calculate the limit $$\lim \limits_{x \to \infty} \frac{{ln(\frac x{x+1})}}{\frac 1x}$$ and why does my approach of simplifying the numerator to 0 and then substituting it back into the limit lead to an indeterminate form that I cannot solve?
-1
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What happens to the effective tax rate on equity capital, as measured by Lerner, if all returns to capital are taxed at the same rate? a) It falls to zero. b) It rises to infinity. c) It stays constant. d) It falls, but does not go to zero. e) It rises, but does not go to infinity.
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A company recently paid a $2 per share cash dividend on its common stock ($20 par). The stock has a total of 100,000 shares outstanding. Which of the following is the correct journal entry to record this transaction? a) Retained earnings300,000 Dividends payable300,000 b) Cash300,000 Retained earnings300,000 c) ...
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You have the following cash flows. What is the profitability index if the required rate of return is 14.5 percent? Year 0 1 2 3 4 Cash flow -$2,160 $630 $1,470 $840 $1,710 a. 0.78 b. 0.62 c. 1.19 d. 0.96 e. 1.10
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A fraction becomes 1/2 when 5 is added to its numerator and it becomes 1/3 when 7 is added to its denominator. What is the denominator of the fraction?
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Let $f: [a,b] \rightarrow R$ be a Riemann integrable function. Prove or disprove $\int_a^b \left|f\right| dx = 0$ implies $f(x) = 0 \forall x \in [a,b]$. What if $f$ is continuous on $[a,b]$?
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AFS company has a monopoly in the soda industry in this country. The demand curve, marginal revenue and marginal cost curve for soda are given as follows: P = 360 - 4Q MR = 360 - 8Q MC = 4Q At the profit maximizing level of output, what is the level of consumer surplus?
$1800
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Find all equilibrium solutions of the differential equation {eq}y' = e^{y - x} {/eq}.
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Casey purchased an apartment building for $500,000 in 1992. On January 1, 2010, she sold the apartment building for $850,000. What is the amount of Casey's gain and what is the character of the gain? a) $850,000 of ordinary income b) $100,000 of short-term capital gain and $750,000 of long-term capital gain c) $350,...
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Which of the following are most likely to be subject to cross-cultural management? a. Strategic planning and decision making. b. Organizational structure and hierarchy. c. Reward systems. d. Physical arrangements of the office. e. All of the above.
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The following information relates to the operating budget of M, Inc.: Estimated unit sales for 2018: 200,000 Estimated unit sales for 2019: 160,000 Estimated unit sales for 2020: 220,000 Actual unit sales for 2018: 210,000 Actual unit sales for 2019: 165,000 Actual unit sales for 2020: 218,000 Based on this info...
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The AE curve: a. indicates that (the quantity of) output rises as the real interest rate falls b. is derived from the long run AD-AS graph c. is drawn for a given discount rate and level of output d. is derived from the short run AEPC graph
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In preparing the April bank reconciliation for Oscar Company, it was discovered that on April 10 a check was written to pay delivery expense of $45 but the check was erroneously recorded as $54 in the company's books. The journal entry required to correct the error is: a. Delivery expense45 Cash 45 b. Cash9 Deliv...
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Indicate whether the following statements are true or false. Assume the AD and AE curves are fixed and do not shift. a. If taxes rise, Y will fall but P will remain constant. b. If there is a technological advance, Y will rise but P will remain constant. c. If there is an increase in the price of imported goods, Y w...
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A straight wire of mass M and average linear density ρ extends from x = 0 to x = L. The wire is oriented so that the y-axis runs down the length of the wire. The current in the wire is I. There is a uniform magnetic field in the region given by {eq}B = B_0 \hat y. {/eq} Determine the smallest value for I, so that the ...
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Which of the following statements is CORRECT? a. Capital budgeting focuses on finding new projects. b. The NPV method can be used for all types of projects, independent or mutually exclusive, repeatable or not repeatable. c. The IRR method can be used for all types of projects, independent or mutually exclusive, rep...
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A graph of the euro's exchange rate against the dollar from 2000 to 2012 would show that the exchange rate A) rose over that period, but did so in a volatile manner. B) rose over that period, but in a relatively smooth manner. C) did not change much over that period. D) plunged during the 2008 financial crisis, and...
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While working on her science homework, Aliana has accidentally spilt some chemicals on her work surface. The spot is triangular in shape, with a height of 4 cm and a base length of 6 cm. To prevent the chemicals from staining her work surface, she decides to cover the spot with a sheet of plastic. How much plastic does...
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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? A. 1.30 B. 1.00 C. 0.98 D. 1.39 E. 1.44
A
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Regulatory forbearance: A) meant delaying the closing of "zombie S&Ls" as their losses mounted during the 1980s. B) had the advantage of benefiting healthy S&Ls at the expense of "zombie S&Ls", as insolvent institutions lost deposits to health institutions. C) had the advantage of permitting many insolvent S&Ls the ...
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A firm is considering a project with the following estimated cash flows: C0 = -$5,000; C1 = $1,500; C2 = $1,500; C3 = $2,000; C4 = $1,000. The required return for the project is 12%. By using the profitability index, should the project be accepted? A) No, the PI is 0.616 B) No, the PI is 0.418 C) Yes, the PI is 1.5...
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Which of the following inventory methods may include a patterned, non-chronological flow of goods? A) perpetual inventory method B) periodic inventory method C) LIFO inventory method D) FIFO inventory method
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What is the pH of a solution which is 0.10 M in weak base and 0.10 M in the conjugate weak acid (Ka = 7.1 × 10^-6)?
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Evaluate the following integral: {eq}\int\limits_{\ln \tanh (1)}^{\ln \tanh (2)} {\tanh x\;\operatorname dx} {/eq}
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Which of the following enables management trainees to work full-time analyzing and solving problems in other departments? A) management games B) action learning C) role playing D) job rotation
B
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Which of the following is not included as a primary part of the financial disclosure in Form 10-K? A. Financial data for a 5-year period. B. Management's opinion of the financial statements. C. Business operations and strategy. D. Four basic financial statements.
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What is the slope of the function f(x) = ln(tan^2x) at x = π/6?
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Which of the following is least likely to be used by a manager to set the right tone to foster ethical leadership? a. Make decisions that are universal. b. Reflect before deciding. c. Consider the implications of one's actions on the stakeholders. d. Make decisions that do not harm others.
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Assume that shares of stock are sold short. On what balance sheet accounts will the broker make a debit entry? a. Cash and short sales. b. Cash and additional paid-in capital. c. Short sales and long stocks. d. Additional paid-in capital and long stocks.
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On Thursday the following bond quotation appears in the newspaper. Interpret each item that appears in the quote and compute its current yield (dollar amounts are in 000s): Company (Ticker) Coupon Maturity Last Price Last Yield Est Spread Est UST $VOL Walmart Stores (WMT) 4.550 May 1, 2013 99.270 4.649 47 10 66,830
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A call option is currently selling for $4.40. It has a strike price of $50 and five months to maturity. What is the price of a put option with a $50 strike price and five months to maturity? The current stock price is $52, and the risk-free interest rate is 4.6%. (Do not round intermediate calculations. Round your ans...
1.45
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At a large public university, the mean mathematics SAT score is 471.1 with a standard deviation of 99.3. A random sample of 39 mathematics SAT scores is obtained. What is the probability that the mean score for the sample is less than 475.9?
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Let {eq}S{/eq} be the portion of the plane {eq}z = 4 + x + y{/eq} that lies in the first octant, oriented with upward-pointing normal, and let {eq}F(x, y, z) = \left \langle 2xz, z^2, x^2 \right \rangle.{/eq} Use Stokes' theorem to find {eq}\int_S curl F\cdot dS.{/eq}
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Use the differential dy to approximate Δy when x changes as indicated. y = 5x/(2x^2 + 7) ; from x = 3 to x = 3.14
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A company took 3 pieces of used equipment from a demolished building with a book value of $200,000 and exchanged them with another company for similar equipment. The equipment received had an estimated value of $220,000. In addition, the exchanging company was to pay the other company $20,000 to complete the exchange. ...
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Choose the statement that is correct: A. Depreciation expense is included in calculating net cash flow from operations. B. The FASB believes that cash flow information alone is not sufficient for decision makers to assess a company's financial performance. C. The FASB prefers that depreciation expense be classified ...
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To find: $$\lim_{x \to 0} \left(\frac{ \sin(x)}{x}\right)^\frac{1}{x}$$ by using Taylor's formula, given $\sin(x) = x - \frac{x^3}{6} + O(x^4)$, and thus the function becomes: $$\lim_{x \to 0} \left(\frac{ x - \frac{x^3}{6} + O(x^4)}{x}\right)^\frac{1}{x} = \lim_{x \to 0} \left(1 - \frac{x^2}{6} + O(x^3)\right)^\frac{1...
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Bonds issued by the Coleman Manufacturing Company have a par value of $1,000, which of course is also the amount of principal to be paid at maturity. The bonds are currently selling for $1,200, and they have 10 years remaining to maturity. The annual interest payment is 10 percent ($100). Compute the yield to maturity...
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