Fall 2009 Exam 3
12 Pages

Fall 2009 Exam 3

Course Number: FIN 221, Spring 2010

College/University: University of Illinois,...

Word Count: 4179

Rating:

Document Preview

FIN 221 Exam 3 Fall 2009 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Hindelang Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. WACC: 13.25% Year 0 Cash flows -$850 A. B. C. D. E. 12.90%...

Unformatted Document Excerpt
Coursehero >> Illinois >> University of Illinois, Urbana Champaign >> FIN 221

Course Hero has millions of student submitted documents similar to the one
below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

221 FIN Exam 3 Fall 2009 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Hindelang Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. WACC: 13.25% Year 0 Cash flows -$850 A. B. C. D. E. 12.90% 14.43% 17.31% 16.97% 17.65% 1 $300 2 $320 3 $340 4 $360 2. Mayspring Corporation common stock is currently selling for $72.00 per share. A call option on Mayspring Corporation that expires in 2 months has an exercise price of $69. This call option is said to be ____________. A. Out-of-the-money B. At-the-money C. covered D. In-the-money 3. As a member of UA Corporation's financial staff, you must estimate the Year 1 cash flow for a proposed project with the following data. What is the Year 1 cash flow? Sales revenues, each year $40,500 Depreciation $10,000 Other operating costs $17,000 Interest expense $4,000 Tax rate 35.0% A. B. C. D. E. $15,959 $20,465 $18,024 $18,775 $14,457 4. To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, sells at a price of $875, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation? A. 6.15% B. C. D. E. 5.95% 6.47% 5.31% 5.63% Use the following information to answer the next 2 questions. Willies Scottish Grease International is considering replacing their existing grease gouging equipment with new equipment that has a technology that will not only be less costly to operate but will gouge more grease. The original equipment was purchased 5 years ago at a cost of $280,000 and is being depreciated using 8-year straight-line depreciation to zero. The original equipment can be sold for $90,000 today. The new equipment cost is $600,000, qualifies for the 3-year MACRS depreciation class and has a 3-year useful life. The applicable MACRS rates are 33%, 45%, 15% and 7%, respectively. The new grease gouging equipment would increase revenues $50,000 annually and would decrease operating costs (other than depreciation) by $85,000 annually. At the end of the 3-year life of this replacement analysis, the old equipment has an estimated slavage value of zero and the new equipments salvage value is expected to be $100,000. The companys tax rate is 40% and their WACC is 14%. Also, the company expects to have enough other taxable income to write off any losses that may occur as a result of the replacement project. 5. What is the initial cash flow (t = 0) for Willies replacement project? A. -$504,000 B. -$495,000 C. -$510,000 D. -$516,000 E. -$600,000 6. What is the the year 1 operating cash flow for Willies replacement project? A. $105,000 B. $150,000 C. $160,200 D. $120,000 E. $146,200 7. Sapp Truckings balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to maturity of 6.00%. This debt currently has a market value of $50 million. The balance sheet also shows that the company has 10 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $65 million. The current stock price is $21.00 per share; stockholders' required return, rs, is 14.00%; and the firm's tax rate is 40%. The CFO thinks the WACC should be based on market value weights, but the president thinks book weights are more appropriate. What is the difference between these two WACCs? A. 2.25% B. 1.74% C. 2.23% D. 2.07% E. 2.16% 8. Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. A. The regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem. B. The longer a projects payback period, the more desirable the project is normally considered to be by this criterion. C. If a projects payback is positive, then the project should be rejected because it must have a negative NPV. D. If a company uses the same payback requirement to evaluate all projects, say it requires a payback of 4 years or less, then the company will tend to reject projects with relatively short lives and accept long-lived projects, and this will cause its risk to increase over time. E. One drawback of the payback criterion for evaluating projects is that this method does not properly account for the time value of money. 9. Bosio Inc.'s perpetual preferred stock sells for $75.00 per share, and it pays an $8.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC? A. 11.81% B. 14.40% C. 13.93% D. 10.39% E. 14.28% 10. Norris Enterprises, an all-equity firm, has a beta of 2.0. The chief financial officer is evaluating a project with an expected return of 14%, before any risk adjustment. The risk-free rate is 5%, and the market risk premium is 4%. The project being evaluated is riskier than an average project, in terms of both its beta risk and its total risk. Which of the following statements is CORRECT? A. The project should definitely be accepted because its expected return (before any risk adjustments) is greater than its required return. B. The project should definitely be rejected because its expected return (before risk adjustment) is less than its required return. C. Capital budgeting projects should be evaluated solely on the basis of their total risk. Thus, insufficient information has been provided to make the accept/reject decision. D. The accept/reject decision depends on the firm's risk-adjustment policy. If Norris' policy is to increase the required return on a riskier-than-average project to 3% over rs, then it should reject the project. E. Riskier-than-average projects should have their expected returns increased to reflect their higher risk. Clearly, this would make the project acceptable regardless of the amount of the adjustment. 11. How can a gold futures contract be used as a hedge against a potentially dramatic increase in the price of the gold needed as a component material for the production of computer microprocessors? A. The computer company should buy gold futures contracts. B. The computer company should sell gold futures contracts. C. The computer company should sell more gold futures contracts than it should buy. D. This is a standard business situation, so no hedge is needed. 12. Assume that the economy is in a mild recession, and as a result interest rates and money costs generally are relatively low. The WACC for two mutually exclusive projects that are being considered is 8%. Project S has an IRR of 20% while Project L's IRR is 15%. The projects have the same NPV at the 8% current WACC. However, you believe that the economy is about to recover, and money costs and thus your WACC will also increase. You also think that the projects will not be funded until the WACC has increased, and their cash flows will not be affected by the change in economic conditions. Under these conditions, which of the following statements is CORRECT? A. You should recommend Project S because it has the higher IRR and will continue to have the higher IRR even at the new WACC. B. You should reject both projects because they will both have negative NPVs under the new conditions. C. You should recommend Project L, because at the new WACC it will have the higher NPV. D. You should delay a decision until you have more information on the projects, even if this means that a competitor might come in and capture this market. E. You should recommend Project S, because at the new WACC it will have the higher NPV. 13. Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 0 Cash flows -$700 A. B. C. D. E. 1.57 years 1.38 years 1.54 years 1.56 years 1.48 years 1 $525 2 $485 3 $445 4 $405 14. Mansi Inc. is considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 Cash flows -$750 $300 $325 $350 A. B. C. D. E. 2.19 years 1.93 years 2.40 years 2.36 years 2.69 years 15. Liberty Services is now at the end of the final year of a project. The equipment originally cost $30,000, of which 75% has been depreciated. The firm can sell the used equipment today for $6,000, and its tax rate is 40%. What is the equipments after-tax salvage value for use in a capital budgeting analysis? Note that if the equipment's final market value is less than its book value, the firm will receive a tax credit as a result of the sale. A. $6,600 B. C. D. E. $8,250 $6,670 $6,070 $7,660 16. TexMex Food Company is considering a new salsa whose data are shown below. The equipment to be used would be depreciated by the straight-line method over its 3-year life and would have a zero salvage value, and no new working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. However, this project would compete with other TexMex products and would reduce their pre-tax annual cash flows. What is the project's NPV? (Hint: Cash flows are constant in Years 1 -3.) WACC 10.0% Pre-tax cash flow reduction for other products (cannibalization) -$5,000 Investment cost (depreciable basis) $80,000 Straight-line depr. rate 33.333% Sales revenues, each year for 3 years $73,500 Annual operating costs (excl. depr.) -$25,000 Tax rate 35.0% A. B. C. D. E. $10,550 $13,526 $14,067 $16,772 $16,095 17. Which of the following factors should be included in the cash flows used to estimate a projects NPV? A. Cannibalization effects, but only if those effects increase the projects projected cash flows. B. Expenditures to date on research and development related to the project, provided those costs have already been expensed for tax purposes. C. Interest on funds borrowed to help finance the project. D. All costs associated with the project that have been incurred prior to the time the analysis is being conducted. E. The end-of-project recovery of any working capital required to operate the project. 18. Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D0 = $0.90; P0 = $30.00; and g = 7.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? A. 9.60% B. 7.66% C. 8.37% D. 10.21% E. 11.33% 19. A firm is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The CEO wants to use the IRR criterion, while the CFO favors the NPV method. You were hired to advise the firm on the best procedure. If the wrong decision criterion is used, how much potential value would the firm lose? WACC: CFS CFL A. B. C. D. E. $168.31 $136.85 $166.73 $157.30 $152.58 7.75% 0 -$1,025 -$2,150 1 $380 $765 2 $380 $765 3 $380 $765 4 $380 $765 20. Schalheim Sisters Inc. has always paid out all of its earnings as dividends, hence the firm has no retained earnings. This same situation is expected to persist in the future. The company uses the CAPM to calculate its cost of equity, its target capital structure consists of common stock, preferred stock, and debt. Which of the following events would REDUCE its WACC? A. Expected inflation increases. B. The companys beta increases. C. The flotation costs associated with issuing preferred stock increase. D. The flotation costs associated with issuing new common stock increase. E. The market risk premium declines. 21. Atlas Corp. is considering two mutually exclusive projects. Both require an initial investment of $10,000 at t = 0. Project S has an expected life of 2 years with after-tax cash inflows of $6,000 and $8,000 at the end of Years 1 and 2, respectively. Project L has an expected life of 4 years with after-tax cash inflows of $4,373 at the end of each of the next 4 years. Each project has a WACC of 10.75%, and Project S can be repeated with no changes in its cash flows. The controller prefers Project S, but the CFO prefers Project L. How much value will the firm gain or lose if Project L is selected over Project S, i.e., what is the value of NPVL - NPVS? A. $127.64 B. $95.73 C. $107.55 D. $118.19 E. $132.37 22. An investor who sells an option to offset a stock position he/she holds is said to be selling a(n) A. Covered option. B. Naked option. C. Out-of-the-money option. D. Call option. E. Put option. 23. 6-month A call option on Romer Technologies' stock has a strike price of $45.00 and sells in the market for $8.25. Romer's current stock price is $48.75. What is the exercise value of the option? A. $3.15 B. $3.40 C. $3.75 D. $4.25 E. $3.70 Flintstone Beverage Company is considering two beverage projects with the following cash flows. Year Bedrock & Roll Soda Dino-mite Cola 0 -150,000 -200,000 1 60,000 80,000 2 90,000 110,000 3 80,000 100,000 Flintstones WACC is 13% for both projects. 24. At what interest rate do Flintstones two projects have the same NPV and which project should Flintstone prefer at their WACC of 13%? A. 11.2%; Dino-mite Cola B. 14.8%; Dino-mite Cola C. 6.5%; Bedrock & Roll Soda D. 15.6%; Bedrock & Roll Soda E. 9.7%; Bedrock & Roll Soda 25. Which of the following statements is CORRECT? A. If they use accelerated depreciation, firms will write off assets slower than they would under straight-line depreciation, and as a result projects forecasted NPVs are normally lower than they would be if straight-line depreciation were required for tax purposes. B. Since depreciation is not a cash expense, and since cash flows and not accounting income are the relevant input, depreciation plays no role in capital budgeting. C. If they use accelerated depreciation, firms can write off assets faster than they could under straight-line depreciation, and as a result projects forecasted NPVs are normally lower than they would be if straight-line depreciation were required for tax purposes. D. If they use accelerated depreciation, firms can write off assets faster than they could under straight-line depreciation, and as a result projects forecasted NPVs are normally higher than they would be if straight-line depreciation were required for tax purposes. E. Under current laws and regulations, corporations must use straight-line depreciation for all assets whose lives are 3 years or longer. 26. Which of the following statements is CORRECT? A. It is unrealistic to believe that any increases in net working capital required at the start of an expansion project can be recovered at the projects completion. Working capital like inventory is almost always used up in operations. Thus, cash flows associated with working capital should be included only at the start of a projects life. B. Only incremental cash flows are relevant in project analysis, the proper incremental cash flows are the reported accounting profits, and thus reported accounting income should be used as the basis for investor and managerial decisions. C. If equipment is expected to be sold for more than its book value at the end of a projects life, this will result in a profit. In this case, despite taxes on the profit, the end-of-project cash flow will be greater than if the asset had been sold at book value, other things held constant. D. If an asset is sold for less than its book value at the end of a projects life, it will generate a loss for the firm, hence its terminal cash flow will be negative. E. Changes in net working capital refer to changes in current assets and current liabilities, not to changes in long-term assets and liabilities, hence they should not be considered in a capital budgeting analysis. 27. Cranberry Corp. has two divisions of equal size: a computer manufacturing division and a data processing division. Its CFO believes that stand-alone data processor companies typically have a WACC of 8%, while stand-alone computer manufacturers typically have a 12% WACC. He also believes that the data processing and manufacturing divisions have the same risk as their typical peers. Consequently, he estimates that the composite, or corporate, WACC is 10%. A consultant has suggested using an 8% hurdle rate for the data processing division and a 12% hurdle rate for the manufacturing division. However, the CFO disagrees, and he has assigned a 10% WACC to all projects in both divisions. Which of the following statements is CORRECT? A. While the decision to use just one WACC will result in its accepting more projects in the manufacturing division and fewer projects in its data processing division than if it followed the consultants recommendation, this should not affect the firms intrinsic value. B. The decision not to risk adjust means that the company will accept too many projects in the data processing business and too few projects in the manufacturing business. This will lead to a reduction in its intrinsic value over time. C. The decision not to adjust for risk means that the company will accept too many projects in the manufacturing division and too few in the data processing division. This will lead to a reduction in the firms intrinsic value over time. D. The decision not to adjust for risk means, in effect, that it is favoring the data processing division. Therefore, that division is likely to become a larger part of the consolidated company over time. E. The decision not to risk adjust means that the company will accept too many projects in the manufacturing business and too few projects in the data processing business. This may affect the firms capital structure but it will not affect its intrinsic value. 28. Which of the following statements is CORRECT? A. For a project to have more than one IRR, then both IRRs must be greater than the WACC. B. If a project has two IRRs, then the smaller one is the one that is most relevant, and it should be accepted and relied upon. C. If two projects are mutually exclusive, then they are likely to have multiple IRRs. D. If a project is independent, then it cannot have multiple IRRs. E. Multiple IRRs can only occur if the signs of the cash flows change more than once. 29. Fool Proof Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, and the allowed depreciation rates for such property are 33%, 45%, 15%, and 7% for Years 1 through 4. Revenues and other operating costs are expected to be constant over the project's 10 -year expected life. What is the Year 1 cash flow? Equipment cost (depreciable basis) $48,000 Sales revenues, each year Operating costs (excl. depr.) Tax rate A. B. C. D. E. $21,786 $24,333 $33,670 $29,992 $28,294 $60,000 $25,000 35.0% 30. Bankston Corporation forecasts that if all of its existing financial policies are followed, its proposed capital budget would be so large that it would have to issue new common stock. Since new stock has a higher cost than retained earnings, Bankston would like to avoid issuing new stock. Which of the following actions would REDUCE its need to issue new common stock? A. Increase the dividend payout ratio for the upcoming year. B. Reduce the percentage of debt in the target capital structure. C. Increase the proposed capital budget. D. Reduce the amount of short-term bank debt in order to increase the current ratio. E. Increase the percentage of debt in the target capital structure. 31. Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. A. If a projects NPV is less than zero, then its IRR must be less than the WACC. B. The lower the WACC used to calculate it, the lower the calculated NPV will be. C. If a projects NPV is greater than zero, then its IRR must be less than zero. D. The NPV of a relatively low-risk project should be found using a relatively high WACC. E. A projects NPV is found by compounding the cash inflows at the IRR to find the terminal value (TV), then discounting the TV at the WACC. 32. Daves Inc. recently hired you as a consultant to estimate the companys WACC. You have obtained the following information. (1) The firm's noncallable bonds mature in 20 years, have an 8.00% annual coupon, a par value of $1,000, and a market price of $1,075.00. (2) The companys tax rate is 40%. (3) The risk-free rate is 4.50%, the market risk premium is 5.50%, and the stocks beta is 1.20. (4) The target capital structure consists of 35% debt and the balance is common equity. The firm uses the CAPM to estimate the cost of equity, and it does not expect to issue any new common stock. What is its WACC? A. 9.18% B. 8.74% C. 7.52% D. 8.13% E. 9.53% 33. Which of the following statements is CORRECT? A. All else equal, an increase in a companys stock price will increase its marginal cost of new common equity, re. B. If a companys tax rate increases but the YTM on its noncallable bonds remains the same, the after-tax cost of its debt will fall. C. Since the money is readily available, the after-tax cost of retained earnings is usually much lower than the after-tax cost of debt. D. All else equal, an increase in a companys stock price will increase its marginal cost of retained earnings, rs. E. When calculating the cost of preferred stock, a company needs to adjust for taxes, because preferred stock dividends are deductible by the paying corporation. 34. Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. A. If a projects IRR is greater than the WACC, then its NPV must be negative. B. A projects regular IRR is found by discounting the cash inflows at the WACC to find the present value (PV), then compounding this PV to find the IRR. C. To find a projects IRR, we must find a discount rate that is equal to the WACC. D. A projects regular IRR is found by compounding the cash inflows at the WACC to find the terminal value (TV), then discounting this TV at the WACC. E. To find a projects IRR, we must solve for the discount rate that causes the PV of the inflows to equal the PV of the projects costs. 35. The cash flows for a project are as follows. Year Cash Flow 1 300 2 400 3 500 4 600 While you have been told the project has an IRR of 15.5%, you dont know the initial cost of the project and your boss needs to know the NPV of this project. What is the NPV of this project if its WACC is 12.5%? A. 45 B. 0 C. 87 D. 138 E. -87 36. Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The yield on the companys outstanding bonds is 7.75%, its tax rate is 40%, the next expected dividend is $0.65 a share, the dividend is expected to grow at a constant rate of 6.00% a year, the price of the stock is $19.00 per share, the flotation cost for selling new shares is F = 10%, and the target capital structure is 45% debt and 55% common equity. What is the firm's WACC, assuming it must issue new stock to finance its capital budget? A. 8.76% B. 7.48% C. 7.78% D. 8.68% E. 7.93% 37. Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. A. A projects MIRR is always less than its regular IRR. B. To find a projects MIRR, we compound cash inflows at the IRR and then discount the terminal value back to t = 0 at the WACC. C. If a projects IRR is greater than its WACC, then the MIRR will be greater than the IRR. D. A projects MIRR is always greater than its regular IRR. E. If a projects IRR is greater than its WACC, then the MIRR will be less than the IRR. 38. A 6-month put option on Smith Corp.'s stock has a strike price of $47.50 and sells in the market for $8.90. Smith's current stock price is $41. What is the option premium? A. $2.40 B. $2.55 C. $2.70 D. $2.20 E. $2.35 39. An investor would buy a __________ if he/she believes that the price of the underlying stock or asset will fall in the near future. A. Convertible bond B. Put option C. Call option D. Futures contracts to take delivery of an asset at a future date 40. Which of the following should be considered when a company estimates the cash flows used to analyze a proposed project? A. Since the firms director of capital budgeting spent some of her time last year to evaluate the new project, a portion of her salary for that year should be charged to the projects initial cost. B. The company spent and expensed $10 million on a marketing study before its current analysis regarding whether to accept or reject the project. C. The company has spent and expensed $1 million on R&D associated with the new project. D. The new project is expected to reduce sales of one of the companys existing products by 5%. E. The firm would borrow all the money used to finance the new project, and the interest on this debt would be $1.5 million per year. FIN 221 Exam 3 Fall 2009 Answer Section MULTIPLE CHOICE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. D D D C A E A E A D A E D D A B E D D E D A C E D C C E E E A B B E C B E A B D

Find millions of documents on Course Hero - Study Guides, Lecture Notes, Reference Materials, Practice Exams and more. Course Hero has millions of course specific materials providing students with the best way to expand their education.

Below is a small sample set of documents:

University of Illinois, Urbana Champaign - FIN - 221
Finance 221 Time Value of Money Excel Project Compass Submission Due by 10 PM, Sunday, Feb. 7 Please use Excel financial functions or algebraic time value of money equations to answer these questions in your spreadsheet. Please type the names of everyone
University of Illinois, Urbana Champaign - FIN - 221
Finance 221 Bond/CAPM Excel Project Compass Submission Due by 10 PM, Sunday, March 14 Please use Excel financial functions or algebraic time value of money equations to answer these questions in your spreadsheet. Please type the names of everyone in your
University of Illinois, Urbana Champaign - FIN - 221
Finance 221 Capital Budgeting Excel Project Compass Submission Due by 10 PM, Sunday, April 25 Please use Excel financial functions or algebraic time value of money equations to answer these questions in your spreadsheet. Please type the names of everyone
University of Illinois, Urbana Champaign - FIN - 221
FINANCE 221 QUIZ SCHEDULE SPRING 2010Pre-Flight Assignment & Post-Quiz ScheduleWeek Chapter 1 2 3 4 5 6 7 8 9 10 11 12 13 1 5 3 4 Exam 1 week 2&6 7 8 9 & App 9A Exam 2 week 10 11 12, App 12A Pre-Quiz Due Date: 11:59 PM none Monday, Jan. 25 Monday, Feb.
University of Illinois, Urbana Champaign - FIN - 221
FIN 221 Spring 2009 Exam 1Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Which of the following factors could explain why last year Cleaver Energy had negative net cash flow, but the cash on its balance
University of Illinois, Urbana Champaign - FIN - 221
FIN 221 Spring 2009 Exam 2Multiple Choice Identify the choice that best completes the statement or answers the question. 1. KJM Corporation's balance sheet as of January 1, 2006 is as follows: Long-term debt (bonds, at par) Preferred stock Common stock (
University of Illinois, Urbana Champaign - FIN - 221
Fin 221 Spring 2009 Exam 3Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Wagner Inc estimates that its average-risk projects have a WACC of 10%, its below-average risk projects have a WACC of 8%, and its
University of Illinois, Urbana Champaign - FIN - 221
Finance221Course SyllabusAcademic IntegrityThe University of Illinois statement on your obligation to maintain academic integrity is: If you engage in an act of academic dishonesty, you become liable to severe disciplinary action. Such acts include che
University of Illinois, Urbana Champaign - ECON - 302
Chapter 9Production1What is production?Productionisaprocessthattransformsinputs (factorsofproduction)intooutputs.Outputissomethingthatproducespresentorfuture utility. Productionisanyactivitythatcreatespresentorfuture utility. Actoftellingjokeconstitu
University of Illinois, Urbana Champaign - ECON - 302
Chapter 12 MONOPOLY1Chapter Goals Defining monopoly Sources of monopoly:control over key inputs scale patents network economies Mlonopolist behavior: icensesOne marketeconomics of governmentSeveral marketsfficiency properties of monopoly equilibri
University of Illinois, Urbana Champaign - ECON - 302
Econ 302- First Problem Set Spring 2010-Ali Toossi Due: Wednesday, February 3 All problem sets should be prepared neatly and professionally. Problem sets should be typed, stapled and should contain the following information on the right-hand corner of the
University of Illinois, Urbana Champaign - ECON - 302
Econ 302- Second Problem Set Spring 2010-Ali Toossi Due: Wednesday, February 10 All problem sets should be prepared neatly and professionally. Problem sets should be typed, stapled and should contain the following information on the right-hand corner of t
University of Illinois, Urbana Champaign - ECON - 302
Econ 302- 3rd Problem Set Spring 2010-Ali Toossi Due: Wednesday, February 17 All problem sets should be prepared neatly and professionally. Problem sets should be typed, stapled and should contain the following information on the right-hand corner of the
University of Illinois, Urbana Champaign - ECON - 302
Econ 302- 4th Problem Set Spring 2010-Ali Toossi Due: Wednesday, February 24 All problem sets should be prepared neatly and professionally. Problem sets should be typed, stapled and should contain the following information on the right-hand corner of the
University of Illinois, Urbana Champaign - ECON - 302
Econ 302- 5th Problem Set Spring 2010-Ali Toossi Due: Wednesday, March 3 All problem sets should be prepared neatly and professionally. Problem sets should be typed, stapled and should contain the following information on the right-hand corner of the page
University of Illinois, Urbana Champaign - ECON - 302
Econ 302- 6th Problem Set Spring 2010-Ali Toossi Due: Wednesday, March 10 All problem sets should be prepared neatly and professionally. Problem sets should be typed, stapled and should contain the following information on the right-hand corner of the pag
University of Illinois, Urbana Champaign - ECON - 302
Econ 302- 7th Problem Set Spring 2010-Ali Toossi Due: Tuesday, March 16 at the beginning of the review session or you can put it in my mailbox in 313 DKH before 4:45pm All problem sets should be prepared neatly and professionally. Problem sets should be t
University of Illinois, Urbana Champaign - ECON - 302
Econ 302- 8th Problem Set Spring 2010-Ali Toossi Due: Wednesday, March 31 All problem sets should be prepared neatly and professionally. Problem sets should be typed, stapled and should contain the following information on the right-hand corner of the pag
University of Illinois, Urbana Champaign - ECON - 302
Econ 302- Problem Set 9 Spring 2010-Ali Toossi Due: Wednesday April 7 All problem sets should be prepared neatly and professionally. Problem sets should be typed, stapled and should contain the following information on the right-hand corner of the page: y
University of Illinois, Urbana Champaign - ECON - 302
Econ 302- Problem Set 10 Spring 2010-Ali Toossi Due: Wednesday, April 14 All problem sets should be prepared neatly and professionally. Problem sets should be typed, stapled and should contain the following information on the right-hand corner of the page
University of Illinois, Urbana Champaign - ECON - 302
Econ 302- Problem Set 11 Spring 2010-Ali Toossi Due: Wednesday, April 21 All problem sets should be prepared neatly and professionally. Problem sets should be typed, stapled and should contain the following information on the right-hand corner of the page
University of Illinois, Urbana Champaign - ECON - 302
Econ 302- Solution to Problem Set 11 Spring 2010-Ali Toossi Due: Wednesday, April 21 Chapter 10: Questions for review Answer to question 1. The law of diminishing returns implies that eventually the TVC curve will begin to rise at an increasing rate Answe
University of Illinois, Urbana Champaign - ECON - 302
Econ 302- Problem Set 12 Spring 2010-Ali Toossi Due: Wednesday April 28 at the beginning of the class All problem sets should be prepared neatly and professionally. Problem sets should be typed, stapled and should contain the following information on the
University of Illinois, Urbana Champaign - ECON - 302
Econ 302- Solution to Problem Set 12 Spring 2010-Ali Toossi Due: Wednesday April 28 at the beginning of the class Chapter 11: Questions for review Answer to question 4.Price = TR/Q, so this firm's demand curve is given by P=a - 2Q. Since its price is a d
University of Illinois, Urbana Champaign - ECON - 302
Econ 302- Problem Set 13 Spring 2010-Ali Toossi Due: Wednesday May 5 at the beginning of the class All problem sets should be prepared neatly and professionally. Problem sets should be typed, stapled and should contain the following information on the rig
University of Illinois, Urbana Champaign - ECON - 302
Econ 302- Solution to Problem Set 13 Spring 2010-Ali Toossi Due: Wednesday May 5 at the beginning of the class Chapter 12: Questions for review Answer to question 2.Yes if the transportation costs of cement from the next town make the competing cement mo
University of Illinois, Urbana Champaign - ECON - 302
ECON 302 Math Review Ali Toossi Marginal analysis: Concept of Derivative & its application in Economics Suppose Y = f (X). Define Y = f (X + X) f (X), where Y and X denote changes in Y and X respectively. Slope at X0 = Derivative of the function at X0: dY
University of Illinois, Urbana Champaign - ECON - 302
Midterm Version A March 17 2010Economic 302 Instructor: ToossiName: Net-ID: Section:Before beginning the exam, please verify that you have 9 pages with 40 questions in your exam booklet. On Your scantron sheet, you must place your full name, university
University of Illinois, Urbana Champaign - ECON - 302
Midterm Version B March 17 2010Economic 302 Instructor: ToossiName: Net-ID: Section:Before beginning the exam, please verify that you have 9 pages with 40 questions in your exam booklet. On Your scantron sheet, you must place your full name, university
University of Illinois, Urbana Champaign - ECON - 302
ECON 302 Intermediate Microeconomics Section 5, MW 2:00-3:20-Section 6, MW3:30-4:50, 119 David Kinley Hall Department of Economics UIUC Course OutlineThis outline is tentative and is subject to change.LEC # Introduction 1-2 3-4 5-6-7 IntroductionTOPICS
University of Illinois, Urbana Champaign - ECON - 302
1Econ302ReviewProblemsSolution Spring2010AliToossi 1.Considerafirmservingamarketwiththefollowinginversedemandcurve: P=2003Q.Thisfirmhasamarginalcostofproductionof10. a. Ifthefirmisasinglepricemonopoly,findthequantityofoutputitproduces,theprice itwouldcha
University of Illinois, Urbana Champaign - ECON - 302
1Econ302ReviewProblems Spring2010AliToossi 1.Considerafirmservingamarketwiththefollowinginversedemandcurve: P=2003Q.Thisfirmhasamarginalcostofproductionof10. a. Ifthefirmisasinglepricemonopoly,findthequantityofoutputitproduces,theprice itwouldcharge,thec
University of Illinois, Urbana Champaign - ECON - 302
ECON 302 Intermediate Microeconomics Section 5, MW 2:00-3:20-Section 6, MW3:30-4:50, 119 David Kinley Hall Department of Economics UIUC Syllabus- Spring 2010 Compass site: https:/compass.illinois.edu/ Instructor: Ali Toossi Office: 314 David Kinley Hall P
McMaster University - CHEM - 1AA3
Chapter Objectives for Chapter 11, Petrucci, 9th ed. - Edited for Chem 1AA3. 11 Chemical Bonding II: Additional Aspects The most important objectives appear in bold font. Please note for Chapter 11 we are only considering sections 11.1-11.4, in addition t
McMaster University - CHEM - 1AA3
CHEM 1AA3: Intro. Chemistry II Ch.12: Liquids, Solids & Intermolecular ForcesDepartment of Chem1 1AA3 ChemistryChapter 12 Exclude: sections 12.7-12.9 Include: sections 12.1(only capillary action),12.2-12.6 (much of which was discussed in Chem 1A03 rec
McMaster University - CHEM - 1AA3
Chemistry 1AA3, Recommended Text Questions for Chapter 12 Chapter 12: Solids, Liquids and Intermolecular Forces. The following questions are recommended practice questions. They are largely the questions for which you will find answers at the back of your
McMaster University - CHEM - 1AA3
CHEM 1AA3: Intro. Chemistry IIChapter 14: Chemical KineticsN.B. - equations in the slides are identified by number (in bold). If the same equation appears in the text, the text's equation number is also given (e.g., 14.1).Department of1 ChemistryPref
McMaster University - CHEM - 1AA3
Chem 1AA3 - Chapter 14 Suggested Problems114. Chemical Kinetics Recommended questions The first recommendation is to complete all of the concept assessments and practice examples from the relevant sections of Chapter 14. Then, in addition, work on the e
McMaster University - CHEM - 1AA3
CHEM 1AA3: Intro. Chemistry IIAcid-Base ChemistryCh.17: Additional Aspects of Acid-Base EquilibriaChem 1 1AA3Acid-Base Chemistry: Review (Ch 16)Bronsted-Lowry Theory acid = H+ donor, base = H+ acceptor acid/base reactants & conjugate acid/base produ
McMaster University - CHEM - 1AA3
Chapter Objectives for Chapter 16 (review) & Chapter 17, Petrucci, 9th ed. - Edited for Chemistry 1AA3. Chapter 17: Additional Aspects of Acid-Base Chemistry, plus review topics from Chapter 16: Acids and Bases. Review topics (Ch 16 Review): 1. Define aci
McMaster University - CHEM - 1AA3
CHEM 1AA3: Intro. Chemistry IIAcid-Base ChemistryCh.17: Additional Aspects of Acid-Base EquilibriaChem 1 1AA3Acid-Base Chemistry: Review (Ch 16)Bronsted-Lowry Theory acid = H+ donor, base = H+ acceptor acid/base reactants & conjugate acid/base produ
McMaster University - CHEM - 1AA3
AlkenesSection 26-3Alkenes (CnH2n)Chem 1AA399Multiple Covalent Bonds Ethylene has a double bond in its Lewis structure VSEPR says trigonal planar shape at Csp2 hybridization100p. 435Chem 1AA3sp2 Hybrid Orbitals (section 11-4)Combine one 2s orb
McMaster University - CHEM - 1AA3
Selected sections Ch 26 + Ch 11The chemistry of life and living thingsOrganic ChemistryThe chemistry of carbon compoundsChem 1AA32Evolution of the fieldChem 1AA33Why is organic chemistry important? To understand how we interact with other organ
McMaster University - CHEM - 1AA3
Recommended Practice Questions from Ch 26, Petrucci (9th edition). The following questions are recommended practice questions. They are largely the questions for which you will find answers at the back of your text. If you are curious about the answer or
McMaster University - CHEM - 1AA3
CHEM 1AA3: Intro. Chemistry IIChemical BiologyBrainwashing Bees, Drug Discovery, and AromaticityDepartment of1 ChemistryQueen Pheromone Blocks Aversive Learning in Young Worker Bees Vergoz et al. Science (2007) 317:384-386 queen mandibular pheromone
McMaster University - CHEM - 1AA3
Chemical Biology - Bee Brainwashing, Drug Discovery, and Aromaticity Section Objectives 1. 2. 3. 4. 5. 6. 7. 8. 9. Understand the role of high throughput assays in drug discovery. Understand how a chemical assay can be created as a surrogate for a complex
McMaster University - CHEM - 1AA3
Chem 1AA3 - Chemical Biology1Brainwashing Bees, Drug Discovery, and AromaticityVergoz, V., Schreurs, H. A., Mercer, A. R. Science (2007) 317:384-386, Queen Pheromone Blocks Aversive Learning in Young Worker Beeshive are associated with the queen's sur
McMaster University - CHEM - 1AA3
Synthetic chartAlkanes X2, light or H2, Pd/C Alkynes H2, Pd/C H2, Lindlar's catalyst Alkenes H3O+Haloalkanes Mg, Et2O*HX or X2 X = Cl, Br NaOH (cold, dilute), or H2O Alcohols 1o 2o 3oconc. H2SO4, Organometallics1. NaBH4 2. H3O+ Aldehydes MnO4or Cr2O
University of Illinois, Urbana Champaign - ACCY - 593
Slide 4 -14Consolidated Financial Consolidated Statements After Acquisition StatementsAdvanced Accounting, Fourth EditionSlide 4 -2Learning Objectives1.De scribetheaccounting tre e re atm nt quire unde curre GAAP for varying le ls of influe or cont
University of Illinois, Urbana Champaign - ACCY - 593
Slide 5 -15Allocation and Depreciation of Allocation Differences Between Implied and Book Values Acquisition BookAdvanced Accounting, Fourth EditionSlide 5 -2Learning Objectives1. 2. 3. 4. 5.C alculatethediffe ncebe e im d and book value and alloca
University of Illinois, Urbana Champaign - ACCY - 593
Slide 6 -16Elimination of Unrealized Profit on Intercompany Profit Sales of Inventory SalesAdvanced Accounting, Fourth EditionSlide 6 -2Learning Objectives1. 2. 3. 4. 5. 6. 7.Describethefinancialreportingobjectivesforintercompanysalesofinventory. D
University of Illinois, Urbana Champaign - ACCY - 593
Slide 7 -17Elimination of Unrealized Gains or Losses on Intercompany Sales of Property and EquipmentAdvanced Accounting, Fourth EditionSlide 7 -2Learning Objectives1.Unde rstand thefinancial re porting obje s in accounting for inte pany sale ctive
University of Illinois, Urbana Champaign - ACCY - 593
Slide 8 -18Changes in Ownership InterestAdvanced Accounting, Fourth EditionSlide 8 -2Learning Objectives1.I de ntify thetype of transactions that changethepare com s nt panys owne rship inte st in a re subsidiary. De scribetheproce ne de whe thepar
University of Illinois, Urbana Champaign - ACCY - 593
Slide 9 -19Intercompany Intercompany Bond Holdings and Miscellaneous Topics Miscellaneous Consolidated Financial Consolidated Statements StatementsAdvanced Accounting, Fourth EditionSlide 9 -2Learning Objectives1. 2.De scribethete constructivere m
University of Illinois, Urbana Champaign - ACCY - 593
Slide 10-110InsolvencyLiquidation and Liquidation Reorganization ReorganizationAdvanced Accounting, Fourth EditionSlide 10-2Learning Objectives1. 2.DistinguishbetweenaChapter7andaChapter11bankruptcy. Describethefiveprioritycategoriesofunsecuredclai
University of Illinois, Urbana Champaign - ACCY - 593
Slide 11-111International Accounting and the International Global Economy GlobalAdvanced Accounting, Fourth EditionSlide 11-2Learning Objectives1. 2. 3. 4. 5. 6. 7. Describe how the changing world environment is leading to an increased focus on inte
University of Illinois, Urbana Champaign - ACCY - 593
Slide 12-112Accounting for Foreign Currency Accounting Transactions and Hedging Foreign Exchange Risk ForeignAdvanced Accounting, Fourth EditionSlide 12-2Learning Objectives1. 2. 3. 4.Distinguish be e thete s m asure and de inate twe n rm e d nom d
University of Illinois, Urbana Champaign - ACCY - 593
Slide 13-113Translation of Financial Statements of Foreign AffiliatesAdvanced Accounting, Fourth EditionSlide 13-2Learning Objectives1. 2. 3. 4. 5. Distinguishbetweenthecurrentexchangerateandthehistoricalexchangerate. Understandtheobjectivesoffinanc
University of Illinois, Urbana Champaign - ACCY - 593
Slide 14-114Reporting for Segments and for Interim Financial PeriodsAdvanced Accounting, Fourth EditionSlide 14-2Learning Objectives1. 2. 3. 4. 5. 6. Unde rstand thene d for disaggre d financial data. e gate De scribethebasic re quire e of public co
University of Illinois, Urbana Champaign - ACCY - 593
Slide 15-115Partnerships: Formation, Operation and Ownership ChangesAdvanced Accounting, Fourth EditionSlide 15-2Learning Objectives1. De scribethecharacte ristics of a ge ral partne ne rship, a lim d partne ite rship, and a joint ve nture . List so
University of Illinois, Urbana Champaign - ACCY - 593
Slide 16-116Partnerships LiquidationAdvanced Accounting, Fourth EditionSlide 16-2Learning Objectives1. 2. 3. 4. 5. 6. De scribetheste use to distributeavailablepartne ps d rship asse in liquidation ts unde theUniformPartne r rship Act (UPA). List th