Chapter 12
Open-Market Macroeconomics:
Basic Concepts
2002 by Nelson, a division of Thomson Canada Limited
Principles of Macroeconomics: Ch. 17
Second Canadian Edition
Overview
Define
open economy, closed economy,
and exports/imports.
Factors that infl
1. The simulation approach provides us with (Points : 1)
a single value for the risk-adjusted net present value.
an approximation of the systematic risk level.
a probability distribution of the project's net present value or internal rate of return.
a gra
PROBLEMS
1. The Duncan Company's stock is currently selling for $15. People generally expect its price to rise to
$18 by the end of next year. They also expect that it will pay a dividend of $.50 per share during the
year. (Hint: Apply Equation 9.2 page 4
1. If depreciation expense in year one of a project increases for a highly profitable company,
(Points : 1)
Net income decreases and incremental free cash flow decreases.
Net income increases and incremental free cash flow increases.
The book value of the
12-9 Southeastern Bell stocks a certain switch connector at its central warehouse for supplying
field service offices. The yearly demand for these connectors is 15,000 units. Southeastern
estimates
its annual holding cost for this item to be $25 per unit.
(TCO 5) We have a binomial experiment with p = 0.4 and n = 2.
(1) Set up the probability distribution by showing all x values and their associated probabilities.
(2) Compute the mean, variance, and standard deviation.
x p(x)
0 0.36
1 0.48
2 0.16
x p(x) x
1. (TCO 8) Which one of the following is a correct definition of an Ibbotson and Sinquefield
investment category as used to report historical returns in your textbook? (Points : 3)
U.S. Treasury bills: 1-year debt securities issued by the U.S. Department
1. (TCO 9) To guide cost allocation decisions, the fairness or equity criterion is (Points : 3) the
criterion often cited in government contracts. superior when the purpose of cost allocation is for
economic decisions. used more frequently than the other
1. (TCO 4) How many ways can 15 girls be chosen to form a baseball team of 9 players?
(Points : 3)
5005
24
1,816,214,400
1352.
2. (TCO 4) Which of the following cannot be a probability? (Points : 3)
1
85%
0.425
4/3
3. (TCO 4) List the sample space of roll
When the level of confidence and sample standard deviation remain the same, a confidence
interval for a population mean based on a sample of n = 100 will be _ a confidence interval
for a population mean based on a sample of n = 50.
wider than
narrower tha
1. Assume Mr. Davis can buy either a $10,000 corporate bond yielding 10% or a municipal
bond yielding 7%. Assume risk is constant. Assume also that his Federal tax rate will be
28% and his State tax rate 7% and that the municipal bond is exempt from both
Under what circumstances the following statement would not be true:"a chemical
disinfectant definition should always be bactericidal" Why would this statement not be true
under the circumstance described?
A chemical disinfectant is not always bactericidal
1) Why is factory overhead applied to products and jobs by manufacturing companies?
A. It provides a more accurate cost of the job or products being processed.
B. It allows managers more timely determination of product costs during the manufacturing proce
Questions
1, 2, 10, & 14
Problems
1, 5, 13, 17, 19, 20, & 23
1.
334
335-339
What is valuation, and why are we interested in the results?
ANSWER: Valuation is a systematic process through which we determine the price at which
a security should sell. Since
Mini Case Chapter 9
The balance sheet that follows indicates the capital structure for Nealon Inc. Flotation costs are
(a) 15 percent of market value for a new bond issue, and (b) $2.01 per share for preferred stock.
The dividends for common stock were $2
Drawing
Two
Lebanese International University
Name: Samar Karawi.
ID:20930098.
Instructor: Mr.Rida Sayed.
Semester: Fall 2011-2012.
Section: (A).
Pencil
Pencil
Pencil
Pencil
Marker
Pencil & Color Pencil
Marker &
Color
Pencil
Color
Pencil
Color Pencil,Mark
No. 1 Acquisition Analysis Problem 21-1
Vandells free cash flow (FCF0) is $2 million per year and is expected to grow at a constant rate
of 5% a year; its beta is 1.4. What is the value of Vandells operations? If Vandell has $10.82
million in debt, what i
Marge Atkins and Pete Granger have described the use of what is sometimes called
budgetary slack.
i. Explain why Atkins and Granger behave in this manner and describe the benefits they
expect to realize from the use of budgetary slack.
ii. Explain how the
1. (TCO 7) Interpret a 99% confidence interval of (5.355, 5.445) for a population mean.
Solution:
It means that we are 99% confident that population mean lies between 5.355 and 5.445.
2. (TCO 7) A nursing school wants to estimate the true mean annual inco
Solutions Guide:
It has been 2 months since you took a position as an assistant financial analyst at Caledonia Products. Although your boss has been
pleased with your work, he is still a bit hesitant about unleashing you without supervision. Your next ass
Name _
MATH 213
Comprehensive Final Exam
1. Find the nth term for each of the following sequences (Chapter 1)
A.
B.
4, 12, 20, 28, .
C.
2.
7, 49, 343, 2401, .
2, 6, 12, 20, .
Write the first fifteen counting numbers in base four. (Chapter 2)
BASE
FOUR = d
(TCO 4) Which of the following is NOT considered to be a primary lymphatic organ? (Points :
2) red bone marrow spleen any lymph node pharyngeal tonsil
2. (TCO 4) B cells proliferate and differentiate into plasma cells in the: (Points : 2) Liver
bloodstrea
Dorian Company produces and sells a single product. The product sells for $60 per unit and has a
contribution margin ratio of 40%. The company's monthly fixed expenses are $28,800.
The variable expense per unit is:
A) $31.20.
B) $24.00.
C) $36.00.
D) $28.
(a)
(b)
Accounts Receivable
Current
130 days past due
3190 days past due
Over 90 days
Amount
$65,000
12,600
10,100
7,400
%
2.0
7.0
30.0
50.0
Estimated Uncollectible
$1,300
882
3,030
3,700
$8,912
Bad Debts Expense
.6,412
Allowance for Doubtful Accounts.6,4
Assume that Mitchell Company uses a periodic inventory system and has these account balances:
Purchases $650,000; Purchase Returns and Allowances $25,000; Purchases Discounts $11,000;
and Freight-in $19,000; beginning inventory of $45,000; ending inventor