One positive and one negative charges identical in magnitude are place near each other. At halfway between the two charges...

All else equal, firms with higher leverage (D/E ratio) tend to have higher betas. However, when firms are heavily levered (near the “zone of insolvency” or bankruptcy), their betas tend to drop significantly. Without mentioning anything about the equation for beta, briefly explain why this phenomenon might occur.

This is really a business ethics question

Some would say that given the rash of ethical scandals in the last 20 years, that ethical business behavior is waning. Given what you now know about corporate governance, do you think that ethics will be more or less important to business in the near future? In the distant future?

For those fortunate souls who do not need glasses, the lens of the eye adjusts its focal length in order to form a proper image on the retina. This typically means that very distant objects as well as objects as close as 25 cm can be seen clearly. Many of us need corrective lenses since the lens in our eye cannot adjust sufficiently to produce a clear image over the full range object distances. This may be because the lens itself does not adjust well or because the eye is either longer or shorter than ‘normal’. In the case of someone who is nearsighted (can see up close) the eye may only be able to see clearly items up to 50cm or 1m away (this would be the far point). In order to see something further away, a lens (either glasses or contacts) is used to produce a virtual image of a distant object at the person’s far point. Their eye can then accommodate the rest of the way and produce a clear image. Suppose a person who has a far point of 63.0 cm is trying to view a distant object. What is the focal length (with correct sign) of a lens that would take a distant object and make an image on the same side of the lens as the object a distance 63.0 cm from the lens? Incorrect.

Is the lens converging or diverging?

Lenses are prescribed in terms of their refractive power, which is expressed in terms of diopters (see the text or your favorite search engine for the definition of a diopter). What is the refractive power of this lens in terms of diopters? (do not enter units.)

In the case of someone who is farsighted, the eye is not able to focus clearly on objects closer than a certain distance. This closest point on which a person’s eye can focus is called the near point. In this situation the corrective lens is used to make an object closer than the near point produce an image further away from the lens at the near point. Suppose a person who has a near point of 53.1 cm is trying to view a book at a distance of 25.0 cm. What is the focal length (with correct sign) of a lens that would take the book and make an image on the same side of the lens as the book a distance 53.1 cm from the lens?

Is the lens converging or diverging?

What is the refractive power of this lens in terms of diopters? (do not enter units.)

Bond J is a 3.7% coupon bond. Bond K is a 9.7% coupon bond. Both bonds have 15 years to maturity, make semiannual payments and have a YTM of 6.7%.

If interest rates suddenly rise by 2%, what is the percentage price change of these bonds?

What if rates suddenly fall by 2% instead?

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract.
4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information.

5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information.

3.

Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract.

4.

Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above information. (Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign.)

5.

Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years using the above information. (Leave no cells blank - be certain to enter "0" wherever required. Loss amounts should be indicated with a minus sign.)

The first step in testing for impairment of goodwill is to

compare the fair value of the reporting unit with its book value, including goodwill.

assess qualitative factors that indicate whether the fair value of the reporting unit is greater or less than its carrying value.

measure the fair value of the reporting unit and the fair value of the identifiable assets of the reporting unit.

compare the fair value of the reporting unit with its book value, excluding goodwill.

Impairment losses may be reversed under

Set III

Set II

Set I

Set IV

Given the following information for Blue Bell Company for last year:

Refer to Exhibit 4-1. Blue Bell's inventory turnover for the year was

9.0 times

12.0%

8.3 times

11.1%

On January 1, 2016, Olvert Corp. signed a contract to have Bob's Builders construct a distribution center at a cost of $10,000,000. It was estimated that it would take two years to complete the project. Also on January 1, 2017, to finance the construction cost, Tolvin borrowed $10,000,000 payable in five annual installments of $4,000,000 plus interest at the rate of 6%. During 2017, Tolvin made the following construction-related expenditures:

What amount should Tolvin report as capitalized interest at December 31, 2017?

$621,000

$300,000

$207,000

$150,000

My friend owns a small old house that is worth approximately $1.1 million. Given the improved real estate market, my friend is considering that over the next three years, she would have the option of tearing down this small old house and build a more expensive house. Her research suggests that the current cost of tearing down the old house and building a new more expensive will be approximately $800,000 and that she should assume that the expected cost would increase by 3%/year in the future. The current value of a comparable house to the one she is thinking of building is approximately $1.8 million. Finally, she believes that the standard deviation of the annual changes in homes prices in this price range is approximately 50%/year. Ignoring flexibility, what is the current expected NPV of the investment to tear down the old house and build the more expensive home (assume the cost of construction occur at time 0)? What is the value of the option to tear down the original house and build a new one anytime over the next three years? (Apply a two-period per year binomial model.)

The desired percentage of SiO₂ in a certain type of aluminous cement is 5.5. To test whether the true average percentage is 5.5 for a particular production facility, 16 independently obtained samples are analyzed. Suppose that the percentage of SiO₂ in a sample is normally distributed with σ = 0.32 and that x = 5.22. (Use α = 0.05.)

(a) Does this indicate conclusively that the true average percentage differs from 5.5?
State the appropriate null and alternative hypotheses.

1)H₀: μ = 5.5
H_a: μ < 5.5

2)H₀: μ = 5.5
H_a: μ ≥ 5.5     

3)H₀: μ = 5.5
H_a: μ ≠ 5.5

4)H₀: μ = 5.5
H_a: μ > 5.5

b)Calculate the test statistic and determine the P-value. (Round your test statistic to two decimal places and your P-value to four decimal places.)

c)State the conclusion in the problem context.

1)Reject the null hypothesis. There is sufficient evidence to conclude that the true average percentage differs from the desired percentage.

2)Do not reject the null hypothesis. There is not sufficient evidence to conclude that the true average percentage differs from the desired percentage.    

3)Do not reject the null hypothesis. There is sufficient evidence to conclude that the true average percentage differs from the desired percentage.

4)Reject the null hypothesis. There is not sufficient evidence to conclude that the true average percentage differs from the desired percentage.

(d) If the true average percentage is μ = 5.6 and a level α = 0.01 test based on n = 16 is used, what is the probability of detecting this departure from H₀? (Round your answer to four decimal places.)


(e) What value of n is required to satisfy α = 0.01 and β(5.6) = 0.01? (Round your answer up to the next whole number.)
n = ______ samples