Which of the following best describes the isolation property in regards to transactions?

A)Either all actions in a transaction are executed or no actions are done

B)The DBMS changes from one consistent state to another consistent state when a transaction completes successfully

C)A transaction executes with the same outcome, without any impact from other transactions executing concurrently

D)The DBMS guarantees that changes are made persistently upon successful completion of a transaction

2)Which of the following statements best describes a phantom read

A)One user reads a set of rows from a table. Another user inserts a row that matches the where condition read by the first user. The first user reads the same set of rows again getting the new row in addition to the rows that the user read the first time.

B)A select from one user calculating a summary or aggregate function (e.g. avg, max, sum, etc.) reads some rows from a table. At the same time another user is updating some of those same rows to contain different values. The first user reads some of the rows before the update changes them and reads some rows after the update changes them.

C)Two users update the same columns of the same row of the same table at the same time. One update will be overwritten by the other.

D)One user reads the same row more than once. Between the reads, an update from another user modifies the row.

3)If a schedule’s dependency graph is cyclic, then the schedule it describes is serializable.

A)True

B)False

4)By themselves, exclusive write locks and shared read locks do not guarantee serializabililty.

A)True

B)False

Castle, Inc., has no debt outstanding and a total market value of $240,000. Earnings before interest and taxes, EBIT, are projected to be $28,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 10 percent higher. If there is a recession, then EBIT will be 25 percent lower. The firm is considering a debt issue of $48,000 with an interest rate of 4 percent. The proceeds will be used to repurchase shares of stock. There are currently 20,000 shares outstanding. Ignore taxes for this problem.

a-1. Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to the nearest whole number, e.g., 32.)

b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

b-2. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Hide Feedback

Partially Correct

Hide Feedback

1. The “classical dichotomy” refers to the separation of:
(a) supply-side factors vs. demand-side factors.
(b) changes in the domestic (or closed) economy vs. changes abroad (or an open economy).
(c) short-run fluctuations vs. long-run economic growth.
(d) real vs. nominal variables.
(e) the public sector –government spending and tax revenues– vs. the private sector (C and I).

2. Which of the following does not explain the slope of the aggregate demand curve?
(a) the wealth effect.
(b) the interest-rate effect.
(c) sticky wages and sticky prices.
(d) the exchange-rate effect.
(e) decreasing utility of consumption.

3. The misperceptions theory mainly relates to:
(a) how an increase in government spending is financed –taxes or borrowing– and thus its effect on AD.
(b) one determining factor of the shape of the short-run aggregate supply.
(c) the distinction between national debt and simply the public debt and the confusion it causes.
(d) what is essentially a “broken window fallacy” issue and thus the net value of any fiscal policy action.
(e) workers not understanding fully changes in their nominal vs. changes in their real wage rates.

4. Over the business cycle, fluctuate(s) more (as percentage change) than any other
variable.
(a) inflation
(b) investment
(c) imports
(d) exports
(e) private consumption

5. Stagflation is usually thought of, or depicted by:
(a) the presence –and importance– of “animal spirits” in economies.
(b) a decrease in aggregate demand.

(c) a rise in government spending financed entirely by borrowing.
(d) falling prices for oil and other natural resources.
(e) aggregate supply shifting left (that is, decreasing)

RAK, Inc., has no debt outstanding and a total market value of $220,000. Earnings before interest and taxes, EBIT, are projected to be $40,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 10 percent higher. If there is a recession, then EBIT will be 20 percent lower. RAK is considering a $135,000 debt issue with an interest rate of 4 percent. The proceeds will be used to repurchase shares of stock. There are currently 11,000 shares outstanding. RAK has a tax rate of 35 percent.

a-1 Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

EPS

Recession $

Normal $

Expansion $

a-2 Calculate the percentage changes in EPS when the economy expands or enters a recession. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Percentage changes in EPS

Recession -23.06 %

Expansion 11.53 %

b-1 Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

EPS

Recession $

Normal $

Expansion $

b-2 Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Percentage changes in EPS

Recession %

Expansion %

Castle, Inc., has no debt outstanding and a total market value of $200,000. Earnings before interest and taxes, EBIT, are projected to be $30,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 18 percent higher. If there is a recession, then EBIT will be 20 percent lower. The firm is considering a debt issue of $75,000 with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 8,000 shares outstanding. The firm has a tax rate 35 percent. Assume the stock price remains constant.

a-1. Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to the nearest whole number, e.g., 32.)

b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

b-2. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)