Master Business with Fun Quizzes & Brain Teasers!

ou just won $80,000 on a scratch-off lottery ticket. You plan to save the money in a retirement account expected to return 9% per year. If you intend to retire in 45 years, how much are these lottery winnings expected to be worth when you retire?
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Most developing countries do not have access to the technology available in developed nations, but these developing nations need technology to create new jobs and stimulate the economy. Which aspect of inward FDI do these developing nations rely on to have access to needed technology
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Assume the average vehicle selling price in the United States last year was $36,420. The average price five years earlier was $31,208. What was the annual increase in the selling price over this time period
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g The long-run effect of an increase in household consumption is to raise a. both real output and the price level. b. real output and lower the price level. c. real output and leave the price level unchanged. d. the price level and leave real output unchanged.
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A zero-coupon bond is selling at a deep discount price of $450. It matures in 11 years. If the yield to maturity of the bond is 6.2%, what is the duration of the bond (rounded to two places)
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Yesterday, the price of gloves was $4 a box, and Reena was willing to buy 10 boxes. Today, the price has gone up to $6 a box, and Reena is now willing to buy 8 boxes. Is Reena's demand for gloves elastic or inelastic? What is Reena's price elasticity of demand?
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What is the effective yield after one year for an investment of $3,065 in to a CD if the interest rate is 1.75% compounded monthly? [Note: write answer as a percentage to two decimal places, but without the % sign]
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Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A -$16 $7 $9 $10 Project B -$26 $14 $20 $11 What are the projects' NPVs assuming the WACC is 5%
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A firm's average total cost is minimized when it produces 10 units. When it produces 10 units, the average total cost is $5/unit. What is the marginal cost when the firm produces 10 units
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You are considering purchasing a stock that currently sells for $50. The expected price of the stock in a year is $45, and during the coming year a $2 dividend is expected to be paid. The risk-free rate is 5% and the market return is 10%. The stock has a beta of 0.85. What is the holding period return of the stock
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"'Suppose that while in college, you saved money by eating generic fruits and vegetables from the grocery store. Now, suppose that after you graduated from college you got your first paying job and your income increased. As a result, you started buying higher priced organic fresh fruits and vegetables from specialty stores. This scenario would indicate that the organic fresh fruits and vegetables are a(n) _______ good for you."
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Crane Company makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions$0.60 $ 6500 Shipping1.20 Advertising0.30 Executive salaries 44000 Depreciation on office equipment 8500 Other0.35 32000 Expenses are paid in the month incurred. If the company has budgeted to sell 9000 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October
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Prior to recording adjusting entries, the Office Supplies account had a $379 debit balance. A physical count of the supplies showed $104 of unused supplies available. The required adjusting entry is:
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A firm produces 10 widgets that they sell for $15 each. The average variable cost for the production of 10 widgets is $13/unit. The fixed costs for this firm equal $20. What is the value of this firm's profits
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3. Problems and Applications Q3 This chapter discusses companies that are oligopolists in the market for the goods they sell. Many of the same ideas apply to companies that are oligopolists in the market for the inputs they buy. If sellers who are oligopolists try to increase the price of goods they sell, the goal of buyers who are oligopolists is to try to decrease the prices of goods they buy. Major league baseball team owners have an oligopoly in the market for baseball players. The owners' goal is to keep players' salaries . True or False: This goal is difficult to achieve because teams have different budgets. True False Baseball players went on strike in 1994 because they would not accept the salary cap that the owners wanted to impose. True or False: The owners felt the need for a salary cap to help prevent any team from cheating. True False
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6. Problems and Applications Q6 Clancy loves playing rock 'n' roll music at high volume. Hubert loves opera and hates rock 'n' roll. Unfortunately, they are next-door neighbors in an apartment building with paper-thin walls. In this case, imposes a externality on his neighbor in the form of noise pollution. Why might a command-and-control policy that forbids music to be played above a certain decibel level lead to an inefficient outcome? An efficient outcome can be achieved only if everyone can do what they love. It is unfair because such policy would restrict Clancy's activity but not Hubert's. Clancy playing his music loudly does not do any harm if Hubert is not home. Suppose the landlord lets the tenants do whatever they want. True or False: According to the Coase theorem, Clancy and Hubert can never reach an agreement without a third party assisting in the negotiations. True False
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Sorento Company has two divisions: Sporting Goods and Sports Gear. The sales mix is 45.00% for Sporting Goods and 55.00% for Sports Gear. The company incurs $12,500 in fixed costs. The contribution margin ratio for Sporting Goods is 70.00%, while for Sports Gear it is 10.00%. What is the company's weighted-average contribution margin ratio?
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Whatever, Inc., has a bond outstanding with a coupon rate of 5.84 percent and semiannual payments. The yield to maturity is 6.1 percent and the bond matures in 25 years. What is the market price if the bond has a par value of $1,000
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Quest Inc., a U.S. firm, and Real Treks, Ltd., a Canadian firm, enter into a contract that does not have a forum selection or choice-of-law clause. Litigation between Quest and Real Treks involving this contract may occur in
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As part of the initial investment, Jackson contributes accounts receivable that had a balance of $35,017 in the accounts of a sole proprietorship. Of this amount, $1,229 is deemed completely worthless. For the remaining accounts, the partnership will establish a provision for possible future uncollectible accounts of $740. The amount debited to Accounts Receivable for the new partnership is
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Jarrett Baker is the founder of an enterprise software company located in Chevy Chase, Maryland. By looking at the income statements for Jarretts business over the past 3 years, you see that its working capital has declined from $42,400 in 2012 to $17,900 in 2013 to $3,100 in 2014. If this trend continues, in what ways could it jeopardize the future of Jarretts business?
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Judy's Boutique just paid an annual dividend of $3.31 on its common stock. The firm increases its dividend by 3.75 percent annually. What is the company's cost of equity if the current stock price is $42.28 per share
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Newport Printing paid a $2.50 dividend over the past year. During the coming year, the dividend is expected to rise by five percent, while the required return on stocks in this risk class is eleven percent. What is the value of Newport Printing
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you want to buy a new ski boat 2 years from now, and you plan to save $7,000 per year, beginning one year from today. you will deposit your savings in an account that pays 6.2% interest. how much will you have just after you make your second deposit, 2 years from now
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