51) You are faced with a linear programming objective function of: Max P = $20X + $30Y and constraints of: 3X + 4Y = 24 (Constraint A) 5X – Y = 18 (Constraint B) You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE? A. For every additional unit of the objective function you create, you lose 0 units of B. B. For every additional unit of the objective function you create, the price of A rises by $7.50. C. You can change quantities of X and Y at no cost for Constraint B. D. The most you would want to pay for an additional unit of A would be $7.50. 52) Which one of the following statements about managerial inputs to production and staffing plans is best? A. Human resources provide the training capacity and labor-market conditions. B. Marketing provides new product or service developments. C. Finance provides labor and machine standards. D. Materials provide the current staffing level. The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel. A. digital, physical B. physical, financial C. e-commerce, digital D. physical, digital E. digital, e-commerce 54) It is very difficult to manage data for which of the following reasons? A. decreasing amount of external data needs to be considered B. data security is easy to maintain C. amount of data stays about the same over time D. data are stored in the same format throughout organizations E. data are scattered throughout organizations 55) A set of programs that enable the hardware to process data is _____. A. database B. network C. hardware D. procedures E. software 56) When your purchases are swiped over the bar-code reader at the point-of-sale terminals at Wal-Mart, a _____ records the data. A. transaction processing system B. office automation system C. functional area information system D. dashboard E. enterprise resource planning system 57) Which of the following is not a source for external data? A. commercial databases B. government reports C. corporate databases D. sensors E. satellites International Game Technology's new ERP system produced all of the following benefits except: A. Integrated the company's business functions B. Operations employees were able to access manufacturing process details at their workstations C. Company was able to maintain its original business processes D. ERP system connected the company's global operations E. The company gained flexibility in manufacturing products 59) Credit card companies would most likely use which of the following to check for fraudulent credit card use? A. Data mining B. Expert systems C. Neural networks D. Multidimensional data analysis E. Structured query language 60) _____ is a process that helps organizations identify, select, organize, disseminate, transfer, and apply expertise that are part of the organization's memory and typically reside inside the organization in an unstructured manner. A. Discovery B. Data mining C. Knowledge management D. Decision support E. Online analytical processing 61) Which of the following is not a function of functional area information systems? A. provides information to managers in the functional areas B. provides analysis capabilities to middle level managers and staff C. supports the managerial tasks of planning, organizing, and controlling operations D. provides information mainly in the form of reports E. provides data from business events to the corporate database 62) The end result of the Data Life Cycle is the generation of _____. A. information B. decisions C. data D. knowledge E. wisdom 63) Petrified Forest SkinCare, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per share, what is the expected rate of return on this stock? A. 36.13% B. 13.6% C. 12.5% It 8% 64) At what rate must $400 be compounded annually for it to grow to $716.40 in 10 years? A. 6% B. 8% C. 5% D. 7% 65) According to the hedging principle, permanent assets should be financed with _____ liabilities. A. permanent B. fixed C. spontaneous D. current 66) Disadvantages of using current liabilities as opposed to long-term debt include: A. greater risk of illiquidity, and uncertainty of interest costs B. certainty of interest costs C. uncertainty of future liabilities D. higher cash flow exposure E. decreased risk of liquidity 67) PepsiCo calculates unlevered betas for each peer group in order to: A. eliminate different business risks. B. eliminate different financial risks. C. eliminate competitive factors. D. eliminate judgment factors. 68) Which of the following best represents operating income? A. Income from capital gains B. Income after financing activities C. Income from discontinued operations D. Earnings before interest and taxes 69) Which of the following is most consistent with the hedging principle in working capital management? A. Fixed assets should be financed with short-term notes payable. B. Inventory should be financed with preferred stock. C. Accounts receivable should be financed with short-term lines of credit. D. Borrow on a floating rate basis to finance investments in permanent assets. 70) You hold a portfolio with the following securities: Security Percent of Portfolio Beta Return X Corporation 20% 1.35 14% Y Corporation 35% .95 10% Z Corporation 45% .75 8% Compute the expected return and beta for the portfolio. A. 34.4%, .94 B. 10.67%, 1.02 C. 9.9%, .94 D. 9.9%, 1.02 71) Forward rates are quoted: A. by the FDIC B. in direct form and at a premium or discount C. daily D. in an indirect form E. on financial statements 72) A stock with a beta greater than 1.0 has returns that are _____ volatile than the market, and a stock with a beta of less than 1.0 exhibits returns which are _____ volatile than those of the market portfolio. A. less, more B. more, more C. less, less D. more, less 73) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm's capital (required rate of return) for each source of financing is as follows: Cost of debt 8% Cost of preferred stock 12% Cost of common stock 16% Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project? A. $1,241 B. $463 (The correct option is 0 but that is not an option .So this is closest) C. $1,568 D. $871 74) Tri State Pickle Company preferred stock pays a perpetual annual dividend of 2 1/2% of its par value. Par value of TSP preferred stock is $100 per share. If investors' required rate of return on this stock is 15%, what is the value of per share? A. $16.67 B. $37.50 C. $6.00 D. $15.00 75) Which of the following represents an attempt to measure the earnings of the firm's operations over a given time period? A. Income statement B. Balance sheet C. Quarterly statement D. Cash flow statement  |
