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(TCO 1) Why is maximization of the current value p...

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(TCO 1) Why is maximization of the current value per share a more appropriate financial management goal than profit maximization? (Points : 3) Because by maximizing the current stock value you also maximize the company?s profit for the year. Because this criterion is non-ambiguous. Because financial managers always act in the best interest of shareholders. B and C (TCO 1) Book values are different to market values because: (Points : 3) Book values reflect the value of the asset based on generally-accepted accounting principles. Book values are used in the company's balance sheet. Book values do not reflect the amount someone is willing to pay today for an asset. All of the above For this question, use the information for Sports Baseballs, Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the last year. Expenses were as follows: Cost of goods sold............................... $1.2 million Administrative expenses........................ $250,000 Marketing and selling expenses............... $175,000 Depreciation........................................ $500,000 Interest expense.................................. $200,000 Dividends paid..................................... $150,000 (TCO 1) Suppose that Sports Baseball has 30,000 shares of stock. Assume a tax rate of 30%. What is the EPS figure? (Points : 3) 8.50 8.75 9.0 9.15 For this question, use the information for Sports Baseballs, Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the last year. Expenses were as follows: Cost of goods sold............................... $1.2 million Administrative expenses........................ $250,000 Marketing and selling expenses............... $175,000 Depreciation........................................ $500,000 Interest expense.................................. $200,000 Dividends paid..................................... $150,000 (TCO 1) Assuming a tax rate of 30%, what is the operating cash flow for the year? (Points : 3) $1,260,000 $962,000 $962,500 $1,265,000 Can not be determined with the information given

 

Paper#1899 | Written in 18-Jul-2015

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