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1. (TCO 1) Which of the following statements is no...

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1. (TCO 1) Which of the following statements is not true regarding the goal of financial management? (Points: 3) a. The goal of maximizing the value per share of existing stock is relevant to all organizations. b.A way of aligning management goals to shareholder?s interest is to tie managerial compensation to the market value of the firm?s stock. c.For a company considering international operations, the goal will be the same but the company will have to consider the local social, economical and political environment in the decision-making process. d.All of the above are true. 2. (TCO 1) Market value is important to the financial manager because: (Points: 3) a.It reflects the value of the asset based on generally-accepted accounting principles. b.Is a crucial component of the balance sheet and can impact the financial statements. c.Market values reflect the amount someone is willing to pay today for an asset. d.The market value of an asset reflects its historical cost. 3. 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 20,000 shares of stock. What is the dividends per share figure? (Points: 3) 5.0 8.75 7.50 5.50 4. 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 EBIT and taxable income for the year? (Points: 3) $1,000,000 and $800,000 respectively $575,000 and $375,000 respectively $565,000 and $365,000 respectively $425,000 and $225,000 respectively None of the above 5. 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) Select all items that will be included in Sports Baseballs, Inc. Income Statement. For this exercise you will be choosing more than one option for your answer: (Points: 3) Accounts receivable Cost of goods sold Net working capital Interest expense Taxes Current assets Short-term loans Cash on hand Inventory 6. (TCO 1) Which one of the following activities best exemplify capital structure decisions. For this exercise you will be choosing more than one option for your answer: (Points: 6) Determine the most adequate mixture of debt and equity to be maintained. Obtain a short-term loan to purchase materials. Identify two capital investment projects. Determine the cost of each source of capital. Determine the return of a potential project. Calculate the cash flows for a project. Assess the terms of loans and evaluate potential long-term financing options.

 

Paper#2872 | Written in 18-Jul-2015

Price : $25
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