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Question;Which of the following is considered a hybrid organizational;form?;sole proprietorship;partnership;limited liability partnership;corporation;Which of the following is a principal within the agency relationship?;the board of directors;a shareholder;a company engineer;the CEO of the firm;Which of the following presents a summary of the changes in a firm?s balance;sheet from the beginning of an accounting period to the end of that accounting;period?;The statement of retained earnings.;The statement of net worth.;The statement of working capital.;The statement of cash flows.;Gateway Corp. has an inventory turnover ratio of 5.6. What is the firm's days's;sales in inventory?;65.2 days;64.3 days;61.7 days;57.9 days;Your firm has an equity multiplier of 2.47. What is its debt-to-equity ratio?;0;1.47;0.60;1.74;Which of the following is not a method of ?benchmarking??;Identify a group of firms that compete with the company being analyzed.;Evaluating a single firm?s performance over time.;Conduct an industry group analysis.;Utilize the DuPont system to analyze a firm?s performance;Jack Robbins is saving for a new car. He needs to have $ 21,000 for the car in;three years. How much will he have to invest today in an account paying 8;percent annually to achieve his target? (Round to nearest dollar.);$26,454;$16,670;$22,680;$19,444;Ferris, Inc., has borrowed from their bank at a rate of 8 percent and will;repay the loan with interest over the next five years. Their scheduled;payments, starting at the end of the year are as follows?$450,000, $560,000;$750,000, $875,000, and $1,000,000. What is the present value of these;payments? (Round to the nearest dollar.);$2,735,200;$2,815,885;$2,615,432;$2,431,224;Ajax Corp. is expecting the following cash flows?$79,000, $112,000, $164,000;$84,000, and $242,000?over the next five years. If the company's opportunity;cost is 15 percent, what is the present value of these cash flows? (Round to;the nearest dollar.);$429,560;$414,322;$480,906;$477,235;Jayadev Athreya has started on his first job. He plans to start saving for retirement;early. He will invest $5,000 at the end of each year for the next 45 years in a;fund that will earn a return of 10 percent. How much will Jayadev have at the;end of 45 years? (Round to the nearest dollar.);$5,233,442;$2,667,904;$1,745,600;$3,594,524;Serox stock was selling for $20 two years ago. The stock sold for $25 one year;ago, and it is currently selling for $28. Serox pays a $1.10 dividend per year.;What was the rate of return for owning Serox in the most recent year? (Round to;the nearest percent.);40%;16%;12%;32%;Regatta, Inc., has six-year bonds outstanding that pay a 8.25 percent coupon;rate. Investors buying the bond today can expect to earn a yield to maturity of;6.875 percent. What should the company's bonds be priced at today? Assume annual;coupon payments. (Round to the nearest dollar.);$923;$1,014;$972;$1,066;Next year Jenkins Traders will pay a dividend of $3.00. It expects to increase;its dividend by $0.25 in each of the following three years. If their required;rate of return is 14 percent, what is the present value of their dividends over;the next four years?;$12.50;$11.63;$13.50;$9.72;TuleTime Comics is considering a new show that will generate annual cash flows;of $100,000 into the infinite future. If the initial outlay for such a;production is $1,500,000 and the appropriate discount rate is 6 percent for the;cash flows, then what is the profitability index for the project?;0.90;1.90;0.11;1.11;What decision criteria should managers use in selecting projects when there is;not enough capital to invest in all available positive NPV projects?;The discounted payback.;The profitability index.;The internal rate of return.;The modified internal rate of return;The WACC for a firm is 13.00 percent. You know that the firm's cost of debt;capital is 10 percent and the cost of equity capital is 20%. What proportion of;the firm is financed with debt?;33%;50%;70%;30%;Gangland Water Guns, Inc., is expected to pay a dividend of $2.10 one year from;today. If the firm's growth in dividends is expected to remain at a flat 3;percent forever, then what is the cost of equity capital for Gangland if the;price of its common shares is currently $17.50?;15.36%;15.00%;12.00%;14.65%;If a company's weighted average cost of capital is less than the required;return on equity, then the firm;Must have preferred stock in its capital structure;Is financed with more than 50% debt;Has debt in its capital structure;Is perceived to be safe;A firm's capital structure is the mix of financial securities;used to finance its activities and can include all of the following except;stock.;bonds.;equity options.;preferred stock;Dynamo Corp. produces annual cash flows of $150 and is expected to exist;forever. The company is currently financed with 75 percent equity and 25;percent debt. Your analysis tells you that the appropriate discount rates are;10 percent for the cash flows, and 7 percent for the debt. You currently own 10;percent of the stock.;If Dynamo wishes to change its capital structure from 75 percent to 60 percent;equity and use the debt proceeds to pay a special dividend to shareholders, how;much debt should they issue?;$375;$600;$321;$225;Turnbull Corp. had an EBIT of $247 million in the last fiscal year. Its;depreciation and amortization expenses amounted to $84 million. The firm has;135 million shares outstanding and a share price of $12.80. A competing firm;that is very similar to Turnbull has an enterprise value/EBITDA multiple of;5.40.;What is the enterprise value of Turnbull Corp.? Round to the nearest million;dollars.;$1,334 million;$1,787 million;$453.6 million;$1,315 million;Jockey Company has total assets worth $4,417,665. At year-end it will have net;income of $2,771,342 and pay out 60 percent as dividends. If the firm wants no;external financing, what is the growth rate it can support?;30.3%;25.1%;27.3%;32.9%;Which of the following cannot be engaged in managing the business?;a limited partner;a sole proprietor;a general partner;none of these;Which of the following does maximizing shareholder wealth not usually account;for?;Risk.;Amount of Cash flows.;Government regulation.;The timing of cash flows.;The strategic plan does NOT identify;working capital strategies.;the lines of business a firm will compete in.;major areas of investment in real assets.;future mergers, alliances, and divestitures;Firms that achieve higher growth rates without seeking external financing;none of these.;have a low plowback ratio.;are highly leveraged.;have less equity and/or are able to generate high net income leading to a high;ROE.;Drekker, Inc., has revenues of $312,766, costs of $220,222, interest payment of;$31,477, and a tax rate of 34 percent. It paid dividends of $34,125 to;shareholders. Find the firm's dividend payout ratio and retention ratio.;15%, 85%;55%, 45%;45%, 55%;85%, 15%;The cash conversion cycle;shows how long the firm keeps its inventory before selling it.;estimates how long it takes on average for the firm to collect its outstanding;accounts receivable balance.;begins when the firm invests cash to purchase the raw materials that would be;used to produce the goods that the firm manufactures.;begins when the firm uses its cash to purchase raw materials and ends when the;firm collects cash payments on its credit sales.;You are provided the following working capital information for the Ridge;Company;Ridge Company;Account;$;Inventory;$12,890;Accounts receivable;12,800;Accounts payable;12,670;Net sales;$124,589;Cost of goods sold;99,630;Cash conversion cycle: What is the cash conversion cycle for Ridge Company?;83.5 days;38.3 days;129.9 days;46.4 days

Paper#44705 | Written in 18-Jul-2015

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