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Question;61.;Economic value added is calculated from;A.;Average total assets, current;liabilities, net income, and the cost of capital.;B.;EVA net income and EVA;invested capital.;C.;Net income, cost of;capital, and net assets.;D.;Net income and the cost;of capital.;E.;EVA net income, the cost;of capital, and EVA invested capital.;62.;Performance shares grant stock for achieving certain performance goals;A.;In the following year.;B.;In two years or more.;C.;In the current period.;D.;When stock prices;improve.;63.;There is a current tax deduction for the firm for which of the following types;of compensation?;A.;Qualified stock options.;B.;Nonqualified stock;options.;C.;Deferred bonus.;D.;Current bonus.;E.;Performance shares.;64.;There is a current tax for the manager when which of the following types of;compensation is received?;A.;Qualified stock options;B.;Nonqualified stock;options;C.;Deferred bonus;D.;Current bonus;E.;Performance shares;65.;Which of the following types of compensation does not provide a deduction to;the firm for tax purposes?;A.;Perks;B.;Qualified stock options;C.;Retirement plans;D.;Current bonus;E.;Performance shares;66.;Bonus payment options include all of the following except;A.;Perks.;B.;Current bonus.;C.;Deferred bonus.;D.;Stock options.;E.;Performance shares.;67. A;CFO whose compensation plan may have had the effect of creating an incentive;for unethical actions includes;A.;Kenneth Lay;B.;Scott Sullivan;C.;Bernie Madoff;D.;Dennis Kozlowski;68.;The;King Mattress Company had the following operating results for 2009-2010. In;addition, the company paid dividends in both 2009 and 2010 of $60,000 per year;and made capital expenditures in both years of $30,000 per year. The company's;stock price in 2009 was $8 and $7 in 2010. The industry average earnings;multiple for the mattress industry was 9 in 2010 and the free cash flow and;sales multiples were 18 and 1.5, respectively. The company is publicly owned;and has 1,200,000 shares of outstanding stock at the end of 2010.;The accounts;receivable turnover ratio for 2010 is;A.;11.2;B.;12.7;C.;13.7;D.;14.9;69.;The King Mattress;Company had the following operating results for 2009-2010. In addition, the;company paid dividends in both 2009 and 2010 of $60,000 per year and made;capital expenditures in both years of $30,000 per year. The company's stock;price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for;the mattress industry was 9 in 2010 and the free cash flow and sales multiples;were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000;shares of outstanding stock at the end of 2010.;The inventory;turnover ratio for 2010 is (rounded);A.;11.2;B.;12.7;C.;13.7;D.;14.9;70.;The King Mattress;Company had the following operating results for 2009-2010. In addition, the;company paid dividends in both 2009 and 2010 of $60,000 per year and made;capital expenditures in both years of $30,000 per year. The company's stock;price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for;the mattress industry was 9 in 2010 and the free cash flow and sales multiples;were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000;shares of outstanding stock at the end of 2010.;The current;ratio for 2010 is;A.;1.8;B.;2.0;C.;3.9;D.;4.7;71.;The King Mattress;Company had the following operating results for 2009-2010. In addition, the;company paid dividends in both 2009 and 2010 of $60,000 per year and made;capital expenditures in both years of $30,000 per year. The company's stock;price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for;the mattress industry was 9 in 2010 and the free cash flow and sales multiples;were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000;shares of outstanding stock at the end of 2010.;The gross margin;percentage for 2010 is (rounded);A.;11.2%;B.;12.7%;C.;13.7%;D.;14.9%;72.;The King Mattress;Company had the following operating results for 2009-2010. In addition, the;company paid dividends in both 2009 and 2010 of $60,000 per year and made;capital expenditures in both years of $30,000 per year. The company's stock;price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for;the mattress industry was 9 in 2010 and the free cash flow and sales multiples;were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000;shares of outstanding stock at the end of 2010.;Return on assets;for 2010 is;A.;9.2%;B.;16.4%;C.;13.7%;D.;19.2%;73.;The King Mattress;Company had the following operating results for 2009-2010. In addition, the;company paid dividends in both 2009 and 2010 of $60,000 per year and made;capital expenditures in both years of $30,000 per year. The company's stock;price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for;the mattress industry was 9 in 2010 and the free cash flow and sales multiples;were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000;shares of outstanding stock at the end of 2010.;Return on equity;for 2010 is (rounded);A.;11.6%;B.;14.6%;C.;15.5%;D.;18.9%;74.;The King Mattress;Company had the following operating results for 2009-2010. In addition, the company;paid dividends in both 2009 and 2010 of $60,000 per year and made capital;expenditures in both years of $30,000 per year. The company's stock price in;2009 was $8 and $7 in 2010. The industry average earnings multiple for the;mattress industry was 9 in 2010 and the free cash flow and sales multiples were;18 and 1.5, respectively. The company is publicly owned and has 1,200,000;shares of outstanding stock at the end of 2010.;The value of the;company, calculated using the earnings multiple for 2010 is;A.;$1,220,000;B.;$1,620,000;C.;$2,520,000;D.;$8,335,000;75.;The King Mattress;Company had the following operating results for 2009-2010. In addition, the;company paid dividends in both 2009 and 2010 of $60,000 per year and made;capital expenditures in both years of $30,000 per year. The company's stock;price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for;the mattress industry was 9 in 2010 and the free cash flow and sales multiples;were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000;shares of outstanding stock at the end of 2010.;The value of the;company, calculated using the free cash flow multiple for 2010 is;A.;$1,220,000;B.;$1,620,000;C.;$2,520,000;D.;$8,400,000

 

Paper#44934 | Written in 18-Jul-2015

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