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Question;Question 1;1. ABC;Company has \$531,790 of operating income after all costs but before \$49,581 of;interest income, \$58,495 of dividend income, and taxes. What is the tax;expense?;Enter your answer rounded off to two decimal points. Do not;enter \$ in the answer box.;1 points;Question 2;1. What is;the net present value of the following cash flows? Assume an interest rate of;7%;Year CF;0 -\$11,723;1 \$6,053;2 \$6,312;3 \$9,503;2. Enter;your answer rounded off to two decimal points. Do not enter \$ or comma in the;answers box.;3.;1 points;Question 3;1. If you;receive \$521 at the end of each year for the first three years and \$5,344 at;the end of each year for the next two years. What is the future value of this;cash flow stream? Assume interest rate is 6%.;Note: Enter your answer rounded off to two decimal points.;Do not enter \$ or comma in the answer box. For example, if your answer is;\$12.345 then enter as 12.35 in the answer box.;1 points;Question 4;1. Debbie;wants to have \$41,614 in her bank account 5 years from now. The account will;pay 0.9% interest per month. How much money does she need to put in her bank;account at the end of each month to achieve this goal?;Enter your answer rounded off to two decimal points. Do not;enter % or \$ in the answer box.;1 points;Question 5;1. What is;the effective rate of 18.96% compounded quarterly?;Note: Enter your answer in percentages rounded off to two;decimal points. Do not enter % in the answer box. For example, if your answer;is 0.12345 then enter as 12.35 in the answer box.;1 points;Question 6;1. You are;given the following data for ABC Inc.;Net income = \$600;Net operating profit after taxes (NOPAT) = \$1,392;Total assets = \$2,500;Stockholders' equity = \$1,800;Total debt = \$700;Total operating capital = \$6,907;Barnes' weighted average cost of capital is 11%.;What is the economic value added (EVA)?;Enter your answer rounded off to two decimal points. Do not;enter \$ in the answer box.;1 points;Question 7;1. You are;given the following information about ABC Company;Interest expenses = \$26,758;Times Interest Earned Ratio = 3.7 times;Tax Rate = 30.9%;What is the net income?;Enter your answer rounded off to two decimal points.;1 points;Question 8;1. ABC is;reviewing a project that will cost \$2,299.The project will produce cash flows;\$531 at the end of each year for the first two years and \$916 at the end of;each year for the next three years. What is the profitability index? Assume;interest rate is 14%.;Note: Enter your answer rounded off to two decimal points.;For example, if your answer is 12.345 then enter as 12.35 in the answer box.;1 points;Question 9;1. ABC;Company has net working capital of \$790, current assets of \$6,729, long-term;debt of \$1,826, and equity of \$5,317. What is the amount of net fixed assets?;Enter your answer rounded off to two decimal points. Do not;enter \$ in the answer box;1 points;Question 10;1. Which one;of the following capital budgeting technique ignores time value of money?;Profitability;Index;Modified;Internal Rate of Return (MIRR);Payback;Net;Present Value (NPV);Internal;Rate of Return (IRR);1 points;Question 11;1. Suppose;you invest \$15,656. If the interest rate is 5% compounded quarterly for the;first 10 years and 11% compounded monthly for the next 5 years, what is the;future value after 15 years?;Enter your answer rounded off to two decimal points. Do not;enter \$ in the answer box.;1 points;Question 12;1. What is;the future value of \$40,039 invested for 8 years at 14% compounded;semi-annually?;Enter your answer rounded off to two decimal points. Do not;enter \$ in the answer box.;1 points;Question 13;1. A project;has the following cash flows. What is the internal rate of return?;Year 0 1 2 3;Cash flow -\$121,000 68,150 \$42,200 \$39,100;14.39%;14.82%;12.71%;13.47%;13.85%;1 points;Question 14;1. Consider;a taxable bond with a yield of 9.7% and a tax-exempt municipal bond with a;yield of 6.1%. At what tax rate would you be indifferent between the two bonds?;Note: Enter your answer in percentages rounded off to two;decimal points. Do not enter % in the answer box. For example, if your answer;is 0.12345 then enter as 12.35 in the answer box.;1 points;Question 15;1. ABC;Company lists total assets of \$2,341, current liabilities of \$360, long-term;debt of \$820, and 283 shares of common stock. If the market price per share is;\$71, what is the market-to-book ratio?;Enter your answer rounded off to two decimal points.;1 points;Question 16;1. The;present value of a 21-year annuity is \$188,948. If the interest rate is 17% and;payments are made at the end of each period, what is the amount of each;payment?;Enter your answer rounded off to two decimal points. Do not;enter \$ in the answer box.;1 points;Question 17;1. ABC;Company earned \$435,273 in taxable income for the year. How much tax does the;company owe on this income?;Note: Enter your answer rounded off to two decimal points.;Do not enter \$ or comma in the answer box. For example, if your answer is;\$12.345 then enter as 12.35 in the answer box.;1 points;Question 18;1. ABC's;current assets comprise of cash, accounts receivables, and inventory. ABC has;\$14,836 in cash, \$5,957 in accounts receivables, and \$6,943 in inventory. If;the current ratio is 3.3 times, compute the quick ratio.;Note: Enter your answer rounded off to two decimal points.;For example, if your answer is 12.345 then enter as 12.35 in the answer box.;1 points;Question 19;1. Suppose;you take a mortgage for \$124,884 for 16 years with annual payments. If the;annual interest rate is 4.5%, calculate the total interest amount paid over the;life of the loan. That is, calculate the total interest paid in 16 years.;Hint: Use the amortization table.;Enter your answer rounded off to two decimal points. Do not;enter \$ in the answer box.;1 points;Question 20;1. ABC, Inc.;has total assets of \$150,637, current assets of \$29,214, current ratio of 3.2;and equity multiplier of 3.5. Compute long term debt.;Enter your answer rounded off to two decimal points. Do not;enter \$ in the answer box.;1 points;Question 21;1. How many;years will it take to triple your money at 11% compounded monthly?;Enter your answer rounded off to TWO decimal points. Do not;enter "years" in the answer box.;1 points;Question 22;1. ABC;Company has total assets of \$851,129. There are 54,264 shares outstanding with;a market value of \$27 per share. If the net profit margin is 5.5% and the total;asset turnover is 2.9, what is the price/earnings (P/E) ratio?;Enter your answer rounded off to two decimal points.;1 points;Question 23;1. Suppose;an investment offers to double your money in 6 years. What annual rate of;return are you being offered if interest is compounded semi-annually?;Note: Enter your answer in percentages rounded off to two;decimal points. Do not enter % in the answer box. For example, if your answer;is 0.12345 then enter as 12.35 in the answer box.;1 points;Question 24;1. ABC;Company had beginning retained earnings of \$1,198. During the year, the company;reported sales of \$21,449, costs of \$6,696, depreciation of \$1,744, dividends;of \$737, and interest paid of \$2,118. The tax rate is 15 percent. What is the;retained earnings balance at the end of the year?;Enter your answer rounded off to two decimal points. Do not;enter \$ in the answer box.;1 points;Question 25;1. ABC, Inc.;has a total asset turnover of 2.7 and a net profit margin of 5.5%. The firm has;a return on equity of 23.6%. Calculate Marshall?s debt ratio.;Enter your answer as a percentage rounded off to two decimal;points. Do not enter % in the answer box. For example, if you get 0.1234567;then enter as 12.35 in the answer box.;1 points;Question 26;1. If you;receive \$711 at the end of each year for the first two years and \$655 at the;end of each year for the next two years.;Assume interest rate is 13%. What is the value at the end of;the 4th year? That is. solve for FV at the end of the 4th year.;Note: Enter your answer rounded off to two decimal points.;Do not enter \$ in the answer box. For example, if your answer is \$12.345 then;enter as 12.35 in the answer box.;1 points;Question 27;1. ABC;Company offers a perpetuity which pays annual payments of \$5,403. This contract;sells for \$319,568 today. What is the interest rate?;Note: Enter your answer in percentages rounded off to two;decimal points. Do not enter % in the answer box. For example, if your answer;is 0.12345 then enter as 12.35 in the answer box.;1 points;Question 28;1. ABC;Company has a debt ratio of 0.35. What is the debt-equity (D/E) ratio?;Note: Enter your answer rounded off to two decimal points.;For example, if your answer is 0.123456789 then enter as 0.12 in the answer;box.;1 points

Paper#49026 | Written in 18-Jul-2015

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