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Finance Quiz

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Question;Question 11. 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 pointsQuestion 21. What is the net present value of the following cash flows? Assume an interest rate of 7%Year CF0 -$11,7231 $6,0532 $6,3123 $9,5032. Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answers box.3. 1 pointsQuestion 31. 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 pointsQuestion 41. 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 pointsQuestion 51. 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 pointsQuestion 61. You are given the following data for ABC Inc.:Net income = $600Net operating profit after taxes (NOPAT) = $1,392Total assets = $2,500Stockholders' equity = $1,800Total debt = $700Total operating capital = $6,907Barnes' 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 pointsQuestion 71. You are given the following information about ABC Company:Interest expenses = $26,758Times Interest Earned Ratio = 3.7 timesTax Rate = 30.9%What is the net income?Enter your answer rounded off to two decimal points.1 pointsQuestion 81. 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 pointsQuestion 91. 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 box1 pointsQuestion 101. 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 pointsQuestion 111. 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 pointsQuestion 121. 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 pointsQuestion 131. A project has the following cash flows. What is the internal rate of return?Year 0 1 2 3Cash flow -$121,000 68,150 $42,200 $39,100 14.39% 14.82% 12.71% 13.47% 13.85%1 pointsQuestion 141. 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 pointsQuestion 151. 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 pointsQuestion 161. 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 pointsQuestion 171. 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 pointsQuestion 181. 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 pointsQuestion 191. 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 pointsQuestion 201. 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 pointsQuestion 211. 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 pointsQuestion 221. 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 pointsQuestion 231. 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 pointsQuestion 241. 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 pointsQuestion 251. 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 pointsQuestion 261. 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 pointsQuestion 271. 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 pointsQuestion 281. 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#49191 | Written in 18-Jul-2015

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