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##### Finance MCQs Assignment

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Question;Question 1 1. Your firm has the following balance sheet statement items: total current liabilities of $325,000, total assets of $3,655,000, fixed and other assets of $1,770,000, and long-term debt of $200,000. What is the amount of the firm?s net working capital? $1,080,000 $325,000 $1,685,000 $1,885,000 $1,560,000Question 2 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 12.71% 14.39% 13.85% 14.82% 13.47%Question 3 1. ABC has the following data for the year ending 12/31/10: Net income = $600, Net operating profit after taxes (NOPAT) = $2,288, Total assets = $2,500, Short-term investments = $200, Stockholders' equity = $1,800, Total debt = $700, and Total operating capital = $5,361. ABC's weighted average cost of capital is 18%. What is its economic value added (EVA)?$1,323.02Note: 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.Question 4 1. What is the net present value of the following cash flows? Assume an interest rate of 2.03% Year CF 0 -$12,387 1 $7,180 2 $5,224 3 $9,399$8,517.422. Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answers box.Question 5 1. A firm has a return on equity of 33.9 percent, a net profit margin of 8.4 percent, and total equity of $733.9. What is the net income?$248.79Question 6 1. ABC Company offers a perpetuity which pays annual payments of $16,593. This contract sells for $221,788 today. What is the interest rate?7.48%Note: Enter your answer 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.Question 7 1. Consider a taxable bond with a yield of 10.3% and a tax-exempt municipal bond with a yield of 5.3%. At what tax rate would you be indifferent between the two bonds?49%Note: Enter your answer 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.Question 8 1. What is the effective rate of 12% compounded monthly? 12.68%Note: Enter your answer 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.Question 9 1. ABC Company earned $518,438 in taxable income for the year. How much tax does the company owe on this income?$172,269Note: 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 boxQuestion 10 1. Calculate the NPV of a project that requires investment of 827 and provides the cashflows of 111, 244, 340, 391 in the next 4 years. The relevant discount rate is 12%. (All numbers are in dollars) ($42.88)Question 11 1. Find the payback period for a project that requires investment of $34 and returns $11 every years for 7 years.3.09Question 12 1. Calculate the project's IRR. Do not write the '%' sign in your answer. If the answer is 12.45%, you will enter 12.45Year 0 1 2 3 4Cash flows?$1,050 $400 $400 $400 $400 19.27%Question 13 1. If you receive $2,750 at the end of each year for the first three years and $8,228 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%.It should be present value $20,016.57Note: 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.Question 14 1. Stern Associates is considering a project that has the following cash flow data. What is the project's payback?Year 0 1 2 3 4 5 Cash flows -$1,100 $300 $310 $320 $330 $340 2.56 years 3.52 years 2.31 years 2.85 years 3.16 yearsQuestion 15 1. Debbie wants to have $32,281 in her bank account 4 years from now. The account will pay 0.2% 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? $640.15Enter your answer rounded off to two decimal points. Do not enter % or $ in the answer box.?Question 16 1. You are given the following data for ABC Inc.:Net income = $600Net operating profit after taxes (NOPAT) = $1,097Total assets = $2,500Stockholders' equity = $1,800Total debt = $700Total operating capital = $5,659Barnes' weighted average cost of capital is 17%. What is the economic value added (EVA)?Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. $134.97Question 17 1. ABC Company lists total assets of $4,216, current liabilities of $229, long-term debt of $542, and 281 shares of common stock. If the market price per share is $55, what is the market-to-book ratio?Enter your answer rounded off to two decimal points. 4.49Question 18 1. ABC, Inc. has total assets of $192,486, current assets of $34,078, current ratio of 2.7, and equity multiplier of 7.9. Compute long term debt. $155,500Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

Paper#49201 | Written in 18-Jul-2015

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