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##### managerial finance quiz

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Question;Question 1;Mansi Inc. is considering a;project that has the following cash flow data.;What is the project's payback?;Year 0 1 2;3;Cash flows -$750;$300 $325;$350;2.36;years;2.59;years;2.12;years;2.85;years;1.91;years2 points;Question 2;ABC's current assets comprise of cash, accounts receivables;and inventory. ABC has $14,749 in cash, $6,066 in accounts receivables, and;$3,231 in inventory. If the current ratio is 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.;2 points;Question 3;Suppose you invest $27,438. If the interest rate is 12%;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.;2 points;Question 4;If you receive;$662 at the end of each year for the first two years and $645 at the end of each;year for the next two years.Assume interest rate is 9%.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.;2 points;Question 5;You are given the following information about ABC;Company:Interest expenses = $8,101Times Interest Earned Ratio = 2.8 timesTax Rate = 39.2%;What is the net income?;Enter your answer rounded off to two decimal;points.;2 points;Question 6;ABC Company lists total assets of $4,483, current;liabilities of $244, long-term debt of $865, and 203 shares of common stock.;If the market price per share is $72, what is the market-to-book ratio?Enter your answer rounded off to two;decimal points.;2 points;Question 7;ABC Company has a debt-equity ratio of 0.67. What is the;debt ratio?;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.;2 points;Question 8;ABC Company earned $485,419 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.;2 points;Question 9;What is the effective rate of 13% compounded monthly?;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.;2 points;Question 10;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?;$1,685,000;$1,080,000;$1,885,000;$1,560,000;$325,0002 points;Question 11;ABC has the following data for the year ending 12/31/10;Net income = $600, Net operating profit after taxes (NOPAT) = $3,234, Total;assets = $2,500, Short-term investments = $200, Stockholders' equity = $1,800;Total debt = $700, and Total operating capital = $6,349. ABC's weighted average;cost of capital is 12%. What is its economic value added (EVA)?;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.;2 points;Question 12;What is the net present value of the following cash;flows? Assume an interest rate of 19.39%;Year;CF 0;-$13,675 1;$6,268 2;$6,996 3;$9,654Enter your answer rounded off to two decimal points. Do;not enter $ or comma in the answers box.;2 points;Question 13;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?;2 points;Question 14;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 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.;2 points;Question 15;In its most recent financial statements, ABC reported;$59,511 of net income and $698,862 of retained earnings. The previous retained;earnings were $723,622. How much in dividends was paid to shareholders during;the year?;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.;2 points;Question 16;Find the payback period for a project that requires;investment of $30 and returns $11 every years for 7 years.;2 points;Question 17;Calculate the NPV of a project that requires investment;of 937 and provides the cashflows of 104, 232, 294, 272 in the next 4 years. The;relevant discount rate is 12%. (All numbers are in dollars);2 points;Question 18;Calculate the project's IRR.;Do not write the '%' sign in your answer. If the answer;is 12.45%, you will enter 12.45;Year;0;1;2;3;4;Cash flows;?$1,050;$400;$400;$400;$400

Paper#49204 | Written in 18-Jul-2015

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