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##### Financial management Quiz

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Question;Question 1ABC's current assets comprise of cash, accounts receivables, and inventory. ABC has $13,956 in cash, $7,508 inaccounts receivables, and $7,019 in inventory. If the current ratio is 2.7 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 as12.35 in the answer box.1 pointsQuestion 2ABC Company lists total assets of $4,961, current liabilities of $381, long-term debt of $602, and 307 shares ofcommon stock. If the market price per share is $63, what is the market-to-book ratio?Enter your answer rounded off to two decimal points.1 pointsQuestion 3Suppose an investment offers to double your money in 38 years. What annual rate of return are you being offered ifinterest is compounded semi-annually?Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. Forexample, if your answer is 0.12345 then enter as 12.35 in the answer box.1 pointsQuestion 4The present value of a 10-year annuity is $159,878. If the interest rate is 8% and payments are made at the end ofeach 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 5ABC Company has net working capital of $1,845, current assets of $3,274, long-term debt of $2,890, and equity of$1,085. 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 6You are given the following data for ABC Inc.:Net income = $600Net operating profit after taxes (NOPAT) = $906Total assets = $2,500Stockholders' equity = $1,800Total debt = $700Total operating capital = $5,710Barnes' weighted average cost of capital is 14.1%.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 7Suppose you invest $17,450. If the interest rate is 9% compounded quarterly for the first 10 years and 14%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 8Suppose you take a mortgage for $48,195 for 16 years with annual payments. If the annual interest rate is 3.5%,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 9ABC Company has a debt ratio of 0.69. 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 enteras 0.12 in the answer box.1 pointsQuestion 10A project has the following cash flows. What is the internal rate of return?YearCash flow0-$121,0001268,150$42,2003$39,10013.47%14.82%13.85%14.39%12.71%1 pointsQuestion 11ABC Company had beginning retained earnings of $1,685. During the year, the company reported sales of $19,405,costs of $7,823, depreciation of $1,077, dividends of $1,366, and interest paid of $2,058. 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 12ABC Company has $664,521 of operating income after all costs but before $52,937 of interest income, $37,323 ofdividend 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 13ABC Company earned $438,069 in taxable income for the year. How much tax does the company owe on thisincome?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. Forexample, if your answer is $12.345 then enter as 12.35 in the answer box.1 pointsQuestion 14ABC Company has total assets of $897,844. There are 38,626 shares outstanding with a market value of $22 pershare. If the net profit margin is 9.9% and the total asset turnover is 2.1, what is the price/earnings (P/E) ratio?Enter your answer rounded off to two decimal points.1 pointsQuestion 15ABC, Inc. has a total asset turnover of 1.5 and a net profit margin of 12.2%. The firm has a return on equity of21.7%. Calculate Marshall?s debt ratio.Enter your answer as a percentage rounded off to two decimal points. Do not enter % in the answer box. Forexample, if you get 0.1234567, then enter as 12.35 in the answer box.1 pointsQuestion 16You are given the following information about ABC Company:Interest expenses = $19,275Times Interest Earned Ratio = 1.9 timesTax Rate = 21.6%What is the net income?Enter your answer rounded off to two decimal points.1 pointsQuestion 17ABC Company offers a perpetuity which pays annual payments of $8,888. This contract sells for $252,557 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. Forexample, if your answer is 0.12345 then enter as 12.35 in the answer box.1 pointsQuestion 18If you receive $1,807 at the end of each year for the first three years and $749 at the end of each year for the nexttwo years. What is the future value of this cash flow stream? Assume interest rate is 5%.Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. Forexample, if your answer is $12.345 then enter as 12.35 in the answer box.1 pointsQuestion 19What is the net present value of the following cash flows? Assume an interest rate of 7%YearCF0-$13,4551$7,5622$6,8613$7,633Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answers box.1 pointsQuestion 20If you receive $312 at the end of each year for the first two years and $682 at the end of each year for the next twoyears.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 4thyear.Note: Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if youranswer is $12.345 then enter as 12.35 in the answer box.1 pointsQuestion 21What is the effective rate of 17.65% compounded quarterly?Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. Forexample, if your answer is 0.12345 then enter as 12.35 in the answer box.1 pointsQuestion 22How many years will it take to triple your money at 4% compounded monthly?Enter your answer rounded off to TWO decimal points. Do not enter "years" in the answer box.1 pointsQuestion 23ABC, Inc. has total assets of $107,099, current assets of $24,497, current ratio of 2.9, and equity multiplier of 3.4.Compute long term debt.Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.1 pointsQuestion 24Consider a taxable bond with a yield of 10.4% and a tax-exempt municipal bond with a yield of 5.5%. At what taxrate 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. Forexample, if your answer is 0.12345 then enter as 12.35 in the answer box.1 pointsQuestion 25Debbie wants to have $66,897 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 26What is the future value of $21,662 invested for 10 years at 11% compounded semi-annually?Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.1 pointsQuestion 27ABC is reviewing a project that will cost $2,081.The project will produce cash flows $594 at the end of each yearfor the first two years and $784 at the end of each year for the next three years. What is the profitability index?Assume interest rate is 7%.Note: Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as12.35 in the answer box.1 pointsQuestion 28Which one of the following capital budgeting technique ignores time value of money?Profitability IndexPaybackModified Internal Rate of Return(MIRR)Net Present Value (NPV)Internal Rate of Return (IRR)

Paper#49950 | Written in 18-Jul-2015

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