Details of this Paper

davenport finc620 week 3 quiz

Description

solution


Question

Question;?;estion 1;2 out of 2 points;Which of the following is NOT a;key element in strategic planning as it is described in the text?;?;Question 2;2 out of 2 points;A company expects sales to increase during the;coming year, and it is using the AFN equation to forecast the additional;capital that it must raise. Which of the following conditions would cause the;AFN to increase?;?;Question 3;2 out of 2 points;Which of the following is NOT one;of the steps taken in the financial planning process?;?;Question 4;2 out of 2 points;Spontaneous funds are generally defined as;follows;?;Question 5;2 out of 2 points;Which of the following statements is CORRECT?;?;Question 6;2 out of 2 points;Jefferson City Computers has developed a;forecasting model to estimate its AFN for the upcoming year. All else being;equal, which of the following factors is most likely to lead to an increase of;the additional funds needed (AFN)?;?;Question 7;2 out of 2 points;Which of the following statements is CORRECT?;?;Question 8;2 out of 2 points;Last year Wei Guan Inc. had $350 million of;sales, and it had $270 million of fixed assets that were used at 65% of;capacity. In millions, by how much could Wei Guan's sales increase before it;is required to increase its fixed assets?;?;Question 9;2 out of 2 points;Clayton Industries is planning its operations for next year, and;Ronnie Clayton, the CEO, wants you to forecast the firm's additional funds;needed (AFN). The firm is operating at full capacity. Data for use in your;forecast are shown below. Based on the AFN equation, what is the AFN for the;coming year? Dollars are in millions.;Last year's sales = S0;$350;Last year's accounts payable;$40;Sales growth rate = g;30%;Last year's notes payable;$50;Last year's total assets = A0*;$500;Last year's accruals;$30;Last year's profit margin = PM;5%;Target payout ratio;60%;?;Question 10;2 out of 2 points;Last year Jain Technologies had $250 million of;sales and $100 million of fixed assets, so its FA/Sales ratio was 40%.;However, its fixed assets were used at only 75% of capacity. Now the company;is developing its financial forecast for the coming year. As part of that;process, the company wants to set its target Fixed Assets/Sales ratio at the;level it would have had had it been operating at full capacity. What target;FA/Sales ratio should the company set?;?;Question 11;2 out of 2 points;Howton & Howton Worldwide (HHW) is planning its operations for the;coming year, and the CEO wants you to forecast the firm's additional funds;needed (AFN). The firm is operating at full capacity. Data for use in the;forecast are shown below. However, the CEO is concerned about the impact of a;change in the payout ratio from the 10% that was used in the past to 50%;which the firm's investment bankers have recommended. Based on the AFN;equation, by how much would the AFN for the coming year change if HHW;increased the payout from 10% to the new and higher level? All dollars are in;millions.;Last year's sales = S0;$300.0;Last year's accounts payable;$50.0;Sales growth rate = g;40%;Last year's notes payable;$15.0;Last year's total assets = A0*;$500.0;Last year's accruals;$20.0;Last year's profit margin = PM;20.0%;Initial payout ratio;10.0%;?;Question 12;2 out of 2 points;Which of the following statements is CORRECT?;?;Question 13;2 out of 2 points;The term "additional funds needed;(AFN)" is generally defined as follows;?;Question 14;2 out of 2 points;Last year Emery Industries had $450 million of;sales and $225 million of fixed assets, so its FA/Sales ratio was 50%.;However, its fixed assets were used at only 65% of capacity. If the company;had been able to sell off enough of its fixed assets at book value so that it;was operating at full capacity, with sales held constant at $450 million, how;much cash (in millions) would it have generated?;?;Question 15;2 out of 2 points;Last year Handorf-Zhu Inc. had $850 million of;sales, and it had $425 million of fixed assets that were used at only 60% of;capacity. What is the maximum sales growth rate the company could achieve;before it had to increase its fixed assets?

 

Paper#50572 | Written in 18-Jul-2015

Price : $31
SiteLock