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can you answer me all the questions expect the essay questions in an hour?,. (TCO 1) Which one of the following actions best matches the primary goal of financial management? (Points : 3) increasing the net working capital while lowering the long-term asset requirements improving the operating efficiency, thereby increasing the market value of the stock increasing the firm?s market share reducing fixed costs and increasing variable costs increasing the liquidity of the firm by transferring short-term debt into long-term debt 2. (TCO 1) When analyzing alternative capital structures for a firm, a financial manager must consider which of the following? (Points : 3) type of loan amount of funds needed cost of funds mix of debt and equity all of the above 3. (TCO 1) Market value reflects which of the following: (Points : 3) The amount someone is willing to pay today for an asset. The value of the asset based on generally-accepted accounting principles. The asset?s historical cost. A and B only None of the above 4. (TCO 1) Which of the following is true regarding income statements? (Points : 3) It reveals the net cash flows of a firm over a stated period of time. It reflects the financial position of a firm as of a particular date. It records revenue only when cash is received for the product or service provided. It records expenses based on the recognition principle. None of the above is a true statement. 5. (TCO1) Telemarket Inc. has sales of $625,000. They paid $43,000 in interest during the year and depreciation was $79,000. Administrative costs were $100,000 and other costs were $160,000. Assuming a tax rate of 35 percent, what is Telemarket?s taxable income? (Points : 3) $157,950 $322,000 $243,000 $200,000 6. (TCO 1) Home Best Hardware had $315,000 in taxable income last year. Using the tax rates provided in Table 2.3, what are the company?s income taxes? (Points : 3) $122,850 $106,100 $94,500 None of the above 7. (TCO 1) Pizza A had earnings after taxes of $390,000 in the year 2008, and 300,000 shares outstanding. In year 2009, earnings after taxes increased by 20 percent to $468,000 and 25,000 new shares were issued for a total of 325,000 shares. What is the EPS figure for 2009? (Points : 3) $1.30 $1.44 $0.77 $0.69 8. (TCO 1) The financial statement that summarizes a firm's operations over a period of time is called a(n): (Points : 3) income statement. cash flow statement. production report. balance sheet. periodic operating statement. 9. (TCO 1) Best Electronics has EBIT of $450,000, interest of $30,000, taxes of $50,000, and depreciation of $80,000. What is the company?s operating cash flow? (Points : 3) $497,200 $480,000 $530,000 $470,000 $450,000 10. (TCO 3) You opened a new certificate of feposit with $13,000. Your broker indicated that this investment pays five percent interest, compounded quarterly. Which one of the following statements is correct concerning this investment? (Points : 3) You will receive equal interest payments every three months over the life of the investment. You could earn more interest by investing in an account paying five percent simple interest. You would have earned more interest if you had invested in an account paying annual interest. You will earn less and less interest each year over the life of the investment. You will earn more interest in year 3, than you will in year 2. 11. (TCO 3) Mr. Smith will receive $6,500 a year for the next 14 years from his trust. If the interest rate on this investment is eight percent, what is the approximate current value of these future payments? (Points : 3) $93,000 $53,500 $84,300 $52,000 12. (TCO 3) Paper Pro recently purchased a printing machine costing $97,000. The company financed this purchase at 8.25 percent interest, with monthly payments of $2,379.45. How many years will it take the firm to pay off this debt? (Points : 3) 3.0 years 4.0 years 4.25 years 4.5 years 5.0 years 13. (TCO 3) Fine Oak Woodworks is considering a project that has cash flows of $6,000, $4,000, and $3,000 for the next three years. If the appropriate discount rate of this project is 10 percent, which of the following statements is false? (Points : 3) The current value of the project?s inflows is $13,000 The approximate current value of the project?s inflows is $11,000 The project?s inflows are higher than zero The project should be accepted because its present value is positive 14. (TCO 4) You are considering two investments. Investment I, is in a software company and Investment II, is an engineering company. The investments offer the following cash flows: Year Software Company Engineering Company 1 $5,000 $15,000 2 $3,000 $8,000 3 $4,000 $9,000 4 $3,600 $11,000 If the appropriate discount rate is 10 percent, what is the approximate present value of the Software Company investment? (Points : 3) $15,600 $12,500 $12,750 $15,000 15. (TCO 3) North Bank offers you an APR of 13.17 percent compounded monthly, and South Bank offers you an effective rate of 13.75 percent on a business loan. Which bank should you choose and why? (Points : 3) South Bank because its effective rate is higher. North Bank because the APR is lower. South Bank because its effective rate is lower. North Bank because its effective rate is lower. Tim needs to borrow $5,000 for two years. The loan will be repaid in one lump sum at the end of the loan term. Which one of the following interest rates is best for Tim? (Points : 3) 7.5 percent simple interest 7.5 percent interest, compounded monthly 8.0 percent simple interest 8.0 percent interest, compounded annually 8.0 percent interest, compounded monthly 2. (TCO 3) Which one of the following best exemplifies a perpetuity? (Points : 3) a mortgage of $860 a month for 30 years $2,000 annual payments from a trust fund indefinitely social security payments of $2,500 a month for life student loan payments of $600 a month for three years $250 a month over the life of a lease 3. (TCO 3) Fanta Cola has $1,000 par value bonds outstanding at 12 percent interest. The bonds mature in 25 years. What is the current price of the bond if the YTM is 13 percent? Assume annual payments. (Points : 3) $1078 $1085 $927 $1000 4. (TCO 6 and 8) A bond's indenture agreement will include which of the following? (Points : 3) description of any loan collateral call provisions total amount of the bond issue protective covenants all of the above none of the above 5. (TCO 3) Bonds issued by Blue Sky Airlines have a face value of $1,000 and currently sell for $850. The annual coupon payments are $80. If the bonds have 10 years until maturity, what is the approximate YTM of the bonds? (Points : 3) 10.50% 11.50% 11.75% 12% 6. (TCO 3) The preferred stock of Bean Coffee pays an annual dividend of $5.60. It has a required rate of return of eight percent. What is the price of the preferred stock? (Points : 3) $700 $70 $5.20 $6.05 None of the above 7. (TCO 3) Intelligence Research, Inc. will pay a common stock dividend of $1.60 at the end of the year. The required rate of return by common stockholders is 13 percent. The firm has a constant growth rate of nine percent. What is the current price of the stock? (Points : 3) $35 $40 $27 $29 8. (TCO 3) Royal Electric paid a $2 dividend last year. The dividend is expected to grow at a constant rate of five percent over the next three years. Common stockholders require a 12 percent return. What is the total amount of dividends stockholders will receive during the next three years? (Points : 3) $6.62 $6.03 $6.52 $6.85 9. (TCO 6) Which of the following is true regarding the primary market? (Points : 3) it is the market where the largest number of shares are traded on a daily basis. it is the market in which the largest number of issues are listed. it is the market with the largest number of participants. it is the market where new securities are offered. it is the market where shareholders trade most frequently with each other. 10. (TCO 6) A member of the NYSE who trades on the floor of the exchange for his or her personal account is called a(n): (Points : 3) specialist. independent broker. floor trader. stand-alone agent. dealer. 11. (TCO 6) The maturity date of a bond is defined as: (Points : 3) the first date on which a bond can be called. the date on which the principal amount is paid. 20 years after the issue date. the date on which the next interest payment will be made. the original issue date. 12. (TCO 6) Star Industries has one outstanding bond issue. An indenture provision prohibits the firm from redeeming the bonds during the first two years. This provision is referred to as a _____ provision. (Points : 3) deferred call market liquidity debenture sinking fund 13. (TCO 8) Which of the following is true regarding bonds? (Points : 3) Most bonds do not carry default risk. Municipal bonds are free of default risk. Bonds are not sensitive to changes in the interest rates. Moody?s and Standard and Poor?s provide information regarding a bond?s interest rate risk. None of the above is true 14. (TCO 6) Which of the following best describes a floating-rate bond? (Points : 3) A bond that adjusts the coupon payments based on an interest rate index, such as the T-bill. A bond that is issued by the U.S. government. A bond that adjusts the coupon payment date. A bond that has no coupons, but adjusts the face value payment based on inflation. 15. (TCO 6) Which of the following are not true regarding convertible bonds? Select all that apply: (Points : 3) Are extremely rare Can be exchanged for a fixed number of shares at maturity only Can be exchanged for a fixed number of shares before maturity Allow the holder to require the issuer to buy the bond back,Rachel,please just answer the questions with problems. This is a midterm and I only have an hour to finish it. I know someone already post these quesitns, you might have the answers already. Please just let me know. This is urgent .. bonus at the end.

 

Paper#5650 | Written in 18-Jul-2015

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