29 Jun Question Which of the following is considered a hybrid organizational form?
Question
Which of the following is considered a hybrid organizational form?
sole proprietorship
partnership
limited liability partnership
corporation
Which of the following is a principal within the agency relationship?
the board of directors
a shareholder
a company engineer
the CEO of the firm
Which of the following presents a summary of the changes in a firm’s balance sheet from the beginning of an accounting period to the end of that accounting period?
The statement of retained earnings.
The statement of net worth.
The statement of working capital.
The statement of cash flows.
Gateway Corp. has an inventory turnover ratio of 5.6. What is the firm’s days’s sales in inventory?
65.2 days
64.3 days
61.7 days
57.9 days
Your firm has an equity multiplier of 2.47. What is its debt-to-equity ratio?
0
1.47
0.60
1.74
Which of the following is not a method of “benchmarking”?
Identify a group of firms that compete with the company being analyzed.
Evaluating a single firm’s performance over time.
Conduct an industry group analysis.
Utilize the DuPont system to analyze a firm’s performance
Jack Robbins is saving for a new car. He needs to have $ 21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target? (Round to nearest dollar.)
$26,454
$16,670
$22,680
$19,444
Ferris, Inc., has borrowed from their bank at a rate of 8 percent and will repay the loan with interest over the next five years. Their scheduled payments, starting at the end of the year are as follows—$450,000, $560,000, $750,000, $875,000, and $1,000,000. What is the present value of these payments? (Round to the nearest dollar.)
$2,735,200
$2,815,885
$2,615,432
$2,431,224
Ajax Corp. is expecting the following cash flows—$79,000, $112,000, $164,000, $84,000, and $242,000—over the next five years. If the company’s opportunity cost is 15 percent, what is the present value of these cash flows? (Round to the nearest dollar.)
$429,560
$414,322
$480,906
$477,235
Jayadev Athreya has started on his first job. He plans to start saving for retirement early. He will invest $5,000 at the end of each year for the next 45 years in a fund that will earn a return of 10 percent. How much will Jayadev have at the end of 45 years? (Round to the nearest dollar.)
$5,233,442
$2,667,904
$1,745,600
$3,594,524
Serox stock was selling for $20 two years ago. The stock sold for $25 one year ago, and it is currently selling for $28. Serox pays a $1.10 dividend per year. What was the rate of return for owning Serox in the most recent year? (Round to the nearest percent.)
40%
16%
12%
32%
Regatta, Inc., has six-year bonds outstanding that pay a 8.25 percent coupon rate. Investors buying the bond today can expect to earn a yield to maturity of 6.875 percent. What should the company’s bonds be priced at today? Assume annual coupon payments. (Round to the nearest dollar.)
$923
$1,014
$972
$1,066
Next year Jenkins Traders will pay a dividend of $3.00. It expects to increase its dividend by $0.25 in each of the following three years. If their required rate of return is 14 percent, what is the present value of their dividends over the next four years?
$12.50
$11.63
$13.50
$9.72
TuleTime Comics is considering a new show that will generate annual cash flows of $100,000 into the infinite future. If the initial outlay for such a production is $1,500,000 and the appropriate discount rate is 6 percent for the cash flows, then what is the profitability index for the project?
0.90
1.90
0.11
1.11
What decision criteria should managers use in selecting projects when there is not enough capital to invest in all available positive NPV projects?
The discounted payback.
The profitability index.
The internal rate of return.
The modified internal rate of return
The WACC for a firm is 13.00 percent. You know that the firm’s cost of debt capital is 10 percent and the cost of equity capital is 20%. What proportion of the firm is financed with debt?
33%
50%
70%
30%
Gangland Water Guns, Inc., is expected to pay a dividend of $2.10 one year from today. If the firm’s growth in dividends is expected to remain at a flat 3 percent forever, then what is the cost of equity capital for Gangland if the price of its common shares is currently $17.50?
15.36%
15.00%
12.00%
14.65%
If a company’s weighted average cost of capital is less than the required return on equity, then the firm:
Must have preferred stock in its capital structure
Is financed with more than 50% debt
Has debt in its capital structure
Is perceived to be safe
A firm’s capital structure is the mix of financial securities used to finance its activities and can include all of the following except
stock.
bonds.
equity options.
preferred stock
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.