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Topics: Financial ratios, Investment, Cash flow Pages: 12 (1352 words) Published: November 4, 2013
Multiple Choice Question 51

Which of the following is considered a hybrid organizational form?

corporation

sole proprietorship

limited liability partnership

partnership
Multiple Choice Question 59

Which of the following is a principal within the agency relationship?

the CEO of the firm

the board of directors

a company engineer

a shareholder
Multiple Choice Question 78

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 working capital.

The statement of cash flows.

The statement of net worth.
Multiple Choice Question 57

Teakap, Inc., has current assets of $ 1,456,312 and total assets of $4,812,369 for the year ending September 30, 2006. It also has current liabilities of $1,041,012, common equity of $1,500,000, and retained earnings of $1,468,347. How much long-term debt does the firm have?

$2,303,010

$1,844,022

$2,123,612

$803,010
Multiple Choice Question 63

Efficiency ratio: 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
Multiple Choice Question 70

Leverage ratio: Your firm has an equity multiplier of 2.47. What is its debt-to-equity ratio?

1.74

0

0.60

1.47
Multiple Choice Question 84

Which of the following is not a method of “benchmarking”?

Conduct an industry group analysis.

Identify a group of firms that compete with the company being analyzed.

Utilize the DuPont system to analyze a firm’s performance.

Evaluating a single firm’s performance over time.
Multiple Choice Question 67

Present value: 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
Multiple Choice Question 62

PV of multiple cash flows: 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

$2,615,432

$2,431,224

$2,815,885
Multiple Choice Question 64

PV of multiple cash flows: 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.)

$480,906

$414,322

$477,235

$429,560
Multiple Choice Question 72

Future value of an annuity: 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
Multiple Choice Question 57

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.)

32%

40%

12%

16%
Multiple Choice Question 62

Bond price: 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....
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