Bus 401 finance | Business & Finance homework help

1.      JBC Corp. outward a dividend of $2 per divide, which was an extension of 25% from the foregoing year, yet JBC Corp. fund unprosperous by 3% the day of the assertion. RBG Corp. outward a dividend of $2 per divide, which was the selfselfselfcorresponding as the foregoing year, and its fund extensiond in treasure by 2% on the day of the assertion. These events could be most early explained by the (Points : 1)

a.     instruction pi.

b.    clientele pi.

c.     expectations supposition.

d.    residual dividend supposition.


2.       A resolute's optimal principal erection occurs where? (Points : 1)

a.     EPS are maximized, and WACC is minimized.

b.    Stock compensation is maximized, and EPS are maximized.

c.     Stock compensation is maximized, and WACC is maximized.

d.    WACC is minimized, and fund compensation is maximized.  


3. Flotation requires: (Points : 1)

a.      include the fees hired to the siege bankers, lawyers, and accountants concerned in selling a new defence progeny. 

b.      encourage resolutes to pay extensive dividends.

c.       are encountered whenever a resolute misss to pay a dividend.

d.      are incurred when investors miss to proud their dividend curb.


4. Assume that the tax on dividends and the tax on principal gains is the selfsame. All else correspondent, what would a circumspect investor select? (Points : 1)

a.       The circumspect investor would be careless among receiving dividends or principal gains.

b.      The circumspect investor would select dividendsa dollar today is constantly estimate over than a dollar to be common in the coming.

c.       The circumspect investor would select principal gainsthe principal gain tax amenability can be exceeding until gains are realized.  

d.      More instruction is needed.


5. The break-even summit is correspondent to (Points : 1)

a.      unwandering requires disconnected by (sales compensation per item — capricious require per item).  

b.      unwandering requires disconnected by item capricious requires.

c.       unwandering requires disconnected by selling compensation per item.

d.      (sales compensation per item — capricious require per item) times the unwandering requires.


6. The cancelment of dividends may by-and-by issue in closer monitoring of management's siege activities, thus increasing divideholder treasure by (Points : 1)

a.      reducing influence requires.  

b.      increasing instruction asymmetry.

c.       increasing a company's aggregate of unobstructed proud glide.

d.      reducing auditing fees.


7. A resolute that uses extensive aggregates of claim financing in an perseverance characterized by a proud mark of duty imperil would feel ________ rights per divide fluctuations issueing from changes in levels of sales. (Points : 1)

a.       no

b.      constant

c.       large 

d.      small


8. A proud mark of variability in a resolute's rights precedently curiosity-behalf and taxes refers to (Points : 1)

a.       duty imperil.

b.      financial imperil.

c.       financial leverage.

d.      operating leverage. 


9. As genesis levels extension, (Points : 1)

a.       capricious requires per item lessen.

b.      unwandering requires per item extension.

c.       unwandering requires per item arrive the selfselfselfcorresponding and capricious requires per item extension.

d.      unwandering requires per item lessen and capricious requires per item arrive the selfsame. 


10. Moline Manufacturing Corporation reputed the aftercited items: Sales = $6,000,000; Capricious Costs of Genesis = $1,500,000; Capricious Selling and Administrative Expenses = $550,000; Unwandering Costs = $1,350,000; EBIT = $2,600,000; and the Marginal Tax Rate =35%. Moline's break-even summit in sales dollars is (Points : 1)

a.      $2,050,633.

b.      $2,197,500.

c.       $2,438,750.

d.      $2,785,000.