Fin 515 final exam | Business & Finance homework help


FIN 515 Final Exam 1

Page 1:
1. (TCO A) Which of the forthhence does NOT frequently extension a posse's chaffer esteem? (Points : 5)
2. (TCO F) Which of the forthhence statements is punish? (Points : 5
3. (TCO D) Church Inc. is soon enjoying proportionately excellent enlargement consequently of a surge in the ask-for for its new work. Administration wait-fors rights and dividends to enlarge at a objurgate of 25% for the proximate 4 years, behind which race earn probably contract the enlargement objurgate in rights and dividends to cipher, i.e., g = 0. The posse's developed dividend, D0, was $1.25, its beta is 1.20, the chaffer destroy recompense is 5.50%, and the destroy-munificent objurgate is 3.00%. What is the running consume of the niggardly supply?
4. (TCO G) Singal Inc. is preparing its money budget. It wait-fors to feel sales of $30,000 in January, $35,000 in February, and $35,000 in March. If 20% of sales are for money, 40% are confidence sales remunerated in the month behind the sale, and another 40% are confidence sales remunerated 2 months behind the sale, what are the wait-fored money receipts for March?

Page 2
1. (TCO H) Zervos Inc. had the forthhence basis for 2008 (in pets). The new CFO believes (a) that an reformd list administration order could inferior the mean list by $4,000, (b) that reformments in the confidence portion could contract receivables by $2,000, and (c) that the purchasing portion could effect emend confidence stipulations and thereby extension accounts payable by $2,000. Furthermore, she thinks that these substitutes would not concern either sales or the consumes of result sold. If these substitutes were made, by how manifold days would the money alteration cycle be inferiored

2. (TCO C) Bumpas Enterprises purchases $4,562,500 in result per year from its uncombined supplier on stipulations of 2/15, net 50. If the stable chooses to pay on opportunity but does not accept the remittance, what is the telling annual percentage consume of its nonmunificent exsubstitute confidence? (Assume a 365-day year.)
3. (TCO E) You were paid as a consultant to the Quigley Company, whose target important edifice is 35% score, 10% preferred, and 55% niggardly equity. The concern objurgate on new score is 6.50%, the consent on the preferred is 6.00%, the consume of niggardly from retained rights is 11.25%, and the tax objurgate is 40%. The stable earn not be issuing any new niggardly supply. What is Quigley's WACC?
4. (TCO B) A posse prejudges the munificent money flows (in pets) shown beneath. The weighted mean consume of important is 13%, and the FCFs are wait-fored to endure enlargeing at a 5% objurgate behind Year 3. Assuming that the ROIC is wait-fored to latest fixed in Year 3 and over, what is the Year 0 esteem of operations, in pets?
5. (TCO G) Based on the corpoobjurgate valuation standard, Hunsader's esteem of operations is $300 pet. The adjust subterfuge shows $20 pet of short-term boardings that are unconnected to operations, $50 pet of accounts payable, $90 pet of notes payable, $30 pet of long-term score, $40 pet of preferred supply, and $100 pet of niggardly equity. The posse has 10 pet portion-outs of supply unappropriated. What is the best judge of the supply's consume per portion-out?
6. TCO G) Clayton Industries is planning its operations for proximate year, and Ronnie Clayton, the CEO, omissions you to prejudge the stable's subjoined funds needed (AFN). The stable is open at generous ability. Basis for use in your prejudge are shown beneath. Based on the AFN equation, what is the AFN for the hence year? Dollars are in pets. 

FIN 515 Final Exam 2

Page 1

1. (TCO A) Which of the forthhence does NOT frequently extension a posse's chaffer esteem? (Points : 5)

2. (TCO F) Which of the forthhence statements is punish? (Points : 5)

3. (TCO D) The Ramirez Company's developed dividend was $1.75. Its dividend enlargement objurgate is wait-fored to be fixed at 25% for 2 years, behind which dividends are wait-fored to enlarge at a objurgate of 6% continually. Its required reappear (rs) is 12%. What is the best judge of the running supply consume?

4. (TCO G) The ABC Corporation's budgeted monthly sales are $4,000. In the principal month, 40% of its customers pay and accept the 3% remittance.
The latesting 60% pay in the month forthhence the sale and don't accept a remittance.
ABC's bad scores are very paltry and are surrounding from this dissection.                        
Purchases for proximate month's sales are fixed each month at $2,000. Other payments for stipend, fissure, and taxes are fixed at $500 per month.
Construct a unmarried month's money budget behind a while the notice abandoned. What is the mean money fashion or (loss) during a normal month for the ABC Corporation? (Points : 20)
5. (TCO G) Howton & Howton Worldwide (HHW) is planning its operations for the hence year, and the CEO omissions you to prejudge the stable's subjoined funds needed (AFN). The stable is open at generous ability. Basis for use in the prejudge are shown beneath. However, the CEO is solicitous about the impression of a substitute in the payout pertinency from the 10% that was used in the spent to 50%, which the stable's boarding bankers feel recommended. Based on the AFN equation, by how greatly would the AFN for the hence year substitute if HHW extensiond the payout from 10% to the new and excellenter plane? All dollars are in pets.

Page 2

1. (TCO H) Your consulting stable was of-late paid to reform the accomplishment of Shin-Soenen Inc, which is excellently beneficial but has been experiencing money shortages due to its excellent enlargement objurgate. As one part-among-among of your dissection, you omission to detail the stable's money alteration cycle. Using the forthhence notice and a 365-day year, what is the stable's confer-upon money alteration cycle?
2. (TCO C) Bumpas Enterprises purchases $4,562,500 in result per year from its uncombined supplier on stipulations of 2/15, net 50. If the stable chooses to pay on opportunity but does not accept the remittance, what is the telling annual percentage consume of its nonmunificent exsubstitute confidence? (Assume a 365-day year.
3 (TCO E) Daves Inc. of-late paid you as a consultant to judge the posse's WACC. You feel obtained the forthhence notice. (1) The stable's noncallable bonds developed in 20 years, feel an 8.00% annual coupon, a par esteem of $1,000, and a chaffer consume of $1,050.00. (2) The posse's tax objurgate is 40%. (3) The destroy-munificent objurgate is 4.50%, the chaffer destroy recompense is 5.50%, and the supply's beta is 1.20. (4) The target important edifice consists of 35% score and the adjust is niggardly equity. The stable uses the CAPM to judge the consume of niggardly supply, and it does not wait-for to outcome any new portion-outs. What is its WACC? (Points : 30
4. (TCO B) A posse prejudges the munificent money flows (in pets) shown beneath. The weighted mean consume of important is 13%, and the FCFs are wait-fored to endure enlargeing at a 5% objurgate behind Year 3. Assuming that the ROIC is wait-fored to latest fixed in Year 3 and over, what is the Year 0 esteem of operations, in pets?
 5. (TCO G) Based on the corpoobjurgate valuation standard, the esteem of a posse's operations is $900 pet. Its adjust subterfuge shows $70 pet in accounts receivable, $50 pet in list, $30 pet in short-term boardings that are unconnected to operations, $20 pet in accounts payable, $110 pet in notes payable, $90 pet in long-term score, $20 pet in preferred supply, $140 pet in retained rights, and $280 pet in sum niggardly equity. If the posse has 25 pet portion-outs of supply unappropriated, what is the best judge of the supplys consume per portion-out?

FIN 515 Final Exam 3

Page 1

1. (TCO A) Which of the forthhence statements is NOT punish? (Points:5
2. (TCO F) Which of the forthhence statements is punish? (Points : 5)
3. (TCO D) The Ackert Company's developed dividend was $1.55. The dividend enlargement objurgate is wait-fored to be fixed at 1.5% for 2 years, behind which dividends are wait-fored to enlarge at a objurgate of 8.0% continually. The stable's required reappear (rs) is 12.0%. What is the best judge of the running supply consume?

4. (TCO G) The ABC Corporation's budgeted monthly sales are $4,000. In the principal month, 40% of its customers pay and accept the 3% remittance. The latesting 60% pay in the month forthhence the sale and don't accept a remittance. ABC's bad scores are very paltry and are surrounding from this dissection.                    
Purchases for proximate month's sales are fixed each month at $2,000. Other payments for stipend, fissure, and taxes are fixed at $500 per month.
Construct a unmarried month's money budget behind a while the notice abandoned. What is the mean money fashion or (loss) during a normal month for the ABC Corporation? (Points : 20)
5. (TCO G) Clayton Industries is planning its operations for proximate year, and Ronnie Clayton, the CEO, omissions you to prejudge the stable's subjoined funds needed (AFN). The stable is open at generous ability. Basis for use in your prejudge are shown beneath. Based on the AFN equation, what is the AFN for the hence year? Dollars are in pets.

Page 2

1. (TCO H) The Dewey Corporation has the forthhence basis, in thousands. Assuming a 365-day year, what is the stable's money alteration cycle?

Annual sales =                         $31,500
Annual consume of result sold =     $4,000
Inventory =                              $ 2,000

Accounts receivable =              $ 2,400
Accounts payable =                $45,000
3. (TCO E) Daves Inc. of-late paid you as a consultant to judge the posse's WACC. You feel obtained the forthhence notice. (1) The stable's noncallable bonds developed

in 20 years, feel an 8.00% annual coupon, a par esteem of $1,000, and a chaffer consume of $1,050.00. (2) The posse's tax objurgate is 40%. (3) The destroy-munificent objurgate is 4.50%, the chaffer destroy recompense is 5.50%, and the supply's beta is 1.20. (4) The target important edifice consists of 35% score and the adjust is niggardly equity. The stable uses the CAPM to judge the consume of niggardly supply, and it does not wait-for to outcome any new portion-outs. What is its WACC?
4. (TCO B) Leak Inc. prejudges the munificent money flows (in pets) shown beneath. If the weighted mean consume of important is 11% and FCF is wait-fored to enlarge at a objurgate of 5% behind Year 2, what is the Year 0 esteem of operations, in pets? Assume that the ROIC is wait-fored to latest fixed in Year 2 and over (and do not constitute any half-year adjustments).
Year:                      1          2
Free money flow:     -$50     $100

5. (TCO G) Based on the corpoobjurgate valuation standard, the esteem of a posse's operations is $900 pet. Its adjust subterfuge shows $70 pet in accounts receivable, $50 pet in list, $30 pet in short-term boardings that are unconnected to operations, $20 pet in accounts payable, $110 pet in notes payable, $90 pet in long-term score, $20 pet in preferred supply, $140 pet in retained rights, and $280 pet in sum niggardly equity. If the posse has 25 pet portion-outs of supply unappropriated, what is the best judge of the supplys consume per portion-out?