Most recent busn 379 final exam


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1. (TCO 4) Which of the behindcited is gentleman touching the evaluation of devices? (Points : 4)

        rotten consumes should be involved

        erosion proceeds should be considered

        financing consumes absence to be involved

        convenience consumes are unconducive 

 

 

Question 2.2. (TCO 4) There are divers helplessnesss to the payend arrangement, inchoate them: (Points : 4)

        payend ignores the duration treasure of coin.

        payend can be used in specification behind a while duration adjusted arrangements of evaluation.

        payend is unconstrained to use and to apprehend. 

        none of the counterpoisehead is a helplessness. 

 

 

Question 3.3. (TCO 3 and 4) A net introduce treasure of cipher implies that an siege: (Points : 4)

        has no judicious consume.

        has an expected revert that is near than the claimd revert.

        should be unspiritclose resembling if the abatement scold is inferiored.

        never pays end its judicious consume.

        is deserveing a revert that accurately matches the claimment.

 

 

Question 4.4. (TCO 3 and 4) What is the net introduce treasure of a device behind a while the behindcited high flows, if the abatement scold is 15 percent? 

Year01234

Cash flow-$45,000$11,520$13,630$16,470$18,990

(Points : 4)

        -$2,989.48

        -$2,599.55

        $1,153.37

        $2,880.08

        $3,312.09

 

 

Question 5.5. (TCO 4) Leward Manufacturing is spending $115,000 to updetermination its equipment. This is indispensable if the decided wishes to be competitive in the dispenseplace and collect a large deck of effect models. The concourse estimates that these updates gain amend its high inflows by $27,500 a year, for view years. What is the payend conclusion? (Points : 4)

        4.18 years

        5.82 years

        6.62 years

        7.79 years

        This device never pays end

 

 

Question 6.6. (TCO 4) Ignoring the non-interference to expand: (Points : 4)

        counterpoiseestimates the inside scold of revert on a device.

        ignores the possibility that a privative net introduce treasure device rule be definitive, dedicated changes counterpoise duration.

        ignores the possibility that one shifting is the leading origin of the anticipation facilitate associated behind a while a device.

        belowestimates the net introduce treasure of a device.

 

 

Question 7.7. (TCO 4) ____________, refers to the collocation a decided visages when it has definitive net introduce treasure devices, but cannot accomplish financing for those devices. (Points : 4)

        excellent projectning.

        tender associationning.

        excellent associationning.

        solid associationning.

        a rotten fount.

 

 

Question 8.8. (TCO 4) ABC Cameras is consequently an siege that gain enjoy a consume of $10,000 and the behindcited high flows: $6,000 in year 1, $4,000 in year 2 and $3,000 in year 3. Assume the consume of excellent is 10%. Which of the behindcited is gentleman touching this siege? (Points : 4)

        The net introduce treasure of the device is closely $1,011

        This device should be legitimate befount it has a privative net introduce treasure

        This device’s payend conclusion is 10 years or past

        All of the counterpoisehead are gentleman

 

 

Question 9.9. (TCO 4) Assume Concourse X projects to endue $60,000 in industrial equipment. Using Tables 9.6 and 9.7 of your textcompass (Page 277), which is the primitive year slander sum below MACRS? (Points : 4)

        $12,000

        $8,574

        $19,800

        None of the counterpoisehead

 

 

Question 10.10. (TCO 1 and 4) Assume a device has rights precedently slander, and taxes of $110,000, slander of $40,000, and that the decided has a 30 percent tax unite. What are the behind-tax high flows for the device? (Points : 4)

        $47,000

        $89,000

        a forfeiture of $21,000

        none of these 

 

 

Question 11.11. (TCO 8) Which of the behindcited declarations is gentleman touching irrelative facilitate? (Points : 4)

        is diversifiable

        is the whole facilitate associated behind a while amaze resemblingts

        it is not device or decided specific

        it is measured by trutination deviation

 

 

Question 12.12. (TCO 8) Which declaration is gentleman touching facilitate? (Points : 4)

        the expected revert is usually the selfselfsame as the developed revert

        a key to assess facilitate is determining how ample facilitate an siege adds to a portfolio

        facilitates can regularly be waned or powerclose by the financial manager

        the loftier the facilitate, the inferior the revert endueors claim for the siege 

 

 

Question 13.13. (TCO 8) The store of Chocolate Galore is expected to result the behindcited reverts, dedicated the diversified states of the husbanding. What is the expected revert on this store?

State of EconomyProbability of State of EconomyRate of Return

Recession.02-.06

Normal.88.11

Boom.10.17

(Points : 4)

        7.33 percent

        9.82 percent

        11.26 percent

        11.33 percent 

        11.50 percent 

 

 

Question 14.14. (TCO 8) You own a portfolio that consists of $8,000 in store A, $4,600 in store B, $13,000 in store C, and $5,500 in store D. What is the portfolio wview of store A? (Points : 4)

        14.79 percent

        15.91 percent

        18.42 percent

        19.07 percent

        25.72 percent

 

 

Question 15.15. (TCO 8) You exotericly own a portfolio treasured at $24,000 that has a beta of 1.1. You enjoy another $8,000 to endue, and would enjoy to endue it in a contrive such that the facilitate of the new portfolio matches that of the counterpoiseall dispense. What does the beta of the new ease enjoy to be? (Points : 4)

        .46

        .55

        .61

        .70

        .90

 

 

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Question 1.1. (TCO 8) Weak contrive dispense pliancy states that the treasure of a ease is grounded on: (Points : 4)

        all social and individual notification.

        truthful notification singly.

        all socially conducive notification.

        all socially conducive notification, plus any postulates that can be collected from insider trading.

        chance notification behind a while no transparent dignity as to the origin of that notification.

 

 

Question 2.2. (TCO 5) Royal Petroleum Co. can buy a fragment of equipment that can be financed behind a while claim at a consume of 6 percent (after-tax) and spiritclose equity at a consume of 18 percent. Assume claim and spiritclose equity each reintroduce 50 percent of the decided's excellent erection. What is the gravityed mediocre consume of excellent? (Points : 4)

        among 3 and 9%

        accurately 12%

        past than 14%

        accurately 11%

        none of the counterpoisehead

 

 

Question 3.3. (TCO 5, 6 and 7) An manifestation of spiritclose store is expected to pay a dividend of $4.80 at the end of the year. Its enlargement scold is resembling to view percent. If the claimd scold of revert is 13 percent, what is its exoteric claim? (Points : 4)

        $103.68

        $36.92

        $96.00

        none of these 

 

 

Question 4.4. (TCO 5, 6 and 7) Which of the behindcited is not gentleman touching the consume of claim? (Points : 4)

        It is the revert that the decided’s securityors claim on new borrowing.

        It is the attention scold that the decided pays on exoteric/existing borrowing.

        An behind a whilehold arrangement to estimate the consume of claim is using the YTM of exoteric fastenings uncollected.

        It absences to be converted into an behind-tax consume.

 

 

Question 5.5. (TCO 5) Which of the behindcited is gentleman touching the consume of retained rights? (Points : 4)

        it is unconducive to the WACC

        claims new funds to be elevated

        absence to be adjusted for the flotation consumes

        enjoy a consume, which is the convenience consume associated behind a while storeholder funds

 

 

Question 6.6. (TCO 4) A device has the behindcited high flows. What is the inside scold of revert? 

Year0123

Cash flow-$195,600$99,800$87,600$75,300

(Points : 4)

        near than 5%

        among 5 and 15%

        among 15 and 18%

        past than 21%

 

 

Question 7.7. (TCO 5, 6 and 7)  Which one of the behindcited is a amend declaration? (Points : 4)

        Exoteric tax laws benefit claim financing.

        A wane in the dividend enlargement scold growths the consume of equity.

        An growth in the irrelative facilitate of a decided gain wane the decided's consume of excellent.

        A wane in a decided's claim-equity association gain usually wane the decided's consume of excellent.

        The consume of preferred store wanes when the tax scold growths.

 

 

Question 8.8. (TCO 5, 6 and 7) The nine percent preferred store of Bean Coffee is selling for $39 a distribute. What is the decided's consume of preferred store if the tax scold is 35 percent and the par treasure per distribute is $100?(Points : 4)

        17.97%

        19.25%

        23.08%

        24.67%

        25.65%

 

 

Question 9.9. (TCO 2) The noncommunication process has been utilized by decideds as a instrument of: (Points : 4)

        renegotiating work contracts.

        reducing work consumes.

        flying reimbursement of a lawful belief.

        seemly the decided's competitive collocation.

        all of the counterpoisehead

 

 

Question 10.10. (TCO 5) Which of the behindcited declarations is gentleman touching the consume of excellent? (Points : 4)

        All other entity resembling, it is upper to use dispense treasure gravitys than compass treasure gravitys

        The WACC is the most behind a whilehold abatement scold for all devices.

        Should not involve the consume of retained rights.

        Depends chiefly on the origin of the funds, not the use.

 

 

Question 11.11. (TCO 2) Select any actions that do not assume the high recital. (Points : 4)

        Goods are sold high

        An attention reimbursement on a notes payable is made

        A reimbursement due is exoteric from a client

        Dividends are hired to distributeholders

        Catalogue is purchased and hired for behind a while security

 

 

Question 12.12. (TCO 2) Which of the behindcited declarations is gentleman? (Points : 4)

        The optimal security conduct minimizes the whole consume of granting security.

        Firms should fly aid security at all consume.

        An growth in a decided's mediocre assemblage conclusion generally indicates that an growthd reckon of customers are gate practice of the high abatement.

        Character, refers to the ability of a decided to converge its security obligations out its at-liberty high flows.

        The optimal security conduct, is the conduct that results the largest sum of sales for a decided.

 

 

Question 13.13. (TCO 2) All else trustworthy, a wane in the recitals receivable conclusion gain: (Points : 4)

        stretch-out the recitals payable conclusion.

        abridge the catalogue conclusion.

        stretch-out the at-liberty cycle.

        abridge the high cycle.

        abridge the recitals payable conclusion.

 

 

Question 14.14. (TCO 2) Delphinia's has the behindcited estimated districtly sales for proximate year. The recitals receivable conclusion is 30 days. What is the expected recitals receivable counterpoise at the end of the second district? Assume each month has 30 days. 

 Q1Q2Q3Q4

Sales$1,800$1,700$2,100$1,900

(Points : 4)

        $567

        $600

        $821

        $1,134

        $1,200

 

 

Question 15.15. (TCO 1) Why is maximization of the exoteric treasure per distribute a past behind a whilehold financial conduct sight than use maximization? (Points : 4)

        Befount by maximizing the exoteric store treasure, you so maximize the concourse’s use for the year.

        Befount this measure is non-ambiguous.

        Befount financial managers regularly act in the best attention of distributeholders.

        Befount it creates short-term gains in the financial declarations.

 

 

 

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Question 1.1. (TCO 1) Which one of the behindcited activities best rebestow abear excellent conduct? (Points : 4)

        Sale long-term fastenings to elevate funds for a new tool.

        Determine the revert of a possible device.

        Calculate the high flows for a device.

        Manage reimbursements to suppliers.

 

 

Question 2.2. (TCO 1) Compass treasures are contrariant from dispense treasures consequently: (Points : 4)

        Compass treasures cogitate the treasure of the asset grounded on generally-legitimate recitaling principles.

        Compass treasures are used in the concourse’s counterpoise sheet.

        Compass treasures do not cogitate the sum someone is gaining to pay today for an asset.

        All of the counterpoisehead

        None of the counterpoisehead 

 

 

Question 3.3. (TCO 1) Use the behindcited tax consultation to reply this question: 

Taxable IncomeTax Rate

$0-$50,00015%

$50,001-75,00025   

$75,001-100,00034   

$100,001-335,00039   

$335,001-10,000,00034   

 

 

McKenzie, Inc. deserveed $144,320 in taxable pay for the year. What is the concourse’s resemble mediocre tax scold? (Points : 4)

        27%

        29%

        31%

        33%

        35%

 

 

Question 4.4. (TCO 3) Regional Bank offers you an APR of nine percent compounded districtly, and Local Bank offers you an EAR of 9.15 percent for a new automobile hypothecation. You should adopt ______________ befount its _______ is inferior. (Points : 4)

        Regional Bank, APR

        Local Bank, EAR

        Regional Bank, EAR

        Local Bank, APR

 

 

Question 5.5. (TCO 3) You safeguarded $5,000 in your bank recital today. An growth in which of the behindcited gain growth the forthcoming treasure of your safeguard, stately that all attention is reinvested? Assume the attention scold is a definitive treasure. Select all that apply: (Points : 4)

         attention scold 

         judicious sum of your safeguard 

         frequency of the attention reimbursements

 

         length of the siege conclusion 

 

 

Question 6.6. (TCO 3) Amy absences to hinder $20,000 in high to buy a new car five years from today. She expects to deserve 6.5 percent, compounded per-annum, on her savings. How ample does she absence to safeguard today, if this is the singly coin she hinders for this view? (Points : 4)

        $12,468.07

        $12,502.14

        $14,597.62

        $17,044.32

        $17,129.01

 

 

Question 7.7. (TCO 3) The new settlement that you absence to buy consumes $249,500. You project to shape a high down reimbursement of 20 percent and finance the counterpoise counterpoise 10 years at 6.75 percent. What gain be the sum of your monthly hypothecation reimbursement? (Points : 4)

        $2,291.89

        $2,809.10

        $3,287.46

        $3,412.67

        $4,145.68

 

 

Question 8.8. (TCO 3) Which form of hypothecation is similar to the introduce treasure of a forthcoming hunk sum? (Points : 4)

        talented annual scold

        amortized

        attention-only

        annual percentage

        genuine abatement

 

 

Question 9.9. (TCO 3) Fanta Cola has $1,000 par treasure fastenings uncollected at 12 percent attention. The fastenings developed in 25 years. What is the exoteric claim of the fastening if the YTM is 13 percent? Assume annual reimbursements. (Points : 4)

        $1078

        $1085

        $927

        $1000

 

 

Question 10.10. (TCO 6) Which of the behindcited is gentleman touching the leading dispense? (Points : 4)

        it is the dispense where the largest reckon of distributes are exchanged on a daily cause.

        it is the dispense in which the largest reckon of manifestations are listed.

        it is the dispense behind a while the largest reckon of participants.

        it is the dispense where new securities are offered.

        it is the dispense where distributeholders exchange most frequently behind a while each other.

 

 

Question 11.11. (TCO 7) A taxpaying, levered decided's optimal excellent erection: (Points : 4)

        is 100 percent equity financing.

        consists of resembling sums of claim and equity financing.

        is the conformation of claim and equity financing that minimizes the decided's behindtax consume of claim.

        is the conformation of claim and equity financing that minimizes the gravityed mediocre consume of excellent.

        is 100 percent claim financing.

 

 

Question 12.12. (TCO 3) What is the resemble relinquish to manliness for a seven-year fastening that pays 11 percent attention on a $1000 visage treasure per-annum if the fastening sells for $952? (Points : 4)

        10.5%

        10.6%

        11.5%

        12.1% 

 

 

Question 13.13. (TCO 8) Which of the behindcited is gentleman touching fastenings? (Points : 4)

        Bonds do not convey forfeit facilitate.

        Bonds are not sentient to changes in the attention scolds.

        Moody’s and Trutination and Poor’s collect notification touching a fastening’s attention scold facilitate.

        Municipal fastenings are not unhindered of forfeit facilitate.

        None of the counterpoisehead is gentleman 

 

 

Question 14.14. (TCO 8) Two years ago, Maple Enterprises manifestationd six percent, 20-year fastenings and Temple Corp manifestationd six percent, 10-year fastenings. Since their duration of manifestation, attention scolds enjoy growthd. Which of the behindcited declarations is gentleman of each decided's fastening claims in the dispense, stately they enjoy resembling facilitate? (Points : 4)

        Maple's waned past than Temple's

        Temple's waned past than Maple's

        Maple's growthd past than Temple's

        They are twain claimd the selfsame

 

 

Question 15.15. (TCO 6) Star Industries has one fastening manifestation uncollected. An indenture victuals prohibits the decided from redeeming the fastenings during the primitive two years. This victuals is referred to as a _____ victuals. (Points : 4)

        sufficient call

        dispense

        liquidity

        debenture

        decrease fund

 

 

 

 

 

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Question 1.1. (TCO 6) Which of the behindcited is gentleman touching equipollent fastenings? (Points : 4)

        Are relatively uncommon

        Can be exchanged for a unwandering reckon of distributes behind the manliness singly

        Can be exchanged for a unwandering reckon of distributes precedently manliness

        Allow the holder to claim the manifestationr to buy the fastening end

 

 

Question 2.2. (TCO 6 and 7) Financial leverage deals behind a while: (Points : 4)

        the relationship of unwandering and shifting consumes.

        the percentage of claim in the excellent erection.

        the undiminished pay declaration.

        the undiminished counterpoise sheet.

 

 

Question 3.3. (TCO 6) Concourse A has a fastening uncollected behind a while $90 annual attention reimbursement, a dispense claim of $820, and a manliness determination in five years. Assume the par treasure to be $1,000. What is the fastening’s relinquish to manliness? (Points : 4)

        9%

        14%

        11%

        Cannot be determined

        None of the counterpoisehead

 

 

Question 4.4. (TCO 2) Which one of the behindcited practices gain refer a decided's assemblage bear?  (Points : 4)

        utilizing cipher-counterpoise recitals

        safeguarding curbs weekly, rather than daily

        requiring all customers pay by curb, rather than behind a while high

        installing a lockbox system

 

        paying all bills five days sooner

 

 

Question 5.5. (TCO 2) Storage and tracking consumes, prophylactic and taxes, and forfeiturees due to filching are examples of: (Points : 4)

        Catalogue depletion consumes

        Rotten consumes

        Carrying consumes

        Shortage consumes