Which Of The Following Is Considered A Hybrid Organiz 145579
Which Of The Following Is Considered A Hybrid Organizational Formlimi
Which of the following is considered a hybrid organizational form? limited liability partnership, corporation, sole proprietorship, partnership.
Which of the following is a principal within the agency relationship? the board of directors, the CEO of the firm, a shareholder, a company engineer.
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?
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 net worth, the statement of retained earnings, the statement of working capital, the statement of cash flows.
Efficiency ratio: Gateway Corp. has an inventory turnover ratio of 5.6. What is the firm's days' sales in inventory? 61.7 days, 57.9 days, 65.2 days, 64.3 days.
Leverage ratio: Your firm has an equity multiplier of 2.47. What is its debt-to-equity ratio? 0.47.
Which of the following is not a method of “benchmarking”? Evaluating a single firm’s performance over time, conducting an industry group analysis, identifying a group of firms that compete with the company being analyzed, utilizing the DuPont system to analyze a firm’s performance.
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, $19,444, $22,680.
PV of multiple cash flows: Ferris, Inc., has borrowed at 8 percent and will repay over five years with scheduled payments: $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.) $2,815,885, $2,735,200, $2,431,224, $2,615,432.
PV of multiple cash flows: Ajax Corp. expects cash flows of $79,000, $112,000, $164,000, $84,000, and $242,000 over five years. If the opportunity cost is 15 percent, what is the present value? (Round to the nearest dollar.) $477,235, $429,560, $414,322, $480,906.
Future value of an annuity: Jayadev Athreya plans to save $5,000 annually at 10 percent for 45 years. How much will he have at the end? (Round to the nearest dollar.) $2,667,904, $5,233,442, $1,745,600, $3,594,524.
Serox stock was selling for $20 two years ago, $25 one year ago, and is currently $28. It pays a $1.10 dividend annually. What was the stock’s rate of return in the most recent year? 32%, 16%, 12%, 40%.
Bond price: Regatta, Inc., has six-year bonds with an 8.25% coupon rate. If the yield to maturity is 6.875%, what should be the bonds’ price today? (Assuming annual payments.) $923, $1,014, $972, $1,066.
PV of dividends: Jenkins Traders will pay a $3.00 dividend next year, increasing by $0.25 annually for three years. If the required rate is 14%, what is the present value of dividends over four years? $13.50, $9.72, $12.50, $11.63.
Capital rationing: TuleTime Comics considers a project generating perpetual $100,000 cash flows, with an initial outlay of $1,500,000 and a discount rate of 6%. What is the profitability index? 0.11.
What decision criteria should managers use when capital is insufficient for all positive NPV projects? Modified internal rate of return, profitability index, discounted payback, or internal rate of return.
The WACC for a firm is 13%, with debt cost at 10% and equity cost at 20%. What proportion of the firm is financed with debt? 30%, 33%, 50%, or 70%.
Cost of equity: If dividends are expected to be $2.10 in one year, with a 3% growth rate, and the stock price is $17.50, what is the cost of equity? 14.65%, 15.00%, 15.36%, 12.00%.
If a company’s WACC is less than the return on equity, then the firm: has debt in its capital structure, is perceived to be safe, must have preferred stock, or is financed with more than 50% debt.
A firm's capital structure includes stock, bonds, and preferred stock but does not include options.
In M&M Proposition 1: Dynamo Corp., which has $150 million cash flow perpetuity, 75% equity, and 25% debt, with discount rates of 10% for cash flows and 7% for debt, how much debt should they issue to change the equity proportion to 60%?
Multiple Analysis: Turnbull Corp. had EBIT of $247 million, depreciation of $84 million, 135 million shares at $12.80, and a valuation multiple of 5.40. What is the enterprise value? (Round to nearest million.) $1,334 million, $453.6 million, $1,787 million, or $1,315 million.
External financing needed: Jockey Company, with assets of $4,417,665, net income $2,771,342, dividends payout 60%, wants no external financing. What growth rate can it support? 32.9%, 30.3%, 25.1%, 27.3%.
Which cannot manage the business? a general partner, a sole proprietor, none, or a limited partner.
Maximizing shareholder wealth generally accounts for risk, cash flows, government regulation, or timing of cash flows?
The strategic plan does not include: working capital strategy, lines of business, major asset investment areas, or future mergers and divestitures.
Firms that grow rapidly without external financing tend to have a low plowback ratio, less equity but high net income, are highly leveraged, or none of these?
Dividend payout and retention ratio: Drekker, Inc., with revenues $312,766, costs $220,222, interest $31,477, tax rate 34%, dividends $34,125. Find payout and retention ratios.
The cash conversion cycle begins when firms invest cash in raw materials, use cash to purchase, and ends when they collect cash from sales, or it is the time to collect accounts receivable, or inventory holding.
Given the Ridge Company’s working capital: Inventory $12,890, accounts receivable $12,800, accounts payable $12,670, and net sales $124,589, with COGS of $99,630, what is the cash conversion cycle? 129.9 days, 46.4 days, 83.5 days, or 38.3 days.