Question

Question 17

Given the following information: sales = $525; costs = $400; tax rate = 34%. Assuming costs run at a constant percentage of sales, if sales rise by 10% next year, what will net income be?

Select one:

a. $33.00

b. $90.75

c. $3.30

d. $72.60

e. $66.00

Question 18

The financial statement summarizing the value of a firm's current assets on a particular date is the balance sheet.

Select one:

True

False

Question 19

If you borrow $5,000, you likely prefer 6% compounded daily to 6% compounded annually.

Select one:

True

False

Question 20

A firm has an ROA of 9%, sales of $50, and total assets of $120. What is its profit margin?

Select one:

a. 14.4%

b. 7.2%

c. 21.6%

d. 6.4%

e. 6.0%

Answer #1

17 - 90.75

Reason - increased sales. 577.5 less increased cost 440 less 34% tax = 90.75

18. False

Reason - financial statements summarizing. The value of firms equity on a particular date is called balance sheet.

19.true

Reason - with daily. Compounding an investment earn more than annual compounding like in this case with daily compounding 5000 will become 5,308.28 in 1 yr and with annual compunding it will be 5300 in 1 yr.

20. 21.6%

Reason - ROA = net income / total asset

Therefore net income = 120*9/100 = 10.8

Therefore profit = 10.8/50 * 100 = 21.6%

question 32
Given the following information: current assets = $400; fixed
assets = $400; long-term debt = $455; equity = $300; sales = $470;
costs = $400; tax rate = 34%. Suppose that assets and costs
maintain a constant ratio to sales. What is the total external
financing needed if sales increase 25%? Assume the firm pays no
dividends.
Select one:
a. $143.75
b. $142.25
c. $183.75
d. $167.25
e. $380.25

Question 29
Determining the amount of money to borrow in order to finance a
20-year project is a capital structure decision.
Select one:
True
False
Question 32
Given the following information: current assets = $400; fixed
assets = $400; long-term debt = $455; equity = $300; sales = $470;
costs = $400; tax rate = 34%. Suppose that assets and costs
maintain a constant ratio to sales. What is the total external
financing needed if sales increase 25%? Assume the...

Question 22
A firm is worth $1,400, has a 35% tax rate, total debt of $600,
an unlevered return of 15%, and a cost of debt of 5.5%. What is the
cost of equity?
Select one:
a. 18.41%
b. 16.67%
c. 19.63%
d. 18.90%
e. 17.93%
Question 23
Given the following information, what is the standard deviation
of stock A if it has an expected return of 25% in a boom economy,
an expected return of 18% in a good...

The following statement is true is all respects:
Organizations that make up the supply chain are “linked”
together through physical, financial and information flows forming
partnerships that add value to the customer experience.
True
False
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Question 3 1 pts
Supply chain management is undergoing a level of transformation,
not unlike other disciplines. Which of the selections below best
represents this transformation.
Business Logistics
Physical Distribution
Integrated Business Planning
Its not transforming
Flag this Question
Question 4 1...

SHOW CALCULATION AND EXPLANATION, PLEASE!
1- For a given amount, the lower the discount rate, the less the
present value.
A) True
B) False
2- What is the NPV of a project that costs $100,000 and returns
$45,000 annually for three years if the cost of capital is 14%?
A) $3,397.57
B) $4,473.44
C) $16,100.00
D) $35,000.00
3- The decision rule for net present value is to:
A) Accept all projects with cash inflows exceeding initial
cost.
B) Reject all...

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