Exam1 FIN370 Winter 2009 - A Key
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Exam1 FIN370 Winter 2009 - A Key

Course Number: FIN 370, Spring 2011

College/University: University of Phoenix

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Exam 1 FIN370 Winter 2009 Version - A Key 1. The process of managing a firm's long-term investments is called: a. capital structure management. b. asset allocation. c. risk management. D. capital budgeting. e. working capital management. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #1 SECTION: 1.2 TOPIC: CAPITAL BUDGETING TYPE: DEFINITIONS...

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1 Exam FIN370 Winter 2009 Version - A Key 1. The process of managing a firm's long-term investments is called: a. capital structure management. b. asset allocation. c. risk management. D. capital budgeting. e. working capital management. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #1 SECTION: 1.2 TOPIC: CAPITAL BUDGETING TYPE: DEFINITIONS 2. Capital structure refers to the: a. combination of short-term and long-term assets held by a firm. B. mixture of debt and equity a firm uses to finance its operations. c. types of long-term assets a firm employs in its operations. d. amount of cash versus other short-term assets held by a firm. e. average amount of cash equivalents held by a firm. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #2 SECTION: 1.2 TOPIC: CAPITAL STRUCTURE TYPE: DEFINITIONS 3. A business organization owned by two or more individuals or entities, each of whom has unlimited liability for the firm's debts, is called a: a. limited liability company. b. limited partnership. c. dual company. d. joint stock company. E. general partnership. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 3 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #5 SECTION: 1.3 TOPIC: GENERAL PARTNERSHIP TYPE: DEFINITIONS 4. The potential conflict of interest between a firm's owners and its managers is referred to as a(n): a. organizational problem. b. structure problem. C. agency problem. d. control issue. e. management conflict. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #7 SECTION: 1.5 TOPIC: AGENCY PROBLEM TYPE: DEFINITIONS 5. Working capital management includes which of the following? I. establishing the inventory level II. deciding when to pay suppliers III. determining the amount of cash needed on a daily basis IV. establishing credit terms for customers a. I and II only b. III and IV only c. I, II, and III only d. I, II, and IV only E. I, II, III, and IV BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 001 #20 SECTION: 1.2 TOPIC: WORKING CAPITAL MANAGEMENT TYPE: CONCEPTS 6. A sole proprietorship: A. is relatively easy to create. b. involves significant legal costs during the formation process. c. has an unlimited life. d. is taxed as a separate legal entity. e. can generally raise significant capital from non-owner sources. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 3 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #22 SECTION: 1.3 TOPIC: SOLE PROPRIETORSHIP TYPE: CONCEPTS 7. Which of the following are advantages of the corporate form of organization? I. ability to raise large sums of capital II. ease of ownership transfer III. corporate taxation IV. unlimited firm life a. I and II only b. III and IV only c. II, III, and IV only D. I, II, and IV only e. I, II, III, and IV BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 3 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 001 #32 SECTION: 1.3 TOPIC: CORPORATION TYPE: CONCEPTS 8. The primary goal of financial management is to maximize the: a. current net income. b. net working capital. c. the number of shares outstanding. D. market value of the existing stock. e. revenue growth. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #36 SECTION: 1.4 TOPIC: GOAL OF FINANCIAL MANAGEMENT TYPE: CONCEPTS 9. Theresa sold 300 shares of MNO stock on the NYSE today. This transaction occurred in: a. a dealer market. b. the over-the-counter market. C. the secondary market. d. the primary market. e. a private placement. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #53 SECTION: 1.6 TOPIC: SECONDARY MARKET TYPE: CONCEPTS 10. Which of the following correctly describe a dealer market? I. Dealers match buyers with sellers. II. Dealers buy and sell for themselves at their own risk. III. Dealer trading occurs over-the-counter. IV. Dealer transactions occur on a trading floor. a. I and III only b. I and IV only C. II and III only d. II and IV only e. I, II, and III only BLOOMS TAXONOMY QUESTION TYPE: COMPREHENSION LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 001 #57 SECTION: 1.6 TOPIC: DEALER MARKET TYPE: CONCEPTS 11. Auction markets: I. match sellers with buyers. II. have a physical location. III. consist solely of electronic trades. IV. are based on dealers. a. II only b. III only C. I and II only d. III and IV only e. I, III, and IV only BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 001 #58 SECTION: 1.6 TOPIC: AUCTION MARKET TYPE: CONCEPTS 12. Which one of the following statements is correct? a. The majority of the publicly traded firms in the U.S. are listed on the NYSE. b. The NYSE is a dealer market. c. NASDAQ is an auction market. D. The NYSE has the most stringent listing requirements. e. The trading floor for NASDAQ is located in Chicago. BLOOMS TAXONOMY QUESTION TYPE: COMPREHENSION LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 001 #59 SECTION: 1.6 TOPIC: STOCK EXCHANGES TYPE: CONCEPTS 13. Net working capital is defined as: a. cash, accounts receivable, and inventory. b. current assets. c. cash minus current liabilities. d. current assets plus current liabilities. E. current assets minus current liabilities. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEVEL OF DIFFICULTY: BASIC Ross - Chapter 002 #1 SECTION: 2.1 TOPIC: NET WORKING CAPITAL TYPE: DEFINITIONS 14. The financial statement that summarizes a firm's operations over a period of time is called a(n): A. income statement. b. cash flow statement. c. production report. d. balance sheet. e. periodic operating statement. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 002 #3 SECTION: 2.2 TOPIC: INCOME STATEMENT TYPE: DEFINITIONS 15. An expense that lowers net income but does not affect a firm's cash flow is referred to as a(n): a. indirect cost. b. direct cost. C. noncash item. d. period cost. e. variable cost. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 002 #4 SECTION: 2.2 TOPIC: NONCASH ITEMS TYPE: DEFINITIONS 16. The average tax rate is defined as the: a. amount of tax due on the next dollar of taxable income. b. total tax paid divided by total revenue. c. amount of tax due on the next dollar of revenue. d. total tax paid divided by total assets. E. total taxes divided by total taxable income. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 3 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 002 #5 SECTION: 2.3 TOPIC: AVERAGE TAX RATE TYPE: DEFINITIONS 17. The cash generated from a firm's normal business activities is referred to as the firm's: a. net profit. b. addition to retained earnings. c. operating margin. d. addition to net working capital. E. operating cash flow. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 002 #8 SECTION: 2.4 TOPIC: OPERATING CASH FLOW TYPE: DEFINITIONS 18. When net new borrowings are subtracted from the interest payments a firm pays to its creditors the result is called the: A. cash flow to creditors. b. free cash flow. c. cash flow from assets. d. operating cash flow. e. change in net working capital. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 002 #10 SECTION: 2.4 TOPIC: CASH FLOW TO CREDITORS TYPE: DEFINITIONS 19. Anderson Enterprises currently has $400 in cash. The company owes $1,200 to suppliers for merchandise and $4,500 to the bank for a long-term loan. Customers owe Anderson's $1,900. The inventory has a book value of $3,700 and an estimated market value of $4,400. If Anderson's compiled a financial statement today, how much would it show as the value of the current assets? a. $5,200 b. $5,600 C. $6,000 d. $6,300 e. $6,700 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEVEL OF DIFFICULTY: BASIC Ross - Chapter 002 #55 SECTION: 2.1 TOPIC: CURRENT ASSETS TYPE: PROBLEMS 20. The Bake Shoppe has net working capital of $6,100, long-term debt of $10,400, total debt of $15,200, and owners' equity of $18,900. What is the value of The Bake Shoppe's net fixed assets? a. $12,800 b. $16,500 c. $18,900 d. $21,300 E. $23,200 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 002 #56 SECTION: 2.1 TOPIC: NET FIXED ASSETS TYPE: PROBLEMS 21. Grandel, Inc. has current liabilities of $10,200 and accounts receivable of $14,800. The firm has total assets of $39,700 and net fixed assets of $18,900. The owners' equity has a book value of $16,500. What is the amount of the net working capital? A. $10,600 b. $20,800 c. $23,200 d. $25,400 e. $31,000 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 002 #59 SECTION: 2.1 TOPIC: NET WORKING CAPITAL TYPE: PROBLEMS 22. The financial statements of Classic Collectables reflect cash of $15,800, accounts receivable of $31,600, accounts payable of $40,100, inventory of $54,700, long-term debt of $60,000, and net fixed assets of $99,500. The firm estimates that if it wanted to cease operations today it could sell the inventory for $39,000 and the fixed assets for $77,000. What is the market value of the assets? a. $63,300 b. $101,500 C. $163,400 d. $181,700 e. $201,600 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 002 #70 SECTION: 2.1 TOPIC: MARKET VALUE TYPE: PROBLEMS 23. Baldwin, Inc. paid $18,500 in dividends and $44,600 in interest over the past year while net working capital increased from $10,200 to $28,200. The company purchased $30,000 in net new fixed assets and had depreciation expenses of $15,700. During the year, the firm issued $45,000 in net new equity and paid off $16,000 in long-term debt. What is the amount of Baldwin's cash flow from assets? a. $3,700 b. $18,000 c. $30,200 D. $34,100 e. $48,000 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 002 #82 SECTION: 2.4 TOPIC: CASH FLOW FROM ASSETS TYPE: PROBLEMS 24. Solomon, Inc. has net sales of $745,100 and costs of $590,800. The depreciation expense is $82,600 and the interest paid is $15,500. What is the amount of the firm's operating cash flow if the tax rate is 35 percent? a. $46,605 b. $52,030 c. $71,700 d. $105,720 E. $134,630 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 002 #83 SECTION: 2.4 TOPIC: OPERATING CASH FLOW TYPE: PROBLEMS 25. The internal growth rate is best described as the _____ growth rate achievable _____. a. minimum; if a firm retains all of its net income b. minimum; if a firm maintains a constant debt-equity ratio c. maximum; without any additional external equity financing D. maximum; without any additional external financing of any type e. maximum; if external debt financing is maximized BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 003 #4 SECTION: 3.4 TOPIC: INTERNAL GROWTH RATE TYPE: DEFINITIONS 26. The sustainable growth rate is best described as the _____ growth rate achievable _____. a. minimum; if a firm ceases all dividend payments b. minimum; if a firm maintains a constant equity multiplier c. maximum; without external financing of any kind d. maximum; if external debt financing is maximized E. maximum; if a firm maintains a constant debt-equity ratio and does not issue any additional equity securities BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE OBJECTIVE LEARNING NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 003 #5 SECTION: 3.4 TOPIC: SUSTAINABLE GROWTH RATE TYPE: DEFINITIONS 27. A common-size income statement: I. expresses all values as a percent of total assets. II. should reflect a relatively constant cost of goods sold unless a firm changed the percent that it uses to mark up the wholesale price to get the retail price. III. expresses net income as 100 percent. IV. can be used to compare the performance of a firm both over time and against its industry. a. I and III only B. II and IV only c. III and IV only d. I, II, and III only e. II, III, and IV only BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 003 #8 SECTION: 3.1 TOPIC: COMMON-SIZE STATEMENT TYPE: CONCEPTS 28. Which one of the following actions will decrease the current ratio, all else constant? Assume the current ratio is greater than 1.0. A. purchasing inventory on credit b. paying an account payable c. collecting payment from a customer d. selling inventory at a profit in a charge sale e. selling inventory at cost in a cash sale BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 003 #11 SECTION: 3.2 TOPIC: CURRENT RATIO TYPE: CONCEPTS 29. A firm has a times interest earned ratio of 2. This means that the firm has twice as much: a. net income as it does interest expense. b. interest expense as it does net income. C. earnings before interest and taxes as it does interest expense. d. interest expense as it does earnings before interest and taxes. e. operating cash flow as it does interest expense. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 003 #16 SECTION: 3.2 TOPIC: TIMES INTEREST EARNED TYPE: CONCEPTS 30. The profit margin is the amount of net profit earned for every $1 of: a. total assets. b. equity. c. long-term debt. D. sales. e. external financing. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 003 #21 SECTION: 3.2 TOPIC: PROFIT MARGIN TYPE: CONCEPTS 31. A firm has inventory of $1,200, accounts payable of $600, cash of $130, net fixed assets of $2,100, longterm debt of $1,900, accounts receivable of $400, and total equity of $1,330. What is the common-size percentage for the net fixed assets? A. 54.83 percent b. 56.76 percent c. 61.22 percent d. 63.36 percent e. 65.02 percent BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 003 #37 SECTION: 3.1 TOPIC: COMMON-SIZE STATEMENTS TYPE: PROBLEMS 32. You are analyzing a company that has cash of $2,000, accounts receivable of $3,700, fixed assets of $10,900, accounts payable of $6,600, and inventory of $4,100. What is the quick ratio? a. .30 b. .67 C. .86 d. 1.48 e. 3.30 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 003 #45 SECTION: 3.2 TOPIC: QUICK RATIO TYPE: PROBLEMS 33. The Fruit Co. has total assets of $7,800, fixed assets of $7,100, current liabilities of $1,500, and long-term liabilities of $4,600. What is the total debt ratio? a. .41 b. .60 c. .65 D. .78 e. .86 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 003 #49 SECTION: 3.2 TOPIC: TOTAL DEBT RATIO TYPE: PROBLEMS 34. A firm has total assets of $456,000 and total equity of $217,000. What is the debt-equity ratio? a. .48 b. .68 C. 1.10 d. 1.48 e. 2.10 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 003 #51 SECTION: 3.2 TOPIC: DEBT-EQUITY RATIO TYPE: PROBLEMS 35. The Laptop Company has sales of $874,000, a profit margin of 9 percent, a total asset turnover rate of .80, and an equity multiplier of 1.75. What is the return on equity? a. 5.14 percent b. 7.20 percent c. 10.86 percent D. 12.60 percent e. 15.75 percent BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 3 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 003 #81 SECTION: 3.3 TOPIC: DU PONT IDENTITY TYPE: PROBLEMS 36. A firm has a return on equity of 14 percent, a return on assets of 9.5 percent, and a 30 percent dividend payout ratio. What is the sustainable growth rate? a. 2.93 percent b. 4.38 percent c. 7.12 percent d. 9.58 percent E. 10.86 percent BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 3 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 003 #102 SECTION: 3.4 TOPIC: SUSTAINABLE GROWTH RATE TYPE: PROBLEMS 37. The value of an investment after one or more time periods is called the: a. true value. B. future value. c. present value. d. discounted value. e. complex value. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEVEL OF DIFFICULTY: BASIC Ross - Chapter 004 #1 SECTION: 4.1 TOPIC: FUTURE VALUE TYPE: DEFINITIONS 38. The process of adding the interest earned on an investment to the original investment in order to earn more interest is called: a. discounting. B. compounding. c. duplicating. d. multiplying. e. indexing. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEVEL OF DIFFICULTY: BASIC Ross - Chapter 004 #2 SECTION: 4.1 TOPIC: COMPOUNDING TYPE: DEFINITIONS 39. By definition, a bank that pays simple interest on a savings account will pay interest: a. only at the beginning of the investment period. b. only at the end of the investment period. C. only on the initial investment. d. on both the initial investment and all prior interest payments that are reinvested. e. only if all previous interest payments are reinvested. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEVEL OF DIFFICULTY: BASIC Ross - Chapter 004 #5 SECTION: 4.1 TOPIC: SIMPLE INTEREST TYPE: DEFINITIONS 40. The current value of future cash flows discounted at the appropriate discount rate is called the: a. simple value. b. future value. C. present value. d. complex value. e. principal value. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEVEL OF DIFFICULTY: BASIC Ross - Chapter 004 #6 SECTION: 4.2 TOPIC: PRESENT VALUE TYPE: DEFINITIONS 41. Which one of the following will increase the future value of a lump sum invested today? a. decreasing the amount of the lump sum B. increasing the rate of interest c. paying simple interest rather than compound interest d. paying interest only at the end of the investment period e. shortening the investment time period BLOOMS TAXONOMY QUESTION TYPE: COMPREHENSION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 004 #10 SECTION: 4.1 TOPIC: FUTURE VALUE TYPE: CONCEPTS 42. An increase in which of the following will increase the future value of a lump sum investment made today assuming that all interest is reinvested? Assume the interest rate is a positive value. I. interest rate II. amount of the lump sum III. frequency of the interest payments IV. length of the investment period a. I and III only b. II and IV only c. I, II, and IV only d. II, III, and IV only E. I, II, III, and IV BLOOMS TAXONOMY QUESTION TYPE: COMPREHENSION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 004 #17 SECTION: 4.1 TOPIC: FUTURE VALUE TYPE: CONCEPTS 43. You want to invest an amount of money today and receive back twice that amount in the future. You expect to earn 6 percent interest. Approximately how long must you wait for your investment to double in value? a. 6 years b. 8 years c. 9 years d. 10 years E. 12 years BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 004 #27 SECTION: 4.3 TOPIC: RULE OF 72 TYPE: CONCEPTS 44. Today, you deposit $10,750 in a bank account that pays 3 percent simple interest. How much interest will you earn over the next 7 years? a. $1,935.00 b. $2,086.06 C. $2,257.50 d. $2,471.14 e. $2,580.00 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 004 #28 SECTION: 4.1 TOPIC: SIMPLE INTEREST TYPE: PROBLEMS 45. Your parents just gave you a gift of $25,000. You are investing this money for 5 years at 2.5 percent simple interest. How much money will you have at the end of the 5 years? a. $27,500 b. $27,595 C. $28,125 d. $28,285 e. $28,750 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 004 #29 SECTION: 4.1 TOPIC: SIMPLE INTEREST TYPE: PROBLEMS 46. Karen has $16,000 that she wants to invest for 1 year. She can invest this amount at The North Bank and earn 5.50 percent simple interest. Or, she can open an account at The South Bank and earn 5.39 percent interest, compounded monthly. If Karen decides to invest at The North Bank, she will: a. earn $17.60 more than if she had invested with The South Bank. B. earn $4.03 less than if she had invested with The South Bank. c. earn the same amount as if she had invested with The South Bank. d. have a total balance of $16,800 in her account after 1 year. e. have a total balance of $16,862.40 in her account after 1 year. BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 004 #33 SECTION: 4.1 TOPIC: SIMPLE VERSUS COMPOUND INTEREST TYPE: PROBLEMS 47. Thirteen years from now, you will be inheriting $30,000. What is this inheritance worth to you today if you can earn 4 percent interest compounded annually? A. $18,017.22 b. $20,741.87 c. $23,190.98 d. $26,359.88 e. $28,846.15 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 004 #43 SECTION: 4.2 TOPIC: PRESENT VALUE TYPE: PROBLEMS 48. You have $2,000 today and want to quadruple your money in 10 years. What interest rate must you earn? a. 7.18 percent b. 11.61 percent C. 14.87 percent d. 20.13 percent e. 23.11 percent BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 3 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 004 #50 SECTION: 4.3 TOPIC: INTEREST RATE TYPE: PROBLEMS Exam 1 FIN370 Winter 2008 Summary Category BLOOMS TAXONOMY QUESTION TYPE: APPLICATION BLOOMS TAXONOMY QUESTION TYPE: COMPREHENSION BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 1 LEARNING OBJECTIVE NUMBER: 2 LEARNING OBJECTIVE NUMBER: 3 LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: BASIC LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 001 Ross - Chapter 002 Ross - Chapter 003 Ross - Chapter 004 SECTION: 1.2 SECTION: 1.3 SECTION: 1.4 SECTION: 1.5 SECTION: 1.6 SECTION: 2.1 SECTION: 2.2 SECTION: 2.3 SECTION: 2.4 SECTION: 3.1 SECTION: 3.2 SECTION: 3.3 SECTION: 3.4 SECTION: 4.1 SECTION: 4.2 SECTION: 4.3 TOPIC: AGENCY PROBLEM TOPIC: AUCTION MARKET TOPIC: AVERAGE TAX RATE TOPIC: CAPITAL BUDGETING TOPIC: CAPITAL STRUCTURE TOPIC: CASH FLOW FROM ASSETS TOPIC: CASH FLOW TO CREDITORS TOPIC: COMMON-SIZE STATEMENT TOPIC: COMMON-SIZE STATEMENTS TOPIC: COMPOUNDING TOPIC: CORPORATION TOPIC: CURRENT ASSETS TOPIC: CURRENT RATIO TOPIC: DEALER MARKET # of Questions 19 4 25 11 12 7 6 34 14 12 12 12 12 3 3 1 1 4 5 2 1 4 2 6 1 3 8 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 TOPIC: DEBT-EQUITY RATIO TOPIC: DU PONT IDENTITY TOPIC: FUTURE VALUE TOPIC: GENERAL PARTNERSHIP TOPIC: GOAL OF FINANCIAL MANAGEMENT TOPIC: INCOME STATEMENT TOPIC: INTEREST RATE TOPIC: INTERNAL GROWTH RATE TOPIC: MARKET VALUE TOPIC: NET FIXED ASSETS TOPIC: NET WORKING CAPITAL TOPIC: NONCASH ITEMS TOPIC: OPERATING CASH FLOW TOPIC: PRESENT VALUE TOPIC: PROFIT MARGIN TOPIC: QUICK RATIO TOPIC: RULE OF 72 TOPIC: SECONDARY MARKET TOPIC: SIMPLE INTEREST TOPIC: SIMPLE VERSUS COMPOUND INTEREST TOPIC: SOLE PROPRIETORSHIP TOPIC: STOCK EXCHANGES TOPIC: SUSTAINABLE GROWTH RATE TOPIC: TIMES INTEREST EARNED TOPIC: TOTAL DEBT RATIO TOPIC: WORKING CAPITAL MANAGEMENT TYPE: CONCEPTS TYPE: DEFINITIONS TYPE: PROBLEMS 1 1 3 1 1 1 1 1 1 1 2 1 2 2 1 1 1 1 3 1 1 1 2 1 1 1 15 16 17

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1. Calculate a few ratios and compare Reed's results with industry averages. (Some industry averages are shown in Exhibit 16.4.) What do these ratios indicate? Exhibit 16.4 Reeds Clothier Selected Ratios Liquidity Ratios Current Ratio Quick Ratio Receivab
University of Phoenix - FIN - 370
Reed Clothier Income Statement Net Sales Cost of Goods Gross profit General & administrative Expenses Depreciation & amortization Interest expense Earnings before taxes Income Taxes Net income Balance Sheet Cash Inventories Accounts receivable Total curre
University of Phoenix - FIN - 370
LEARNINGTEAMCHARTERTEAMDFIN370FINANCEFORBUSINESS TeamMembers/ContactInformation Name Phone Timezoneand AvailabilityDuringtheWeek EmailJaredRollins RustyFife Marsha Spierin g JayMartin8017213625 5133192787 6059240355MSTEverynightafter5:00p.m After6pmES
University of Phoenix - FIN - 370
YEARPROJECTA 0 $100,000 1 $32,000 2 $32,000 3 $32,000 4 $32,000 5 $32,000 11%PROJECTB $100,000 $0 $0 $0 $0 $200,000Requiredrateofreturna. Whatiseachprojectspaybackperiod? ProjectA 3.13 ProjectB 4.5 b. Whatiseachprojects'snetpresentvalue? ProjectA $18,
University of Phoenix - FIN - 370
Ethics and Compliance Paper1Ethics and Compliance Paper Learning Team D: Jared Rollins, Jason Martin, Marsha Spiering, Rusty Fife, Pedro Recillas University of Phoenix Finance for business FIN/370 W. Mac Serda October 17, 2010Ethics and Compliance Pape
University of Phoenix - FIN - 370
Apple has been able to control the design and the development of their hardware and software for all of their products since they have started with their business in 1976. By doing this, they have been able to keep their sales up for the fact that they ha
University of Phoenix - FIN - 370
When we think of Apple Corporation we think gadgets, trendy, moderns, cutting edge, trend setter. Apple has consciously dedicated its time and effort to develop very successful tech devices and launch them in such a way that they are the undisputable most
University of Phoenix - FIN - 370
Apple/Strategic Initiative 1Apples Strategic Initiative Learning Team D: Jared Rollins, Jason Martin, Marsha Spiering, Rusty Fife, and Pedro Recillas University of Phoenix Finance for business FIN/370 W. Mac Serda October 24, 2010Apple/Strategic Initiat
University of Phoenix - FIN - 370
Apple has a strong commitment to ethical and compliance practices from their suppliers. Manufacturing facilities outside the United States are audited and necessary training is given to employees to help them better understand Apples ethical requirements.
University of Phoenix - FIN - 370
What is globalization? Globalization is a process that allows the interaction and integration among people of different countries, companies, and government entities. This is all driven by international trade and aided by information technology. Why has g
University of Phoenix - BUS - 475
Running Head: Balanced Scorecard Assignment 1Balanced Scorecard Jared Rollins BUS/475 January 24, 2011 Nels Holmgren University of PhoenixBalanced Scorecard 21.0 Introduction This essay will talk about how a balanced scorecard is used to assess the per
University of Phoenix - BUS - 475
Running Head: Business Conceptual Paper 1Conceptual Business Paper Jared Rollins BUS/475 January 10, 2011 Nels Holmgren University of PhoenixIntroductionBusiness Conceptual Paper 2 This paper will give the mission and vision statements of the Dog and M
University of Phoenix - BUS - 475
Can an organization have a successful strategic plan without effective mission and vision statements? Why or why not? To have a successful strategic plan you have to have a mission and a vision statement. A mission and vision statement make up a small por
University of Phoenix - BUS - 475
What is the purpose of strategic planning and why is it necessary? Strategic Planning is a managerial decision process that matches an organizations resources and capabilities to its market opportunities for long term growth and survival. It is necessary
University of Phoenix - BUS - 475
What are the primary internal organization considerations for the development of a strategic plan? Which consideration is the most important? Why? I believe that the primary internal organization considerations for the development of a strategic plan is t
University of Phoenix - BUS - 475
What are the different types of strategies? What are the differences among these strategies? How do you determine which type of strategy is most appropriate for your organization? Low cost leadership is appropriate when you have the lowest cost in the ind
University of Phoenix - BUS - 475
Why is it important to continuously update the implementation and communication of a strategic plan? Who should be responsible for updating and communicating a strategic plan? Why? The objectives and the goals may change or the way they are implemented ma
University of Phoenix - BUS - 475
then back to house holds, and GDP meas ures this flow of mone y.C . GDP meas ures two things at once: the total incom eof every onein the econo my and the unem ploym ent rate.D . GDP istoa nation s econo myas house hold22)Thepoliticalbusinesscyclerefer
University of Phoenix - BUS - 475
V isionH elping I ndividualsStay ConfidentFeel Better about4/12/11M issionBecome over all Spor ts Stor eI nnovative and New I deasAssisting I ndividuals4/12/11Values and BalanceH onorScor ecar dI ntegr ityF inancial Per spective4/12/11
University of Phoenix - BUS - 475
Running Head: Final Strategic Plan 1Final Strategic Plan Jared Rollins BUS/475 January 31, 2011 Nels Holmgren University of PhoenixFinal Strategic Plan 2Introduction In the paragraphs to come, this paper shows a detailed description of the environmenta
University of Phoenix - BUS - 475
Running Head: Strategic Planning and Management 1Importance of Strategic Planning and Management in the Business Environment Paper Jared Rollins BUS/475 December 20, 2010 Nels Holmgren University of PhoenixStrategic Planning and Management 2Strategic P
University of Phoenix - BUS - 475
Learning Team Assignment - Considerations of a Strategic Plan: L istIn preparation for your Individual SWOTT Analysis Paper, discuss with your Learning Team the forces and t rends below that must be taken into consideration while developing a strategic p
University of Phoenix - BUS - 475
Learning Team CharterCourse Title INSTRUCTOR Course Dates Team Letter (A, B, C, D, or E) BUS/471 Did all team members participate in the creation of this charter and agree with its contents? Yes or No _Nels HolmgrenBeginning12-14-10Team CTeam Member
University of Phoenix - BUS - 475
Running Head: SWOTT Analysis Paper and Table 1SWOTT Analysis Paper and TableJared RollinsBUS/475January 17, 2011Nels HolmgrenUniversity of PhoenixSWOTT Analysis Paper and Table 2In t roductionIn the paragraphs to come, this paper shows a detailed
University of Phoenix - BUS - 475
Running Head: Tactics and Strategies Paper 1Tactics and Strategies paper Jared Rollins BUS/475 January 31, 2011 Nels Holmgren University of PhoenixTactics and Strategies Paper 21.2.1 The Financial Perspective The objective set from this perspective wil
University of Phoenix - BUS - 475
1.0 Int roduction This assignment will discuss on how balanced scorecard is used to evaluate the performance of a company in particular a business unit. Prior to evaluate the companys performance, I will first explain the term balanced scorecard and also
USC - BUAD - 311
Answers to Red Brand Canners Case Part I 1. Based on the availability of 600,000 pounds of grade A tomatoes (grade 9), one can mix in some grade B tomatoes (grade 5) to generate a mix of grade 8. Let X denote the pounds of grade B tomatoes that can be mix
Keller Graduate School of Management - FIN - 504
CHAPTER 1Introduction to Financial Statements ANSWERS TO QUESTIONS1. 2. The three basic forms of business organizations are (1) sole proprietorship, (2) partnership, and (3) corporation. Advantages of a corporation are limited liability (stockholders no
Keller Graduate School of Management - FIN - 504
Chapter 1 -1Introduction to Financial StatementsChapter 1 -2Financial Accounting, Fifth EditionStudy Objectives1. 2. 3. 4. 5. 6. De scribetheprim form of busine organization. ary s ss I de ntify theuse and use of accounting inform rs s ation. Explain
Keller Graduate School of Management - FIN - 504
CHAPTER 2A Further Look at Financial Statements ANSWERS TO QUESTIONS1. 2. A companys operating cycle is the average time that is required to go from cash to cash in prod-ucing revenues. Current assets are cash and other resources that are reasonably exp
Keller Graduate School of Management - FIN - 504
pyr ight 2009 JohnSons, I nc.Sons,immel, Fi nanci al Fi nanci alng, 5/e, Solut ionsolut ions (For I(For Ior Use Only) Only) 2009 John Wi ley & Wiley & K I nc.K i mmel, Accounti Accounti ng, 5/e, S M anual M anual nst r uct nst r uct or UseE XERCI SESE 3-
Keller Graduate School of Management - FIN - 504
CHAPTER 4Accrual Accounting Concepts ANSWERS TO QUESTIONS1. (a) Under the time period assumption, an accountant is required to determine the effect of each accounting transaction on specific accounting periods. (b) An accounting time period that is one
Keller Graduate School of Management - FIN - 504
CHAPTER 5Merchandising Operations and the Multiple-Step Income Statement ANSWERS TO QUESTIONS1. (a) Disagree. The steps in the accounting cycle are the same for both a merchandising company and a service enterprise. (b) The measurement of income is conc
Keller Graduate School of Management - FIN - 504
Cost of goods avai lablefor saleCHAPTER 6Reporting and Analyzing Inventory ANSWERS TO QUESTIONS1. Agree. Effective inventory management is frequently the key to successful business operations. Management attempts to maintain sufficient quantities and
Keller Graduate School of Management - FIN - 504
CHAPTER 7Internal Control and Cash ANSWERS TO QUESTIONS1. Fraud is dishonest act by an employee that results in personal benefit to the employee at a cost to the employer. An example of fraud that might occur at a bank would be a computer operator embez
Keller Graduate School of Management - FIN - 504
CHAPTER 8Reporting and Analyzing Receivables ANSWERS TO QUESTIONS1. Accounts receivable are amounts customers owe on account. They result from the sale of goods and services (i.e., in trade). Notes receivable represent claims that are evidenced by forma
Keller Graduate School of Management - FIN - 504
The discussion in this area will revolve around what accounting is, who the key parties in the financial reporting process are, the role of generally accepted accounting principles in the preparation of financial statements, and the regulatory environment
Keller Graduate School of Management - FIN - 504
W hat is the role of the accounting equation in the analysis of business t ransactions?This week we will be learning how to analyze and record financial t ransactions. In addition t he the init ial question above, I would also like you to respond to the
Keller Graduate School of Management - FIN - 504
A merchandising company's income statement includes categories that service enterprises do not use. A single-step income statement for a merchandising company lists net sales u nder revenues and the cost of goods sold under expenses. The income statement
Keller Graduate School of Management - FIN - 504
W hat is internal cont rol and what are the objectives of a good internal control structure in an organization? http:/www.buzzle.com/ar ticles/objectives-of-internal-control.htmlI n te rnal cont rol consists of all the related methods and measures adopte
Keller Graduate School of Management - FIN - 504
C an you tell us what k ind of plant assets are used in your company or place of business? D o you have an estimate of the amount invested in those plant assets?Plant assets are resources that have physical substance (a definite size and shape), are used
Keller Graduate School of Management - FIN - 504
How is the stockholders' equity section of a corporate balance sheet different from that in a single-owner business?Single-owner companies would likely have fewer line items. Those include common stock, additional paid in capital, preferred stock and ret
Keller Graduate School of Management - FIN - 504
T he numbers in financial statements are not very useful unless we study their t rend over t ime and t heir relationships with other numbers in the same set of financial statements. Therefore, we often perform different types of analyses on the financial
Keller Graduate School of Management - FIN - 504
C lassify accounts For each account, select asset, liability, or owners equity . Cash: asset Accounts payable: liabilities Common stock: owners equity Sales revenue: owners equity Cost of goods sold: owners equity Accounts receivable: assets Equipment: as
Keller Graduate School of Management - FIN - 504
T he FIFO method is the most commonly used in the real-world for two primary r easons. First, the FIFO method typically represents the actual f low of goods for most companies, who prefer to sell older inventory fi rst. Second, in periods of r ising inven
Keller Graduate School of Management - FIN - 504
A.B. Depreciation expenseIn 2012, computer depreciation is over. So in 2010, the depreciation is office D+ m D= (1200150)/7+(3000-300)/5=150+540=690 C. Double-declining methodDouble declining rate = 2 * straight- line rate(1/estimated life) Here, in 20
Keller Graduate School of Management - FIN - 504
A.Cash basis net income = cash received during the year cash paid d uring the year.Cash income = sales account receivable Accrued i tems and recorded depreciation are not the cash receivable or cash paid. B. Calculating the cash f low from operating act
Keller Graduate School of Management - FIN - 504
ThefinanicalratioforTootsieRollindustriesandTheHersheyComp TootsieRollindustriesEarningsperShare$0.94CurrentRatio$199,726/$57,972=3.44:1GrossProfitRate$168,673/$492,717=33.89%ProfitMarginRation$51,625/$492,742=10.4%InventoryTurnoverRatio$327,695
Keller Graduate School of Management - FIN - 504
The finanical ratio for Tootsie Roll industries and The Hershey Company on DeCember 3 Tootsie Roll industries The Hershey CompanyReceivable Turnover Ratio$492,742 / [($32,371+ $35,075)/2]=14.6 times$4,946,716 / [($487,285+ $522,673)/2]=9.8 timesAverag
Keller Graduate School of Management - FIN - 504
The finanical ratio for Tootsie Roll industries and The Hershey Company on DeCember 31, 2007 Tootsie Roll industries Payout ratio The Hershey Company$17,421/$51,625=33. $252,263/$214,154= 75% 117.80%Return on common stockholders' equity Ratio$51625/[($
U. Houston - CHEM - 1331
CHEM 1331 Fall Semester 2010Chemistry for Science and Engineering Majors Instructor: Prof. Geanangel Office: 123B-FlemingSections 21308 MWF 10-11 AM 160F ! 21316 MWF 1-2 PM 160F Office Hours: MWF 11:00 AM - 12:00 PMRead your syllabus! Keep it for refer
McGill - ECON - 208
E xam N a m e _M U L T IP L E C H O I C E . C h oo se th e o n e a l t e r n a t i v e t h a t b est co m p l e t es t h e sta t e m e n t o r a n s w e rs t h e q u est i o n . 1) O n e o f t h e m a j o r r es u l ts o f t h e g r e a t e r s p eci a l
McGill - ECON - 208
E xam N a m e _M U L T IP L E C H O I C E . C h oo se th e o n e a l t e r n a t i v e t h a t b est co m p l e t es t h e sta t e m e n t o r a n s w e rs t h e q u est i o n . 1) I n t h e s h o r t r u n , w he n ca p i t a l i s a f i x e d f act or,
Berkeley - ENGINEERIN - 7
UNIVERSITY OF CALIFORNIA, BERKELEY Department of Civil and Environmental EngineeringEngineering 7 Spring 2009 Instructor: Professor RectorE7 Spring 2009 Course Syllabus[Last Edited: 1/18/2009]Instructor:James Rector jwrector@lbl.gov 419 Davis Hall, O
Berkeley - ENGINEERIN - 7
UNIVERSITY OF CALIFORNIA, BERKELEY Department of Civil and Environmental EngineeringEngineering 7 Spring 2009 Instructor: Professor RectorLab submission guidelinesThe guidelines described in this document apply to all lab assignments (in-class and take
Herzing - CS - 101
VCP: VMware Certified Professional on vSphere 4 Study GuideChapter 1Planning, Installing, and Upgrading VMware ESX/ESXi2Topics Installing VMware ESX/ESXi on local storage Upgrading from an earlier version Securing ESX/ESXi Installing on SAN storage A