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67 Pages

### Ch06 Test Bank 4-1-10

Course: FINANCE 516, Spring 2011
School: DeVry Houston
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Word Count: 17227

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AND RISK RATES OF RETURN (Difficulty Levels: Easy, Easy/Medium, Medium, Medium/Hard, and Hard) Please see the preface for information on the AACSB letter indicators (F, M, etc.) on the subject lines. Multiple Choice: True/False (6.2) Standard deviation 1 . FN Answer: b EASY The tighter the probability distribution of its expected future returns, the greater the risk of a given investment as measured by its...

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DeVry Houston - FINANCE - 516
Amber WolridgeFI-516Week 1 AssignmentProblem 14-10A.1. 2011 Dividends - 1.10*\$3,600,000= \$3,960,0002. 2010 Dividend Payout Ratio- 2010 Dividend / 2010 net income2010 Payout- \$3,600,000/\$10,800,000= .332011 Dividend Payout= 2010 Payout Ratio * 2009
DeVry Houston - FINANCE - 516
BALANCESHEETAMBERL.WOLRIDGEA.Alternative1TotalCurrentLiabilitiesLongTermDebtCommonStock,par\$1PaidinCapitalRetainedEarnings\$150,000.00\$\$162,500.00\$437,500.00\$50,000.00TotalAssets\$800,000.00TotalCurrentLiabilitiesLongTermDebtCommonStock,pa
DeVry Houston - FINANCE - 516
Chapter 19Hybrid Financing: Preferred Stock, Warrants, andConvertiblesANSWERS TO END-OF-CHAPTER QUESTIONS19-1a. Preferred stock is a hybrid security, having characteristics of both debt and equity. Itis similar to equity in that it (1) is called sto
DeVry Houston - FINANCE - 516
Chapter 14Distributions to Shareholders:Dividends and RepurchasesANSWERS TO END-OF-CHAPTER QUESTIONS14-1a. The optimal distribution policy is one that strikes a balance between dividend yieldand capital gains so that the firms stock price is maximiz
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(a)FORTNER CORPORATIONAnalysis of Changes in theAllowance for Doubtful AccountsFor the Year Ended December 31, 2010Balance at January 1,2010\$130,000Provision for doubtfulaccounts (\$9,000,000 X2%)180,000Recovery in 2010 of baddebts written off
DeVry Houston - ACCOUTNING - 550
Chapter7Problem72AmberWolridge1 Net salesPercentageBad debt expense2 Accounts receivableAmounts estimated to be uncollectibleNet realizable value3 Allowance for doubtful accounts 1/1/10Establishment of accounts written off in prior yearsCustomer
DeVry Houston - ACCOUTNING - 550
KISHWAUKEE CORPORATION (corrected balance sheet)By Amber WolridgeChapter 5 Problem 5-4KISHWAUKEE CORPORATIONBalance Sheet31-Dec-10AssetsCurrent assetsCashAccounts receivableInventoriesTotal current assetsLong-term investmentsAssets allocated
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Vivaldi CorporationBy Amber WolridgeChapter 5 Exercise 5-12Balance SheetDecember 31, 2010AssetsCurrent AssetsCash On HandTrading SecuritiesAccounts receivableLess- Allowance for Doubtful accountsInventories\$197,000.00\$153,000.00\$435,000.00(
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FINANCIAL REPORTING PROBLEMPROTOR &amp; GAMBLE COMPANYAMBER WOLRIDGEa.The par value of P&amp;G preferred stock is listed as \$1.00 per share.b.The par/stated value of P&amp;G common stock is listed as \$1.00 pershare.c.P&amp;G authorized common stock was issued at
DeVry Houston - ACCOUTNING - 550
AC550Project3AmberWolridgeSmithEntriesJonesEntriesDebitCreditDebitCreditCommercialsubstanceNewland264,000OldlandCash300,000270,000280,00036,000Gainorlossonsale36,00030,00016,000NoCommercialsubstanceNewland234,000OldlandC
DeVry Houston - ACCOUTNING - 550
AC550 Project 3Amber WolridgeSmithEntriesDebitJones EntriesCreditDebitCreditCommercial substanceNew land264,300,000000Old land270,280,000Cash00036,36,000000Gain or loss on sale30,00016,000No Commercial substanceNew land234,
DeVry Houston - ACCOUTNING - 550
AC550Project2AmberL.WolridgePart1GrossProfitMethodA) .25_=331/3%Grossprofitofsales1.00.25B).25=20%Grossprofitofcost1.00+.25Part2RetailInventoryMethodCostRetailBeginningInventory\$60,000\$93,000Purchases96,000176,000Purchasereturns(4,000)(6,000)
DeVry Houston - ACCOUTNING - 550
DefinitionsCommercial substance: Recognize gain or loss. Cost of asset received = fair value of asset surrendered + cash paid cash received.No Commercial substance: No gain or loss recognized. Cost of asset received = net carrying value of asset surrend
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!&quot;&quot;##\$#%&amp;\$%leftup1middle 2down 1!&quot; # # &quot;)*)*.01 #0'+&amp;'right013&amp;!&quot;+,&amp;+,&amp;####/(###&amp;/2&quot;&quot;.#.(3( )= &amp;## = 100Q = q1 + q 2./\$.c1 = c 2 = 10 &amp;0'/0'0+ &quot; ##4#0.#/#(&amp;0##&amp;442&amp;45+ 0 /&quot;
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