{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Exam1 FIN470 Spring 2008 Key

# Exam1 FIN470 Spring 2008 Key - Exam1 FIN470 Spring 2008 Key...

This preview shows pages 1–4. Sign up to view the full content.

Exam1 FIN470 Spring 2008 Key 1. Which one of the following statements concerning a sole proprietorship is correct? A. The owner of a sole proprietorship may be forced to sell his or her personal assets to pay company debts. B. The owners of a sole proprietorship share profits as established by the partnership agreement. C. The profits of a sole proprietorship are taxed twice. D. A sole proprietorship is designed to protect the personal assets of the owner. E. A sole proprietorship is often structured as a limited liability company. Ross - Chapter 001 #30 SECTION: 1.2 TOPIC: SOLE PROPRIETORSHIP TYPE: CONCEPTS 2. Your firm currently has \$1,800 in sales and is operating at 60 percent of the firm's capacity. What is the full capacity level of sales? Full-capacity sales = \$1,800 / .60 = \$3,000 AACSB TOPIC: ANALYTIC Ross - Chapter 004 #47 SECTION: 4.3 TOPIC: FULL CAPACITY SALES LEVEL TYPE: PROBLEMS 3. Which one of the following is a capital budgeting decision? Ross - Chapter 001 #24 SECTION: 1.1 TOPIC: CAPITAL BUDGETING TYPE: CONCEPTS

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
4. If a firm bases its growth projection on the rate of sustainable growth, and has positive net income, then the: Ross - Chapter 004 #37 SECTION: 4.4 TOPIC: SUSTAINABLE GROWTH RATE TYPE: CONCEPTS 5. Coffee Brewers expects sales of \$1,500 next year. The profit margin is 5 percent and the firm has a 70 percent dividend payout ratio. What is the projected increase in retained earnings? A. \$15.00 B. \$22.50 C. \$37.50 D. \$52.50 E. \$37.50 Change in retained earnings = \$1,500 .05 (1 .70) = \$22.50 AACSB TOPIC: ANALYTIC Ross - Chapter 004 #46 SECTION: 4.3 TOPIC: PRO FORMA STATEMENTS TYPE: PROBLEMS 6. When fixed assets on a pro forma statement are projected to increase at a rate equivalent to the projected rate of sales growth, it can be assumed that the firm is: Ross - Chapter 004 #19 SECTION: 4.3 TOPIC: PRO FORMA STATEMENTS TYPE: CONCEPTS

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern