FINC 322 - Exam #5 Take-Home

FINC 322 - Exam #5 Take-Home - FINC 322 Financial...

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FINC 322 Financial Management 1 EXAM 5 (Take-home) Fall 2011 1:30pm or 3:00pm Name Circle your class time Work alone . This means that you are discouraged to consult other students explicitly for answers. However, you may discuss about general concepts. This take-home exam is over chapters 4, 18, 19, 20, and 21 . Each problem is 2 points worth (100 points total) Submission Due: on or before 1 p.m. December 14 (Wednesday) to my office What to submit: Print this front page only TABLE OF ANSWERS: List the letter choice for each of your answers below. It is your responsibility to check your answers in the table are consistent with your answers on the following pages. 1 6 11 16 21 2 7 12 17 22 3 8 13 18 23 4 9 14 19 24 5 10 15 20 25 26 31 36 41 46 27 32 37 42 47 28 33 38 43 48 29 34 39 44 49 30 35 40 45 50
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Chapter 4 1. Which one of the following terms is defined as dividends paid expressed as a percentage of net income? A. dividend retention ratio B. dividend yield C. dividend payout ratio D. dividend portion E. dividend section 2. The sustainable growth rate of a firm is best described as the: A. minimum growth rate achievable assuming a 100 percent retention ratio. B. minimum growth rate achievable if the firm maintains a constant equity multiplier. C. maximum growth rate achievable excluding external financing of any kind. D. maximum growth rate achievable excluding any external equity financing while maintaining a constant debt-equity ratio. E. maximum growth rate achievable with unlimited debt financing. 3. You are developing a financial plan for a corporation. Which of the following questions will be considered as you develop this plan? I. How much net working capital will be needed? II. Will additional fixed assets be required? III. Will dividends be paid to shareholders? IV. How much new debt must be obtained? A. I and IV only B. II and III only C. I, III, and IV only D. II, III, and IV only E. I, II, III, and IV 4. Financial planning accomplishes which of the following for a firm? I. determination of asset requirements II. development of plans to contend with unexpected events III. establishment of priorities IV. analysis of funding options A. I and III only B. II and IV only C. I, III, and IV only D. I, II, and III only E. I, II, III, and IV
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5. Which one of the following statements is correct? A. Pro forma statements must assume that no new equity is issued. B. Pro forma statements are projections, not guarantees. C. Pro forma statements are limited to a balance sheet and income statement. D. Pro forma financial statements must assume that no dividends will be paid. E. Net working capital needs are excluded from pro forma computations. 6. When constructing a pro forma statement, net working capital generally: A. remains fixed. B. varies only if the firm is currently producing at full capacity.
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This note was uploaded on 12/13/2011 for the course FINC 322 taught by Professor Nazar during the Fall '11 term at Ferris State.

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FINC 322 - Exam #5 Take-Home - FINC 322 Financial...

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