lionking013 - 1(TCO1)(Points 3 'stotalequity...

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1. (TCO 1) The goal of financial management is to increase the: (Points: 3) future value of the firm's total equity. book value of equity dividends paid per share current market value per share number of shares outstanding, thereby increasing the market value of equity 2. (TCO 1) When analyzing alternative capital structures for a firm, a financial manager must consider  which of the following? (Points: 3) type of loan amount of funds needed cost of funds mix of debt and equity all of the above 3. (TCO 1) Market value is important to the financial manager because: (Points: 3) It reflects the value of the asset, based on generally-accepted accounting principles. Is a crucial component of the balance sheet, and can impact the financial statements. Market value reflects the amount someone is willing to pay today for an asset. The market value of an asset reflects its historical cost. None of the above 4. (TCO 1) The income statement reflects: (Points: 3) Income and expenses at the time when those items affect the cash flows of a firm. Income and expenses in accordance with GAAP. The cash flows in accordance with GAAP. The flow of cash into and out of a firm during a stated period of time. The flow of cash into and out of a firm as of a particular date. 5. (TCO1) Telemarket Inc. has sales of $625,000. They paid $43,000 in interest during the year and depreciation was $79,000. Administrative costs were $100,000 and other costs were $160,000. Assuming a tax rate of 35 percent, what is Telemarket’s taxable income? (Points: 3) $157,950 $322,000
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$243,000 $200,000 6. (TCO 1) Home Best Hardware had $315,000 in taxable income last year. Using the tax rates provided  in Table 2.3, what is the approximate average tax rate? (Points: 3) 35% 39% 34% 32% 7. (TCO 1) Pizza A had earnings after taxes of $600,000 in the year 2008, and 300,000 shares  outstanding. In year 2009, earnings after taxes increased to $750,000, and 25,000 new shares were  issued for a total of 325,000 shares. What is the EPS figure for 2008? (Points: 3) $2.0 $2.21 $0.50 $0.47 8. (TCO 1) Which of the following will be recorded in a balance sheet? Select all that apply: (Points: 3) Revenue from consulting Marketable securities and cash Inventories Income tax expense Common stock 9. (TCO 1) Print Imaging has EBIT of $150,000, interest of $30,000, taxes of $50,000, and depreciation  of $50,000. What is the company’s operating cash flow? (Points: 3) $120,000 $180,000 $170,000 $150,000 $120,000 10. (TCO 3) Linda invested $15,000 today, in an investment that pays 6.50 percent interest, compounded  semi-annually. Which one of the following statements is correct concerning this investment?
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