The company has 10 million shares of stock

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The company has 10 million shares of stock outstanding. What is the best estimate of the stock's price per share? Answer Correct Answer: $16.00 Question 9 0.5 out of 0.5 points Which of the following statements is CORRECT?
Answer Correct Answer: Question 10 0.5 out of 0.5 points Which of the following does NOT always increase a company's market value? Answer Correct Answer: Question 11 0.5 out of 0.5 points Which of the following statements is CORRECT? Answer Correct Answer: Question 12 0.5 out of 0.5 points Which of the following is NOT a relevant cash flow and thus should not be reflected in the analysis of a capital budgeting
project? Answer Correct Answer: Question 13 0.5 out of 0.5 points Because of improvements in forecasting techniques, estimating the cash flows associated with a project has become the easiest step in the capital budgeting process. Answer Correct Answer: False Question 14 0.5 out of 0.5 points Typically, a project will have a higher NPV if the firm uses accelerated rather than straight-line depreciation. This is because the total cash flows over the project's life will be higher if accelerated depreciation is used, other things held constant. Answer Correct Answer: False Question 15
0.5 out of 0.5 points Last year Handorf-Zhu Inc. had $850 million of sales, and it had $425 million of fixed assets that were used at only 60% of capacity. What is the maximum sales growth rate the company could achieve before it had to increase its fixed assets? Answer Correct Answer: 66.67% Question 16 0.5 out of 0.5 points Which of the following statements is CORRECT? Answer Correct Answer: Question 17 0.5 out of 0.5 points Which of the following factors should be included in the cash flows used to
estimate a project's NPV? Answer Correct Answer: Question 18 0.5 out of 0.5 points As a member of UA Corporation's financial staff, you must estimate the Year 1 cash flow for a proposed project with the following data. What is the Year 1 cash flow? Sales revenues, each year Depreciation Other operating costs Interest expense Tax rate Answer Correct Answer: $20,075 Question 19 0.5 out of 0.5 points Free cash flows should be discounted at the firm's weighted average cost of capital to find the value of its operations. Answer Correct Answer: True Question 20 0.5 out of 0.5 points
Clemson Software is considering a new project whose data are shown below. The required equipment has a 3- year tax life, after which it will be worthless, and it will be depreciated by the straight-line method over 3 years. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's Year 1 cash flow? Equipment cost (depreciable basis) Straight-line depreciation rate Sales revenues, each year Operating costs (excl. deprec.) Tax rate Answer Correct Answer: $30,333 Question 21 0.5 out of 0.5 points A company forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13%, and the FCFs are expected to continue
growing at a 5% rate after Year 3.

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