It means there are taxes on corporate profits AND interest. It means there are taxes on corporate profits AND losses. Question 26 3 out of 3 points The conventional way of preparing a balance sheet is to list all assets in the order of their Selected Answer: liquidity Answers: market value risk liquidity historical cost Question 27 3 out of 3 points When analysts and investors determine the value of a firm's stock, they should consider Selected Answer: all of the above Answers: the size of the expected cash flows from owning the stock the timing of the expected cash flows from
owning the stock the riskiness of the expected cash flows from owning the stock all of the above Question 28 4 out of 4 points Tre-Bien Bakeries generated net income of $233,412 this year. At year end, the company had accounts receivables of $47,199, inventory of $63,781, and cash of $21,461. It also had accounts payables of $51,369, short-term notes payables of $11,417, and accrued taxes of $6,145. The net working capital of the firm is Selected Answer: 63,510 Correct Answer: 63,510 Answer range +/- 0.5 (63509.5 - 63510.5) Question 29 4 out of 4 points Sorenstam Corp has total equity of $1,928,588, total assets of $4,512,895, a ROE of 17.5 percent, and a total assets turnover of 3.1 times. Calculate the firm's ROA (in percent). Selected Answer: 7.48 Correct Answer: 7.48 Answer range +/- 0.08 (7.40 - 7.56) Question 30 4 out of 4 points Zidane Enterprises has a current ratio of 1.92, current liabilities of $272,934, and inventory of 197,333. What is the firm's quick ratio? Selected Answer: 1.2 Correct Answer: 1.2 Answer range +/- 0.05 (1.15 - 1.25) Friday, May 8, 2015 9:43:42 AM MST EXAM 2
Carlos Menendez is planning to invest $3,500 every year for the next six years in an investment that pays 12 percent annually. How much money will he have at the end of the six years (round to the nearest dollar)? Selected Answer: $28,4 03 Answers: $21,0 00 $24,6 70 $26,1 24 $28,4 03 Question 2 3 out of 3 points The present value of a zero coupon bond is less than the face value if the yield to maturity is positive. Selected Answer: Tru e Answers: Tru e False Question 3 3 out of 3 points The yield to maturity of a bond is the discount rate that makes the present value of the coupon and principal payments equal to the price of the bond. Selected Answer: Tru e Answers: Tru e False Question 4 3 out of 3 points Which of the following investment classes had the greatest variability in returns based on recent historical data? Selected Answer: Small US stocks Answers: Small US stocks
Large US stocks Short-term US governement bonds Long-term US government bonds Question 5 5 out of 5 points You would like to retire in 40 years at which time you would like to have $500,000. If you think you can earn 10 percent per year on your investments, how much do you need to save at the end of each year to achieve your goal? Selected Answer: 1129.71 Correct Answer: 1,130 Answer range +/- 1 (1129.0 - 1131.0) Question 6 3 out of 3 points Robert paid $100 for a stock one year ago. If he receives a $5 dividend and his TOTAL return is 10 percent, then the stock must be worth $115 today.
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