PROBLEM 11-12 TEMPLATE
Simonsen Village Balance Sheet Governmental Funds As of December 31, 2006
Fund Assets Cash Real estate taxes receivable, net State grants receivable Due from other funds Total assets Liabilities and fund balances Liabilities: Accoun
A Partial balance sheet and income statement for King Corporation follow:
Partial Balance Sheet
Trade receivables, less allowance of $6,000
Week 6 Excersise
If the investment is below the market line there
is the possibility of equal-risk to investoments
that have higher expected returns.Investments
that lie above the market line bring returns
above those availa
Chapter 8: Problem 1
A. False Future cash flows are discounted more than near cash flows because the discount
rate is raised.
B. True The WACC is the right discount rate to use for projects
C. False Being able to borrow the full cos
Chapter 7: Problem 1
Assumed Interest Rate: 8%
PV= -540.27, Present Value is less because of the number of years it will take to get to
Chapter 6: Problem 1
Explain why increasing financial leverage increases the risk borne by shareholders?
Because debt is considered to be a fixed income security, interest expense doesnt vary with
EBIT. Due this, all of the variabil
Chapter 4: Problem 1
A. False By increasing profit margin it is possible for a companys growth rate to go
above their sustainable growth rate.
B. False The stock market is seen as unreliable to many managers.
C. True Repurcha
Chapter 2: Problem 1
A. True ROE will only be less than ROA if assets are lower than equity.
B. True Assets/Equity = (Liabilities + Equity)/Equity= (Liabilities/Equity) +1
C. False The collections period is usually determined by ind
Chapter 1: Problem 1
Accrual accounting is used because it takes more into consideration than just the cash on hand.
It provides a more clear view of a companys performance by showing whether or not it is
profitable and withstand ti
Cost per share
Book Value of interst bearing liabilities
Cost of Acquisition
$6,380,000,000.00 $6.38 billion