Chapter 012 The Weighted Average Cost of Capital and Company Valuation
True / False Questions
1. Capital structure in essence is a firm's mix of long-term financing.
TRUE
2. The company cost of capita
Cost concepts in
managerial accounting
Wattanee Siritatsawas, Ph.D.
Managerial Accounting
As they will illustrate, the demand for
managerial accounting info stems
from its use in:
Decision Making an
Chapter 005 - Valuing Bonds
True / False Questions
1. A bond's payment at the maturity is referred to as its face value.
TRUE
2. When the market interest rate exceeds the coupon rate, bonds sell for l
Chapter 11 - Introduction to Risk, Return, and the Opportunity Cost of Capital
Chapter 11
Introduction to Risk, Return, and the Opportunity Cost of Capital
True / False Questions
1. A market index is
Chapter 001 The Corporation and the Financial Manager
True / False Questions
1. The liability of sole proprietors is limited to the amount of their investment in the
company.
FALSE
AACSB: Communicatio
Chapter 09 Project Analysis
True / False Questions
1. A capital budget shows a proposed list of investments.
TRUE
2. The strategic planning portion of the capital budgeting process is essentially a "b
Chapter 011 Risk, Return, and Capital Budgeting
True / False Questions
1. The CAPM assumes that the stock market is dominated by well-diversified investors who
are concerned only with market risk.
TRU
CHAPTER 12 PROBLEMS
DETERMINING THE FINANCING MIX
PROBLEM 12-1
LEVERAGE ANALYSIS
DATA
Sales
Variable Costs
Revenue before fixed costs
Fixed Costs
EBIT
Interest expense
EBT
Taxes
Net Income
50,439,375
CHAPTER 16 PROBLEMS
CURRENT ASSET MANAGEMENT
PROBLEM 16-1
BUYING AND SELLING MARKETABLE SECURITIES
DATA
Excess cash
Transactions fees
1,500,000
30,000
A)
Yield
8.25%
1) One month
2) Two months
3) Thre
CHAPTER 13 PROBLEMS
DIVIDEND POLICY AND INTERNAL FINANCING
PROBLEM 13-1
DIVIDEND POLICIES
DATA
Year
1
2
3
4
5
Profits after
Taxes
18,000,000
21,000,000
19,000,000
23,000,000
25,000,000
106,000,000
Out
CHAPTER 4 PROBLEMS
EVALUATING A FIRM'S FINANCIAL PERFORMANCE
PROBLEM 4-1
RATIO ANALYSIS
DATA
Target current ratio:
Current assets
Current Liabilities
2
2,145,000
858,000
Additional Inventories =
429,0
CHAPTER 10 PROBLEMS
CAPITAL-BUDGETING TECHNIQUES AND PRACTICE
PROBLEM 10-1
IRR CALCULATIONS
A)
Initial outlay
FV
Years
IRR =
B)
Initial outlay
FV
Years
IRR =
C)
Initial outlay
FV
Years
IRR =
D)
Initia
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Chapter 16 - Debt Policy
Chapter 16
Debt Policy
True / False Questions
1. When asked about key factors of debt policy, financial managers commonly mention the
tax advantage of debt and the importance
Chapter 20 - Working Capital Management
Chapter 20
Working Capital Management
True / False Questions
1. A corporation such as Walmart with about $400 billion of annual sales has an average daily
cash
CHAPTER 11 PROBLEMS
CASH FLOWS AND OTHER TOPICS IN CAPITAL BUDGETING
PROBLEM 11-1
CAPITAL GAINS TAX
DATA
Purchase
Expected life
Salvage value
Depreciation
Selling price
Tax rate
Years from when purch
schedule or the Cost of Frillhed Geode Manurlcturaa
connues-mnc. BusinessAPpucations of CVP Special Order Decisions Make or Buy Decisions Materialvariances EuborVariances Evaluating Capital Investment
Product-costing
systems
Wattanee Siritatsawas, Ph.D.
JOB ORDER COSTING
Objectives:
1.
Explain the characteristics and purposes of cost
accounting.
2.
Describe the flow of costs in a job order costing
Basic Forms of Variation
Assignable variation is
caused by factors
that can be clearly
identified and
possibly managed
Example:
Example:AApoorly
poorlytrained
trained
employee
employeethat
thatcreates
Chapter 006 - Valuing Stocks
True / False Questions
1. The term "irrational exuberance" was coined by Fed Chairman Greenspan to describe the
dot.com boom.
TRUE
2. The New York Stock Exchange (NYSE) is
CHAPTER 9 PROBLEMS
COST OF CAPITAL
PROBLEM 9-1
INDIVIDUAL OR COMPONENT COSTS OF CAPITAL
DATA
face value
coupon interest rate
flotation cost
mrkt value
years
tax rate
marginal tax rate
1,000.00
11.0%
5
CHAPTER 5 PROBLEMS
THE TIME VALUE OF MONEY
PROBLEM 5-1
COMPOUND INTEREST
A)
Invest
Years
Percent
FV =
B)
Invest
Years
Percent
FV =
C)
Invest
Years
Percent
FV =
D)
Invest
Years
Percent
FV =
5,000
10
10