User Homework Solutions

FIN 571 WEEK 5 Multiple Choice Question 89 What might cause a firm to face capital rationing If investors require returns for their capital that are too high. If a firm has several projects that are expected to generate negative IRR’s. If a firm has more than one project with a positive NPV. If a firm rejects some capital investments that are expected to generate positive NPV’s.

Other / Other strayer university / FIN 571 13 Aug 2015

FIN 571 WEEK 4 Multiple Choice Question 66 Your answer is correct Present value of an annuity Transit Insurance Company has made an investment in another company that will guarantee it a cash flow of $37,250 each year for the next five years. If the company uses a discount rate of 15 percent on its investments, what is the present value of this investment? (Round to the nearest dollar.) $251,154 $124,868 $101,766 $186,250

Other / Other University of Phoenix / FIN 571 13 Aug 2015

FIN 571 WEEK 4 Multiple Choice Question 71 Your answer is correct Future value of an annuity Carlos Menendez is planning to invest $3,500 every year for the next six years in an investment paying 12 percent annually. What will be the amount he will have at the end of the six years? (Round to the nearest dollar.) $24,670 $26,124 $21,000 $28,403

Other / Other University of Phoenix / FIN 571 13 Aug 2015

FIN 571 WEEK 4 Multiple Choice Question 61 Your answer is correct Bond price: Briar Corp is issuing a 10-year bond with a coupon rate of 7 percent. The interest rate for similar bonds is currently 9 percent. Assuming annual payments, what is the present value of the bond? (Round to the nearest dollar.) $872 $945 $990 $1,066

Other / Other strayer university / FIN 571 13 Aug 2015

FIN 571 WEEK 4 Multiple Choice Question 56 PV of dividends: Cortez, Inc., is expecting to pay out a dividend of $2.50 next year. After that it expects its dividend to grow at 7 percent for the next four years. What is the present value of dividends over the next five-year period if the required rate of return is 10 percent? $10.76 $11.88 $9.80 $11.50

Other / Other University of Phoenix / FIN 571 13 Aug 2015

FIN 571 WEEK 4 Multiple Choice Question 59 Your answer is correct. PV of dividends: Givens, Inc., is a fast growing technology company that paid a $1.25 dividend last week. The company's expected growth rates over the next four years are as follows: 25 percent, 30 percent, 35 percent, and 30 percent. The company then expects to settle down to a constant-growth rate of 8 percent annually. If the required rate of return is 12 percent, what i

Other / Other strayer university / FIN 571 13 Aug 2015

QNT 561 Identify an organization or business for your Learning Team research project. Describe the products or services it provides. Identify a problem or dilemma faced by the organization that could be addressed by research. Discuss the problem as a team. Discuss your selected problem or dilemma with your faculty member to ensure that it is at an appropriate scope for the course. Develop a purpose statement for your research

Other / Other strayer university / QNT 561 13 Aug 2015

FIN 571 WEEK 4 Multiple Choice Question Question 66 Present value: Tommie Harris is considering an investment that pays 6.5 percent annually. How much must he invest today such that he will have $25,000 in seven years? (Round to the nearest dollar.) $38,850 $26,625 $16,088 $23,474 Multiple Choice Question 61 PV of multiple cash flows: Jack Stuart has loaned money to his brother at an interest rate of 5

Other / Other University of Phoenix / FIN 571 13 Aug 2015

FIN 571 WEEK 2 Multiple Choice Question 46 Coverage ratios like times interest earned and cash coverage ratio, allow a firm's creditors to assess how well the firm will meet its short-term liabilities other than interest expense. a firm's shareholders to assess how well the firm will meet its short-term liabilities. a firm's creditors to assess how well the firm will meet its interest obligations. a firm's management to as

Other / Other University of Phoenix / FIN 571 13 Aug 2015

FIN 571 WEEK 2 Multiple Choice Question 53 Which one of the following statements about trend analysis is NOT correct? The Standard Industrial Classification (SIC) System is used to identify benchmark firms. This benchmark is based on a firm's historical performance. It allows management to examine each ratio over time and determine whether the trend is good or bad for the firm. All of these are true statements.

Other / Other strayer university / FIN 571 13 Aug 2015