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FIN 571 WEEK 4 Multiple Choice Question 66 Your answer is correct 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

Other / Other University of Phoenix / FIN 571 12 Aug 2015

FIN 571 The operating cycle

Other / Other University of Phoenix / FIN 571 12 Aug 2015

FIN 571 You are provided the following working capital information for the Ridge Company: Ridge Company Account $ Inventory $12,890 Accounts receivable 12,800 Accounts payable 12,670 Net sales $124,589 Cost of goods sold 99,630 Operating cycle: What is the operating cycle for Ridge Company?

Other / Other Other / FIn 571 12 Aug 2015

FIN 571 WEEK 4 Multiple Choice Question 61 Your answer is correct. PV of multiple cash flows: Jack Stuart has loaned money to his brother at an interest rate of 5.75 percent. He expects to receive $625, $650, $700, and $800 at the end of the next four years as complete repayment of the loan with interest. How much did he loan out to his brother? (Round to the nearest dollar.) $2,404 $2,545 $2,713 $2,250

Other / Other University of Phoenix / FIN 571 12 Aug 2015

FIN 571 Ticktock Clocks sells 10,000 alarm clocks each year. If the total cost of placing an order is $65 and it costs $85 per year to carry the alarm clock in inventory, use the EOQ formula to calculate the optimal order size.

Other / Other University of Phoenix / FIN 571 12 Aug 2015

FIN 571 The asset substitution problem occurs when

Other / Other University of Phoenix / FIN 571 12 Aug 2015

FIN 571 M&M Proposition 1: Dynamo Corp. produces annual cash flows of $150 and is expected to exist forever. The company is currently financed with 75 percent equity and 25 percent debt. Your analysis tells you that the appropriate discount rates are 10 percent for the cash flows, and 7 percent for the debt. You currently own 10 percent of the stock. How much are your cash flows today?

Other / Other University of Phoenix / FIN 571 12 Aug 2015

FIN 571 WEEK 4 Multiple Choice Question 63 Your answer is correct PV of multiple cash flows: Hassan Ali has made an investment that will pay him $11,455, $16,376, and $19,812 at the end of the next three years. His investment was to fetch him a return of 14 percent. What is the present value of these cash flows? (Round to the nearest dollar.) $36,022 $41,675 $39,208 $33,124

Other / Other University of Phoenix / FIN 571 12 Aug 2015

FIN 571 M&M Proposition 2: Melba's Toast has a capital structure with 30% debt and 70% equity. Its pretax cost of debt is 6%, and its cost of equity is 10%. The firm's marginal corporate income tax rate is 35%. What is the appropriate WACC?

Other / Other University of Phoenix / FIN 571 12 Aug 2015

FIN 571 According to the text, the financial plan covers a period of

Other / Other University of Phoenix / FIN 571 12 Aug 2015