Recent Question

If the company follows a residual dividend policy, what will be its dividend payout ratio 1. Swannee Resorts is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight line method over the project's 3 year life, and would have zero salvage value. No new working capital would be required. Revenues and other operating costs are expected to be consta ...

Other / Other 04 May 2016

How many new shares should be given per one old share . Brinkley Resources stock has has increased significantly over the last five years, selling now for $175 per share. Management feels this price is too high for the average investor and wants to get the price down to a more typical level, which it thinks is $25 per share. What stock split would be required to get to this price, assuming the transaction has no effect on the total mar ...

Other / Other 04 May 2016

A reverse split reduces the number of shares outstanding . If a firm adopts a residual distribution policy, distributions are determined as a residual after funding the capital budget. Therefore, the better the firm's investment opportunities, the lower its payout ratio should be. a. True b. False . Stock dividends and stock splits should, at least conceptually, have the same effect on shareholders’ wealth. a. True ...

Other / Other 04 May 2016

For process capability, what is null hypothesis 1. Identify the major area of variation classification NOT specifically addressed in multi-vari studies: 2. In translating customer needs into product design features, which of the following techniques is used? 3. The test used for testing significance in an analysis of variance table is the: 4. For process capability, what is null hypothesis ? 5. Out of the following statistic ...

Other / Other 04 May 2016

If a firm adheres strictly to the residual dividend policy, the issuance of new common stock . Reynolds Paper Products Corporation follows a strict residual dividend policy. All else equal, which of the following factors would be most likely to lead to an increase in the firm’s dividend per share? a. The company increases the percentage of equity in its target capital structure. b. The number of profitable potential projects ...

Other / Other 04 May 2016

What tool is customarily used to complement the cause-and-effect diagram 1. When a survey is conducted with the customers, what does NOT get indicated with high customer satisfaction number? 2. In a full factorial experiment with 4 factors at 3 levels each, how many trials are required? 3. What tool is customarily used to complement the cause-and-effect diagram ? 4. Out of the given choices which of the matrix types illustrates rel ...

Other / Other 04 May 2016

Which of the following should NOT influence a firm’s dividend policy decision . In the real world, dividends a. are usually more stable than earnings. b. fluctuate more widely than earnings. c. tend to be a lower percentage of earnings for mature firms. d. are usually changed every year to reflect earnings changes, and these changes are randomly higher or lower, depending on whether earnings increased or decreased. e. are u ...

Other / Other 04 May 2016

By how much must the assets be reduced to bring the TATO to the industry average 1. During the latest year Ruth Corp. had sales of $300,000 and a net income of $20,000, and its year-end assets were $200,000. The firm's total debt to total assets ratio was 40%. Based on the Du Pont equation, what was the firm's ROE? a) 15.33% b) 15.67% c) 16.00% d) 16.33% e) 16.67% 2. Rangoon Corp's sales last year were $400,000, and its year-end to ...

Other / Other 04 May 2016

How much free cash flow did Wells generate 1. Zumbahlen Inc. has the following balance sheet. How much total operating capital does the firm have? Cash $ 20.00 Accounts payable $ 30.00 Short-term investments 50.00 Accruals 50.00 Accounts receivable 20.00 Notes payable 30.00 Inventory 60.00 Current liabilities $110.00 Current assets $150.00 Long-term debt 70.00 Gross fixed assets $140.00 Common stock 30.00 Accumulat ...

Other / Other 04 May 2016

Congress recently passed a provision that will enable Barton's Rare Books 1. Which of the following statements is CORRECT? a. The primary difference between EVA and accounting net income is that when net income is calculated, a deduction is made to account for the cost of common equity, whereas EVA represents net income before deducting the cost of the equity capital the firm uses. b. MVA gives us an idea about how much value a firm's man ...

Other / Other 04 May 2016