Recent Question

It is useful for marketers to understand the psychological and lifestyle choices True or false: 1. Urban living affords certain elements of entertainment, and smaller towns offer different kinds of amusement. 2. It is useful for marketers to understand the psychological and lifestyle choices that are relevant to the brand(s) the marketer is pitching. 3. Opinion leaders, innovators, or market mavens are known for their exper ...

Other / Other 28 Apr 2016

Which of the following is NOT to address the agency conflict 1. Which of the following statements is CORRECT? a. One of the advantages of the corporate form of organization is that it avoids double taxation. b. It is easier to transfer one’s ownership interest in a partnership than in a corporation. c. One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability. d. One of the advan ...

Other / Other 28 Apr 2016

Which ratio may be greatly affected by the choice of short-term and long-term debt 1. Dell has an inventory period of 1 month, and an account receivable period of 0 (zero) months. It also has a payable period of 6 months. What are the cash conversion cycle period and the interest expense for Dell if they have annual net total (credit) sales volume of $10 billion? The market interest rate is 6.0%. a. -5.0, $-250 m b. 6.0, $3 ...

Other / Other 28 Apr 2016

Which is a common way to compare financial ratios against other companies 1. Chua Chang & Wu Inc. is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Last year’s sales = S0 $200,000 Last year's accounts payable $50,000 Sales growth rate = g 40% Last ye ...

Other / Other 28 Apr 2016

Which of the following conditions would cause the AFN to increase 1. Which of the following items is NOT normally considered to be a current asset? a. Accounts receivable. b. Inventory. c. Bonds. d. Cash. e. Short-term, highly-liquid, marketable securities. 2. The following information for Towsontown, Inc. is provided: Net Sales: $88,000 Operating Costs: $72,000 (doesn’t include depreciation) Depreciation Expense: $ 7,2 ...

Other / Other 28 Apr 2016

The company wants to maintain a target capital structure . Which of the following statements is CORRECT? a. If a firm follows the residual dividend policy, then a sudden increase in the number of profitable projects is likely to reduce the firm’s dividend payout. b. The clientele effect can explain why so many firms change their dividend policies so often. c. One advantage of adopting the residual dividend policy is that this p ...

Other / Other 28 Apr 2016

If the firm follows the residual dividend policy . Brooks Corp.'s projected capital budget is $2,000,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $600,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out? a. $240,000 b. $228,000 c. $216,600 d. $205,770 e. $0 . D. Paul Inc. for ...

Other / Other 28 Apr 2016

What was its free cash flow 1. Other things held constant, which of the following actions would increase the amount of cash on a company’s balance sheet? a. The company repurchases common stock. b. The company pays a dividend. c. The company issues new common stock. d. The company gives customers more time to pay their bills. e. The company purchases a new piece of equipment. 2. While preparing a pro forma B/S, you have rea ...

Other / Other 28 Apr 2016

What is the sequential approach 1. Which of the following statements is CORRECT? a. One of the disadvantages of incorporating your business is that you could become subject to the firm's liabilities in the event of bankruptcy. b. Sole proprietorships are subject to more regulations than corporations. c. In any partnership, every partner has the same rights, privileges, and liability exposure as every other partner. d. Corporations of al ...

Other / Other 28 Apr 2016

DISTRIBUTIONS TO SHAREHOLDERS . Which of the following statements is CORRECT? a. Under the tax laws as they existed in 2007, a dollar received for repurchased stock must be taxed at the same rate as a dollar received as dividends. b. One nice feature of dividend reinvestment plans (DRIPs) is that they reduce the taxes investors would have to pay if they received cash dividends. c. Empirical research indicates that, in general, companie ...

Other / Other 28 Apr 2016