FIN 515 Week 8 Quiz

FIN 515 Week 8 Quiz | Assignment Help | Devry University 

Question 1

(TCO A) In the United States, the most common type of business by number of businesses is the _____.

Question 3

(TCO B) Which of the following would cause the future value of an annuity to decrease?

Question 4

 (TCO B) Which of the following is an annuity due

Question 5

(TCO D) A given bond has 5 years to maturity. It has a face value of $5,000. It has a YTM of 6% and the coupons are paid semiannually at a 11% annual rate. What does the bond currently sell for? (Show workings)

Question 6

(TCO D) A bond currently sells for $1,000 and has a par of $1,000. It was issued two years ago and had a maturity of 10 years. The coupon rate is 7% and the interest payments are made semiannually. What is its YTM? (Show workings)

Question 7

(TCO A) If net income, total assets, and book value of equity stayed the same, what would be the effect on the DuPont Identity of an increase in sales?

Question 8

(TCO D) A stock pays an annual dividend of $2.50 and that dividend is not expected to change. Similar stocks pay a return of 10%. What is P₀? (Show workings)

Question 9

 (TCO D) A stock has just paid a dividend has declared an annual dividend of $15.00 to be paid one year from today. The dividend is expected to grow at a 7% annual rate. The return on equity for similar stocks is 15%. What is P₀? (Show workings)

Question 10

(TCO C) Using examples, explain the difference between systematic risk and nonsystematic risk. Explain why the distinction is important for both investors and issuers of stock.

Question 11

(TCO D) A company has 10 million shares outstanding trading for $7 per share. It also has $300 million in outstanding debt. If its equity cost of capital is 15%, and its debt cost of capital is 9%, and its effective corporate tax rate is 40%, what is its weighted average cost of capital? (Show workings)

Question 12

(TCO A) Relate how the job of the financial manager can be explained using the balance sheet.

Question 13

 (TCO G) What is the difference between the cash cycle and the operating cycle? Under what condition would they be the same?

Question 14

TCO E) A company has the opportunity to do any of the projects for which the net cash flows per year are shown below. The company has a cost of capital of 12%. Which should the company do and why? You must use at least two capital budgeting methods. Show your work.