FIN 515

FIN 515 1. (TCO A) Double taxation is a drawback for which of the following types of business organization except? (Points : 5) 2. (TCO A) Sole proprietorships have all of the following advantages except (Points : 5) 3. (TCO B) Which of the following would cause the present value of an annuity to decrease? (Points : 5) 4. (TCO B) In a TVM calculation, if incoming cash flows are positive, outgoing cash flows must be (Points : 5)

25 Other / Other University of Phoenix / FIN 515 27 Nov 2015

FIN 515 TCO A Which of the following does NOT always increase a companys market value Points 5 a Increasing the expected growth rate of sales b Increasing the expected operating profitability NOPAT Sales c Decreasing the capital requirements Capital Sales d TCO F Which of the following statements is correct Points 5 a The NPV IRR MIRR and discounted payback using a payback requirement of 3 years or less methods always lead to the same accept/

30 Other / Other University of Phoenix / FIN 515 06 Nov 2015

TCO A Which of the following statements is NOT correct Points 5 TCO F Which of the following statements is correct Points 5 a TCO F Which of the following statements is correct Points 5 3 TCO D The Ackert Company's last dividend was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return (rs) is 12.0%. What is

25 Other / Other University of Phoenix / FIN 515 22 Oct 2015