{"id":132043,"date":"2023-08-19T13:41:15","date_gmt":"2023-08-19T13:41:15","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/finance-exam-100-correct-business-finance-homework-help\/"},"modified":"2023-08-19T13:41:15","modified_gmt":"2023-08-19T13:41:15","slug":"finance-exam-100-correct-business-finance-homework-help","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/finance-exam-100-correct-business-finance-homework-help\/","title":{"rendered":"Finance exam 100% correct | Business & Finance homework help"},"content":{"rendered":"
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1) The goal of the firm should be<\/span><\/p>\n

2) An example of a primary market transaction is<\/p>\n

3) According to the agency problem, _________ represent the principals of a corporation.<\/p>\n

4) Which of the following is a principle of basic financial management?<\/p>\n

5) Another name for the acid test ratio is the<\/p>\n

6) The accounting rate of return on stockholders\u2019 investments is measured by<\/p>\n

7) If you are an investor, which of the following would you prefer?<\/p>\n

8) The primary purpose of a cash budget is to<\/p>\n

9) Which of the following is a non-cash expense?<\/p>\n

10) The break-even model enables the manager of a firm to<\/p>\n

11) A zero-coupon bond<\/p>\n

12) If you have $20,000 in an account earning 8% annually, what constant amount could you withdraw each year and have nothing remaining at the end of 5 years?<\/p>\n

13) At what rate must $400 be compounded annually for it to grow to $716.40 in 10 years?<\/p>\n

14) The present value of a single future sum<\/p>\n

15) Which of the following is considered to be a spontaneous source of financing?<\/p>\n

16) Compute the payback period for a project with the following cash flows, if the company\u2019s discount rate is 12%.
Initial outlay = $450<\/p>\n

Cash flows:
Year 1 = $325
Year 2 = $65
Year 3 = $100

<\/strong>
17) For the NPV criteria, a project is acceptable if the NPV is __________, while for the profitability index, a project is acceptable if the profitability index is __________.<\/p>\n

18) Which of the following is considered to be a deficiency of the IRR?<\/p>\n

19) The firm should accept independent projects if<\/p>\n

20) The most expensive source of capital is<\/p>\n

21) The cost associated with each additional dollar of financing for investment projects is<\/p>\n

22) The XYZ Company is planning a $50 million expansion. The expansion is to be financed by selling $20 million in new debt and $30 million in new common stock. The before-tax required rate of return on debt is 9%, and the required rate of return on equity is 14%. If the company is in the 40% tax bracket, what is the marginal cost of capital? <\/p>\n

23) Shawhan Supply plans to maintain its optimal capital structure of 30% debt, 20% preferred stock, and 50% common stock far into the future. The required return on each component is: debt\u201310%; preferred stock\u201311%; and common stock\u201318%. Assuming a 40% marginal tax rate, what after-tax rate of return must Shawhan Supply earn on its investments if the value of the firm is to remain unchanged? <\/p>\n

24) Lever Brothers has a debt ratio (debt to assets) of 40%. Management is wondering if its current capital structure is too conservative. Lever Brothers\u2019 present EBIT is $3 million, and profits available to common shareholders are $1,560,000, with 342,857 shares of common stock outstanding. If the firm were to instead have a debt ratio of 60%, additional interest expense would cause profits available to stockholders to decline to $1,440,000, but only 228,571 common shares would be outstanding. What is the difference in EPS at a debt ratio of 60% versus 40%?<\/p>\n

25) Zybeck Corp. projects operating income of $4 million next year. The firm\u2019s income tax rate is 40%. Zybeck presently has 750,000 shares of common stock which have a market value of $10 per share, no preferred stock, and no debt. The firm is considering two alternatives to finance a new product: (a) the issuance of $6 million of 10% bonds, or (b) the issuance of 60,000 new shares of common stock. If Zybeck issues common stock this year, what will be the projected EPS next year?<\/p>\n

26) _________ risk is generally considered only a paper gain or loss.<\/p>\n

27) Capital markets in foreign countries<\/p>\n

28) Buying and selling in more than one market to make a riskless profit is called<\/p>\n

29) What keeps foreign exchange quotes in two different countries in line with each other?<\/p>\n

30) One reason for international investment is to reduce<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

1) The goal of the firm should be 2) An example of a primary market transaction is 3) According to the agency problem, _________ represent the principals of a corporation. 4) Which of the following is a principle of basic financial management? 5) Another name for the acid test ratio is the 6) The accounting […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-132043","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/132043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=132043"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/132043\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=132043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=132043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=132043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}