If the required rate of return on the stock is 20%, what is the current value of the stock today? A) $30 B) $50 C) $100 D) $54 E) None of the above Answer: B Response: P = (6/(0.2-0.08) = 50 5. WorldTour Co. has just now paid a dividend of $6 per share (Do), the dividends are expected to grow at a constant rate of 5% per year forever. If the required rate of return on the stock is 15%, what is the current value on stock (after paying the dividend)? A) $63 B) $56 C) $40 D) $48 E) None of the above Answer: A Response: P = (6*1.05)/(0.15 0.05) = 63 6.
* What is company / VP Supply policy on unsolicited bids? * Does this bid and subsequent action fit business goals and objectives? SUGGESTED QUESTIONS FOR DISCUSSION; 1. What importance is the check printing to the bank? 2.
Yes No c. No No d. No Yes 2. Under the temporal method, monetary assets and liabilities are translated by using the exchange rate existing at the: a. beginning of the current year. b. date the transaction occurred. c. balance sheet date. d. None of these.
FP/101 Midterm Exam | | First Name | kuku Last Name |maias| Confirmation # | 19018321 | Score | 60 | Total Questions: | 30 | Total Correct | 18 | Start: | 10/22/2011 6:04:50 PM | End: | 10/22/2011 6:46:32 PM | Here is some additional information on items you missed: Topic: Question: Which of the following is not one of the steps in the personal financial planning process? Answer: Determining appropriate risk level of participant Key Terms: Personal financial planning process | Topic: Question: Which step in the financial planning process involves developing goals? Answer: Step 2 Key Terms: Financial planning | Topic: Question: Which of the following is not one of the steps in the personal financial planning process? Answer:
Situation: • Erica Carson is PM for Wesbank, a financial institution (note: You are Erica) o Reports to VP Supply • Unsolicited bid from Art Evans, Sales Rep. Killoran Inc. o 10% reduction on printing and mailing of checks o not current supplier • Westbank provides free checks at a cost of $8M per year • Current situation – 50% split suppliers, last 5 years o Supplier A prints and mails 50% checks, renewed contract 8 months ago o Supplier B prints and mails 50% checks, contract expires in 4 months o Each 2 year contract, good quality and service o Costs studied one year ago, determined pricing was fair BASIC ISSUES; (note - tie to elements from textbook) 1. Purchasing for a service organization. 2. The price, quality, delivery, service trade-off. 3.
Developing short-term and long-term financial goals C. Implementing a plan for achieving goals D. Determining appropriate risk level of participant 8) Preparing personal financial statements is part of which of the five steps of the financial planning process? A. Develop Goals B. Analyze Your Current Financial Position C. Establish and Implement Your Plan D. None of the above 9) Which of the following is an advantage of using a debit card? A. They free customers from carrying cash or checkbooks.
Harden also prepaid $3,750 cash for expenses that would be incurred the next year. Calculate the first year’s net income under both the cash basis and the accrual basis of accounting. The cash basis is $13,000 because there was $33,000 cash received and $20,000 paid out and the difference of the received cash and the paid cash is $13,000 net income. The accrual basis has $39,000 in total billing and expenses of $18,750, derived from the $22,500 of incurred expenses minus the $3,750 that was prepaid for the next year leaving a difference of $20,250 net income. Page 118 3-1 1.
Corporation FinanceBus 35200Case Study: Penelope | | 1. What is the NPV of the first generation phone project, ignoring both the possibility of investing in the second-generation project and the possibility of selling the equipment after two years? We calculate the NPV by adding the yearly future free cash flows of the project discounted at a rate equal to the cost of equity. We use the CAPM formula to calculate the cost of equity, assuming a risk free rate of 10%, a β of 1.2 and the market risk premium of 8%. We got a cost of equity of 20%.
A long-term debt maturing currently, which is to be paid with cash in a sinking fund b. A long-term debt maturing currently, which is to be retired with proceeds from a new debt issue c. A long-term debt maturing currently, which is to be converted into common stock d. None of these 16) A company borrows $10,000 and signs a 90-day nontrade note payable. In
It originally cost $180,000 and, for depreciation purposes, the straight-line method was chosen. The asset was originally expected to be useful for 15 years and have a zero salvage value. In 2010, the decision was made to shorten the total life of this asset to 9 years and to estimate the salvage value at $3,000 3. Depreciable asset C was purchased January 5, 2006. The asset's original cost was $160,000 and this amount was entirely expensed in 2006.