Finance

A firm has a capital structure that uses 45% equity, 20% preferred shares, and 35% debt. The ...

A firm has a capital structure that uses 45% equity, 20% preferred shares, and 35% debt. The ...

[html]A firm has a capital structure that uses 45% equity, 20% preferred shares, and 35% debt. The preferred shares have a current yield of 5.5%. The debt has a coupon rate of 10% and a current yield to maturity of 6.5%. The common shares have a yiel

zbuild007   32   1 Reply

TanjaG

An example of a spontaneous source of funds is

An example of a spontaneous source of funds is

An example of a spontaneous source of funds is

▸ short-term borrowing.

▸ trade credit.

▸ bank credit line.

▸ commercial paper loans.

zbuild007   20   1 Reply

CJWVail2

Which of the following should be recognized in a capital budgeting decision?

Which of the following should be recognized in a capital budgeting decision?

Which of the following should be recognized in a capital budgeting decision?

▸ intangible considerations that cannot be measured

▸ sunk costs

▸ externalities

▸ opportunity costs

zbuild007   36   1 Reply

duankong-fei

A firm that provides tax services to the public intends to offer a premium tax-return service at a ...

A firm that provides tax services to the public intends to offer a premium tax-return service at a ...

[html]A firm that provides tax services to the public intends to offer a premium tax-return service at a higher price than their current services. The managers of the company ask experts in marketing to determine how much an effective ad campaign for

zar   89   1 Reply

jenniferagrethe

The owner of a hair salon spends $1,000,000 to renovate its premises, estimating that this will ...

The owner of a hair salon spends $1,000,000 to renovate its premises, estimating that this will ...

[html]Use the information for the question(s) below.

zar   100   1 Reply

kwashington67

Is volatility a reasonable measure of risk when evaluating large portfolios?

Is volatility a reasonable measure of risk when evaluating large portfolios?

Is volatility a reasonable measure of risk when evaluating large portfolios?

zar   101   2 Replies

zar

Covenants in a bond contract restrict the actions that management of a firm can take that would ...

Covenants in a bond contract restrict the actions that management of a firm can take that would ...

Covenants in a bond contract restrict the actions that management of a firm can take that would benefit the debt holders of the firm at the expense of the equity holders of that firm.

▸ true

▸ false

zar   128   3 Replies

Kailz1218

Future investment plans are important determinants of payout policy because of

Future investment plans are important determinants of payout policy because of

Future investment plans are important determinants of payout policy because of

▸ signal to investors.

▸ stock price depreciation.

▸ costs of raising new capital.

▸ debt holder restrictions.

zar   149   2 Replies

zar

Franklin Industries has a current net working capital of $2.5 million. It expects that this will ...

Franklin Industries has a current net working capital of $2.5 million. It expects that this will ...

[html]Franklin Industries has a current net working capital of $2.5 million. It expects that this will grow at a rate of 3.5% annually forever. If it could slow that growth to 3% per year, how would that affect thevalue of the firm, given that it has

zar   174   1 Reply

Cele_1015

A stationery company plans to launch a new type of indelible ink pen. Advertising for the new ...

A stationery company plans to launch a new type of indelible ink pen. Advertising for the new ...

[html]A stationery company plans to launch a new type of indelible ink pen. Advertising for the new product will be heavy and will cost the company $10 million, although the company expects general revenues of $280 million next year from sources othe

yuknam   192   1 Reply

rand22

Which of the following best explains why is it sensible for a firm to use an accelerated ...

Which of the following best explains why is it sensible for a firm to use an accelerated ...

[html]Which of the following best explains why is it sensible for a firm to use an accelerated depreciation schedule such as MACRS rather than straight-line depreciation?

▸ The firm can decide over how many years an item may be depreciated, thus all

yuknam   86   2 Replies

yuknam

Use the figure for the question(s) below.A consumer good company is developing a new brand of ...

Use the figure for the question(s) below.A consumer good company is developing a new brand of ...

[html]Use the figure for the question(s) below.

yuknam   101   2 Replies

yuknam

Which of the following statements concerning the valuation of firms using the method of comparables is FALSE?

Which of the following statements concerning the valuation of firms using the method of comparables is FALSE?

[html]Which of the following statements concerning the valuation of firms using the method of comparables is FALSE?

▸ If two different firms generate identical cash flows, the Law of One Price will imply that both firms have the same value.

▸ Two f

yuknam   99   1 Reply

tlaster

The tradeoff theory of optimal capital structure weighs the benefits of debt against the costs of

The tradeoff theory of optimal capital structure weighs the benefits of debt against the costs of

The tradeoff theory of optimal capital structure weighs the benefits of debt against the costs of

▸ input factors.

▸ dividend reinvestment.

▸ financial distress.

▸ interest payments.

yuknam   162   1 Reply

kamronet

Which of the following firms would be expected to need the most cash to conduct its daily operations?

Which of the following firms would be expected to need the most cash to conduct its daily operations?

[html]Which of the following firms would be expected to need the most cash to conduct its daily operations?

▸ a retail grocery store that sells on a cash only basis

▸ an aircraft manufacturer with large inventory and long development and sales cycl

yuknam   138   1 Reply

DryPhantom

John requires a 12% rate of return on EG stock at a time when investors, on average, are requiring ...

John requires a 12% rate of return on EG stock at a time when investors, on average, are requiring ...

[html]John requires a 12% rate of return on EG stock at a time when investors, on average, are requiring an 11% rate of return on the same stock.  Which of the following will happen?

▸ John will have to pay more for the stock than he was willing to

Yukinara   43   1 Reply

brendasants

Suppose you sell the 10-year, A-rated 7 percent bonds you own, which are yielding 8 percent, and ...

Suppose you sell the 10-year, A-rated 7 percent bonds you own, which are yielding 8 percent, and ...

[html]Suppose you sell the 10-year, A-rated 7 percent bonds you own, which are yielding 8 percent, and replace them with an equal amount of 10-year, A-rated 8 percent bonds that are priced to yield 9 percent. In this situation, you are executing

▸ a

Yukinara   59   1 Reply

psstone42

Utility stocks are often suitable for low-risk, current-income-oriented portfolios.

Utility stocks are often suitable for low-risk, current-income-oriented portfolios.

Utility stocks are often suitable for low-risk, current-income-oriented portfolios.

▸ true

▸ false

Yukinara   36   1 Reply

coconut122

If an investor has a loss position in an investment and wants to sell it, the best time to sell for ...

If an investor has a loss position in an investment and wants to sell it, the best time to sell for ...

If an investor has a loss position in an investment and wants to sell it, the best time to sell for tax purposes is when a capital gain is available against which the loss can be applied.

▸ true

▸ false

Yukinara   39   1 Reply

heavenlyangel

Which statement best describes time lines?

Which statement best describes time lines?

[html]Which statement best describes time lines?


▸

Yukinara   35   1 Reply

lnvolley24

Which of the following statements regarding the real risk-free rate of interest is correct?

Which of the following statements regarding the real risk-free rate of interest is correct?

[html]Which of the following statements regarding the real risk-free rate of

Yukinara   43   1 Reply

apontea13

Which of the following statements is correct?

Which of the following statements is correct?

[html]Which of the following statements is correct?


▸

Yukinara   53   1 Reply

kaitmaw

In general, common stock flotation costs (as a percentage of capital raised) for IPOs in Canada ...

In general, common stock flotation costs (as a percentage of capital raised) for IPOs in Canada ...

[html]In general, common stock flotation costs (as a percentage of capi

Yukinara   71   1 Reply

angfucious

Hindelang Ltd. is considering a project that has the following cash flow and WACC data. What is the ...

Hindelang Ltd. is considering a project that has the following cash flow and WACC data. What is the ...

[html]Hindelang Ltd. is considering a project that has the following cash

Yukinara   70   1 Reply

abu-jahdo

Collections float tends to offset disbursement float. If a firm's average collections float exceeds ...

Collections float tends to offset disbursement float. If a firm's average collections float exceeds ...

[html]Collections float tends to offset disbursement float. If a firm's average collections float exceeds its average disbursement float, then it is said to be operating with

Yukinara   73   1 Reply

lyssa1605

Negative credit information, with the exception of bankruptcies, must be removed from a credit ...

Negative credit information, with the exception of bankruptcies, must be removed from a credit ...

Negative credit information, with the exception of bankruptcies, must be removed from a credit report after ________ years.

▸ 10

▸ 3

▸ 5

▸ 7

Yukinara   40   1 Reply

Dark_Shadow

Which of the following pays interest that is exempt from state and local taxation?

Which of the following pays interest that is exempt from state and local taxation?

Which of the following pays interest that is exempt from state and local taxation?

▸ Money market deposit account

▸ NOW account

▸ Series EE bond

▸ Certificate of deposit

Yukinara   76   1 Reply

penmc

A proper fraction is converted to a decimal equivalent by dividing the denominator into the numerator.

A proper fraction is converted to a decimal equivalent by dividing the denominator into the numerator.

A proper fraction is converted to a decimal equivalent by dividing the denominator into the numerator.

▸ true

▸ false

Yukinara   30   1 Reply

Mspractical

Amounts of trade discounts are not fixed.

Amounts of trade discounts are not fixed.

Amounts of trade discounts are not fixed.

▸ true

▸ false

Yukinara   33   1 Reply

ikidding

A $7,000, 4%, 120-day note dated March 20, is discounted on July 15. Assuming a 3% discount rate, ...

A $7,000, 4%, 120-day note dated March 20, is discounted on July 15. Assuming a 3% discount rate, ...

[html]A $7,000, 4%, 120-day note dated March 20, is discounted on July 15. Assuming a 3% discount rate, the bank discount is:Note: Round to the nearest cent.

▸ $1.74

▸ $1.

Yukinara   30   1 Reply

jamiecro

After 20 years of being the sole proprietor of Montere Lawn Care, Denis Seville is considering ...

After 20 years of being the sole proprietor of Montere Lawn Care, Denis Seville is considering ...

[html]After 20 years of being the sole proprietor of Montere Lawn Care, Denis Seville is considering making a change. His business has grown substantially over the years and he now has approximately 100 loyal clients. Denis wants to retire and move t

Yukinara   18   1 Reply

kuteeme

What is the standard deviation of returns on a stock priced today at $10 that has a 25.0% ...

What is the standard deviation of returns on a stock priced today at $10 that has a 25.0% ...

[html]What is the standard deviation of returns on a stock priced today at $10 that has a 25.0% probability of increasing to $13, a 50.0% probability of increasing to $12, a 15.0% probability of increasing by 5.0%, and a 10.0% probability of decreasi

Yukinara   18   1 Reply

lnvolley24

What are the costs and benefits to the issuing firm of preferred share financing?

What are the costs and benefits to the issuing firm of preferred share financing?

What are the costs and benefits to the issuing firm of preferred share financing?

Yukinara   21   1 Reply

ahgoebel

Which of the following is FALSE about a sale and leaseback arrangement?

Which of the following is FALSE about a sale and leaseback arrangement?

[html]Which of the following is FALSE about a sale and leaseback arrangement?

▸ The lessee sells an asset to a financial institution, which then leases the asset back to the lessee.

▸ The lessor is permitted to deduct CCA on the leased asset for in

Yukinara   17   1 Reply

goodone14

Luther's operating margin for the year ending December 31, 2005 is closest to:

Luther's operating margin for the year ending December 31, 2005 is closest to:

[html]Use the table for the question(s) below.

yufeige4   97   2 Replies

yufeige4

If $15,000 is invested at 10% per year, in approximately how many years will the investment double?

If $15,000 is invested at 10% per year, in approximately how many years will the investment double?

If $15,000 is invested at 10% per year, in approximately how many years will the investment double?

▸ 8.4 years

▸ 7.3 years

▸ 10.6 years

▸ 14.8 years

yufeige4   93   2 Replies

yufeige4

Historically, stocks have delivered a ________ return on average compared to Treasury bills but have ...

Historically, stocks have delivered a ________ return on average compared to Treasury bills but have ...

Historically, stocks have delivered a ________ return on average compared to Treasury bills but have experienced ________ fluctuations in values.

▸ higher, higher

▸ lower, lower

▸ higher, lower

▸ lower, higher

yufeige4   117   1 Reply

amw87470

Union Pacific Corporation (ticker: UNP on NYSE) owns transportation companies. Its principal ...

Union Pacific Corporation (ticker: UNP on NYSE) owns transportation companies. Its principal ...

[html]Union Pacific Corporation (ticker: UNP on NYSE) owns transportation companies. Its principal operating company, Union Pacific Railroad Company, links 23 states across the country. After studying UNP's financials, you predict the future return o

your lady   47   1 Reply

lubennick

According to the net present value technique, a project is considered acceptable if

According to the net present value technique, a project is considered acceptable if

[html]According to the net present value technique, a project is considered acceptable if

▸ the sum of all cash inflows and outflows is positive.

▸ the difference between all discounted cash inflows and outflows exceeds zero.

▸ it lowers costs bel

your lady   40   1 Reply

DocD216

The capital structure weights used in computing the weighted average cost of capital are

The capital structure weights used in computing the weighted average cost of capital are

[html]The capital structure weights used in computing the weighted average cost of capital are

▸ constant over time provided that the debt-equity ratio changes in unison with the market values.

▸ based on the face value of the firm's debt.

▸ compu

your lady   53   1 Reply

Ian1234