The difficulties must check applicants' abilities in problems to subjects included in Accounting ACC 225. Use your imagination and explain how the problem will check the applicant's accounting skill(s) and understanding, plus the abilities the applicant must have to do to successfully finish each problem.
General Questions - General General Questions STR 581 STR581 Week 4 Capstone Final Examination, Part 2
Which of the following financial statements is concerned with the company at a point in time?
income statement
statement of cash flows
retained earnings statement
balance sheet
2
A cost which remains constant per unit at various levels of activity is a:
fixed cost
mixed cost
variable cost
manufacturing cost
3
MM Proposition 1: Dynamo Corp. produces annual cash flows of $150 and is expected to exist forever. The company is currently financed with 75 percent equity and 25 percent debt. Your analysis tells you that the appropriate discount rates are 10 percent for the cash flows, and 7 percent for the debt. You currently own 10 percent of the stock.
If Dynamo wishes to change its capital structure from 75 percent equity to 60 percent equity and use the debt proceeds to pay a special dividend to shareholders, how much debt should they use?
$600
$375
...
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