low—say $2 per share—then it can declare a ―reverse split‖ of say 1-for-25 so as to bring the price up to somewhere around $50 per share. The stock price will decline and the quantity of shares outstanding will increase‚ the ratio does not matter. 4. Which of the following statements is CORRECT? a. If a firm follows the residual dividend policy‚ then a sudden increase in the number of profitable projects is likely to reduce the firm’s dividend payout. Large investment opportunities coupled
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Fin 534 chapter 1‚Quiz 1 • Question 1 | | | | |You recently sold 100 shares of your new company‚ XYZ Corporation‚ to your brother at a family reunion. At the reunion your brother gave | | | | | |you a check for the stock and you gave your brother the stock certificates. Which of the following statements best describes
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Homework Chapter 4‚ Week 3 1. A $50‚000 loan is to be amortized over 7 years‚ with annual end-of-year payments. Which of these statements is CORRECT? C. The proportion of each payment that represents interest as opposed to repayment of principal would be lower if the interest rate were lower. If the interest rate is low on a loan‚ the amount of repayment is low. 2. Which of the following statements is CORRECT? C. to solve for I‚ one must identify the value of I that causes the PV of
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1. Company Overview. The focus of this analysis is to perform a thorough examination of Apple Computer’s financial performance over the past three years and its growing success. Apple maintains its focus on the design‚ development and marketing of personal computers‚ related software‚ peripherals‚ portable digital music players and related accessories. The decision of choosing Apple for the analysis is for the reason that this company has visible strengths and success. Apple has made drastic financial
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statements is CORRECT? Correct Answer: If the underlying stock does not pay a dividend‚ it does not make good economic sense to exercise a call option prior to its expiration date‚ even if this would yield an immediate profit. Question 4 Which of the following statements is CORRECT? Correct Answer: If the underlying stock does not pay a dividend‚ it does not make good economic sense to exercise a call option prior to its expiration date‚ even if this would yield
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liabilities. a. True b. False (15-1) Working capital F S Answer: b EASY 3. An increase in any current asset must be accompanied by an equal increase in some current liability. a. True b. False (15-2) Working capital policy F S Answer: a EASY 4. Determining a firm’s optimal investment in working capital and deciding how that investment should be financed are elements of working capital policy. a. True b. False (15-3) Permanent current assets F S Answer: a EASY 5. The concept of permanent
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FIN 534 – Homework Chapter 4 Directions: Answer the following five questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed‚ or both. Submit your assignment using the assignment link in the course shell. Each question is worth five points apiece for a total of 25 points for this homework assignment. 1. A $50‚000 loan is to be amortized over 7 years‚ with annual end-of-year payments. Which of these statements is CORRECT? a.
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FIN 534 Week 3 HW Chapter 5 1. Three $1‚000 face value bonds that mature in 10 years have the same level of risk‚ hence their YTMs are equal. Bond A has an 8% annual coupon‚ Bond B has a 10% annual coupon‚ and Bond C has a 12% annual coupon. Bond B sells at par. Assuming interest rates remain constant for the next 10 years‚ which of the following statements is CORRECT? Answer: D. Bond A sells at a discount (its price is less than par)‚ and its price is expected to increase over the next year
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. SEBASTIEN NDIKUM FIN534 HOME WORK 12 1. Which of the following statements is CORRECT? a. Perhaps the most important step when developing forecasted financial statements is to determine the breakdown of common equity between common stock and retained earnings. b. The first‚ and perhaps the most critical‚ step in forecasting financial requirements is to forecast future sales. c. Forecasted financial statements‚ as discussed in the text‚ are used primarily as a part of the managerial
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Monique Moore FIN 534 Homework Chapter 16 1. Swim Suits Unlimited is in a highly seasonal business‚ and the following summary balance sheet data show its assets and liabilities at peak and off-peak seasons (in thousands of dollars): Peak Off-Peak Cash $ 50 $ 30 Marketable securities 0 20 Accounts receivable 40 20 Inventories 100 50 Net fixed assets 500 500 Total
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