FIN 534 – Homework Chapter 7 1. The preemptive right is important to shareholders because it? Answer c. protects the current shareholders against a dilution of their ownership interests. 2. Companies can issue different classes of common stock. Which of the following statements concerning stock classes is CORRECT? Answer d. Some class or classes of common stock are entitled to more votes per share than other classes. 3. Which of the following statements is CORRECT? Answer e. The
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15‚000‚000 8‚000‚000 3 15‚000‚000.00 5‚000‚000.00 8 Months 0.751 11‚265‚000.00 (930‚000.00) 3 Years 4 20‚000‚000 6‚000‚000 4 20‚000‚000.00 0.683 13‚660‚000.00 12‚730‚000.00 1 Month PV = 37‚730‚000.00 Calculate the following: From Computation Worksheet (Month/s are rounded up) Cost 25‚000‚000.00 Project A Project B NPV 12‚730‚000.00 Payback period 2 Years and 8 Months 1 Year and 6 Months Discounted Payback Period
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Chapter 8 Quiz 1. Processing a large number of items in a(n) ________ is usually easier than processing a large number of items stored in separate variables. (Points : 6) Constant Variable Array Loop None of the above | 2. What is the term used for the number inside the bracket that specifies the number of values that an array can hold? (Points : 7) Size Size declarator Number Number declarator None of the above |
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Chapter 8 Quiz 1. If two small perfectly competitive firm merge‚ the merged firm will be a price taker. 2. Which of the following factors affect vertical integration of firms? The transaction cost at each stage of production. 3. Under a horizontal merger the assets of two firms that operate in the same market are put under a single ownership. 4. Which one of these is an example of a onetime investment made by a seller to reduce the transaction cost on all units. 5.
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1. Which of the following statements about dividend policies is CORRECT? e. The clientele effect suggests that companies should follow a stable dividend policy. This theory believes that a company’s stock price will move according to demands of the investors change in policy. 2. Which of the following statements is CORRECT? c. Stock repurchases can be used by a firm that wants to increase its debt ratio. Stock repurchases reduce the number of shares outstanding and are often accompanied by
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ISC 388 Investments Quiz 1 Name:______________________________ 1) A firm has a higher quick (or acid test) ratio than the industry average‚ which implies A. the firm has a higher P/E ratio than other firms in the industry. B. the firm is more likely to avoid insolvency in the short run than other firms in the industry. C. the firm may be less profitable than other firms in the industry. D. the firm has a higher P/E ratio than other firms in the industry and the firm is more
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Question 1 1 out of 1 points The 8 percent annual coupon bonds of the ABC Co. are selling for $880.76. The bonds mature in 10 years. The bonds have a par value of $1‚000 and payments are made semi-annually? What is the before-tax cost of debt? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. Selected Answer: 9.91 Correct Answer: 9.91 Answer range +/- 0.05 (9.86 - 9.96) Response Feedback: NPER = 10* 2 RATE = ? * 2 = Answer = 4
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1. | Question : | (TCO C) Blease Inc. has a capital budget of $625‚000‚ and it wants to maintain a target capital structure of 60 percent debt and 40 percent equity. The company forecasts a net income of $475‚000. If it follows the residual dividend policy‚ what is its forecasted dividend payout ratio? (a) 40.61% (b) 42.75% (c) 45.00% (d) 47.37% (e) 49.74% | | | Student Answer: | | (d) 47.37 Equity required (Residual income) = $625‚000*40% = $250‚000 Dividend paid = $475‚000 - $250
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FIN 571 Week 4 Quiz. 100%. UOP‚ 2014. NEW. Grade A. There are 9 questions total Note: The questions might be in a different order. Please use the find feature in word to locate your questions faster. For customized tutorial service or if you have any questions/concerns‚ please contact me at tutoruop@gmail.com. Thank you :) Please purchase to see answers. Thank you Present value: Tommie Harris is considering an investment that pays 6.5 percent annually. How much must he invest today such that he
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1. | Question : | (TCO D) Which of the following factors would increase the likelihood that a company would call its outstanding bonds at this time? (a) The yield to maturity on the company’s outstanding bonds increases due to a weakening of the firm’s financial situation. (b) A provision in the bond indenture lowers the call price on specific dates‚ and yesterday was one of those dates. (c) The flotation costs associated with issuing new bonds rise. (d) The firm’s CFO believes that interest
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