+1835 731 5494 Email: instantessays65@gmail.com

FIN/534 FIN534 FIN 534 Week 11 Final Exam Part 2

$12.99

FIN 534 Week 11 Final Exam Part 2 • Question 1 Which of the following is NOT normally regarded as being a good reason to establish an ESOP? • Question 2 Which of the following is NOT normally regarded as being a barrier to hostile takeovers? • Question 3 Which of the following statements is correct? • Question 4 Which of the following statements is correct? • Question 5 Which of the following actions will best enable a company to raise additional equity capital? • Question 6 Grandin Inc. is evaluating its dividend policy. It has a capital budget of $625,000, and it wants to maintain a target capital structure of 60% debt and 40% equity. The company forecasts a net income of $475,000. If it follows the residual dividend policy, what is its forecasted dividend payout ratio? • Question 7 If a firm adheres strictly to the residual dividend policy, the issuance of new common stock would suggest that • Question 8 Consider two very different firms, M and N. Firm M is a mature firm in a mature industry. Its annual net income and net cash flows are both consistently high and stable. However, M’s growth prospects are quite limited, so its capital budget is small relative to its net income. Firm N is a relatively new firm in a new and growing industry. Its markets and products have not stabilized, so its annual operating income fluctuates considerably. However, N has substantial growth opportunities, and its capital budget is expected to be large relative to its net income for the foreseeable future. Which of the following statements is correct? • Question 9 Which of the following statements is correct? • Question 10 Two operationally similar companies, HD and LD, have the same total assets, operating income (EBIT), tax rate, and business risk. Company HD, however, has a much higher debt ratio than LD. Also HD’s basic earning power (BEP) exceeds its cost of debt (rd). Which of the following statements is CORRECT? • Question 11 Which of the following statements is CORRECT? • Question 12 Companies HD and LD have identical tax rates, total assets, and basic earning power ratios, and their basic earning power exceeds their before-tax cost of debt, rd. However, Company HD has a higher debt ratio and thus more interest expense than Company LD. Which of the following statements is CORRECT? • Question 13 Firms U and L both have a basic earning power ratio of 20% and each has the same amount of assets. Firm U is unleveraged, i.e., it is 100% equity financed, while Firm L is financed with 50% debt and 50% equity. Firm L’s debt has a before-tax cost of 8%. Both firms have positive net income. Which of the following statements is CORRECT? • Question 14 Which of the following statements is CORRECT? • Question 15 Which of the following statements best describes the optimal capital structure? The optimal capital structure is the mix of debt, equity, and preferred stock that maximizes the company’s ____. • Question 16 Which of the following statements is CORRECT? • Question 17 Which of the following actions would be likely to shorten the cash conversion cycle? • Question 18 A lockbox plan is most beneficial to firms that • Question 19 Which of the following items should a company report directly in its monthly cash budget? • Question 20 Which of the following is NOT commonly regarded as being a credit policy variable? • Question 21 Which of the following will cause an increase in net working capital, other things held constant? • Question 22 Which of the following statements is most consistent with efficient inventory management? The firm has a

Reviews

There are no reviews yet.

Be the first to review “FIN/534 FIN534 FIN 534 Week 11 Final Exam Part 2”

Your email address will not be published. Required fields are marked *