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1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Ivy. Company acquires Reynolds Company. Reynolds is in a totally unrelated business to Ivy. This

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Ivy. Company acquires Reynolds Company. Reynolds is in a totally unrelated business to Ivy. This is an example of Select one: a. Vertical integration b. Horizontal integration c. Diversification d. None of the above. The current earnings-per-share for Robert Corporation is $2.00. The implied price-earnings ratio is 30 . The present value of future cash flow per share for Robert is Select one: a. $50 b. $70 c. $90 d. None of the above The present value of future cash flow per share is $30 for Violette Corporation. The current earnings-per-share is $6.00. The implied price-earnings ratio is Select one: a. 5 b. 10 C. 15 d. None of the above Timing issues involve: Select one: a. the costs of the alternative forms of capital. b. sequencing the alternatives, once funding amounts are known. c. none of the above. d. A and B. Breakeven EBIT analysis leads to Select one: a. Issuance of debt b. Issuance of stock c. Both A and B d. Either A or B e. None of the above. Control focuses on the Select one: a. Firm's ownership b. Sequencing of financial alternatives c. Speed associated with obtaining the funds d. None of the above Roberts Company is planning an equity issue to finance a new project. Commonwealth plans to issue 100,000 shares of stock. Projected after-tax earnings after completion of the project are $2,600,000 and shares outstanding will total 200,000 . What is the projected EPS after completion of the project? Select one: a. $9 b. 510 c. $11 d. None of the above The elements required in the breakeven EBIT calculation are Select one: a. Tax rate b. Shares outstanding with debt c. Shares outstanding with equity d. All of the above Lanson Corporation is planning a bond issue to finance a new project. Lanson plans to issue 2000 bonds with a face value of $1000 each and a coupon rate of 7%. The tax rate is 40%. Projected EPS after completion of the project is \$5.58. What are the projected after-tax earnings after completion of the project if there are 200,000 shares outstanding? Select one: a. $1,110,000 b. $1,116,000 c. $1,126,000 d. None of the above Simpson Corporation is planning an equity issue to finance a new project. Simpson lands to issue 100,000 shares of stock. Projected EPS after completion of the project is $13 and the total shares outstanding will be 200,000, What are the projected after-tax earnings after completion of the project? Select one: a. $2,4 milion b. $2.6 million c. $2.8 million d. None of the above

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