1

1. ABC Inc. last paid an annual dividend of $18.6.The dividends are expected to grow by 4.9% each year. What is the amount of expected dividend in Year 15. That is, what is D15?

   Enter your answer rounded off to two decimalpoints. Do not enter $ in the answer box.

1 points

QUESTION 2

1. The exchange rates in New Yorkare:$1=AUD1.2591and$1=0.6047 A dealer is offering aquote:AUD1= 0.7668. What is the profit you can earn on$11,515using triangle arbitrage?

   Enter your answer round off two two decimal points.

1 points

QUESTION 3

1. ABCs last dividend paid was $1.56, its required return is14%, itsgrowth rateis 7%.What is ABC's expected stock price in10 years?

   Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 4

1. ABCCompany's last dividend was $3.4. The dividend growth rate is expected to be constant at 6% for 4 years, after which dividends are expected to grow at a rate of 3% forever. The firm's required return (r_s) is 10%. What is its current stock price (i.e. solve for Po)?

   Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 5

1. Annual demand 158,889 units

   Carrying costs $3.47 per unit

   Fixed Costs per order $5.3

   Number of orders 37

   What are the total costs?

   Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.

1 points

QUESTION 6

1. A company sells 150,030 units per year. Fixed costs per order are $130 and carrying cost is $35 per unit per year. If management uses an EOQ model, how many orders will it place per year?

   Enter your answer rounded off to two decimal points.

1 points

QUESTION 7

1. The common stock of ABC Industries is valued at $58.12 a share. The company increases their dividend by7.8 percent annually and expects their next dividend to be $6.85. What is the required rate of return on this stock?

   Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

1 points

QUESTION 8

1. The terms of the sale were 2/14, net 63. What is the effective annual rate of interest?

   Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

1 points

QUESTION 9

1. ABC Company has annual sales of $767,187. The cost of goods sold are $392,220. The firm has an accounts receivable balance of $20,236 and an accounts payable balance of $18,911. How many days does it take the firm to pay its suppliers? Assume 365 days.

   Enter your answer rounded off to two decimal points.

1 points

QUESTION 10

1. ABC Company has annual sales of $183,746 and cost of goods sold of $55,324. The average accounts receivable balance is $43,873. How many days on average does it take the firm to collect its accounts receivable? That is, what is the AR Period?

   Assume 365 days.

   Enter your answer rounded off to two decimal points

1 points

QUESTION 11

1. ABC Corp. currently has an inventory turnover of 12, a payables turnover of 8.26, and a receivables turnover of 14.56. How many days are in the operating cycle?

   Enter your answer rounded off to two decimal points.

1 points

QUESTION 12

1. A company sells 131,133 units per year. Fixed costs per order are $142 and carrying cost is $27 per unit per year. What is the Economic Order Quantity?

   Enter your answer rounded off to two decimal points.

1 points

QUESTION 13

1. At the start of the day, the ledger balance and the available balance for ABC Company was $5,540. During the day, the firm wrote two checks in the amounts of $1,841 and $1,855. The firm deposited two checks: one check for $686 and another check for $1,825. What is the amount of the collection float as of the end of the day?

1 points

QUESTION 14

1. Suppose you have the following information: $1 =0.8274 $1 =C$1.256 What is the /C$ cross rate?

   Enter your answer rounded off to FOUR decimal points. Do not enter any currency sign in the answer box.

1 points

QUESTION 15

1. ABC Inc.'sstock is currently sellingfor $71.64 per share. The company just paid its first annual dividend of $4.07 a share. The firm plans to increase the dividend by4.1 percent per year indefinitely. What is the firms cost of equity?

   Enter your answer in percentages rounded off to two decimal points.

1 points

QUESTION 16

1. ABCs next dividend is expected to be $1.47, its required return is19%, itsgrowth rateis 5%.What is ABC's expected stock price in7 years?

   Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 17

1. Suppose that today's stock price is $32.3. If the required rate on equity is 18.4% andthe growth rate is 9.9%, compute the expected dividend (i.e. compute D1)

   Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 18

1. XYZ Company's credit terms are 1/5 net 39. The company estimatesthat 26% of the customers will take the cash discount. What is the average collection period?

   Enter your answer rounded off to TWO decimal points.

1 points

QUESTION 19

1. Identify a use of cash from below. Choose only one.

   increase in long-term debt

   decrease in accounts receivable

   decrease in fixed assets

   decrease in inventory

   decrease in accounts payable

1 points

QUESTION 20

1. Identify which of the following will increase the operating cycle. Choose only one.

   decrease in accounts payable period

   increase in cash cycle

   decrease in accounts receivable turnover ratio

   decrease in inventory period

   increase in accounts payable turnover ratio

1 points

QUESTION 21

1. ABC Company has projected Sales of$17,073in January.The sales are expected to grow by6%each month.ABC's collection schedule is as follows:

   ABC collects24percent of its sales in the month of sale and theremainderis collected in thefollowingmonth. What is the amount of the Februarycashcollections?

   Enter your answer rounded off to two decimal points.Do not enter$or comma in the answer box.For example,if your answer is$12.345then enter as12.35in the answer box.

1 points

QUESTION 22

1. ABCCompany writes54checks a day for an average amount of$538each.These checks generally clear the bank in4days.In addition,the firmgenerally receives an average of$10,761a day in checks that aredeposited immediately.Deposited funds are available in1days.Whatis the firm's disbursementfloat?

1 points

QUESTION 23

1. ABC Company currently has a cash cycle of 211 days. The firm is considering making some changes as follows: (i) decrease the inventory period by 85 days, (ii) increase the accounts receivable period by 24 days, and (iii) increase the accounts payable period by 22 days. Calculate the number of days in the new cash cycle after the above changes become effective?That is, what is the new cash cycle?

1 points

QUESTION 24

1. ABC Company has the following projected sales:

   Month	Sales
   June	$1,710
   July	$9,832
   August	$14,977
   September	$21,298

   28% of the sales are collected in the same month. 19% of the sales are collected after onemonth, 13% of the sales are collected after two months, and the remainder are collected after three month. What is the amount of the September collections?

   Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 25

1. Currently, you own 10% of the outstanding stock of ABC Company. The company has decided to issue additional shares of stock and has given you the first option to purchase 10% of those additional shares. Which one of the following will you be participating in if you opt to purchase the shares you have been offered?

   Rights offer

   Red herring offer

   Private placement

   IPO

   General cash offer

1 points

QUESTION 26

1. Which one of the following is the name given to a registration of securities under SEC 415 which permits a firm to issue the securities over a two-year period?

   Extended registration

   Shelf registration

   Delayed registration

   Negotiated registration

   Seasoned registration

1 points

QUESTION 27

1. ABC Company sells 2,788 chairs a year at an average price per chair of $146. The carrying cost per unit is $33.88. The company orders 572 chairs at a time and has a fixed order cost of $41.3 per order. The chairs are sold out before they are restocked. What are the total carrying costs?

   Enter your answer rounded off to two decimal points. Do not enter comma or $ in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 28

1. You are given the following quotes:

   U.S. dollar/BrazilianReal = 0.3411

   U.S. dollar/Australian Dollar = 0.8323

   U.S dollar/Chinese Yuan = 0.1618

   What is the Brazilian Real/Australian Dollar cross rate?

   Enter your answer rounded off to FOUR decimal points.