1

1. You are given the following quotes:
2. U.S.dollar/BrazilianReal=0.3939
3. U.S.dollar/AustralianDollar=0.7315
4. U.S dollar/Chinese Yuan=0.1428
5. What is the BrazilianReal/Chinese Yuancross rate?
6. Enter your answer rounded off to FOUR decimal points.

1 points

QUESTION 2

1. ABC Company sells 3,063 chairs a year at an average price per chair of $195. The carrying cost per unit is $27.9. The company orders 239 chairs at a time and has a fixed order cost of $55.2 per order. The chairs are sold out before they are restocked. What are the total carrying costs?
2. 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 3

1. ABC Company has projected Sales of$12,934in January.The sales are expected to grow by2%each month.ABC's collection schedule is as follows:
2. ABC collects56percent of its sales in the month of sale and theremainderis collected in thefollowingmonth. What is the amount of the Februarycashcollections?
3. Enter your answer rounded off to two decimal points.Do not enter$or comma in the answer box.For example,if your answer is$12.345then enter as12.35in the answer box.

1 points

QUESTION 4

1. ABCs last dividend paid was $0.44, its required return is14%, itsgrowth rateis 4%.What is ABC's expected stock price in11 years?
2. 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. The common stock of ABC Industries is valued at $71.84 a share. The company increases their dividend by4.9 percent annually and expects their next dividend to be $3.79. What is the required rate of return on this stock?
2. 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 6

1. A company sells 131,033 units per year. Fixed costs per order are $152 and carrying cost is $36 per unit per year. If management uses an EOQ model, how many orders will it place per year?
2. Enter your answer rounded off to two decimal points.

1 points

QUESTION 7

1. ABC Inc.'sstock is currently sellingfor $60.55 per share. The company just paid its first annual dividend of $0.99 a share. The firm plans to increase the dividend by4.3 percent per year indefinitely. What is the firms cost of equity?
2. Enter your answer in percentages rounded off to two decimal points.

1 points

QUESTION 8

1. Suppose you have the following information:
2. $1 =0.8616
3. $1 =C$1.4859
4. What is the /C$ cross rate?
5. Enter your answer rounded off to FOUR decimal points. Do not enter any currency sign in the answer box.

1 points

QUESTION 9

1. ABC Corp. currently has an inventory turnover of 8, a payables turnover of 6.45, and a receivables turnover of 12.89. How many days are in the operating cycle?
2. Enter your answer rounded off to two decimal points.

1 points

QUESTION 10

1. ABC Company has annual sales of $180,043 and cost of goods sold of $44,437. The average accounts receivable balance is $13,627. How many days on average does it take the firm to collect its accounts receivable? That is, what is the AR Period?
2. Assume 365 days.
3. Enter your answer rounded off to two decimal points

1 points

QUESTION 11

1. ABC Company has annual sales of $522,989. The cost of goods sold are $427,623. The firm has an accounts receivable balance of $15,852 and an accounts payable balance of $4,031. How many days does it take the firm to pay its suppliers?Assume 365 days.
2. Enter your answer rounded off to two decimal points.

1 points

QUESTION 12

1. ABCs next dividend is expected to be $2.28, its required return is14%, itsgrowth rateis 4%.What is ABC's expected stock price in18 years?
2. 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 13

1. The exchange rates in New Yorkare:$1=AUD1.262and$1=0.7492
3. A dealer is offering aquote:AUD1= 0.9067.
5. What is the profit you can earn on$11,977using triangle arbitrage?
6. Enter your answer round off two two decimal points.

1 points

QUESTION 14

1. Annual demand176,435 units
2. Carrying costs$3.48 per unit
3. Fixed Costs per order$7.4
4. Number of orders43
5. What are the total costs?
6. Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.

1 points

QUESTION 15

1. XYZ Company's credit terms are 1/4 net 32. The company estimatesthat 42% of the customers will take the cash discount. What is the average collection period?
2. Enter your answer rounded off to TWO decimal points.

1 points

QUESTION 16

1. ABCCompany's last dividend was $0.8.The dividend growth rate is expected to be constant at 9% for 4 years, after which dividends are expected to grow at a rate of 5% forever.The firm's required return (r_s) is 14%.What is its current stock price (i.e. solve for Po)?
2. 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. A company sells 158,074 units per year. Fixed costs per order are $104 and carrying cost is $20 per unit per year. What is the Economic Order Quantity?
2. Enter your answer rounded off to two decimal points.

1 points

QUESTION 18

1. Suppose that today's stock price is $46.68. If the required rate on equity is 12.5% andthe growth rate is 3.2%, compute the expected dividend (i.e. compute D1)
2. 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 19

1. At the start of the day, the ledger balance and the available balance for ABC Company was $8,339. During the day, the firm wrote two checks in the amounts of $1,801 and $1,792. The firm deposited two checks: one check for $1,686 and another check for $1,238. What is the amount of the collection float as of the end of the day?

1 points

QUESTION 20

1. ABC Inc. last paid an annual dividend of $7.2.The dividends are expected to grow by 3.8% each year. What is the amount of expected dividend in Year 3. That is, what is D3?
2. Enter your answer rounded off to two decimalpoints. Do not enter $ in the answer box.

1 points

QUESTION 21

1. The terms of the sale were 2/15, net 48. What is the effective annual rate of interest?
2. Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

1 points

QUESTION 22

1. ABC Company has the following projected sales:
2. Month
3. SalesJune$1,710July$9,832August$14,977September
4. $21,298
5. 28% of the sales are collected in the same month.
6. 19% of the sales are collected after onemonth,
7. 13% of the sales are collected after two months, and
8. the remainder are collected after three month.
10. What is the amount of the September collections?
11. 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 23

1. Which one of the following terms is defined as an underwriting for which the underwriters assume full responsibility for any unsold shares?
2. Rights offer
3. Firm commitment underwriting
4. Best efforts underwriting
5. Private placement
6. Initial public offering

1 points

QUESTION 24

1. ABCUnderwriters retains the difference between its buying price and its offering price on new securities. What is this amount called?
2. Commission
3. Markup
4. Rights price
5. Spread
6. Offer

1 points

QUESTION 25

1. ABCCompany writes24checks a day for an average amount of$623each.These checks generally clear the bank in4days.In addition,the firmgenerally receives an average of$19,530a day in checks that aredeposited immediately.Deposited funds are available in1days.Whatis the firm's disbursementfloat?

1 points

QUESTION 26

1. Identify a use of cash from below. Choose only one.
3. decrease in accounts payable
4. increase in long-term debt
5. decrease in inventory
6. decrease in accounts receivable
7. decrease in fixed assets

1 points

QUESTION 27

1. Identify which of the following will decrease the cash cycle. Choose only one.
2. increase in accounts payable turnover ratio
3. increase in accounts receivable period
4. increase in inventory period
5. decrease in accounts payable period
6. increase in accounts receivable turnover ratio