5. What's declared about a dividend on a stock's declaration date?

A. Payment data and an ex-dividend date

B. Ex-dividend data and a record date

C. A record date and a payment date

D. A closing date and an ex-dividend date

Super Fun Toys, Inc., has the following balance sheet:

Assets Liabilities and Equity

Current assets $3,500,000 Current liabilities $2,400,000

Fixed assets 5,100,000 Long-term debt 2,100,000

Equity 4,100,000

Total assets $8,600,000 Total liabilities & equity $8,600,000

Suppose Super Fun Toys, Inc., has sales of $8.9 million for the year just ended, the profit margin of the firm is 16 percent with a retention rate of 28 percent, and the firm expects sales of $9.8 million next year. If all assets and current liabilities are expected to grow with sales, what amount of additional funds will Super Fun Toys need from external sources to fund the expected growth?

A. $689,500

B. $368,484

C. $187,925

D. $552,800

Up & Down Industries doesn't have any taxes to pay and has $348 million in assets, currently financed only with equity. The equity is worth $11 per share with 8 million shares outstanding, and book value of equity is equal to market value of equity. Assume that the firm's expected values for EBIT depend upon which state of the economy occurs this year, with the possible values of EBIT and their associated probabilities as follows:

State: Pessimistic; Probability = 45 percent; Expected EBIT in state = $15 million

State: Optimistic; Probability = 55 percent; Expected EBIT in state = $19 million

The company is considering switching to a 40 percent debt capital structure and has determined that it would have to pay a 10-percent yield on perpetual debt in either event. What would the level of expected EPS in either scenario be if the firm switches to the proposed capital structure as compared to its current structure?

A. Pessimistic state: $0.27 EPS; Optimistic state: $0.77 EPS

B. Pessimistic state: $0.35 EPS; Optimistic state: $0.88 EPS

C. Pessimistic state: $0.23 EPS; Optimistic state: $1.06 EPS

D. Pessimistic state: $0.32 EPS; Optimistic state $1.12 EPS

The portion of the necessary increase in assets to support an increase in sales that will need to be funded from external capital is called

A. capital deficit.

B. excess funding requirement.

C. funds from operations.

D. additional funds needed.