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B) $270,000 C $384,750 D) $585,000 64. The advantage of the Percent of Sales Method of creating pro forma statements is in its ability to

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B) $270,000 C $384,750 D) $585,000 64. The advantage of the Percent of Sales Method of creating pro forma statements is in its ability to A) Be created with ease and speed B) Accommodate changing relationships between expenses and revenue C) Model actual changes in the competitive environment D) Provide projections reflecting major shareholder beliefs and aims Accumulated amortization is grouped under A) Capital assets as a contra account B) Shareholders equity and serves to reduce its value C) Long-term liabilities as a penitentiary D) Expenses on the income statement Short Ltd. received cash of $400,000 from a sale to Toronto Glass and $450,000 from sale of a used machine to Oshawa Fibres. Short Ltd. paid $35,000 interest on bonds i had sold to Bankers' Trust. How would these items appear on the cash flow statemen 100001 investing activities $450,000; financing activities AVL vonnon shares outstanding with a current --- pince of $25.50. Now, as in the future, the annual dividend is expected to be $2.50. What is the cost of share capital to the business? A) 2.0% B) 9.8% C) 14.5% D) 25% Bowden Building Supply reported an EBIT of $5,531,500, has a 35% tax rate, pays interest of $480,000 on $9,290,000 of debt and $0.60 to each of its 500,000 common shares outstanding. What is the company experiencing? A) No presence of financial leverage as indicated by a ratio of 0.6 No presence of financial leverage as indicated by a ratio of 1.0 The presence of financial leverage as indicated by a ratio of 1.1 The presence of financial leverage as indicated by a ratio of 1.8 Which of the following is a disadvantage to a business of using debt to finance its cap projects? A) B. It contributes to the dilution of management control It takes longer to acquire than equity financing Making the business riskier contributes to a higher weighted average cost of capital Intelligence Corp. (IC) pays an annual dividend of $2.00 per share. IC announced it will start to grow the dividend by 15% per year from now on. If IC's shareholders require a 20% return on common shares, what should one share of IC stock sell for? A) $10.00 B) $15.33 C) $40.00 D) $46.00 2012 October 23, 201 B) $270,000 C $384,750 D) $585,000 64. The advantage of the Percent of Sales Method of creating pro forma statements is in its ability to A) Be created with ease and speed B) Accommodate changing relationships between expenses and revenue C) Model actual changes in the competitive environment D) Provide projections reflecting major shareholder beliefs and aims Accumulated amortization is grouped under A) Capital assets as a contra account B) Shareholders equity and serves to reduce its value C) Long-term liabilities as a penitentiary D) Expenses on the income statement Short Ltd. received cash of $400,000 from a sale to Toronto Glass and $450,000 from sale of a used machine to Oshawa Fibres. Short Ltd. paid $35,000 interest on bonds i had sold to Bankers' Trust. How would these items appear on the cash flow statemen 100001 investing activities $450,000; financing activities AVL vonnon shares outstanding with a current --- pince of $25.50. Now, as in the future, the annual dividend is expected to be $2.50. What is the cost of share capital to the business? A) 2.0% B) 9.8% C) 14.5% D) 25% Bowden Building Supply reported an EBIT of $5,531,500, has a 35% tax rate, pays interest of $480,000 on $9,290,000 of debt and $0.60 to each of its 500,000 common shares outstanding. What is the company experiencing? A) No presence of financial leverage as indicated by a ratio of 0.6 No presence of financial leverage as indicated by a ratio of 1.0 The presence of financial leverage as indicated by a ratio of 1.1 The presence of financial leverage as indicated by a ratio of 1.8 Which of the following is a disadvantage to a business of using debt to finance its cap projects? A) B. It contributes to the dilution of management control It takes longer to acquire than equity financing Making the business riskier contributes to a higher weighted average cost of capital Intelligence Corp. (IC) pays an annual dividend of $2.00 per share. IC announced it will start to grow the dividend by 15% per year from now on. If IC's shareholders require a 20% return on common shares, what should one share of IC stock sell for? A) $10.00 B) $15.33 C) $40.00 D) $46.00 2012 October 23, 201

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