I am in need of assistance in answering these questions. I only have 2 hrs and 30 minutes. Thank you so much for your help!

QUESTION 1

ABC Company sells 2,014 chairs a year at an average price per chair of $126. The carrying cost per unit is $39.72. The company orders 365 chairs at a time and has a fixed order cost of $82.8 per order. The chairs are sold out before they are restocked. What are the total shortage 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 2

Which one of the following terms is defined as an underwriting for which the underwriters assume full responsibility for any unsold shares?

	Initial public offering
	Private placement
	Firm commitment underwriting
	Rights offer
	Best efforts underwriting

1 points

QUESTION 3

You are given the following quotes:

U.S. dollar/Mexican Peso = 0.0679

U.S. dollar/Singapore Dollar = 0.7439

U.S dollar/Chinese Yuan = 0.1957

What is the Chinese Yuan/Singapore Dollar cross rate?

Enter your answer rounded off to FOUR decimal points.

1 points

QUESTION 4

ABC Company currently has a cash cycle of 166 days. The firm is considering making some changes as follows: (i) increase the inventory period by 70 days, (ii) decrease the accounts receivable period by 53 days, and (iii) decrease the accounts payable period by 34 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 5

The terms of the sale were 2/5, net 59. 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 6

The exchange rates in New York for $1 are C$1.1443 and 0.7944. A dealer is offering the following quote: C$1 will buy 0.9706. What is the profit you can earn on $25,765 using triangle arbitrage?

Enter your answer round off two two decimal points.

1 points

QUESTION 7

ABC Company has annual sales of $501,059. The cost of goods sold are $308,686. The firm has an accounts receivable balance of $21,063 and an accounts payable balance of $20,915. 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 8

ABC Inc. just paid its first annual dividend of $4.78 a share. The firm plans to increase the dividend by 6.7 percent per year indefinitely. What is the firm?s cost of equity if the current stock price is $76.9 a share?

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

1 points

QUESTION 9

What is the group of underwriters called who share both the risks and the marketing responsibilities for a securities offering?

Choose only one.

	Syndicate
	Underwriting Cartel
	Firm Commitment Group
	Dutch Auction Group
	Venture Capitalists

1 points

QUESTION 10

Suppose that today's stock price is $51.38. If the required rate on equity is 17.1% and the growth rate is 5.6%, 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 11

ABC?s credit terms are 1/7, net 44. Based on experience, 38 percent of all customers take the discount. ABC has annual credit sales of $191,467. What is the average investment in accounts receivable as shown on the balance sheet?

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

1 points

QUESTION 12

ABC Corp. currently has an inventory turnover of 6, a payables turnover of 6.13, and a receivables turnover of 9.46. How many days are in the cash cycle?

Enter your answer rounded off to two decimal points.

1 points

QUESTION 13

ABC Company writes 327 checks a day for an average amount of $355 each. These checks generally clear the bank in 5 days. In addition, the firm generally receives an average of $186,298 a day in checks that are deposited immediately. Deposited funds are available in 1 days. What is the firm's net float?

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 14

ABC Company has an average collection period of 38 days and factors all of its receivables immediately at a 2.9 percent discount. Assume all accounts are collected in full. What is the firm's effective cost of borrowing?

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

1 points

QUESTION 15

ABC Company's last dividend was $0.5. The dividend growth rate is expected to be constant at 9% for 3 years, after which dividends are expected to grow at a rate of 3% forever. The firm's required return (r_s) is 13%. 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 16

At the start of the day, the ledger balance and the available balance for ABC Company was $6,291. During the day, the firm wrote two checks in the amounts of $105 and $1,400. The firm deposited two checks: one check for $1,950 and another check for $800. What is the amount of the collection float as of the end of the day?

1 points

QUESTION 17

The common stock of ABC Industries is valued at $71.9 a share. The company increases their dividend by 3 percent annually and expects their next dividend to be $4.09. 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 18

A company sells 123,799 units per year. Fixed costs per order are $136 and carrying cost is $20 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 19

ABC Company has the following projected sales:

Month	Sales $
April	24,725
May	35,683
June	46,695
July	19,810

ABC collects 63 percent of its sales in the month of sale, 22 percent in the month following the month of sale, and another 3 percent in the second month following the month of sale. The remainder is bad debts and is not collected. What is the amount of the July 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 20

Annual demand 159,617 units

Carrying costs $3.68 per unit

Fixed Costs per order $7.8

Number of orders 57

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 21

ABC Company has annual sales of $120,178 and cost of goods sold of $52,746. The average accounts receivable balance is $15,647. 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 22

A company sells 157,700 units per year. Fixed costs per order are $139 and carrying cost is $33 per unit per year. What is the Economic Order Quantity?

Enter your answer rounded off to two decimal points.

1 points

QUESTION 23

The spot rate for the pound is 0.6845 = $1 and the spot rate for the Canadian dollar is C$1.2242 = $1. What is the /C$ cross rate?

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

1 points

QUESTION 24

ABC?s last dividend paid was $6.81, its required return is 17%, its growth rate is 6%. What is ABC's expected stock price in 18 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 25

ABC?s next dividend is expected to be $2.29, its required return is 19%, its growth rate is 7%. What is ABC's expected stock price in 5 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 26

ABC Company has the following projected sales:

Month	Sales $
Jan	11,095
Feb	17,131
Mar	36,296
Apr	25,024

15% of the sales are on cash and the remainder are on credit. Out of the credit sales, 56% are collected in the first month after sale, 26% are collected in the second month after sale, and the remainder are collected in the third month after sale. What is the amount of the April 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 27

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

	increase in accounts payable turnover ratio
	decrease in accounts payable period
	decrease in accounts receivable turnover ratio
	increase in cash cycle
	decrease in inventory period

1 points

QUESTION 28

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

	decrease in accounts receivable
	decrease in accounts payable
	increase in long-term debt
	decrease in fixed assets
	decrease in inventory

QUESTION 1 ABC Company sells 2,014 chairs a year at an average price per chair of $126. The carrying cost per unit is $39.72. The company orders 365 chairs at a time and has a fixed order cost of $82.8 per order. The chairs are sold out before they are restocked. What are the total shortage 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. QUESTION 2 1 points Which one of the following terms is defined as an underwriting for which the underwriters assume full responsibility for any unsold shares? Initial public offering Private placement Firm commitment underwriting Rights offer Best efforts underwriting QUESTION 3 1 points You are given the following quotes: U.S. dollar/Mexican Peso = 0.0679 U.S. dollar/Singapore Dollar = 0.7439 U.S dollar/Chinese Yuan = 0.1957 What is the Chinese Yuan/Singapore Dollar cross rate? Enter your answer rounded off to FOUR decimal points. QUESTION 4 1 points ABC Company currently has a cash cycle of 166 days. The firm is considering making some changes as follows: (i) increase the inventory period by 70 days, (ii) decrease the accounts receivable period by 53 days, and (iii) decrease the accounts payable period by 34 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? QUESTION 5 1 points The terms of the sale were 2/5, net 59. 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. QUESTION 6 1 points The exchange rates in New York for $1 are C$1.1443 and 0.7944. A dealer is offering the following quote: C$1 will buy 0.9706. What is the profit you can earn on $25,765 using triangle arbitrage? Enter your answer round off two two decimal points. QUESTION 7 1 points ABC Company has annual sales of $501,059. The cost of goods sold are $308,686. The firm has an accounts receivable balance of $21,063 and an accounts payable balance of $20,915. How many days does it take the firm to pay its suppliers? Assume 365 days. Enter your answer rounded off to two decimal points. QUESTION 8 1 points ABC Inc. just paid its first annual dividend of $4.78 a share. The firm plans to increase the dividend by 6.7 percent per year indefinitely. What is the firm's cost of equity if the current stock price is $76.9 a share? Enter your answer in percentages rounded off to two decimal points. QUESTION 9 1 points What is the group of underwriters called who share both the risks and the marketing responsibilities for a securities offering? Choose only one. Syndicate Underwriting Cartel Firm Commitment Group Dutch Auction Group Venture Capitalists QUESTION 10 1 points Suppose that today's stock price is $51.38. If the required rate on equity is 17.1% and the growth rate is 5.6%, 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. QUESTION 11 1 points ABC's credit terms are 1/7, net 44. Based on experience, 38 percent of all customers take the discount. ABC has annual credit sales of $191,467. What is the average investment in accounts receivable as shown on the balance sheet? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. QUESTION 12 1 points ABC Corp. currently has an inventory turnover of 6, a payables turnover of 6.13, and a receivables turnover of 9.46. How many days are in the cash cycle? Enter your answer rounded off to two decimal points. QUESTION 13 1 points ABC Company writes 327 checks a day for an average amount of $355 each. These checks generally clear the bank in 5 days. In addition, the firm generally receives an average of $186,298 a day in checks that are deposited immediately. Deposited funds are available in 1 days. What is the firm's net float? 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. QUESTION 14 1 points ABC Company has an average collection period of 38 days and factors all of its receivables immediately at a 2.9 percent discount. Assume all accounts are collected in full. What is the firm's effective cost of borrowing? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. QUESTION 15 1 points ABC Company's last dividend was $0.5. The dividend growth rate is expected to be constant at 9% for 3 years, after which dividends are expected to grow at a rate of 3% forever. The firm's required return (rs) is 13%. 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. QUESTION 16 1 points At the start of the day, the ledger balance and the available balance for ABC Company was $6,291. During the day, the firm wrote two checks in the amounts of $105 and $1,400. The firm deposited two checks: one check for $1,950 and another check for $800. What is the amount of the collection float as of the end of the day? QUESTION 17 1 points The common stock of ABC Industries is valued at $71.9 a share. The company increases their dividend by 3 percent annually and expects their next dividend to be $4.09. 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. QUESTION 18 1 points A company sells 123,799 units per year. Fixed costs per order are $136 and carrying cost is $20 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. QUESTION 19 ABC Company has the following projected sales: Mont Sales $ h 1 points April May June July 24,725 35,683 46,695 19,810 1. ABC collects 63 percent of its sales in the month of sale, 22 percent in the month following the month of sale, and another 3 percent in the second month following the month of sale. The remainder is bad debts and is not collected. What is the amount of the July collections? 2. 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. 3. QUESTION 20 Annual demand 1 points 159,617 units Carrying costs $3.68 per unit Fixed Costs per order $7.8 Number of orders 57 What are the total costs? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. QUESTION 21 1 points ABC Company has annual sales of $120,178 and cost of goods sold of $52,746. The average accounts receivable balance is $15,647. 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 QUESTION 22 1 points A company sells 157,700 units per year. Fixed costs per order are $139 and carrying cost is $33 per unit per year. What is the Economic Order Quantity? Enter your answer rounded off to two decimal points. QUESTION 23 1 points The spot rate for the pound is 0.6845 = $1 and the spot rate for the Canadian dollar is C$1.2242 = $1. What is the /C$ cross rate? Enter your answer rounded off to FOUR decimal points. Do not enter any currency sign in the answer box. QUESTION 24 1 points ABC's last dividend paid was $6.81, its required return is 17%, its growth rate is 6%. What is ABC's expected stock price in 18 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. QUESTION 25 1 points ABC's next dividend is expected to be $2.29, its required return is 19%, its growth rate is 7%. What is ABC's expected stock price in 5 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. QUESTION 26 ABC Company has the following projected sales: Mont Sales $ h Jan Feb Mar 11,095 17,131 36,296 1 points Apr 25,024 1. 15% of the sales are on cash and the remainder are on credit. Out of the credit sales, 56% are collected in the first month after sale, 26% are collected in the second month after sale, and the remainder are collected in the third month after sale. What is the amount of the April collections? 2. 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. 3. QUESTION 27 1 points Identify which of the following will increase the operating cycle. Choose only one. increase in accounts payable turnover ratio decrease in accounts payable period decrease in accounts receivable turnover ratio increase in cash cycle decrease in inventory period QUESTION 28 Identify a use of cash from below. Choose only one. decrease in accounts receivable decrease in accounts payable increase in long-term debt decrease in fixed assets decrease in inventory 1 points