I need help on a finance final exam,I need to get a good grade on this exam. I need the responses by 5:00pm EST today.

Which one of these statements is correct? Most investors prefer greater risk over less risk. The value of an investment by a firm depends on the size, the timing, and the risk of the investment's cash flows. When selecting one of two projects, managers should only consider the total cash flow from each. All overseas operations present the same amount of risk. Accountants record sales and expenses after the related cash flows occur a. Compute the future value of $2,000 compounded annually for 10 years at 7 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) $ Future value b. Compute the future value of $2,000 compounded annually for 10 years at 12 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ c. Compute the future value of $2,000 compounded annually for 15 years at 7 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ Gerold invested $122 in an account that pays 5 percent simple interest. How much money will he have at the end of 5 years? $144.88 $146.40 $152.50 $141.52 $158.60 First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made a $68,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Difference in accounts $ Six months ago, you purchased 100 shares of stock in ABC Co. at a price of $43.89 a share. ABC stock pays a quarterly dividend of $.10 a share. Today, you sold all of your shares for $45.13 per share. What is the total amount of your capital gains on this investment? $164.00 $1.64 $1.24 $40.00 $124.00 You bought 600 shares of stock at $24.20 each. At the end of the year, you received a total of $720 in dividends, and your stock was worth a total of $15,678. What was your total dollar capital gain and total dollar return? $1,878; $1,158 $2,598; $1,878 $1,878; $2,598 $1,158; $2,598 $1,158; $1,878 On a balance sheet, deferred taxes are classified as: a long-term liability. stockholders' equity. a fixed asset. a current liability. a current asset. Which one of these accounts is classified as a current asset on the balance sheet? intangible asset preferred stock accounts payable net plant and equipment inventory Jessica's Boutique has cash of $51, accounts receivable of $56, accounts payable of $210, and inventory of $140. What is the value of the quick ratio? .51 .67 .27 1.69 1.18 Reliable Cars has sales of $3,900, total assets of $3,150, and a profit margin of 5 percent. The firm has a total debt ratio of 40 percent. What is the return on equity? 12.50 percent 8.33 percent 6.19 percent 15.48 percent 10.32 percent Galaxy United, Inc. 2009 Income Statement ($ in thousands) Net sales Less: Cost of goods sold Less: Depreciation Earnings before interest and taxes Less: Interest paid Taxable Income Less: Taxes Net income Cash Accounts rec. Inventory Total Net fixed assets Total assets $5,750 4,060 410 1,280 32 1,248 437 $ 811 Galaxy United, Inc. 2008 and 2009 Balance Sheets ($ in thousands) 2008 2009 $ 75 $ 180 Accounts payable 990 830 Long-term debt 1,500 1,960 Common stock $2,565 $2,970 Retained earnings 3,590 3,330 $6,155 $6,300 Total liab. & equity 2008 $1,340 720 $3,165 930 2009 $1,210 510 $3,339 1,241 $6,155 $6,300 What is the debt-equity ratio for 2009? .38 .45 .47 .26 .23 A firm has total debt of $1,060 and a debt-equity ratio of .32. What is the value of the total assets? $3,312 $1,399 $4,372 $3,200 $3,402 The external funds needed (EFN) equation projects the addition to retained earnings as: PM Sales. PM Projected sales. PM Sales (1 - d). Projected sales (1 - d). PM Projected sales (1 - d). In the financial planning model, the external financing needed (EFN) as shown on a pro forma balance sheet is equal to the changes in assets: plus the changes in both liabilities and equity. minus the changes in both liabilities and equity. plus the changes in liabilities minus the changes in equity. minus the changes in liabilities. minus the change in retained earnings. Assume the following ratios are constant: Total asset turnover Profit margin Equity multiplier Payout ratio 2.80 6.8% 2.00 30% What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % Sustainable growth rate If the Hunter Corp. has an ROE of 18 and a payout ratio of 26 percent, what is its sustainable growth rate?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % Sustainable growth rate Given a fixed level of sales and a constant profit margin, an increase in the accounts payable period can result from: an increase in the cash cycle. a decrease in the operating cycle. a decrease in the average accounts payable balance. an increase in the cost of goods sold account value. an increase in the ending accounts payable balance. The length of time between the acquisition of inventory and the collection of cash from receivables is called the: inventory period. accounts receivable period. operating cycle. cash cycle. accounts payable period. Here are the most recent balance sheets for Country Kettles, Inc. Excluding accumulated depreciation, determine whether each item is a source or a use of cash, and the amount. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Input all amounts as positive values): COUNTRY KETTLES, INC. Balance Sheet December 31, 2016 2015 Assets Cash $ 31,000 2016 $ 30,150 Accounts receivable Inventorie s Property, plant, and equipment Less: Accumulat ed depreciatio n Total assets Liabilitie s and Equity Accounts payable Accrued expenses Longterm debt Common stock Accumula ted retained earnings Total liabilities and equity 70,500 73,600 61,400 63,625 153,000 163,000 (46,400) (50,500) $ 269,500 $ 279,875 $ 45,500 $ 47,650 $ 6,880 6,100 26,200 28,900 22,000 26,600 168,920 170,625 269,500 $ 279,875 Item Cash (Click to select) Source/Use Amount $ Accounts receivable (Click to select) $ Inventories (Click to select) $ Property, plant, and equipment (Click to select) $ Accounts payable (Click to select) $ Accrued expenses (Click to select) $ Long-term debt (Click to select) $ Common stock (Click to select) $ Accumulated retained earnings (Click to select) $ Consider the following financial statement information for the Rivers Corporation: Item Inventory Accounts receivable Accounts payable Net sales Cost of goods sold Beginning $10,100 5,100 7,300 Ending $ 11,100 5,400 7,700 $ 81,000 61,000 Calculate the operating and cash cycles. (Use 365 days a year. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Operating cycle Cash cycle days days The rate at which a stock's price is expected to appreciate (or depreciate) is called the _____ yield. earnings capital gains dividend total current A corporate bond is currently quoted at 101.633. What is the market price of a bond with a $1,000 face value? $1,102.77 $1,000.28 $1,016.33 $1,276.70 $1,002.77 A stock had a total return of 9.62 percent last year. The dividend amount was $.70 a share which equated to a dividend yield of 2.39 percent. What is the dividend growth rate? 5.48% 7.06% 2.48% 4.03% 7.23% Mullineaux Corporation has a target capital structure of 85 percent common stock and 15 percent debt. Its cost of equity is 15 percent, and the cost of debt is 6 percent. The relevant tax rate is 30 percent. What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC % Filer Manufacturing has 8.8 million shares of common stock outstanding. The current share price is $58, and the book value per share is $3. The company also has two bond issues outstanding. The first bond issue has a face value of $71 million and a coupon rate of 7.5 percent and sells for 107.8 percent of par. The second issue has a face value of $61 million and a coupon rate of 8 percent and sells for 109.9 percent of par. The first issue matures in 7 years, the second in 28 years. Suppose the company's stock has a beta of 1.1. The risk-free rate is 3.6 percent, and the market risk premium is 7.5 percent. Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 34 percent. What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC % A firm's WACC can be correctly used to discount the expected cash flows of a new project when that project: will be financed with the same proportions of debt and equity as those currently used by the overall firm. will be managed by the firm's current managers. has the same level of risk as the firm's current operations. will be financed solely with internal equity. will be financed solely with new debt and internal equity. When estimating the cost of equity using the DDM, which one of these is most apt to add error to this estimate? dividend growth rate beta current stock price next year's dividend firm's tax rate The net present value method of capital budgeting analysis does all of the following except: incorporate risk into the analysis. use all of a project's cash flows. discount all future cash flows. consider all relevant cash flow information. provide a specific anticipated rate of return. Foamsoft sells customized boat shoes. Currently, it sells 16,850 pairs of shoes annually at an average price of $79 a pair. It is considering adding a lower-priced line of shoes which sell for $49 a pair. Foamsoft estimates it can sell 5,000 pairs of the lower-priced shoes but will sell 1,250 less pairs of the higher-priced shoes by doing so. What is the estimated value of the erosion cost that should be charged to the lower-priced shoe project? $52,000 $146,250 $138,750 $123,240 $98,750 Lee's Furniture just purchased $24,000 of fixed assets that are classified as 5-year MACRS property. The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. What is the amount of the depreciation expense for the third year? $2,765 $2,507 $4,800 $4,608 $2,304 Graham and Harvey (2001) found that _____ were the two most popular capital budgeting methods. IRR and modified IRR NPV and PI IRR and payback discounted payback and NPV IRR and NPV Samson's purchased a lot four years ago at a cost of $398,000. At that time, the firm spent $289,000 to build a small retail outlet on the site. The most recent appraisal on the property placed a value of $629,000 on the property and building. Samson's now wants to tear down the original structure and build a new strip mall on the site at an estimated cost of $2.3 million. What amount should be used as the initial cash flow for new project? $2,242,000 $2,300,000 $2,058,000 $2,987,000 $2,929,000 A proposed project costs $300 and has cash flows of $80, $200, $75, and $90 for Years 1 to 4, respectively. Because of its high risk, the project has been assigned a discount rate of 16 percent. In dollars, how much will this project return in today's dollars for every $1 invested? $.97 $.99 $1.01 $1.05 $1.03 Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.58 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which it will be worthless. The project is estimated to generate $2,040,000 in annual sales, with costs of $735,000. The tax rate is 34 percent and the required return is 15 percent. What is the project's NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ What is the net present value of a project that has an initial cash outflow of $7,670 and cash inflows of $1,280 in Year 1, $6,980 in Year 3, and $2,750 in Year 4? The discount rate is 12.5 percent. $86.87 $249.65 $270.16 $68.20 $371.02 What is the net present value of a project with an initial cost of $36,900 and cash inflows of $13,400, $21,600, and $10,000 for Years 1 to 3, respectively? The discount rate is 13 percent. $204.36 $1,195.12 $1,350.49 $287.22 $797.22