Just want to compare my answers no need to show any work

1. Which of the following actions by the employer would most likely reduce employee turnover costs?

a. Make weekend overtime mandatory for all staff.

b. Offer an employee counseling center to increase promotion opportunities within the corporation

c. Commit to a new five-year cleaning service company contract

2. Is a Benefit Cost Ratio of .82 acceptable to make an investment?

a. No, since it's less than 1.

b. Yes, since it's greater than 1.

3. A corporation, such as Nordstrom department stores, uses financial leverage to:

a. Decrease its risk.

b. Comply with government regulations.

c. Increase its Return on Equity for stockholders if the profit margin and asset turnover is positive already.

4. Investors in a bond may feel the bond is a safer instrument if it has:

a. Both of the other answers are correct.

b. a high rating from a bond rating agency, such as Standard and Poor.

c. collateral, such as a building, equipment or vehicle.

5. The Weighted Average Cost of Capital (WACC) is the same for every corporation.

true or false

6. What is the Economic Value Added (EVA) for the Recruiting Division described below.

Sloan Aerospace, Inc. has $1,600,000 in assets in its Learning and Development Division, which is the total capital employed by this division. Breckenridge Aerospace, Inc.'s Weighted Average Cost of Capital (WACC) is 6%. The tax rate is 21% and the Earnings Before Interest and Tax (EBIT) of the Learning and Development Division for 2020 is $280,000. Please use the following EVA formula to get your answer:

Economic Value Added = [EBIT X (1 - t)] - [WACC (Capital employed)]

a. $82,206.

b. $12,018.

c. $125,200.

7. If a corporation liquidates all its assets, which of its stockholders would be paid off last if any cash is still left?

a. Common stockholders

b. Preferred stockholders

8. The table below shows the projected cash inflows and cash outflows of an investment in your HR Department's new training center with an expected return (or discount rate) of 9%. YEAR 0 (2022) 2023 2024 2025 2026 2027 FREE CASH FLOW ($ thousands) -$1,500 $150 $171 $87 $89 $92 The Present Value of $1 Table tells us: Period (n) Present Value Factor at 9% Discount Rate 1 .917 2 .842 3 .772 4 .708 5 .650 What is the Net Present Value (NPV) of this investment? Please use the formula below:

NPV = Present Value of Cash Inflows - Present Value of Cash Outflows

a. -$472,058.

b. -$29,492.

c. $72,616.

d. -$1,088,292.

9. The Internal Rate of Return is the discount rate used to evaluate an investment that results in a Net Present Value of:

a. $0.

b. -$1,000.

c. $1,000.

10. An investment's Benefit Cost Ratio should be greater than 2 to be acceptable.

True

False