Question 1 Which of the following is always incorporated in an interest rate? A Risk premium B Accounting rate of return C The rate of pure le preference Date ofretum Einfation premium Question 2 in the context of corporate Trance, which of the following statements is moet wy to be false? Sound financial management is necessary for the achievement of stakeholder goals 8 Survival may be a ky short term objective for a fim, especially in times of economic but it cannot be a satisfactory long term objective Shareholder with a masived frough managers making sound investment and financing including dividend decisions D Shareholders do not act in the best interests of their managers ging ito The principal agent problem E comey costs are key to be higher when there exits there anymoutry of information between managers and Question Truro plc faces a demand of 6.000 units per month for one of its lines of stock. The firm's cost of holding stockis 2 per unit of average stock per month and it costs the fimm 50 every time orders and is a new shipment of stock. The firm is willing to face stockouts and the cost of such is per unit of tiverage stockout per month. The firm ampts to minvertory cous with the EOQ model What level of stockout we have rien just before new orders are received in the firm's warehouse rounded to the nearest unit) A 123 B 289 C 424 D540 E 707 Question Exeter ple decides to offer a 2.5% early settlement discount to clients. I expected that all of al clients will take up the offer and be incentivised to pay in one month instead of the two Enter pic pays afortunads tied up in the working capital. What would be the mostly impact of the 255 artement discount on the cash conversion cycle (COC) and the reported profit (RP)? A The length of CCC will increase the RP will increase 8 The length of CCC wil decrease the RP will not be affected C The length of CCC will increase the RP will decrease D The length of CCC will decrease the RP will decrease E The length of CCC will increase the RP will not be affected Questions Plymouth plc has in se nedorable preference shares nominal value Et each currently ading to 30 per share cu dividend Plymouth le pays corporation taxat a rate of 30% What the cost of these preference shares for the company to the nearest 0.1%? A 9.3% 8 10 N 13:35 D 15.4 E 172 CLOW Question 1 Which of the following is always incorporated in an interest rate? A Risk premium B Accounting rate of return C The rate of pure le preference Date ofretum Einfation premium Question 2 in the context of corporate Trance, which of the following statements is moet wy to be false? Sound financial management is necessary for the achievement of stakeholder goals 8 Survival may be a ky short term objective for a fim, especially in times of economic but it cannot be a satisfactory long term objective Shareholder with a masived frough managers making sound investment and financing including dividend decisions D Shareholders do not act in the best interests of their managers ging ito The principal agent problem E comey costs are key to be higher when there exits there anymoutry of information between managers and Question Truro plc faces a demand of 6.000 units per month for one of its lines of stock. The firm's cost of holding stockis 2 per unit of average stock per month and it costs the fimm 50 every time orders and is a new shipment of stock. The firm is willing to face stockouts and the cost of such is per unit of tiverage stockout per month. The firm ampts to minvertory cous with the EOQ model What level of stockout we have rien just before new orders are received in the firm's warehouse rounded to the nearest unit) A 123 B 289 C 424 D540 E 707 Question Exeter ple decides to offer a 2.5% early settlement discount to clients. I expected that all of al clients will take up the offer and be incentivised to pay in one month instead of the two Enter pic pays afortunads tied up in the working capital. What would be the mostly impact of the 255 artement discount on the cash conversion cycle (COC) and the reported profit (RP)? A The length of CCC will increase the RP will increase 8 The length of CCC wil decrease the RP will not be affected C The length of CCC will increase the RP will decrease D The length of CCC will decrease the RP will decrease E The length of CCC will increase the RP will not be affected Questions Plymouth plc has in se nedorable preference shares nominal value Et each currently ading to 30 per share cu dividend Plymouth le pays corporation taxat a rate of 30% What the cost of these preference shares for the company to the nearest 0.1%? A 9.3% 8 10 N 13:35 D 15.4 E 172 CLOW
