Remaining Time: 1 hour, 59 minutes, 02 seconds. Question Completion Status: QUESTION 1 A firm is analysing its cash budget for june. Assuming its total cash receipts is $1170 and cash expenses is $805. If the company has a minimum desired cash balance of $600 and ended the month of May with $350, how much loans must the firm take to meet its requirements for june. O $1000 O $215 O $515 O No loans are needed QUESTION 2 Which of the following statements is correct 1. Annuity due payments are made at the beginning of each year. II. Perpetuity investments offer infinite payments OI only Oll only O Both I and II ONeither I and II QUESTION 3 Click Save and Submit to save and submit. Click Save All Answers ASUS save all answers. Remaining Time: 1 hour, 38 minutes, 34 seconds. Question Completion Status: QUESTION 1 A firm is analysing its cash budget for june. Assuming its total cash receipts is $1170 and cash expenses is $805. If the company has a minimum desired cash balance of $600 and ended the month of May with $350, how much loans must the firm take to meet its requirements for june. O $1000 O $215 O $515 O No loans are needed QUESTION 2 Which of the following statements is correct I. Annuity due payments are made at the beginning of each year. Il Perpetuity investments offer infinite payments O I only Oll only Both I and II ONeither I and II QUESTION 3 Click Save and Submit to save and submit. Click Save All Answers to save all answers. SUS Question Completion Status: QURTEWACH Nether and QUESTION 3 General Motors has current assets $5000, non-current assets $3000, plant and equipment $1500, notes payable $800 and retained earnings $1000, using the standardized financial statement method how would retained earnings appear? O 10% O 12.5% O 8.42 % O 20% QUESTION 4 Which of the following statements is correct 1. The article of partnership is used to form a partnership It One of the advantages of a partnership is profit sharing Olonly Oll only Both I and II ONeither I nor II OLLECTION K Click Save and Submit to save and submit. Click Save All Answers to save all answers. Remaining Time: 1 hour, 38 minutes, 25 seconds. Question Completion Status: QUESTION 5 An investor is analysing 3 investment options (Project A, B and C). The payback period of Project A is 3.2 years, while Project B is 2.8 years and Project C is 4.2 years. The investor has a maximum acceptable payback period of 3 years. Based on the following data which of the following statements is incorrect? All three projects have acceptable payback periods O Project B is the superior option based on the payback period O Project A is better than project C If the maximum acceptable payback period was increased to 5 years all projects would be acceptable QUESTION 6 Ahmed is analysing two investments. Investment A has an IRR of 23% and Investment 8 has an IRR of 17%, if the cost of capital is 10% then: O Both projects are rejected due to the low IRR O Both projects are rejected as the IRR is higher than the cost of capital. O Investment B is better than Investment A None of the above are true QUESTION 7 Which of the following statements about the NPV is false O The NPV is calculated by subtracting the initial investment from the present value of all future cash flows O This method consider the TVM by converting all cash flows to the present value. O NPV is measured in percentage and hence does not present the actual cash profit. All of the above are true. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Remaining Time: 1 hour, 38 minutes, 23 seconds. Question Completion Status QUESTION S An investor is analysing 3 investment options (Project A, B and C). The payback period of Project A is 3.2 years, while Project B is 2.8 years and Project C is 42 years. The investor has a maximum acceptable payback period of 3 years. Based on the following data which of the following statements is incorrect? All three projects have acceptable payback periods O Project B is the superior option based on the payback period O Project A is better than project C Of the maximum acceptable payback period was increased to 5 years all projects would be acceptable QUESTION 6 Ahmed is analysing two investments. Investment A has an IRR of 23% and Investment B has an IRR of 17%, if the cost of capital is 10% ther O Both projects are rejected due to the low IRR O Both projects are rejected as the IRR is higher than the cost of capital. O Investment B is better than Investment A None of the above are true QUESTION 7 Which of the following statements about the NPV is false: O The NPV is calculated by subtracting the initial investment from the present value of all future cash flows O This method consider the TVM by converting all cash flows to the present value NPV is measured in percentage and hence does not present the actual cash profit. O All of the above are true. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Remaining Time: 1 hour, 38 minutes, 19 seconds. Question Completion Status: QUESTION 7 Which of the following statements about the NPV is false O The NPV is calculated by subtracting the initial investment from the present value of all futuro cash flows O This method consider the TVM by converting all cash flows to the present value. O NPV is measured in percentage and hence does not present the actual cash profit O All of the above are true QUESTION 8 Below is some information from Delta airlines financial statements Sales 345,000 COGS 167,000 Account receivable 21,500 Accounts payable 52,789 4 Inventory 3,500 Using this information calculate the company's cash conversion cycle QUESTION 9 Ithmaar Holding B.S.C. (Bahrain Bourse, #ITHMRS) is considering two independent projects that have the following cash flows. Year Project A Project B Click Save and Submit to save and submit. Click Save All Answers to save all answers, Remaining time: 1 hour, 36 minutes, 15 seconds. Question Completion Status: QUESTION 9 Ithmaar Holding B.S.C. (Bahrain Bourse, #ITHMRS) is considering two independent projects that have the following cash flows. Year Project A Project B $-22,000 $ 55,000 17,000 15,000 6,000 25,000 3 7,000 35,000 Discount rate 9% 10% a) Calculate the Net Present Value (NPV) methods and explain which project is better. (1.5 marks) b) Calculate the Internal Rate of Return (IRR) of the two projects and explain which project is better. (1.5 marks) c) Calculate the Profitability Index (PI) of the two projects and explain which project is better. (1.5 mark) Note: You are allowed to use Financial Calculator For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS V Paragraph Arial V 10pt X X >11 B 488 V EX V 2 I 8.M AD O 5 (0) Remaining Time: 1 hour, 38 minutes, 12 seconds. Question Completion Status: QUESTION 10 A father wants to gift his daughter a present for her marriage, he offers her three options Option A $55,000 today Option B: $8,000 every year for 10 years Option C $90,000 in 10 years Assuming a discount rate of 7%, calculate the present value of each option (give an answer for each) and decide what option is best for the daughter For the toolbar, press ALT+F10 (PC) or ALT-FN-F10 (Mac) BI US Paragraph M Arial M 10pt E I % 38 X X1. - + 11 " V 6:3 6.3 Blockquote P QUESTION 11 Arooj invested BD 14000 12 years ago, today this investment is worth BD 52600, based on this what annualized rate has Areej eared on this investment? O11.66% O2.75% O 891 % Click Save and Submit to save and submit. Click Save All Answers to save all answers 17.43% !!! 3 6 F * 0 C xx 12 3H HE C Remaining Time: 1 hour, 38 minutes, U8 seconds. - Question Completion Status: QUESTION 11 Areej invested BD 14000 12 years ago, today this investment is worth BD 52600, based on this what annuakzed rate has Areej oamed on this investment? O 11.66% O 2.75% 17.43% O 8.91% QUESTION 12 Given an interest rate of zero percent, the future value of a lump sum invested today will always: O Decrease if the investment time period is lengthened O Decrease if the investment time period is shortened. O Remain constant, regardless of the investment time period. O Be equal to $0 QUESTION 13 Ahmed must pay off his car by paying BD 5700 at the beginning of each year for 12 years and is charged an interest of 8%. What is the present value of Ahmed's payments? OBD 46392. 10 OBD 42955 64 Click Save and Submit to save and submit. Click Save All Answers to save all answers. MSV V Q - B 6.8 19 ER BE (1) Kommmmm U seconds. Question Completion Status: Decrease in the investment time penod is lengtheneda O Decrease if the investment time period is shortened O Romain constant, regardless of the investment time period. O Be equal to 50 QUESTION 13 Ahmed must pay off his car by paying BD 5700 at the beginning of each year for 12 years and is charged an interest of 8% What is the prosent value of Ahmed's payments? OBD 46392.10 OBD 42955 64 OBD 116823.19 OBD 108169 62 QUESTION 14 Bahrain Poultry offers its customers 2/14 net 28 for every BD100 purchase. What is the cost of trade credit to a customer who chooses to pay on day 28? QUESTION 15 Based on the data below calculate the company's combined cost? Annual requirements = 7500 units Ordering cost=BD 12 Click Save and Submit to save and submit. Click Save All Answers to save all answers. XC 0 B Remaining Time: 1 hour, 38 minutes, 01 second. Question Completion Status: QUESTION 15 Based on the data below calculate the company's combined cost? Annual requirements - 7500 units Ordering cost BD 12 Holding cost BD 0.5 O 125 300 45000 O 150 QUESTION 16 Based on the data below calculate the company's annual holding cost? Annual requirements = 7500 units Ordening cost-BD 12 Holding cost=BD 05 O 150 300 12.5 QUESTION 17 Click Save and Submit to save and submit. Click Save All Answers to save all answers. 45000 Kemmanns Question Completion Status: QUESTION 17 Using the following data, calculate the Apple's CFFA Cashflow to shareholders 67 interest paid=500 Net new borrowing=418 O 680 O 149 15 O None of the above QUESTION 18 Al Muntazah Supermarket has current assets worth 5000, fixed assets worth 3450, current liabilities worth 1560, and non-current liabilities worth 2000, based on this calculate the networking capital QUESTION 19 in regards to marketable securities which of the following statements is true? O Treasure bills are considered to be the most risk free asset O Repurchase agreements are considered to be capital market instruments. O Money market securities are long term investments O All of the above are false ick. e and Submit to save and submit. Click Save All Anneers to save all answers ASUS Remaining Time: 1 hour, 37 minutes, 50 seconds. Question Completion Status: QUESTION 20 In regards to cash management it is believed that: O It is important to hold cash to meet day to day cash transaction needs. One of the costs of holding cash is the loss of possible investment opportunities O Holding cash is useful in case of unexpected emergencies All of the above are true QUESTION 21 If a company's days sales in receivables is 32 days what is their receivables turnover? O 12.25x 14 37x 11.41x O1267x QUESTION 22 Boeing's equity multiplier is 1.78, a current ratio of 1.5 and a quick ratio of 1.2. Based on the given data what is Boeing's Debt to Equity ratio? O 1.19 1.48 1.80 O 0.78 Click Save and Submit to save and submit. Click Save All Answers to save all answers. Question Completion Status: 1.80 O 0.78 QUESTION 23 Georgia International's EBIT is 8000, assuming their COGS is 2000 and depreciation is 450, what are the company's sales? 10450 5550 9550 O None of the above QUESTION 24 Manchester United football club have an EPS of $32, and a net income of $50 million. Based on this how many shares outstanding do they have? O 607,000 shares 18,503,000 shares O 16,800,000,000 shares 1,562,000 shares QUESTION 25 Candlyicious, a candy show in Dubai expects the following sales and material payments for the period January till May of the coming year (all numbe thousands) Sales Material Payments Click Save and Submit to save and submit. Click Save All Answers to save all answers. Question Completion Status: QUESTION 25 Candlyicious, a candy show in Dubai expects the following sales and material payments for the period January till May of the coming year (all numbers are in thousands) Sales Material Payments January BD 14,000 BD 18,000 February 30,000 21,000 March 46,000 19,100 April 22,000 22,400 May 18,000 14,000 D The company notes that historically 30% of sales are for cash, 40% are collected one month after the sale, 30% are collected in the second month after the sale Material payments are paid in the same month of incurrence Labor expenses are 5% of the month's sales, Rent payments are BD 1,200 per month. Capital investment of BD 25000 is expected May. The firm's ending cash balance in February was BD 2000, and its minimum required cash balance is BD 2,500 Compute Candylicious Cash Receipts (2 marks) -Cash Payments (2 marks) and Net Cash Flow (1.5 mark) for March, April and May. Cash Receipts March April Mary Total cash receipts (2 marks) Cash Payments March April Total payments (2 marks) fick Save and Submit to save and submit. Click Save All Answers to save all answers. May Cash Payments Total payments (2 marks) Candlyicious Net Cash Flow (Cash Budget) Net Cash flow (1.5 marks) QUESTION 26 Microsoft invests in google by buying shares worth $50 million, this is an example of O Capital budgeting O Capital structure O Working capital O Project appraisal Click Save and Subntit to save and submit. Click Save All Answers to save all answers, March March April April ASUS May May