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FIN 515 WEEK 8 FINAL EXAM http://www.helpfultutorial.com/product/fin -515-week-8-final-exam/

FIN 515 Week 8 Final Exam Final Exam Page 1 1. (TCO A) Which of the following does NOT always increase a company's market value? (Points : 5) 2. (TCO F) Which of the following statements is correct? (Points : 5) 3. (TCO D) Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product……. 4. (TCO G) Singal Inc. is preparing its cash budget. It expects to have sales of $30,000 in January, $35,000 in February, and $35,000 in March………… Final Exam Page 2 1. (TCO H) Zervos Inc. had the following data for 2008 (in millions). The new CFO believes (a) that an improved inventory management system …… 2. (TCO C) Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 50. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its nonfree trade credit? (Assume a 365-day year.) 3. (TCO E) You were hired as a consultant to the Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity……. 4. (TCO B) A company forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13%, and the FCFs …… 5. (TCO G) Based on the corporate valuation model, Hunsader's value of operations is $300 million. The balance sheet shows $20 million …… 6. TCO G) Clayton Industries is planning its operations for next year, and


Ronnie Clayton, the CEO, wants you to forecast the firm's additional …….. Page 1 1. (TCO A) Which of the following does NOT always increase a company's market value? (Points : 5) 2. (TCO F) Which of the following statements is correct? (Points : 5) 3. (TCO D) The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years………. 4. (TCO G) The ABC Corporation's budgeted monthly sales are $4,000. In the first month, 40% of its customers pay and take the 3% discount…………….. 5. (TCO G) Howton & Howton Worldwide (HHW) is planning its operations for the coming year, and the CEO wants you to forecast the firm's…….. Page 2 1. (TCO H) Your consulting firm was recently hired to improve the performance of Shin-Soenen Inc, which is highly profitable but has been experiencing…….. 2. (TCO C) Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 50. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its nonfree trade credit? (Assume a 365-day year.) 3 (TCO E) Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information…………. 4. (TCO B) A company forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13%, and the FCFs ……. 5. (TCO G) Based on the corporate valuation model, the value of a company's operations is $900 million. Its balance sheet shows $70 million in…….. Week 8 Final Week - Final Exam Page 1 1. (TCO A) Which of the following does NOT always increase a company's market value? (Points : 5)……. 2. (TCO F) Which of the following statements is correct? (Points : 5) For a project with normal cash flows, any change in the WACC will change both the NPV and the IRR…….. 3. (TCO D) Church Inc. is presently enjoying relatively high growth because


of a surge in the demand for its new product……….. 4. (TCO G) The ABC Corporation's budgeted monthly sales are $4,000. In the first month, 40% of its customers pay and take the 3% discount……….. 5. (TCO G) Howton & Howton Worldwide (HHW) is planning its operations for the coming year, and the CEO wants you to forecast the firm's additional funds needed (AFN)……. Week 8 Final Week - Final Exam Page 2 1. (TCO H) The Dewey Corporation has the following data, in thousands. Assuming a 365-day year, what is the firm's cash conversion cycle? 2. (TCO C) Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 50. If the firm chooses to pay on …… 3. (TCO E) You were hired as a consultant to the Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. ……. 4. (TCO B) Leak Inc. forecasts the free cash flows (in millions) shown below. If the weighted average cost of capital is 11% and FCF is expected to grow at a rate of 5% after Year 2………. 5. (TCO G) Based on the corporate valuation model, the value of a company's operations is $1,200 million.The company's balance sheet shows $80 million………..


Fin 515 week 8 final exam