Finance final - 2369 Words

BA 213 PRINCIPLES OF ACCOUNTING III INSTRUCTOR: USHA RAMANUJAM DEAR STUDENTS, HERE ARE THE TEST#2 REVIEW QUESTIONS. ANSWERS ARE HIGHLIGHTED. IF YOU WISH TO WORK THE QUESTIONS FIRST, I SUGGEST HIGHLIGHTING THE ENTIRE REVIEW SO YOU DON T KNOW WHICH IS THE ANSWER!! SEE YOU IN CLASS! USHA TEST 2 - REVIEW QUESTIONS. 1. Discretionary fixed costs: A) cannot be changed since they are fixed. B) have a long-term planning horizon, generally encompassing many years. C) are made up of facilities, equipment, and basic organization. D) responses b and c are both correct. E) NONE OF THESE. 2. Which of the following would usually be considered a committed fixed cost for a retail sales corporation? A) LEASE PAYMENTS MADE ON ITS STORE BUILDINGS†¦show more content†¦A) $132,000 B) $136,000 C) $168,000 D) $176,000 12. Black Company s sales are $600,000, its fixed expenses are $150,000, and its variable expenses are 60% of sales. Based on this information, the margin of safety is: A) $90,000 B) $190,000 C) $225,000 D) $240,000 13. During last year, Thor Lab supplied hospitals with a comprehensive diagnostic kit for $120. At a volume of 80,000 kits, Thor had fixed expenses of $1,000,000 and net operating income of $200,000. Because of an adverse legal decision, Thor s liability insurance expenses this year will be $1,200,000 more than they were last year. Assuming that the volume and other costs are unchanged, what should be the sales price this year if Thor is to make the same $200,000 net operating income? A) $120 B) $135 C) $150 D) $240 14. Mason Company s selling price was $20.00 per unit. Fixed expenses totaled $54,000, variable expenses were $14.00 per unit, and the company reported a profit of $9,000 for the year. The break-even point for Mason Company is: A) 10,500 units B) 4,500 units C) 8,500 units D) 9,000 UNITS 15. Garcia Veterinary Clinic expects the following operating results next year: Sales (total) $600,000 Variable expenses (total) $120,000 Fixed expenses (total) $300,000 What is Garcia s break-even point next year in sales dollars? A) $240,000 B) $375,000 C) $400,000 D) $420,000 16. Gamma Company has sales ofShow MoreRelatedFinance final study guide Essay2210 Words   |  9 Pagesa project with an initial cost of $38,000 and cash inflows of $29,000 a year for 2 years. This project is an extension of the firms current operations and thus is equally as risky as the current firm. The firm uses only debt and common stock to finance their operations and maintains a debt-equity ratio of 0.6. The pre-tax cost of debt is 11.0 percent and the cost of equity is 13.0 percent. The tax rate is 34 percent. What is the projected net present value of this project? (3) - Becker IndustriesRead MoreFinal Question Paper: Corporate Finance24063 Words   |  97 Pagesexpansion. 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They are made available for FINS 3625 S1 2010 students only and may not be distributed or used without the author’s written consent. âˆâ€" 1 Solution for Question 1 Summary Table of Cash Flows t=0 I II CF from Machinery ignoring depreciation Working Capital LevelRead MorePa 581 Final Exam Government Budget and Finance 100% Correct Keller872 Words   |  4 PagesPA 581 Final Exam Government Budget and Finance 100% Correct Keller PLEASE DOWNLOAD HERE! http://www.studentswithsolutions.com/view-tutorial.aspx?TutorialId=2110 Page 1: 1. (TCO A) One of our lectures discusses the budget execution stage of the budget cycle. Please identify and explain each of the major steps in the budget execution process. (Points : 25) 2. (TCO D) Property taxes receive a number of complaints from some taxpayers and many politicians. Please identify at least three ofRead MoreIntro to Finance Final Exam1002 Words   |  5 PagesMBA 600 FINAL EXAM 1. (20 POINTS) The accounting staff at Moonbeam Enterprises prepares monthly financial statements. At the end of April 2004 the company had the following account balances: Land $45,000 Notes payable $33,000 Merchandise inventory $12,480 Buildings $50,000 Cash $10,360 Capital Stock $38,770 Retained earnings, April 30 $46,070 Salary expense $15,050 Sales revenue $26,000 Supplies expense $Read MoreFinance 320 Final Exam2599 Words   |  11 PagesSampleFinal Finance 320 Finance Department Name___________________________________ Chapters: 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, and 13 1) A C corporation earns $4.50 per share before taxes. The corporate tax rate is 35%, the personal tax rate on dividends is 20%, and the personal tax rate on non-dividend income is 39%. What is the total amount of taxes paid if the company pays a $2.00 dividend? A) $2.48 B) $1.98 C) $0.90 D) $1.58 2) Why in general do financial managers make financialRead MoreFinance 486 Final Exam Essay1460 Words   |  6 Pagesï » ¿ Finance 486 Final Exam 1. EFN Calculation – 25 points The most recent Financial Information for Golf Pro Inc. are shown here: Income Statement Balance Sheet Sales $3,400 Current Assets $4,400 Current Liabilities $880 Costs 2,800 Fixed Assets 5,700 Long Term Debt 3,580 Taxable Income 600 Read MoreCapstone Project Finance (Final Project)9400 Words   |  38 Pages_______________________________________________ _______________________________________________ Abstract The need to encourage house or homeownership has been in the government’s strategic plan since 1934, however, the current financial policies and practices in the housing finance and the mortgage market has characterized by minimum flow of capital in the secondary mortgage market, confusion on the main control authority and various ill practices. This fact has necessitated various changes in the house and homeownership financialRead MoreEssay on Managerial Finance Final Exam1361 Words   |  6 PagesWhich of the following is  NOT  normally regarded as being a barrier to hostile takeovers?  (Points : 5) |   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Abnormally high executive compensation   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Targeted share repurchases   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Shareholder rights provisions   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Restricted voting rights   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Poison pills | 2.  (TCO F) Which of the following statements is correct?  (Points : 5) |   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The MIRR and NPV decision criteria can never conflict.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The IRR method can never be subject to the multiple IRR problem, whileRead MoreFinance 301 Sample Final Exam1138 Words   |  5 PagesQuestion 1 - Bond Valuation Assume the following information for bonds A and B. Both bonds have the same YTM and have semi-annual coupon payments. Bond B is currently selling at par. Face Value Maturity Coupon Rate Bond A 1000 30 yrs 8% Bond B 1000 20 yrs 10% a) What is the price for Bond B (2 pts)? What is the current yield for Bond B (2 pts)? Bond A is selling at a ________(discount /par/