How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Linda_us Your Own Question

Linda_us
Linda_us, Finance, Accounts & Homework Tutor
Category: Homework
Satisfied Customers: 7127
Experience:  Post Graduate Diploma in Management (MBA)
19873544
Type Your Homework Question Here...
Linda_us is online now
A new question is answered every 9 seconds

1. Which of the following is true of an efficient market a. 0

Customer Question

1. Which of the following is true of an efficient market?
a. 0 There is one seller
b. 0 There is one buyer
c. 0 Stock exchanges are always open
d. 0 There is always a low brokerage fee
e. 0 Information is reflected in security prices immediately

2. Which of the following is a primary financial goal of an organization?
a. 0 Having zero debt
b. 0 Increasing market share at any cost
c. 0 Maximization of shareholder wealth
d. 0 Keeping expenses constant
e. 0 Increasing sale prices each year

3. Which of the following ratios measures an organization’s liquidity?
a. 0 Acid test ratio
b. 0 Debt ratio
c. 0 Return on equity
d. 0 Times interest earned
e. 0 Return on assets

4. Which of the following ratios would tell an investor about the profitability of the organization?
a. 0 Acid test ratio
b. 0 Debt ratio
c. 0 Return on equity
d. 0 Times interest earned
e. 0 Current ratio

5. Which of the following is the function of investment bankers?
a. 0 Distributing
b. 0 Making commercial loans
c. 0 T
Submitted: 5 years ago.
Category: Homework
Expert:  Linda_us replied 5 years ago.

HiCustomer/p>

 

 

Welcome to Justanswer

 

Here is your solution

 

 

1 e. 0 Information is reflected in security prices immediately

2c. 0 Maximization of shareholder wealth

3 a. 0 Acid test ratio

4 c. 0 Return on equity

5 a. 0 Distributing

 

Regards

 

Linda

 

Customer: replied 5 years ago.
I appologize for some reason only some 5 of 30 questions were pasted when I posted, would you be willing to answer the remainder or should I repost a new question?

Thank you

W
Expert:  Linda_us replied 5 years ago.

HiCustomer/p>

 

You can post the remaining question in his post and please let me know your deadline also.

 

Regards

 

Linda

Customer: replied 5 years ago.


Time frame, the sooner the better but can allow up to 3 hours from now. Please disreguard the 1st 5 as you have answered them but had to include them to maintian proper numerical count in Word.

Thank you

W

1. Which of the following is true of an efficient market?

a. There is one seller

b. There is one buyer

c. Stock exchanges are always open

d. There is always a low brokerage fee

e. Information is reflected in security prices immediately



2. Which of the following is a primary financial goal of an organization?

a. Having zero debt

b. Increasing market share at any cost

c. Maximization of shareholder wealth

d. Keeping expenses constant

e. Increasing sale prices each year



3. Which of the following ratios measures an organization's liquidity?

a. Acid test ratio

b. Debt ratio

c. Return on equity

d. Times interest earned

e. Return on assets



4. Which of the following ratios would tell an investor about the profitability of the organization?

a. Acid test ratio

b. Debt ratio

c. Return on equity

d. Times interest earned

e. Current ratio



5. Which of the following is the function of investment bankers?

a. Distributing

b. Making commercial loans

c. Taking deposits

d. Cash flow management

e. Auditing





6. Which of the following is a method by which securities are distributed to final investors?

a. Negotiated purpose

b. Commission or best effort basis

c. Direct sale

d. Competitive bid purchase

e. All of the above







7. Which sector of the economy supplied the largest amount of funds in US financial markets in the second half of the 90's?

a. State governments

b. Corporate business

c. U.S. Government

d. Foreign

e. Household





8. What is a cash budget?

a. Detailed plan of future cash flows

b. A budget that shows only what cash comes in

c. A historical look at cash flows

d. A report that analyzes the cash account

e. A report that analyzes the accounts receivable



9. What is the key ingredient of the organization's planning process?

a. Past performance

b. Union contracts

c. Capital budget

d. Full time equivalent employees

e. Sales forecast





10. If your revenue is $10 million, your variable cost is $6 million, your fixed cost is $3 million, what is your contribution margin?

a. $4 million

b. $1 million

c. $3 million

d. $9 million

e. $7 million



11. What is present value?

a. The money you have now

b. The money you have before paying taxes

c. The money you will get next month

d. The current value of a future sum

e. The future value of a current sum





12. How much will you have at the end of three years if you put away $2500 at the end of each year, and you earn 4% on your money?

a. $7500

b. $8000

c. $7805

d. $7800

e. $7750



13. Which of the following decreases the breakeven point?

a. Increase fixed costs

b. Increase variable costs

c. Lower sales price

d. Increase units sold

e. Decrease fixed costs



14. Which of the following is a shortcoming of the payback period as a capital budgeting criterion?

a. It's easy to calculate

b. It doesn't use free cash flows

c. It ignores the time value of money

d. It uses accounting profits

e. It's easy to understand



15. Net present value is the preferred method to evaluate capital budgeting projects because:

a. It requires detailed long term forecasts of cash flows

b. It is sensitive to the choice of discount rate

c. It ignores the time value of money

d. It is consistent with the goal of shareholder wealth maximization

e. It is difficult to explain



16. Trade credit is a:

a. Permanent source of financing

b. Spontaneous source of financing

c. Temporary source of financing

d. Not a source of financing

e. None of the above



17. The three primary motives for holding cash are:

a. Transactions, speculative, predictive

b. Speculative, precautionary, predictive

c. Transactions, speculative, storing

d. Predictive, storing, speculative

e. Transactions, precautionary, speculative









18. Which one of these determining factors of the size of a firm's accounts receivable is under the control of financial managers?

a. Credit and collection policies

b. Percentage of credit sales to total sales

c. Permanent growth in sales

d. Seasonal growth in sales

e. Nature of the business







19. According to the hedging principle, seasonal increases in inventory should be financed with:

a. Long term loans

b. Short term loans

c. Spontaneous financing

d. Common stock

e. Bonds

20. What happens to the cost of debt for firms with debt as their corporate tax rates increase?

a. kd increases

b. kd decreases

c. kd remains the same

d. kd can either increase or decrease depending on the amount of debt

e. kd can either increase or decrease depending on the percent debt represents of the

entire capital structure



21. What is the Weighted Average Cost of Capital (WACC) for a firm where debt is 40% of the firm, preferred stock is 10% of the firm, common stock is 50% of the firm, after-tax cost of debt is 8%, cost of preferred stock is 12%, and cost of common stock is 18%?

a. 12.00%

b. 12.38%

c. 12.67%

d. 13.40%

e. 16.33%



22. What is a "good" reason for a firm to go public?

a. Private equity investors get to share new wealth with public investors

b. Founders share, on an equal footing, the good (and bad) fortune of the firm with new

shareholders

c. The firm gains future access to the public capital market (it is easier to go back a

second and/or third time)

d. Everyone involved faces legal liability

e. Private investors lose a degree of control of the organization



23. What was a downside of debt financing cited by current Federal Reserve Bank Chairman Ben Bernanke over 15 years ago?

a. There is a theoretical incentive to choose riskier projects over safe ones

b. Highly leveraged firms which suffer losses can find themselves in financial distress

and possibly bankruptcy

c. The need to meet interest payments may force management to take a very short-run

perspective

d. Firms in financial distress may cut back production and employment, and lose

customers and suppliers

e. All of the above



24. Which would be the "best" outcome for a financially healthy seller's (or target's) owners in a merger or acquisition?

a. Selling a firm at more than book value

b. Selling a firm at more than appraised value

c. Selling a firm at more than break up value

d. Selling a firm at more than the sell-off value

e. It depends on the specifics of the transaction





25. Which of the following is a risk in direct foreign investments include which of the following?

a. Business risk

b. Financial risk

c. Political risk

d. Exchange rate risk

e. All of the above



26. If the Euro is currently equal to 1.1574 US Dollars, how many dollars must a US company pay to a European company for an item that costs 1000 Euros?

a. $1,000

b. $864

c. $1,157.40

d. $115.74

e. Cannot be determined with the given information.



27. What is the primary purpose of simple arbitrage?

a. To raise capital for corporate expansion overseas

b. To reduce prices of inventory from international suppliers

c. To satisfy banking regulations

d. Elimination of exchange rate differentials

e. To reduce the risk of foreign exchange rate movements



28. What are two important risk-reduction techniques for many working-capital problems?

a. Maximization and minimization

b. Depreciation and amortization

c. Leading and lagging

d. Debt and equity

e. Managerial accounting and financial accounting



29. Access to national financial markets is regulated by what entity or entities?

a. Securities and Exchange Commission

b. United Nations

c. International Financial Market Agency

d. New York Stock Exchange

e. Governments



30. The proposition that, in competitive markets where there are no transportation costs or barriers to trade, the same goods sold in different countries sell for the same price if all the different prices are expressed in terms of the same currency is known as what?

a. The Law of Price Unity

b. The Law of One Price

c. The Exchange Rate Law

d. The Equity Price Law.

e. The Law of Price Parity.



Customer: replied 5 years ago.
I also have another group of question that would be worth an additional $15 if you care to take a look, time line by 6pm would be preffered.

1.
Prepare a Pro Forma Income Statement

Enter the numbers where the yellow is highlighted.

Net Sales =2,938 COGS=1,598 SG&A=475 Depreciation=45 Interest Exp=32 Tax=15%



Net Sales 2,938

Cost Of Goods Sold 1,598

Gross Profit

Selling & Admin Exp 475

Depreciation 45

Interest Exp 32

Income Before Taxes

Income Taxes

Net Profit





32. In a fixed cash budget, cash flow estimates are made for a single set of sales estimates,

a. whereas a variable budget involves the preparation of several cash flow estimates, with each estimate corresponding to a different set of sales estimates.

b. whereas a variable budget involves the preparation of one cash flow estimate, with each estimate corresponding to a different set of sales estimates.

c. whereas a variable budget involves the preparation of several cash flow estimates, with each estimate corresponding to only one set of sales estimates.









33. A cash budget can also be used to determine the amount of excess cash on hand that will not be needed to finance future operations.

a. This excess cash cannot be invested in securities or other profitable alternatives.

b. This excess cash can then be invested in securities or other profitable alternatives.

c. There is never an excess cash to be invested in securities or other profitable alternatives.





34.

(Time disparity ranking problem) The State Spartan Corporation is considering two

mutually exclusive projects. The cash flows associated with those projects are as follows:

YEAR PROJECT A PROJECT B

0 -$50,000 -$50,000

1 15,625 0

2 15,625 0

3 15,625 0

4 15,625 0

5 15,625 $100,000

The required rate of return on these projects is 10 percent.



a. What is each project's payback period?

Project A:

Project B:



b. What is each project's net present value?

Project A:

Project B:













35. To buy a new house you take out a 25 year mortgage for $300,000. What will your monthly interest rate payments be if the interest rate on your mortgage is 8 percent?

rate (i) =

number of periods (n) =

present value (PV) = $300,000

future value (FV) = $0

type (0 = at end of period) = 0



monthly mortgage payment =









36. A cash budget is usually thought of as a means of planning for future financing needs. Why

would a cash budget also be important for a firm that had excess cash on hand?





Weighted Average Cost of Capital

37. NPd=

a. the market price of the debt, plus flotation costs

b. the market price of the debt, less flotation costs

c. the market price of the debt, equal to flotation costs



Weighted Average Cost of Capital

38. kd =

a. the market price of the debt, plus flotation costs

b. After-tax cost of the debt (After-tax required rate of return on debt)

c. before-tax cost of the debt (before-tax required rate of return on debt)







Weighted Average Cost of Capital

39. kps =

a. the cost of internally generated common funds

b. After-tax cost of the debt (After-tax required rate of return on debt)

c. before-tax cost of the debt (before-tax required rate of return on debt)

d. the cost of preferred stock.



Weighted Average Cost of Capital



40. 12-7A (Cost of preferred stock) Your firm is planning to issue preferred stock. The stock sells for $115; however, if new stock is issued, the company would receive only $98. The par value of the stock is $100 and the dividend rate is 14 percent. What is the cost of capital for the stock to your firm?





(Compound Interest Week 3 Ch.5) What is the present value of the following future amounts?

41. $800 to be received 10 years from now discounted back to the present at 10 percent







42. $300 to be received 5 years from now discounted back to the present at 5 percent







43. $1,000 to be received 8 years from now discounted back to the present at 3 percent













Bonus



44. (Present value) What is the present value of the following future amount?

$1,000 to be received 8 years from now discounted back to the present at 20 percent





45. 12-8A. (Cost of internal equity) Pathos Co.'s common stock is currently selling for $21.50.

Dividends paid last year were $.70. Flotation costs on issuing stock will be 10 percent of market

price. The dividends and earnings per share are projected to have an annual growth rate of

15 percent. What is the cost of internal common equity for Pathos?



46. $500 to be received 10 years from now discounted back to the present at 5 percent







Expert:  Linda_us replied 5 years ago.

HiCustomer/p>

 

Click here for your solution

 

 

I won't be able to solve your question by 6 PM. If 9 PM is ok let me know or else you can post them in a seprate post so other expert can help you.

 

Regards

 

Linda

 

Customer: replied 5 years ago.
9pm is fine assuming you are in the US. Which time zone so ?

Thank You

W
Expert:  Linda_us replied 5 years ago.
THIS ANSWER IS LOCKED!
You can view this answer by clicking here to Register or Login and paying $3.
If you've already paid for this answer, simply Login.
Linda_us, Finance, Accounts & Homework Tutor
Category: Homework
Satisfied Customers: 7127
Experience: Post Graduate Diploma in Management (MBA)
Linda_us and 3 other Homework Specialists are ready to help you
Expert:  Linda_us replied 5 years ago.
Hi Waffle

If you have downloaded solution can I ask moderator to close this topic and do leave feedback.

Regards

Linda

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Last | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
  • Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
  • He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX
 
 
 

Meet The Experts:

 
 
 
  • Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    4522
    More than 5000 online tutoring sessions.
< Last | Next >
  • http://ww2.justanswer.com/uploads/BU/BusinessTutor/2012-2-2_115741_Kouki2.64x64.jpg Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    4522
    More than 5000 online tutoring sessions.
  • http://ww2.justanswer.com/uploads/ComputersGuru/2010-02-13_051118_Photo41.JPG LogicPro's Avatar

    LogicPro

    Engineer

    Satisfied Customers:

    3458
    Expert in Java C++ C C# VB Javascript Design SQL HTML
  • http://ww2.justanswer.com/uploads/LI/lindaus/2012-6-10_04811_IMG20120609164157.64x64.jpg Linda_us's Avatar

    Linda_us

    Finance, Accounts & Homework Tutor

    Satisfied Customers:

    3124
    Post Graduate Diploma in Management (MBA)
  • http://ww2.justanswer.com/uploads/chooser77/2009-08-18_162025_Chris.jpg Chris M.'s Avatar

    Chris M.

    M.S.W. Social Work

    Satisfied Customers:

    2385
    Master's Degree, strong math and writing skills, experience in one-on-one tutoring (college English)
  • http://ww2.justanswer.com/uploads/JawaadAhmed/2009-6-27_12137_SIs_SHadi.jpg F. Naz's Avatar

    F. Naz

    Chartered Accountant

    Satisfied Customers:

    1988
    Experience with chartered accountancy
  • http://ww2.justanswer.com/uploads/JK/jkcpa/2011-1-16_182614_jkcpa.64x64.jpg Bizhelp's Avatar

    Bizhelp

    CPA

    Satisfied Customers:

    1876
    Bachelors Degree and CPA with Accounting work experience
  • http://ww2.justanswer.com/uploads/avremote/photoa.jpg Seanna's Avatar

    Seanna

    Tutor

    Satisfied Customers:

    1781
    3,000+ satisfied customers, all topics, A+ work
 
 
 

Related Homework Questions

Chat Now With A Tutor
Linda_us
Linda_us
Tutor
7127 Satisfied Customers
Post Graduate Diploma in Management (MBA)