points) Which of the following NOT correct? Independent or non-mutually exclusive alternatives can be accepted at the same time. The modified internal rate of return assumes that inflow are reinvested at 80 percent of the internal rate of return This is a correct answer It is the difference in the reinvestment assumptions that can be significant in determining when to use the present value or internal rate of return methods. Under the net present value method, cash flows are assumed
| | | Selected Answer: | True | Correct Answer: | True | | | | | * Question 2 1 out of 1 points | | | Financial manger can create value for a firm by creating more cash flow for it than it uses. To do so, they should make investment decisions so that the firm may buy assets that generate more cash than they cost.Answer | |
find P&S’s current equity value (rounded to the nearest million dollars). You Answered Correct Answer 5676 margin of error +/- 2 Question 2 Swamp & Sand Industries has the following data. The discount rate is 12%. Terminal value is 3 times FCF. Cash and debt are constant. Calculate its Enterprise
be designed to: Correct Answer: create incentives so that managers act like owners of the firm. Question 2 3 out of 3 points In the shareholder wealth maximization model, the value of a firm's stock is equal to the present value of all expected future ____ discounted at the stockholders' required rate of return. Correct Answer: profits (cash flows) Question 3 3 out of 3 points The primary objective of a for-profit firm is to ___________. Correct Answer: maximize shareholder
minimize opportunity costs. Answer: True Terms to Learn: opportunity cost 2. The usual starting point in budgeting is to forecast net income. Answer: False Terms to Learn: operating budget The usual starting point in budgeting is to forecast sales demand and revenues. 3. If the $17,000 spent to purchase inventory could be invested and earn interest of $1,000, then the opportunity cost of holding inventory is $17,000. Answer: False Terms to Learn: opportunity
budgeting Answer: A Diff: 1 Terms: capital budgeting Objective: 1 AACSB: Reflective thinking 2) The two factors capital budgeting emphasizes are: A) qualitative and nonfinancial B) quantitative and nonfinancial C) quantitative and financial D) qualitative and financial Answer: C Diff: 1 Terms: capital budgeting Objective: 2 AACSB: Reflective thinking 3) The stage
table. Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. Selected Answer: 22,778.17 Correct Answer: 22,778.17 ± 0.5% Response Feedback: Step 1: Solve for PMT Step 2: Use amortization table and obtain total interest paid Question 2 1 out of 1 points ABC Company earned $805,544 in taxable income for the year. How much tax does the company owe on this income? Note: Enter your answer rounded off to two
Response | Value | Correct Answer | Feedback | 1. | A corporation is not taxed on the corporation's business income. | | | | 2. | A corporation has a limited life. | | | | 3. | The owners of a corporation have limited liability for the corporation's debts. |
Wrong Answer: the periodic rate Which of the following has the highest time value of money at the same time interest rate for the same number of payments Correct Answer: the future value or an annuity-due Which of the following would increase the present value of a single cash flow? Wrong Answer: a decrease in the cash flow You invest $1000 at 6% compounded annually and want to know how much money you will have in 5 years. What does the $1000 represent? Correct Answer: the present
| | Multiple Choice Question 49 | | | | Your answer is correct. | | | Which of the following is an advantage of corporations relative to partnerships and sole proprietorships? | Reduced legal liability for investors. | | Harder to transfer ownership. | | Lower taxes. | | Most common form of organization. | | | | | Multiple Choice Question 64 | | | | Your answer is correct. | | | The group of users of accounting information charged with