Referring to Cool Looks, what are total cash disbursements in October? A) $13,950 B) $17,050 C) $20,950 D) $27,950 E) $28,950 ANSWER A
Date: September 19th, 2020
Referring to Gerald’s Produce, what is Gerald’s ending cash balance expected to be in March? A) $15,400 B) $16,700 C) $17,000 D) $17,700 E) $18,200 ANSWER B
Date: September 19th, 2020
Money market securities have maturities of one year or less. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Jack’s Construction Co. has 80,000 bonds outstanding that are selling at par value. Bonds with similar characteristics are yielding 8.5 percent. The company also has 4 million shares of common stock outstanding. The stock has a beta of 1.1 and sells for $40 a share. The U.S. Treasury bill is yielding 4 percent and the […]
Date: September 19th, 2020
What is the weighted average cost of capital after taxes for Moss Diet Centers if the target weights are 25% equity and 75% debt, and the costs of equity and after-tax debt are 15% and 12%, respectively? Assume the relevant tax rate is 20%. A) 12.5% B) 11.0% C) 12.8% D) 14.0% E) 13.5% […]
Date: September 19th, 2020
Reservists who experience a drop in income may be able to access retirement accounts without a tax penalty. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Referring to Cool Looks, what are total cash inflows in September? A) $18,000 B) $20,000 C) $30,000 D) $38,000 E) $50,000 ANSWER D
Date: September 19th, 2020
The objective of tax planning is to get a large refund at filing time. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Rekall Inc., the memory implant company, has 7 million shares of common stock outstanding and 100,000 semi-annual bonds. The bonds have 6 years to maturity, a 9.05% coupon rate and a face value of $1,000 each. The common stock currently sells for $29.94 and just paid a dividend of $2.50. Dividends are paid annually and […]
Date: September 19th, 2020
When calculating the cash flows for a project, you should include interest payments. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
