Fury Motor Corp is all equity financed and generates perpetual annual EBIT of $300. Assume that the EBIT, and all other cash flows, occur at year end and that we are currently at the beginning of a year. Assume that Fury has a 100% payout rate, 1,500 shares outstanding, and that shareholders require a return […]
Date: September 19th, 2020
Referring to Gerald’s Produce, what are Gerald’s collections from customers expected to be in March? A) $2,500 B) $5,000 C) $7,500 D) $10,000 E) $20,000 ANSWER D
Date: September 19th, 2020
Referring to Gerald’s Produce, what are Gerald’s total cash outflows (disbursements) in February? A) $2,500 B) $3,100 C) $7,500 D) $8,100 E) $10,600 ANSWER D
Date: September 19th, 2020
The Blatz Brewing Company produces 25 million hectolitres of beer each year. To put this in perspective, California consumed that much beer last year. A sales forecast for Blatz is provided in the top row of the table. Blatz sells its beer at a wholesale price of US$85 per hectoliter. All sales are on account […]
Date: September 19th, 2020
Net working capital is the amount by which a firm’s current assets exceed its current liabilities. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
$500 invested at 8% at the beginning of each of the next four years will grow to approximately $2,433. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
What is the purpose of the capital market? A) To match people with money to entrepreneurs with great business ideas or concepts B) To more easily regulate the flow of money between parties C) To make money without trying D) To allow people to buy stocks for retirement ANSWER A
Date: September 19th, 2020
Interest paid on student loans may be reduce your federal taxes. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Military allowances for living, traveling and moving are typically excluded from federal gross income. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Projects will usually have an initial investment, cash inflows, and a terminal cash flow. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
