Your firm’s sales are estimated to increase by 10% in the next year. However, soon after the beginning of the year it becomes apparent that the growth in sales is more likely to be 20%. If your cost of good sold consists of only variable expenses, and the relationship between revenues and costs remain the […]
Date: September 19th, 2020
Based on the information in Table 4-2, the return on equity is A) 16.66%. B) 18.47%. C) 15.65%. D) 19.33%. ANSWER C
Date: September 19th, 2020
What are the five key methods by which securities are distributed to final investors? What will be an ideal response? ANSWER A Negotiated Purchase: In a negotiated underwriting, the firm that needs funds makes contact with an investment banker, and deliberations concerning the new issue begin. If all goes well, a method is […]
Date: September 19th, 2020
Which of the following statements about the ISO businessowners policy is true? A) The current form is written on a named-perils basis, but an “open-perils” (all risks) endorsement is available. B) It provides business income and extra expense coverage as an additional coverage. C) The policy covers business personal property but does not cover buildings. […]
Date: September 19th, 2020
Given the following financial statements for ARGON Corporation, and assuming that ARGON paid a common dividend of $80,000 in 2010, what is the company’s financing cash flow for 2010? Income Statement Balance Sheet Year Ended 12/31/10 12/31/2010 12/31/2 Sales $1,300,000 Current Assets $50,000 $45 Cost of Goods Sold 750,000 Gross Fixed Assets 880,000 650 Operating […]
Date: September 19th, 2020
If the optional replacement cost coverage provision is not selected, how are losses settled under the building and personal property (BPP) coverage form? A) market value B) original purchase price C) actual cash value D) book value ANSWER Answer: C
Date: September 19th, 2020
Based on the information in Table 4-2, the debt ratio is A) 28.12%. B) 42.03%. C) 45.69%. D) 34.74%. ANSWER C
Date: September 19th, 2020
Optimal Capital Structure MAXIMIZES the firm’s overall cost of capital. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The true owners of the corporation are the A) board of directors of the firm. B) holders of debt issues of the firm. C) common stockholders. D) preferred stockholders. ANSWER C
Date: September 19th, 2020
Given the following financial statements for ARGON Corporation, what is the company’s after-tax cash flow from operations? Income Statement Balance Sheet Year Ended 12/31/10 12/31/2010 12/31/2009 Sales $1,300,000 Current Assets $50,000 $45,000 Cost of Goods Sold 750,000 Fixed Assets 430,000 350,000 Operating Expenses 200,000 Total Assets $480,000 $395,000 Depreciation 100,000 EBIT 250,000 Current Liabilities $35,000 […]
Date: September 19th, 2020
