FIN 571 Week 3 Interpreting Financial Results Home Depot Answer

FIN 571 Week 3 Interpreting Financial Results Home Depot Answer

FIN 571 Week 3 Interpreting Financial Results Home Depot AnswerReview the assigned company’s financial statements from the past three years.Calculate the financial ratios for the assigned company’s financial statements, and then interpret those results against company historical data as well as industry benchmarks:•Compare the financial ratios with each of the preceding three (3) years (e.g. 2014 with 2013; 2013 with 2012; and 2012 with 2011).•Compare the calculated financial ratios against the industry benchmarks for the industry of your assigned company.Use Yahoo Finance for help Write a 500 to 750 word summary of your analysis.Show financial calculations where appropriate.

Pennfoster Exam 050472RR Introduction to Economics and the Economy Answer

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Pennfoster Exam 050472RR Introduction to Economics and the Economy Answer

1. Which one of the following statements about trade blocs is correct?A. A trade bloc is a tariff or quota that impedes imports.B. A trade bloc is a group of nations that allows free trade among member nations but restricts imports from nonmember nations via tariffs and quotas.C. A trade bloc is an area of a nation where manufacturers can import product components without paying tariffs.D. A trade bloc is a group of nations that advertise their common export goods abroad.

2. The largest functional share of the national income consists ofA. corporate profits.B. wages and salaries.C. proprietors’ income, that is, the income of unincorporated businesses.D. interest and rental income.

3. Black markets are associated with _______ and the resulting product _______.A. price floors, surplusesB. ceiling prices, shortagesC. price floors, shortagesD. ceiling prices, surpluses

4. According to the concept of comparative advantage, a good should be produced in that nation whereA. money is used as a medium of exchange.B. the terms of trade are maximized.

C. its domestic opportunity cost is greatest.D. its domestic opportunity cost is least.

5. Government’s economic role is complicated by the fact thatA. the public sector can’t base decisions on marginal costs and marginal benefits.B. the marginal utility of public goods rises rather than falls.C. economic decisions are made in a political context.D. public goods entail no opportunity costs.

6. Taxes on commodities or on purchases are known as _______ taxes.A. corporate incomeB. payrollC. personal incomeD. sales and excise

7. Which one of the following is not an important source of revenue for the federal government?A. Personal income taxesB. Payroll taxesC. Corporate income taxesD. Property taxes

8. The economizing problem is one of deciding how to make the best use ofA. unlimited resources to satisfy limited wants.B. virtually unlimited resources to satisfy virtually unlimited wants.C. limited resources to satisfy limited wants.D. limited resources to satisfy virtually unlimited wants.

9. If a product is in surplus supply, its priceA. is below the equilibrium level.B. will rise in the near future.C. is in equilibrium.D. is above the equilibrium level.

10. Macroeconomics approaches the study of economics from the viewpoint ofA. individual firms.B. the operation of specific product and resource markets.C. the entire economy.D. governmental units.

11. Macroeconomic stability is said to exist in an economy wheneverA. output matches production capacity, labor is fully employed, and inflation is low and stable.B. total spending exceeds production capacity.C. the rates of output growth, unemployment, and inflation are all zero.D. there’s no inflation.

12. Money is not considered to be an economic resource becauseA. it isn’t scarce.B. idle money balances don’t earn interest income.

C. money, as such, isn’t productive.D. money isn’t a free gift of nature.

13. Which one of the following is not a characteristic of the market system?A. Government ownership of the major industriesB. Private propertyC. Competition in product and resource marketsD. Freedom of enterprise

14. Joe sold gold coins for $1,000 that he bought a year ago for $1,000. He says, “At least I didn’t lose anymoney on my financial investment.” His economist friend points out that in effect he did lose money,because he could have received a 3 percent return on the $1,000 if he had bought a bank certificate ofdeposit instead of the coins. The economist’s analysis in this case incorporates the idea ofA. normative economics.B. marginal benefits that exceed marginal costs.C. imperfect information.D. opportunity costs.

15. When an economist says that the demand for a product has increased, this means thatA. consumers are now willing to purchase more of this product at each possible price.B. the demand curve has shifted to the left.C. the product has become particularly scarce for some reason.D. product price has fallen and, as a consequence, consumers are buying a larger quantity of the product.

16. Which one of the following statements about the scarcity problem is correct?A. The scarcity problem persists only because countries have failed to achieve continuous full employment.B. The scarcity problem persists because economic wants exceed available productive resources.C. The scarcity problem has been eliminated in affluent societies such as the United States and Canada.D. The scarcity problem has been solved in all industrialized nations.

17. An income tax is progressive if theA. absolute amount paid as taxes varies directly with income.B. percentage of income paid as taxes is the same regardless of the size of income.C. tax rate varies inversely with income.D. percentage of income paid as taxes increases as income increases.

18. The U.S. Food Stamp program, which provides coupons that allow low-income individuals to buyfood, is an illustration ofA. the redistributional function of government.B. public provision of a suitable legal framework for the market system.

C. the stabilization function of government.D. a government action designed to enhance competition.

19. Which one of the following statements about stocks is correct?A. Stock are issued by sole proprietorships.B. Stock are also known as bonds.C. Stock are promises to repay a loan.D. Stock are shares of ownership of a corporation.

20. Other things equal, an excise tax on a product will increaseA. its price.B. its supply.C. its demand.D. the quantity sold

Pennfoster Exam 050472RR Introduction to Economics and the Economy Answer

Off Road, Inc. (ORI) is considering a new product a shock absorbing seat cushion Answer

Off Road, Inc. (ORI) is considering a new product a shock absorbing seat cushion Answer

Off Road, Inc. (ORI) is considering a new product—a shock absorbing seat cushion to be sold to its Dune Buggy customers. Currently, ORI does not sell any accessories, so this product will not affect the sales or costs of any other product.The seat cushion is expected to sell for $60 per unit. Variable production cost is estimated at $7 per unit, packaging at $2 per unit, and other variable costs at $1 per unit. Fixed costs, above those already incurred by the company, expected to result from this product are estimated at $1,000 annually. In addition, the product will tie up an average of $5,000 in working capital, which will not be freed up until termination of the product.ORI feels it can add the product cheaply because it has excess capacity in its administrative functions. For example, preparation of orders, billing, and shipping of the seat cushions can be handled by the current staff. In addition, production and storage will use a small currently idle portion of the existing plant and warehouse. Under the current cost allocation system, the existing overhead that could be allocated to the new product totals $4,000 annually.ORI is in the 30% income tax bracket and uses the same accounting policies and procedures for income tax reporting as it does for financial reporting.ORI’s weighted average cost of capital is 13%. Its average borrowing rate is 12%; its borrowing rate on its most recent loan is 14%; and its incremental borrowing rate for it next loan is 15%. No new borrowing is expected to result from addition of this product.Management has asked you to determine the level of annual sales necessary for this product to “break even.” Management is aware that there is infrequently “one right answer”; therefore, management wants you to provide three alternative computations in rank order from best to third best and provide brief explanations of the strengths and weaknesses of each “solution” along with the computation.

 

ACT 350 Week 2 Transactions for Hunter Marketing Trial Balanace Complete Answer

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ACT 350 Week 2 Transactions for Hunter Marketing Trial Balanace Complete Answer

Listed below are the transactions for Hunter Marketing. Inc. for the month of July:

July 1 Hunter begins his marketing company and invests $50,000 cash.July 5 Purchases computers and office equipment on account from OfficeMax for $10,250.July 6 Pays rent for office space $800 for the month.July 6 Employs a secretary, Mary Jones.July 8 Purchases office supplies for cash $960.July 9 Receives $2,430 from customer for services performed.July 11 Pays miscellaneous office expenses $375.July 13 Bills customers $4,900 for serviced performed.July 15 Pays Office Max $3,500 on account.July 18 Withdraws $2,000 from business for personal use.July 20 Receives $1,900 from customers on account.July 23 Bills customers $6,320 for services performed.July 30 Pays the following expenses in cash: office salaries $2,300 and utilities $400.

Enter the transactions shown above in appropriate general ledger accounts (use T-accounts). Use the following ledger accounts: Cash, Accounts Receivable, Supplies on Hand, Office Equipment, Accumulated Depreciation, Accounts Payable, Hunter-Capital, Service Revenue, Rent Expense, Miscellaneous Office Expense, Office Salaries Expense, Supplies Expense, Utilities Expense, Depreciation Expense and Income Summary.Prepare an unadjusted trial balance.Record depreciation using a 5-year life on the office equipment, the straight-line method, and no salvage value. Round to whole numbers. Also, record an adjustment for office supplies used in the amount of $510.Prepare an adjusted trial balance.Prepare an income statement, a statement of retained earnings, and an unclassified balance sheet.Close the ledger.Prepare a post-closing trial balance.

ACT 350 Week 2 Transactions for Hunter Marketing Trial Balanace Complete Answer

PROJ 591 Sustainability Proj Management Final Week 7 Course Project Answer

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PROJ 591 Sustainability Proj Management Final Week 7 Course Project Answer

Course Project: Development of a Green Multiuse Academic Building

The embedded US Green Building Council link below is to www.usgbc.orgThe project for this course is a group assignment where each group will follow project management best practices and prepare several key project management deliverables to support the efficient and effective delivery of a green multiuse academic building. To learn more about green building practices, view the Tutorial and visit the US Green Building Council http://www.usgbc.org/ to learn about their LEED program, which stands for Leadership in Energy and Environment Design. LEED is a series of guidelines to ensure buildings are sustainable. The guidelines address the following issues that you should consider for your project:• Site Location• Water Conservation• Energy Efficiency• Materials• Indoor Air Quality

The project for this course is a group assignment where each group will follow project management best practices and prepare several key project management deliverables to support the efficient and effective delivery of a green multiuse academic building. The required deliverables will center around the most common and value-added components of any project following a standard project management methodology.

Each group will submit specific deliverables over the course of the 8-week semester with a concluding final report and a PowerPoint presentation of the summary documents. Please note that each team needs only one person to submit the assignment via the Dropbox—make sure to include all the members in each deliverable. The PowerPoint presentation should include annotated footnotes that provide clarification of any highlights from the individual slides. The final written report will be submitted during Week 7 and must include the following components.1. The project charter2. The scope statement3. The work breakdown structure (WBS)4. The communications plan5. The risk registerThe component parts of the final report will be developed as draft documents (milestones) during each weekly session, according to the schedule as provided below.Other considerations include• report formatting and documentation;• using case study references;• graphic images;• consistency between groups;• quality versus quantity;• team members cooperation; and• problem resolutions.

Topic Due Date DescriptionProject Charter Week 2 Using the template provided in Doc Sharing (Project Charter

Template), develop a project charter. The charter should include (1) background and description, (2) objectives and benefits, (3) initial risks, (4) assumptions, (5) constraints, (6) success criteria, and (7) management of change requests.

Scope Statement Week 3 Using the template provided in Doc Sharing (Scope Statement Template), develop a scope statement. The scope statement should include (1) detailed background and description, (2) specific project deliverables, (3) expectations of what is in scope, (4) clear identification of what is not in scope (exclusions), and (5) additional risks identified since the creation of the charter.

Work Breakdown Structure (WBS) Week 4 Using the example provided in Doc Sharing (WBS Example), develop a three-level WBS reflecting the decomposition of major deliverables to a lower level of detail.

Communications Plan Week 5 Using the template provided in Doc Sharing (Communication Plan Template), develop a communications plan. The communications plan should include (1) what information needs to be communicated, (2) to whom this information needs to be communicated, (3) the frequency of this communication, (4) the format of the communication, and (5) who is responsible for the communication.

Risk Register Week 6 Using the template provided in Doc Sharing (Risk Register Template), develop a risk register. The risk register should include (1) a minimum of 10 risks, (2) the probability of each risk on a scale of 1 to 5, (3) the impact of each risk on a scale of 1 to 5, (4) the risk score, and (5) the risk response (mitigation, contingency, and many more).

Final Course Project Week 7 The Final Course Project is the comprehensive collection of the deliverables completed through the course to date and provides detailed insight into the project’s goals, objectives, scope, risk, and communications efforts.

PROJ 591 Sustainability Proj Management Final Week 7 Course Project Answer

Mini Case GM vs. Toyota common-size income statement and common-size balance sheet Answer

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Mini Case GM vs. Toyota common-size income statement and common-size balance sheet Answer

Mini Case GM vs. Toyota

A. Common-sized income statement

ToyotaCommon-Sized Income Statement 2008 2009Sales $262,394 100.0% $172,749 100.0%Cost of goods sold 199,912 73.5% 129,100 74.7%Gross profit 62,482 26.5% 43,649 25.3%

Selling, general, and administrative expenses24,9389.5%25,80412.3%1%

General MotorsCommon-Sized Income Statement 2007 2008Sales $179,984 100.0% $148,979 100.0%Cost of goods sold 160,856 89.4% 149,311 100.2%Gross profit 19,128 10.6% 149.311 –0.2%Selling, general, and administrative expenses14,4128.0%149,3119.9%Depreciation and amortization 9,513 5.3% 9,931 6.7%Operating profit (4,797) –2.7% (25,064) –16.8%Interest expense 3,307 1.8% 3,055 2.1%

Net income (38,732) –21.5% (30,860) –20.7%

ToyotaCommon-Sized Balance Sheet 2008 2009Assets:Cash & Equivalents $23,012 7.1% $30,386 10.3%173,633 53.6% 175,027 59.2%Accumulated depreciation (95,661) –29.5% (99,677) –33.7%Net plant, property & equipment 77,972 24.1% 75,350 25.5%Investments – 0.0% – 0.0%Intangibles – 0.0% – 0.0%Other assets 125,363 38.7% 105,482 35.7%Total assets $323,968 100.0% $295,857 100.0%

Liabilities:Accounts payable $22,086 6.8% $13,229 4.5%

Paid-in capital 4,966 1.5% 5,102 1.7%Retained earnings 121,443 37.5% 106,117 35.9%Less: Treasury stock (11,902) –3.7% (12,836) –4.3%Common equity 118,470 36.6% 102,425 34.6%Total liabilities and equity $323,968 100.0% $295,857 100.0%

General MotorsCommon-Sized Balance Sheet 2008 2009Assets:

Other assets 38,751 26.0% 7,846 8.6%Total assets $148,883 100.0% $91,047 100.0%

Liabilities:Accounts payable $29,439 19.8% $22,236 24.4%Notes payable 6,047 4.1% 15,754 17.3%Accrued expenses 34,024 22.9% 35,921 39.5%Short-term notes — 0.0% 0 0.0%

Paid-in capital 15,319 10.3% 15,755 17.3%Retained earnings (53,356) –35.8% (102,926) –113.0%Common equity (37,094) –24.9% (86,154) –94.6%Total liabilities and equity $148,883 100.0% $91,0447 100.0%

1. Prepare a common-size income statement and common-size balance sheet for each firm for both years.2. How much profit (loss) was each company making per dollar of sales?a. To what would you attribute any differences?3. What difference do you notice in the common-sized balance sheets that could account for the problems of GM relative to Toyota?

Mini Case GM vs. Toyota common-size income statement and common-size balance sheet Answer

BUSN 379 Midterm Exam Perfect A+ Answers

BUSN 379 Midterm Exam Perfect A+ Answers

1. (TCO 1) What is the goal of financial management for a sole proprietorship? (Points : 3)

decrease long-term debt to reduce the risk to the ownermaximize net income given the resources of the firmmaximize the market value of the equityminimize the tax impact on the proprietorminimize costs and increase production

2. (TCO 1) Working capital management includes which of the following? (Points : 3)

establishing the inventory leveldeciding when to pay suppliersdetermining the amount of cash needed on a daily basisestablishing credit terms for customersall of the above

3. (TCO 1) Market value reflects which of the following: (Points : 3)

The amount someone is willing to pay today for an asset.The value of the asset based on generally-accepted accounting principles.The asset’s historical cost.A and B onlyNone of the above

4. (TCO 1) Which of the following is true regarding income statements? (Points : 3)

It shows the revenue and expenses, based upon selected accounting methods.It reveals the net cash flows of a firm over a stated period of time.It reflects the financial position of a firm as of a particular date.It records revenue only when cash is received for the product or service provided.It records expenses based on the recognition principle

5. (TCO 1) Tato’s Pizza has sales of $625,000. They paid $43,000 in interest during the year and depreciation was $79,000. Administrative costs were $100,000 and other costs were $160,000. Assuming a tax rate of 35 percent, what is Tato’s Pizza net income?(Points : 3)

$157,950$322,000$243,000$200,000

6. (TCO 1) Home Best Hardware had $315,000 in taxable income last year. Using the tax rates provided in Table 2.3, what is the marginal tax rate?(Points : 3)

35%39%34%32%

7. (TCO 1) Pizza A had earnings after taxes of $390,000 in the year 2008 and 300,000 shares outstanding. In year 2009, earnings after taxes increased by 20 percent to $468,000 and 25,000 new shares were issued for a total of 325,000 shares. What is the EPS figure for 2008? (Points : 3)

$1.30$1.44$0.77$0.69

8. (TCO 1) The income statement reflects: (Points : 3)

income and expenses at the time when those items affect the cash flows of a firm.income and expenses in accordance with GAAP.the cash flows in accordance with GAAP.the flow of cash into and out of a firm during a stated period of time.the flow of cash into and out of a firm as of a particular date

9. (TCO 1) Print Imaging has EBIT of $150,000, interest of $30,000, taxes of $50,000, and depreciation of $50,000. What is the company’s operating cash flow? (Points : 3)

$120,000$180,000$170,000

$150,000$120,000

10. (TCO 3) Mark deposited $1,000 today, in an account that pays eight percent interest, compounded semi-annually. Which one of the following statements is correct concerning this investment? (Points : 3)

Mark will earn more interest in year 4 than he will in year 3.Mark will receive equal interest payments every six months over the life of the investment.Mark would have earned more interest if he had invested in an account paying 8 percent simple interest.Mark would have earned more interest if he had invested in an account paying annual interest.Mark will earn less and less interest each year over the life of the investment

11. (TCO 3) Mr. Smith will receive $7,500 a year for the next 14 years from his trust. If the interest rate on this investment is eight percent, what is the approximate current value of these future payments? (Points : 3)

$61,800$53,500$113,400$97,200

12. (TCO 3) Your neighbor just received a credit offer in an e-mail. The company is offering him $6,000 at 12.8 percent interest. The monthly payment is only $110. If he accepts this offer, how long will it take him to pay off the loan? (Points : 3)

81.00 months81.50 months83 months82.17 months90.70 months

13. (TCO 3) Fine Oak Woodworks is considering a project that has cash flows of $5,000, $3,000, and $8,000 for the next three years. If the appropriate discount rate of this project is 10 percent, which of the following statements is true? (Points : 3)

The current value of the project’s inflows is $16,000The approximate current value of the project’s inflows is $13,000The current value of the project’s inflows is somewhere in between $14,000 and $16,000The project should be rejected because its present value is negative

14. (TCO 4) You are considering two investments. Investment I is in a software company, and Investment II is an engineering company. The investments offer the following cash flows:Year Software Company Engineering Company

If the appropriate discount rate is 10 percent, what is the approximate present value of the Engineering Company investment? (Points : 3)

$33,200$34,500$42,000$43,50015. (TCO 3) North Bank offers you an APR of 9.76 percent compounded semiannually, and South Bank offers you an effective rate of 9 percent on a business loan. Which bank should you choose and why? (Points : 3)South Bank because its effective rate is higher.North Bank because the APR is lower.South Bank because its effective rate is lower.North Bank because its effective rate is lower

1. (TCO 3) Tim needs to borrow $5,000 for two years. The loan will be repaid in one lump sum at the end of the loan term. Which one of the following interest rates is best for Tim? (Points : 3)

7.5 percent simple interest7.5 percent interest, compounded monthly8.0 percent simple interest8.0 percent interest, compounded annually8.0 percent interest, compounded monthly

2. (TCO 3) Which one of the following is an example of an annuity, but not a perpetuity? (Points : 3)

unequal payments each month, for 18 monthspayments of equal amount each quarter foreverunequal payments each year foreverequal payments every six months for 48 monthsunending equal payments every other month

3. (TCO 3) Fanta Cola has $1,000 par value bonds outstanding at 12 percent interest. The bonds mature in 25 years. What is the current price of the bond if the YTM is 16 percent? Assume annual payments. (Points : 3)

$1315$1300$756$1000

4. (TCO 6 and 8) Which one of the following statements is correct? (Points : 3)

Bond issuers maintain a listing of bondholders when bonds are issued in bearer form.An indenture, is a contract between a corporation and its shareholders.Collateralized bonds are called debentures.The description of any property used to secure a bond issue is included in the bond indenture

5. (TCO 3) Bonds issued by Blue Sky Airlines have a face value of $1,000 and currently sell for $1,180. The annual coupon payments are $125. If the bonds have 20 years until maturity, what is the approximate YTM of the bonds? (Points : 3)

10.50%11.50%11.75%12%

6. (TCO 3) Bean Coffee issued preferred stock many years ago. It carries a dividend of $8 per share, fixed. As time has passed, yields have decreased from the original eight percent (at the time of issuance) to six percent. What was the current price of the stock? Hint: Yield is the same as required rate of return. (Points : 3)

$100$133$102$86.40None of the above

7. (TCO 3) Intelligence Research, Inc. will pay a common stock dividend of $1.60 at the end of the year. The required rate of return by common stockholders is 13 percent. The firm has a constant growth rate of seven percent. What is the current price of the stock? (Points : 3)

$23$32$27$29

8. (TCO 3) Royal Electric paid a $4 dividend last year. The dividend is expected to grow at a constant rate of six percent over the next four years. Common stockholders require a 13 percent return. What are the values of the dividends for years 1, 2 and 3, respectively? (Points : 3)

$4, $4.5 and $4.8$4.24, $4.76 and $5.05$4.24, $4.49, $4.76$4, $4.50, $5.05

9. (TCO 6) Which of the following is true regarding the primary market? (Points : 3)

it is the market where the largest number of shares are traded on a daily basis.it is the market in which the largest number of issues are listed.it is the market with the largest number of participants.it is the market where new securities are offered.it is the market where shareholders trade most frequently with each other

10. (TCO 6) A member of the NYSE who trades on the floor of the exchange for his or her personal account is called a(n): (Points : 3)

specialist.independent broker.floor trader.stand-alone agent.dealer

11. (TCO 6) The annual interest on a bond divided by the bond’s market price is called the: (Points : 3)

yield to maturity.yield to call.total yield.required yield.current yield

12. (TCO 6) Star Industries has one outstanding bond issue. An indenture provision prohibits the firm from redeeming the bonds during the first two years. This provision is referred to as a _____ provision. (Points : 3)

deferred callmarketliquiditydebenturesinking fund

13. (TCO 8) Which of the following is true regarding bonds? (Points : 3)

Most bonds do not carry default risk.Municipal bonds are free of default risk.Bonds are not sensitive to changes in the interest rates.Moody’s and Standard and Poor’s provide information regarding a bond’s interest rate risk.None of the above is true

14. (TCO 6) Which of the following is not a floating-rate bond? (Points : 3)

A bond that adjusts the coupon payments based on an interest rate index, such as the T-bill.An EE Savings Bond issued by the U.S. government.A bond that does not have any coupons until maturity.A bond that adjusts the coupon and face value payment based on inflation.TIPS

15. (TCO 6) Which of the following is true regarding put bonds? Select all that apply: (Points : 3)

Have coupons that depend on the company’s incomeCan be exchanged for a fixed number of shares before maturity onlyCan be exchanged for a fixed number of shares before maturityAllow the holder to require the issuer to buy the bond back

1. (TCO 1) In a general partnership, each partner is personally liable for: (Points : 3)

the partnership debts that he or she personally obtained for the firm.his or her proportionate share of all partnership debts, regardless of which partner incurred that debt.the total debts of the partnership, even if he or she was unaware of those debts.the debts of the partnership, up to the amount he or she invested in the firm.all personal and partnership debts incurred by any partner, even if he or she was unaware of those debts

2. (TCO 1) Trademarks are classified as: (Points : 3)short-term assets.current liabilities.long-term debt.tangible fixed assets.intangible fixed assets

1. (TCO 1) Can you provide some examples of recent, well-known unethical behavior cases? Explain the situation in one or two sentences.

2. What are some real-life scenarios where you can apply the time value of money? Present two or three scenarios. Briefly explain your rationale.

3. Explain some of the key risks associated with bonds.

4. What are some of the features of zero-coupon bonds that make them attractive to certain investors? Which type of investors will be most interested in these bonds?

BUSN 379 Week 8 Final Exam Perfect A+ Answers

BUSN 379 Week 8 Final Exam Perfect A+ Answers

1. (TCO 4) Which of the following is true regarding the evaluation of projects? (Points : 4)sunk costs should be included

erosion effects should be considered

financing costs need to be included

opportunity costs are irrelevantQuestion 2. 2. (TCO 4) Which of the following investment ranking methods does not consider the time value of money? (Points : 4)net present value method

payback method

internal rate of return method

all of these are time-adjusted methodsQuestion 3. 3. (TCO 3 and 4) You can ensure that an investment is expected to create value for (Points : 4)have a PI equal to zero.

produce negative rates of return.

have positive AARs.

have positive IRRs.

have positive NPVs.Question 4. 4. (TCO 3 and 4) What is the net present value of a project with the following cash flows, if the discount rate is 10 percent?Year01234Cash flow-$32,000$9,000$10,000$15,200$7,800(Points : 4)$1,085.25

$1,193.77

$3,498.28

$4,102.86

$4,513.15Question 5. 5. (TCO 4) Howard Company is considering a new project that will require an initial cash investment of $575,000. The project will produce no cash flows for the first three years. The projected cash flows for years 4 through 8 are $73,000, $112,000, $124,000, $136,000, and $145,000, respectively. How long will it take the firm to recover its initial investment in this project? (Points : 4)5.81 years

6.05 years

6.96 years

7.90 years

This project never pays backQuestion 6. 6. (TCO 4) The postponement of a project until conditions are more favorable:(Points : 4)is a valuable option.

is referred to as the option to extend.

could not cause a negative net present value project to become a positive net present value project.

will generally cause the internal rate of return for a project to decline.Question 7. 7. (TCO 4) ___________, occurs when a firm cannot raise financing for a project under any circumstances. (Points : 4)contingency planning.

hard rationing.

soft rationing.

capital constraint.

scenario analysis.Question 8. 8. (TCO 4) ABC Cameras is considering an investment that will have a cost of $10,000 and the following cash flows: $6,000 in year 1, $4,000 in year 2 and $3,000 in year 3. Assume the cost of capital is 10%. Which of the following is true regarding this investment? (Points : 4)The net present value of the project is approximately $1,011

This project should be accepted because it has a negative net present value

This project’s payback period is 10 years or more

All of the above are trueQuestion 9. 9. (TCO 4) Assume Company X plans to invest $60,000 in industrial equipment. Using Tables 9.6 and 9.7 of your textbook (Page 277), which is the first year depreciation amount under MACRS? (Points : 4)$12,000

$8,574

$19,800

None of the aboveQuestion 10. 10. (TCO 1 and 4) Assume a corporation has earnings before depreciation, and taxes of $100,000, depreciation of $40,000, and that it has a 30 percent tax bracket. What are the after-tax cash flows for the company? (Points : 4)$82,000

$110,000

$42,000

none of theseQuestion 11. 11. (TCO 8) Which of the following statements is true regarding systematic risk? (Points : 4)is diversifiable

is the total risk associated with surprise events

it is measured by beta

it is measured by standard deviationQuestion 12. 12. (TCO 8) Which statement is true regarding risk? (Points : 4)the expected return is usually the same as the actual return

a key to assess risk is determining how much risk an investment adds to a portfolio

risks can always be decreased or mitigated by the financial manager

the higher the risk, the lower the return investors require for the investmentQuestion 13. 13. (TCO 8) The stock of Chocolate Galore is expected to produce the following returns, given the various states of the economy. What is the expected return on this stock?State of EconomyProbability of State of EconomyRate of ReturnRecession.02-.06Normal.88.11Boom.10.17(Points : 4)7.33 percent

9.82 percent

11.26 percent

11.33 percent

11.50 percentQuestion 14. 14. (TCO 8) You own a portfolio that consists of $8,000 in stock A, $4,600 in stock B, $13,000 in stock C, and $5,500 in stock D. What is the portfolio weight of stock D? (Points : 4)17.68 percent

17.91 percent

18.42 percent

19.07 percent

19.46 percentQuestion 15. 15. (TCO 8) You currently own a portfolio valued at $24,000 that has a beta of 1.1. You have another $8,000 to invest, and would like to invest it in a manner such that the risk of the new portfolio matches that of the overall market. What does the beta of the new security have to be? (Points : 4).46

.55

.61

.70

.901. (TCO 8) If the financial markets are strong form efficient, then: (Points : 4)only the most talented analysts can determine the true value of a security.

only company insiders have a marketplace advantage.

technical analysis provides the best tool to gain a marketplace advantage.

no one person has an advantage in the marketplace.

every security offers the same rate of return.Question 2. 2. (TCO 5) Royal Petroleum Co. can buy a piece of equipment that can be financed with debt at a cost of 9 percent (after-tax) and common equity at a cost of 16 percent. Assume debt and common equity each represent 50 percent of the firm’s capital structure. What is the weighted average cost of capital? (Points : 4)between 4.5% and 8%

more than 13%

between 12 and 13%

between 13 and 14%

none of the aboveQuestion 3. 3. (TCO 5, 6 and 7) An issue of common stock is expected to pay a dividend of $4.80 at the end of the year. Its growth rate is equal to eight percent. If the required rate of return is 13 percent, what is its current price? (Points : 4)$103.68

$36.92

$96.00

none of theseQuestion 4. 4. (TCO 5, 6 and 7) Which of the following is not true regarding the cost of debt? (Points : 4)It is the return that the firm’s creditors demand on new borrowing.

It is the interest rate that the firm pays on current/existing borrowing.

An appropriate method to compute the cost of debt is using the YTM of current bonds outstanding.

It needs to be converted into an after-tax cost.Question 5. 5. (TCO 5) Which of the following is not true regarding the cost of retained earnings? (Points : 4)it is relevant to the WACC

does not require new funds to be raised

has associated flotation costs

has a cost, which is the opportunity cost associated with stockholder fundsQuestion 6. 6. (TCO 4) A project has the following cash flows. What is the internal rate of return?Year0123Cash flow-$195,600$99,800$87,600$75,300(Points : 4)less than 5%

between 5 and 15%

between 15 and 18%

more than 21%Question 7. 7. (TCO 5, 6 and 7) Which one of the following is a correct statement regarding a firm’s weighted average cost of capital (WACC)? (Points : 4)the WACC can be used as the required return for all new projects.

the WACC of a leveraged firm will decrease when the tax rate decreases.

an increase in the market risk premium will tend to decrease a firm’s WACC.

the WACC is a starting point for the subjective approach to setting discount rates.

a reduction in the risk level of a firm will tend to increase the firm’s WACC.Question 8. 8. (TCO 5, 6 and 7) The six percent preferred stock of FKH Manufacturing is selling for $62 a share. What is the firm’s cost of preferred stock, if the tax rate is 34 percent and the par value per share is $100? (Points : 4)5.98%

7.06%

8.05%

9.68%

10.10%Question 9. 9. (TCO 2) Which one of the following occurs if a firm files for Chapter 7 bankruptcy, but does not generally occur if the firm files for Chapter 11 bankruptcy?(Points : 4)a petition is filed in federal court

administrative fees are incurred

a list of creditors is compiled

pre-bankruptcy shareholders tend to lose part, if not all, of their investment in the firm

a trustee-in-bankruptcy is elected by the creditorsQuestion 10. 10. (TCO 5) Which of the following statements is false regarding the cost of capital? (Points : 4)The cost of capital should consider the flotation costs.

All other being equal, it is preferable to use market value weights than book value weights.

The WACC is the most appropriate discount rate for all projects.

Should include the cost of retained earnings.Question 11. 11. (TCO 2) Select any actions that do not affect the cash account. (Points : 4)Goods are sold cash

An interest payment on a notes payable is made

A payment due is received from a client

Dividends are paid to shareholders

Inventory is purchased and paid for with creditQuestion 12. 12. (TCO 2) Which of the following statements is true? (Points : 4)There is an opportunity cost associated with not offering credit.

The costs of the credit application process and the costs expended in the collection process are not carrying costs of granting credit.

Character, refers to the ability of a firm to meet its credit obligations out its operating cash flows.

The optimal credit policy, is the policy that produces the largest amount of sales for a firm.Question 13. 13. (TCO 2) Which one of the following industries is most apt to have the shortest cash cycle? (Points : 4)electric utility company

airplane manufacturer

fast-food restaurant

furniture store

clothing manufacturerQuestion 14. 14. (TCO 2) Delphinia’s has the following estimated quarterly sales for next year. The accounts receivable period is 30 days. What is the expected accounts receivable balance at the end of the second quarter? Assume each month has 30 days.Q1Q2Q3Q4Sales$1,800$1,700$2,100$1,900(Points : 4)$567

$600

$821

$1,134

$1,200Question 15. 15. (TCO 1) Why is maximization of the current value per share a more appropriate financial management goal than profit maximization? (Points : 4)Because by maximizing the current stock value, you also maximize the company’s profit for the year.

Because this criterion is non-ambiguous.

Because financial managers always act in the best interest of shareholders.

Because it creates short-term gains in the financial statements.6. (TCO 1) Provide three examples of recent well-known unethical behavior cases. Explain the situation in one or two paragraphs. How do you believe that this behavior affected the firm’s value? (Points : 10)7. (TCO 4) What are sunk costs? Provide at least two real-life examples of sunk costs for a project. Should sunk costs be included as incremental cash flows? Why or why not? Explain your rationale. (Points : 10)8. (TCO 8) What is the difference between business risk and financial risk? If Company A has a higher business risk than Company B, should its cost of capital be higher? Why or why not? Explain your rationale. (Points : 10)9. (TCO 2) What are some important factors to consider when conducting a credit evaluation and scoring? (Points : 10)0. (TCO 6 and 7) Do you believe that it is appropriate for some industries to be more leveraged than others? Explain your rationale. (Points : 10)1. (TCO 1) Which of the following are capital structure concerns?

I. how to obtain short-term financing

II. the company’s financing mix

III. the cost of funds

IV. how and where to raise money (Points : 4)I and II

I, II and III

II, III and IV

I, III and IV

All of the aboveQuestion 2. 2. (TCO 1) Book values are different from market values because: (Points : 4)Book values reflect the value of the asset based on generally-accepted accounting principles.

Book values are used in the company’s balance sheet.

Book values do not reflect the amount someone is willing to pay today for an asset.

All of the above

None of the aboveQuestion 3. 3. (TCO 1) Use the following tax table to answer this question:Taxable IncomeTax Rate$0-$50,00015%

$50,001-75,00025$75,001-100,00034$100,001-335,00039$335,001-10,000,00034

John has taxable income of $389,745. What is John’s average tax rate? (Points : 4)33%

34%

36%

37%

38%Question 4. 4. (TCO 3) Regional Bank offers you an APR of 19 percent compounded semiannually, and Local Bank offers you an EAR of 19.50 percent for a new automobile loan. You should choose ______________ because its _______ is lower. (Points : 4)Regional Bank, APR

Local Bank, EAR

Regional Bank, EAR

Local Bank, APRQuestion 5. 5. (TCO 3) You deposited $11,000 in your bank account today. Which of the following will decrease the future value of your deposit, assuming that all interest is reinvested? Assume the interest rate is a positive value. Select all that apply: (Points : 4)a decrease in the interest rate

increasing the initial amount of your deposit

increasing the frequency of the interest payments

decreasing the length of the investment periodQuestion 6. 6. (TCO 3) Amy needs to save $20,000 in cash to buy a new car five years from today. She expects to earn 6.5 percent, compounded annually, on her savings. How much does she need to deposit today, if this is the only money she saves for this purpose? (Points : 4)$12,468.07

$12,502.14

$14,597.62

$17,044.32

$17,129.01Question 7. 7. (TCO 3) Paper Pro needed a new store. The company spent $65,000 to refurbish an old shop and create the current facility. The firm borrowed 75 percent of the refurbishment cost at eight percent interest for 11 years. What is the amount of each monthly payment? (Points : 4)$91.05

$284.13

$556.50

$682.87

$731.60Question 8. 8. (TCO 3) John borrowed $5,500 four years ago at an annual interest rate of 10 percent. The loan term is seven years. Since he borrowed the money, Sonny has been making annual payments of $550 to the bank. Which type of loan does John have? (Points : 4)interest-only

pure discount

compounded

amortized

complexQuestion 9. 9. (TCO 3) Fanta Cola has $1,000 par value bonds outstanding at 12 percent interest. The bonds mature in 25 years. What is the current price of the bond, if the YTM is 11 percent? Assume annual payments. (Points : 4)$1080

$1085

$925

$1000Question 10. 10. (TCO 6) The market where one shareholder sells shares to another shareholder is called the _____ market. (Points : 4)primary

main

secondary

principal

dealerQuestion 11. 11. (TCO 7) Which one of the following statements concerning financial leverage is correct? (Points : 4)Financial leverage increases profits and decreases losses.

Financial leverage has no effect on a firm’s return on equity.

Financial leverage, refers to the use of common stock.

Financial leverage magnifies both profits and losses.

Increasing financial leverage will always increase the earnings per share.Question 12. 12. (TCO 3) What is the approximate yield to maturity for a seven-year bond that pays 11 percent interest on a $1000 face value annually if the bond sells for $952?(Points : 4)10.5%

10.6%

11.5%

12.1%Question 13. 13. (TCO 8) Which of the following is true regarding bonds? (Points : 4)Most bonds do not carry default risk.

Municipal bonds are free of default risk.

Bonds are not sensitive to changes in the interest rates.

Moody’s and Standard and Poor’s provide information regarding a bond’s interest rate risk.

None of the above is trueQuestion 14. 14. (TCO 8) Which one of the following bonds is the most sensitive to interest rate movements? (Points : 4)zero-coupon, five year

seven percent annual coupon, five year

zero-coupon, 10 year

five percent semi-annual coupon, 10 year

five percent annual coupon, 10 yearQuestion 15. 15. (TCO 6) A sinking fund is an account managed by a bond trustee for the sole purpose of: (Points : 4)paying interest payments on a semi-annual basis.

redeeming bonds early.

repaying the face value at maturity.

paying the expenses required to reissue outstanding bonds.

paying the “balloon payment” at maturity.

BUSN 319 Week 8 Final Exam Perfect A+ Answers

BUSN 319 Week 8 Final Exam Perfect A+ Answers

1. (TCO 4) Three commonly used methods of evaluating marketing programs are (Points : 5)sales analysis, marginal analysis, and cost analysis.

sales analysis, profitability analysis, and marketing audits.

marketing ROI, metrics, and dashboards.

sales audits, cost audits, and marketing audits.

internal audits, external audits, and marketing control boards.

Question 2. 2. (TCO 1) Ideally in effective marketing planning, goals should be _____ in terms of what is to be accomplished and when. (Points : 5)

loose and vague

as general as possible

flexible or elastic

quantified and measurable

None of the above

Question 3. 3. (TCO 3) Which marketing strategy focuses on a single market segment but adds additional product lines? (Points : 5)

Full coverage

Market specialization

Product specialization

Selective specialization

Market-product concentration

Question 4. 4. (TCO 1) Based on relative competitive scope (broad target to narrow target) and source of competitive advantage (lower cost to differentiation), Porter’s four generic business strategies are differentiation, cost focus, cost leadership, and (Points : 5)xclusivity.

electronic-focus.

quality focus.

differentiation focus.

service leadership.

Question 5. 5. (TCO 2) Which of the following pieces of information is used in the implementation phase of the strategic marketing process? (Points : 5)Corporate return on investment

Marketing research reports

Revenues associated with each point of market share

Trends in past and current revenues for industry and competitors in total and by segment

Possible cannibalization effects on other products in the line

Question 6. 6. (TCO 6) Which of the following pieces of information is used in a SWOT analysis, the first step of the planning phase of the strategic marketing process? (Points : 5)Corporate return on investment

Market share for the product

Revenues associated with each point of market share

Projection of future sales, expenses, and profits

Possible cannibalization effects on other products in the line

Question 7. 7. (TCO 3) The first decision in developing an advertising program is to (Points : 5)set the budget.

state the mission of the advertising program.

identify the target audience.

select the appeal.

select the media.

Question 8. 8. (TCO 2) The proper blend of elements in the promotional mix depends on the type of product. The three specific characteristics to be considered are _____, risk, and ancillary services.(Points : 5)complexity

size

durability

accessibility

acceptability

Question 9. 9. (TCO 4) Reminding buyers of the product’s existence is the promotional objective during which stage of the product life cycle? (Points : 5)Introduction

Growth

Maturity

Decline

All of the above

Question 10. 10. (TCO 2) The _____ can be used to inform prospective buyers about the benefits of the product. (Points : 5)

Question 11. 11. (TCO 8) Which of the following statements about the terms used for marketing intermediaries is true? (Points : 5)

Question 12. 12. (TCO 7) Which of the following statements about the legal and regulatory aspect of pricing is true? (Points : 5)

Question 13. 13. (TCO 2) Pricing objectives may change depending on (Points : 5)

Question 14. 14. (TCO 3) The ratio of perceived benefits to _____ is called value. (Points : 5)

Question 15. 15. (TCO 6) Market segmentation involves aggregating prospective buyers into groups that will respond similarly to a marketing action and (Points : 5)

Question 16. 16. (TCO 5) The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is called (Points : 5)

Question 17. 17. (TCO 1) The marketing department helps keep the organization focused on creating value both for it and for customers. This is accomplished by (Points : 5)

Question 18. 18. (TCO 1) Which of the following acts as a barrier to the development of relationship marketing? (Points : 5)

Question 19. 19. (TCO 1) Your neighbor is tired of conventional soft drinks and wants something different. Coincidentally, Cadbury Beverages Inc. has begun distributing Country Time lemonade through the supermarket at a price comparable to that of soft drinks. Which of the conditions needed for marketing to occur is described in this situation? (Points : 5)

Question 20. 20. (TCO 6) Kraft produces Lunchables, a prepackaged meal usually consisting of several crackers, small slices of meat, and small slices of cheese. Some versions contain Capri Sun drinks. Others are called Cracker Stackers and Fun Fuel. The box is bright yellow and the quantity of food contained within is small. The target market for Kraft Lunchables is most likely (Points : 5)

Question 21. 21. (TCO 3) Which element of the marketing mix is demonstrated when the Mars Company has a sale on M&M’s® brand candies? (Points : 5)

Question 22. 22. (TCO 5) The Lemon Tree is a high-fashion boutique selling top-of-the-line women’s clothing and accessories. The keys to its success include knowing the customers’ changing tastes and providing something different from other retailers. In addition, because of the high value of the merchandise, The Lemon Tree’s management is exploring the use of computerized inventory controls and sales order processing. From this description, one can infer that the environmental category of least importance to The Lemon Tree is (Points : 5)

Question 23. 23. (TCO 7) In 1998, F. Hoffman-LaRoche Ltd. and BASF AG, two international pharmaceutical companies, were ordered to pay $725 million in fines for plotting to raise and fix prices of vitamins used in virtually every home in the United States. This is an example of how _____ forces affect the marketing environment. (Points : 5)

Question 24. 24. (TCO 6) Mile High Frozen Foods is a distributor for McDonald’s. It also bakes the buns used by McDonald’s in several states. Mile High purchases flour, yeast, and sesame seeds, manufactures the buns, and then distributes them to the retail stores. Mile High Frozen Foods is operating in a(n) _____ market. (Points : 5)

Question 25. 25. (TCO 1) Several years ago, SwissAir made some unwise investments to pay for a planned expansion. As a result, the company had to make some cost-cutting moves that alienated its customers. Eventually the company declared bankruptcy, regrouped, and found itself able to resume business. Its board of directors recently announced that the company would like to resume flying. Before resuming flying, SwissAir needed to determine what percentage of its former customers it could expect to return to the airline. If not enough former customers were willing to use SwissAir again, the resumption of flights would not be profitable. The determination of the

percentage of returning patrons that would be needed to resume operation is an example of a (Points : 5)

Question 26. 26. (TCO 3) When Marine Midland Bank sent market researchers with surveys door-to-door in the neighborhoods of its branch banks to ask people with savings accounts why they did not also have checking accounts and credit cards with Marine Midland, the researchers were gathering _____ data. (Points : 5)

Question 27. 27. (TCO 4) Sara Burns is the owner of a company called Spice and was looking for a new product to go with her company’s line of food condiments when a friend suggested combining spices with tea. In the _____ stage of the new-product process, the spices and tea mixtures were exposed to prospective consumers under realistic purchase conditions. (Points : 5)

Question 28. 28. (TCO 4) A few years ago, Who Wants to Be a Millionaire premiered as the first nighttime game show in several decades. The marketing for the show was intent on making television viewers aware of its existence and excited enough about the show that they would watch the first episode. Based on this description, in which stage of the product life cycle would this show be? (Points : 5)

Question 29. 29. (TCO 8) In an episode of the Andy Griffith television series, two local farmers were selling the produce they grew on their farms from the backs of their pickup trucks to local people who drove by on the road. The farmers selling their products without wholesalers or retailers were an example of a (Points : 5)

Question 30. 30. (TCO 2) Disney is using an integrated marketing communications program (IMC) to promote group travel to its theme parks, because (Points : 5)

Question 31. 31. (TCO 2) When a news story covers a terrible disaster and viewers are asked to send donations to the American Red Cross, the American Red Cross is receiving (Points : 5)

Question 32. 32. (TCO 8) For several years, advertisements for Arm & Hammer Baking Soda have prompted consumers to place an opened box of the product in the refrigerator to lessen food odor and to replace that box monthly. The same ads advise customers to pour the used box down their kitchen sinks to freshen drains. Arm & Hammer employed a _____ strategy in its attempt to sell more baking soda. (Points : 5)

33. (TCO 3) Imagine that you are creating a marketing plan for a company that will sell motor scooters . As you consider the marketing program, what types of strategy should you consider including in the plan? Propose one specific example of each type of strategy that you are considering, and present your rationale (reasoning) for your strategy selections. (Points : 30)

Discriminate between primary data and secondary data and their usefulness to business decision making, being sure to discuss the advantages and disadvantages of each. Your response should also identify the typical sources for primary and secondary data and what you would rely on most heavily in making your marketing decisions. (Points : 30)

35. (TCO 4) You are the product manager responsible for a horrible product failure, but in your wisdom, you are evaluating why the product failed. What factors would you consider in your evaluation? What actions could you have taken to prevent the failure? Does product innovation need a willingness to accept failure? (Points : 30)

BUSN 319 All Discussion Questions Perfect A+ Answers

BUSN 319 All Discussion Questions Perfect A+ Answers

BUSN 319 Week 1 DQ 1 What Is Needed for Marketing to Occur

BUSN 319 Week 1 DQ 2 Strategic Marketing Process

BUSN 319 Week 2 DQ 1 Purchase Decision Process

BUSN 319 Week 2 DQ 2 Buyers and Markets

BUSN 319 Week 3 DQ 1 Understanding Consumers

BUSN 319 Week 3 DQ 2 Target Marketing

BUSN 319 Week 4 DQ 1 New Products

BUSN 319 Week 4 DQ 2 Building a Brand

BUSN 319 Week 5 DQ 1 Price Perception

BUSN 319 Week 5 DQ 2 Flexible Pricing

BUSN 319 Week 6 DQ 1 Integrated Marketing Communications

BUSN 319 Week 6 DQ 2 Using Social Media

BUSN 319 Week 7 DQ 1 Delivering the Goods

BUSN 319 Week 7 DQ 2 Marketing Mash Up- The Four Ps Marketing Mix