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- In this paperwork MGT 325 WEEK 3 Discussion Questions 1 (Measuring Performance) you will find solution on the following task: "There are two ratios which are used to measure airline performance. One measures efficiency while the other measures equipment utilization. Is this sufficient? In 200
- Business - Marketing
- Capital Structure Theory in general assumes that:
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- A firm's value is determined by capitalizing (discounting) the firm's expected net income by the firm's cost of equity.
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- A firm's cost of capital rises as a firm uses more financial leverage.
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- A firm's value is determined by discounting the firm's expected cash flows by the WACC.
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- A firm's cash flows will grow indefinitely at a constant rate.
- Which of the following financial ratios is the best measure of the operating effectiveness of a firm's management?
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- Quick ratio
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- Return on investment
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- Current ratio
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- Gross profit margin
- The Securities Investor Protection Corporation protects individuals from
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- other investors who fail to make delivery
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- fraud by corporations
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- making poor investment decisions
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- brokerage firm failures
- A company collects 60% of its sales during the month of the sale, 30% one month after the sale, and 10% two months after the sale. The company expects sales of $10,000 in August, $20,000 in September, $30,000 in October, and $40,000 in November. How much money is expected to be collected in October?
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- $25,000
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- $35,000
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- $45,000
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- $15,000
- Project Sigma requires an investment of $1 million and has a NPV of $10. Project Delta requires an investment of $500,000 and has a NPV of $150,000. The projects involve unrelated new product lines. What is your evaluation of these two projects?
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- The company should look at other investment criteria, not just NPV.
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- Only project Delta should be accepted. Alpha's NPV is too low for the investment.
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- Both projects should be accepted because they have positive NPV's
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- Neither project should be accepted because they might compete with one another
- Which of the following is not part of the underwriting process?
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- the prospectus
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- the Securities and Exchange Commission
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- the syndicate
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- the Federal Reserve
- When the impact of taxes is considered, as the firm takes on more debt
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- the weighted average cost of capital will increase.
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- there will be no change in total cash flows.
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- both taxes and total cash flow to stockholders and bondholders will decrease.
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- cash flows will increase because taxes will decrease.
- Metals Corp. has $2,575,000 of debt, $550,000 of preferred stock, and $18,125,000 of common equity. Metals Corp.'s after-tax cost of debt is 5.25%, preferred stock has a cost of 6.35%, and newly issued common stock has a cost of 14.05%. What is Metals Corp.'s weighted average cost of capital?
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- 12.78%
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- 8.32%
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- 6.56%
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- 10.84%
- Given an accounts receivable turnover of 8 and annual credit sales of $362,000, the average collection period (360-day year) is
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- 60 days.
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- 45 days.
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- 75 days
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- 90 days.
- Accounting break-even analysis solves for the level of sales that will res
- To download this tutorial follow the link - https://bitly.com/12Cgu7h
- You no longer live at home, and you will have to care for yourself. Choose healthy foods, get eight hours of sleep every night, and study as much as possible. Add study, recreation, self-care and classes to your schedule. Using these tips will ensure you stay healthy.
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