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FIN 515 Week 4 Midterm

Olkach
Nov 27th, 2014
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  3. In this paperwork of FIN 515 Week 4 Midterm you will find the next information:
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  6. 1. (TCO A) Which of the following statements is CORRECT?
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  8. 2. (TCO G) Which of the following statements is CORRECT?
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  10. 3. (TCO G) LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $620,000, and its net income after taxes was $24,655. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%. What profit margin would LeCompte need in order to achieve the 15% ROE, holding everything else constant?
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  12. 4. (TCO B) You want to buy a new sports car three years from now, and you plan to save $4,200 per year, beginning one year from today. You will deposit your savings in an account that pays 5.2% interest. How much will you have just after you make the third deposit, three years from now?
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  14. 5. (TCO B) You sold a car and accepted a note with the following cash flow stream as your payment. What was the effective price you received for the car assuming an interest rate of 6.0%?
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  16. 6. (TCO B) Suppose you borrowed $14,000 at a rate of 10.0% and must repay it in five equal installments at the end of each of the next five years. How much interest would you have to pay in the first year?
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  18. 7. (TCO D) A 15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is CORRECT?
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  20. 8. (TCO D) Garvin Enterprises
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  22. Business - Finance
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  31. (TCO A) Which of the following statements is CORRECT?
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  55. Points Received:
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  59. 10 of 10
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  97. (TCO G) A security analyst obtained the following information from Prestopino Products’ financial statements:
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  99. • Retained earnings at the end of 2009 were $700,000, but retained earnings at the end of 2010 had declined to $320,000.
  100. • The company does not pay dividends.
  101. • The company’s depreciation expense is its only non-cash expense; it has no amortization charges.
  102. • The company has no non-cash revenues.
  103. • The company’s net cash flow (NCF) for 2010 was $150,000.
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  105. On the basis of this information, which of the following statements is CORRECT?
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  129. Points Received:
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  133. 10 of 10
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  167. Question :
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  171. (TCO G) LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $620,000, and its net income after taxes was $24,655. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%. What profit margin would LeCompte need in order to achieve the 15% ROE, holding everything else constant?
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  195. Points Received:
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  233. Question :
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  237. (TCO B) You want to buy a new sports car three years from now, and you plan to save $4,200 per year, beginning one year from today. You will deposit your savings in an account that pays 5.2% interest. How much will you have just after you make the third deposit, three years from now
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  239. To download more course tutorials visit - https://bitly.com/1xpzEpZ
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  241. When taking a test, remember that it is just a test. Many people get intimidated by tests thinking that they are more than they really are. They are supposed to be a review of what you have already learned in your class. Having confidence in yourself and studying well can help you do well on them.
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