FIN 571 Week 3 Quiz -
Multiple Choice Question 32
The operating cycle
Multiple Choice Question 57
You are provided the following working capital information for the Ridge Company:
Accounts receivable 12,800
Accounts payable 12,670
Net sales $124,589
Cost of goods sold 99,630
Operating cycle: What is the operating cycle for Ridge Company?
Multiple Choice Question 80
Ticktock Clocks sells 10,000 alarm clocks each year. If the total cost of placing an order is $65 and it costs $85 per year to carry the alarm clock in inventory, use the EOQ formula to calculate the optimal order size.
Multiple Choice Question 49
The asset substitution problem occurs when
Multiple Choice Question 53
M&M Proposition 1: Dynamo Corp. produces annual cash flows of $150 and is expected to exist forever. The company is currently financed with 75 percent equity and 25 percent debt. Your analysis tells you that the appropriate discount rates are 10 percent for the cash flows, and 7 percent for the debt. You currently own 10 percent of the stock.
How much are your cash flows today?
Multiple Choice Question 62
M&M Proposition 2: Melba's Toast has a capital structure with 30% debt and 70% equity. Its pretax cost of debt is 6%, and its cost of equity is 10%. The firm's marginal corporate income tax rate is 35%. What is the appropriate WACC?
Multiple Choice Question 39
According to the text, the financial plan covers a period of
Multiple Choice Question 45
The financing plan of a firm will indicate
Multiple Choice Question 74
Payout and retention ratio: Tradewinds Corp. has revenues of $9,651,220, costs of $6,080,412, interest payment of $511,233, and a tax rate of 34 percent. It paid dividends of $1,384,125 to shareholders. Find the firm's dividend payout ratio and retention ratio.