FIN 534 MIDTERM EXAM

$70.00

FIN 534 MIDTERM EXAM

Part 1 & 2

A++ graded Check description Below !!

4 out of 4 points

​ Which of the following is a primary market transaction?
Category: Tag:

Description

FIN 534 MIDTERM EXAM

4 out of 4 points

​ Which of the following is a primary market transaction?

Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership?

Q

Suppose the U.S. Treasury announces plans to issue $50 billion of new bonds. Assuming the announcement was not expected, what effect, other things held constant, would that have on bond prices and interest rates?

Q

Bartling Energy Systems recently reported $9,250 of sales, $5,750 of operating costs other than depreciation, and $700 of depreciation. The company had no amortization charges, it had $3,200 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $1,250 of capital expenditures on new fixed assets and to invest $300 in net operating working capital. By how much did the firm’s net income exceed its free cash flow?

Q

NNR Inc.’s balance sheet showed total current assets of $1,875,000 plus $4,225,000 of net fixed assets. All of these assets were required in operations. The firm’s current liabilities consisted of $475,000 of accounts payable, $375,000 of 6% short-term notes payable to the bank, and $150,000 of accrued wages and taxes. Its remaining capital consisted of long-term debt and common equity. What was NNR’s total investor-provided operating capital?

Q

HHH Inc. reported $12,500 of sales and $7,025 of operating costs (including depreciation). The company had $18,750 of investor-supplied operating assets (or capital), the weighted average cost of that capital (the WACC) was 9.5%, and the federal-plus-state income tax rate was 40%. What was HHH’s Economic Value Added (EVA), i.e., how much value did management add to stockholders’ wealth during the year?

more ………………

 

FIN 534 MIDTERM EXAM

4 out of 4 points

​ Which of the following is a primary market transaction?

Which of the following could explain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership?

Q

Suppose the U.S. Treasury announces plans to issue $50 billion of new bonds. Assuming the announcement was not expected, what effect, other things held constant, would that have on bond prices and interest rates?

Q

Bartling Energy Systems recently reported $9,250 of sales, $5,750 of operating costs other than depreciation, and $700 of depreciation. The company had no amortization charges, it had $3,200 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $1,250 of capital expenditures on new fixed assets and to invest $300 in net operating working capital. By how much did the firm’s net income exceed its free cash flow?

Q

NNR Inc.’s balance sheet showed total current assets of $1,875,000 plus $4,225,000 of net fixed assets. All of these assets were required in operations. The firm’s current liabilities consisted of $475,000 of accounts payable, $375,000 of 6% short-term notes payable to the bank, and $150,000 of accrued wages and taxes. Its remaining capital consisted of long-term debt and common equity. What was NNR’s total investor-provided operating capital?

Q

HHH Inc. reported $12,500 of sales and $7,025 of operating costs (including depreciation). The company had $18,750 of investor-supplied operating assets (or capital), the weighted average cost of that capital (the WACC) was 9.5%, and the federal-plus-state income tax rate was 40%. What was HHH’s Economic Value Added (EVA), i.e., how much value did management add to stockholders’ wealth during the year?

more ………………

FIN 534 MIDTERM EXAM,FIN 534 MIDTERM EXAM,FIN 534 MIDTERM EXAMFIN 534 MIDTERM EXAMFIN 534 MIDTERM EXAM,FIN 534 MIDTERM EXAMFIN 534 MIDTERM EXAMFIN 534 MIDTERM EXAMFIN 534 MIDTERM EXAM

Reviews

There are no reviews yet.

Be the first to review “FIN 534 MIDTERM EXAM”

Your email address will not be published. Required fields are marked *