60.1K

Verified Solution

Link Copied!

Answer all please

(Fin. Stmts.) Which of the following statements regarding financial statement analysis is incorrect?

• A. The profit margin can be viewed as a measure of expense control.
• B. The two most popular measures of company size are net sales revenue and total assets.
• C. A profitability ratio provides a comparison of an income measure and a size measure.
• D. In DuPont analysis we break return on assets down into two other ratios that can be compared to their own industry average benchmarks.
• E. The current ratio measures a companys effectiveness in using fixed assets to support sales.

(Risk & Return) What is the require rate of return on a stock with beta of 1.3 and standard deviation of returns of 15% if the risk-free rate is 1.2% and the return on the market is 7%? A. 8.14% B. 10.30% C. 9.20% D. 11.54% E. 8.74%

(TVM) If Ms. P wants to withdraw $900 from an account earning 4% average annual interest rate at the start of each year for 7 years, how much must she have in the account today? Hint: use the Basic Time Value of Money table attached to this quiz or a financial calculator, or TVM keys. A. $5,401.85 B. $7,392.80 C. $5,617.92 D. $6,059.47 E. $5,194.09

(Capl Budgeting) If the managers of HHH Enterprises were to commit to an investment project under consideration, they would obtain 40% of the money to buy the needed assets from lenders (wd) and 60% from owners (we). Lenders would be expected to charge an 8% annual interest rate (kd), and owners would expect a 12% annual rate of return on equity (ke). If the project were undertaken, the companys marginal yearly income tax rate t would be 30%. What would we compute the annual weighted average cost of capital (WACC) for the project to be? A. 8.24% B. 11.60% C. 7.28% D. 9.44% E. 10.40%

(Bond Value) MMM Company borrows money through a bond issue with a $1,000 par value and a 9% annual coupon interest rate, semiannual payments, and maturity of five years. What price should someone who requires an 8% annual rate of return (yield to maturity) be willing to pay for one of these bonds? (The semi-annual payment schedule is important to the computation.) Hint: use the Basic Time Value of Money table attached to this quiz or a financial calculator. A. $1,040.55 B. $990.83 C. $1,009.26 D. $1,125.56 E. $1,254.64

(Capl Budgeting) You choose among three mutually exclusive investment projects, all of which have a positive NPV. Assuming the projects are of identical risk, you should choose the one with A. the highest IRR (internal rate of return) B. the shortest payback period C. the longest payback period D. the highest NPV

(Bond Value and Yields). What is the annual yield to maturity of a bond with a 4.5% annual coupon rate, semiannual payments, $1,000 par value, current price of $988, and 6 years to maturity. (Simply double the semiannual yield to get the annual yield.) A. 2.37% B. 4.73% C. 4.80% D. 4.32% E. 9.47%

Answer & Explanation Solved by verified expert

See Answer