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FINC 3610 Final Exam Prep Newest Actual Exam With
Complete 100 Questions And Correct Detailed
Answers ||Verified Exam!!! (Verified Answers) |Already
Graded A+||Newest Exam!!!
1. Which one of the following best states the primary goal
of financial management? - Answers-Maximize the current
value per share
1. Which one of the following actions by a financial
manager is most apt to create an agency problem? -
Answers-Increasing current profits when doing so lowers
the value of the firm's equity
1. Corporate dividends are: - Answers-Taxable as personal
income when received by shareholders even though that
income was taxed at the corporate level.
1. Which of the following is a strength of a corporation? -
Answers-limited liability
Which of the following legal forms of organization is most
expensive to organize? - Answers-Corporations
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Under which of the following legal forms of organization is
ownership readily transferable? - Answers-Corporations
Which one of the following is a capital budgeting decision?
- Answers-Deciding whether or not to purchase a new
machine for the production line.
1. A ______ is responsible for evaluating and
recommending proposed long-term investments. -
Answers-capital expenditures manager
Which of the following legal forms of organization has the
ease of dissolution? - Answers-sole proprietorships
1. Which of the following forms of organizations is the
easiest to form? - Answers-sole proprietorships
During the year, the Senbet Discount Tire Company had
gross sales of $865,000. The firm's cost of goods sold and
selling expenses were $455,000 and $210,000,
respectively. The company also had notes payable of
$680,000. These notes carried an interest rate of 4
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percent. Depreciation was $105,000. The tax rate was 21
percent.
What was the company's operating cash flow? (Do not
round intermediate calculations. Enter your answer in
dollars, not millions of dollars, rounded to the nearest
whole dollar amount, e.g., 1,234,567.)
Hint: OCF = EBIT + Depreciation − Taxes - Answers-
185,762
OCF = EBIT + Depreciation − Taxes
OCF = $95,000 + 105,000 − 14,238
OCF = $185,762
During the year, the Senbet Discount Tire Company had
gross sales of $865,000. The firm's cost of goods sold and
selling expenses were $455,000 and $210,000,
respectively. The company also had notes payable of
$680,000. These notes carried an interest rate of 4
percent. Depreciation was $105,000. The tax rate was 21
percent.
What was the company's net income? (Do not round
intermediate calculations. Enter your answer in dollars, not
millions of dollars, rounded to the nearest whole dollar
amount, e.g., 1,234,567.)
, 4|Page
Hint: Build the income statement. The interest expense for
the company is the amount of debt times the interest rate
on the debt. - Answers-53,562
Income Statement
Sales $865,000
Cost of goods sold 455,000
Selling costs 210,000 Depreciation 105,000
EBIT$95,000
Interest 27,200
Taxable income$67,800 Taxes (21%) 14,238
Net income$53,562
Penguin Pucks, Inc., has current assets of $3,400, net
fixed assets of $18,500, current liabilities of $2,900, and
long-term debt of $7,700.
How much is net working capital?
Hint: NWC = CA − CL. - Answers-$500
FINC 3610 Final Exam Prep Newest Actual Exam With
Complete 100 Questions And Correct Detailed
Answers ||Verified Exam!!! (Verified Answers) |Already
Graded A+||Newest Exam!!!
1. Which one of the following best states the primary goal
of financial management? - Answers-Maximize the current
value per share
1. Which one of the following actions by a financial
manager is most apt to create an agency problem? -
Answers-Increasing current profits when doing so lowers
the value of the firm's equity
1. Corporate dividends are: - Answers-Taxable as personal
income when received by shareholders even though that
income was taxed at the corporate level.
1. Which of the following is a strength of a corporation? -
Answers-limited liability
Which of the following legal forms of organization is most
expensive to organize? - Answers-Corporations
,2|Page
Under which of the following legal forms of organization is
ownership readily transferable? - Answers-Corporations
Which one of the following is a capital budgeting decision?
- Answers-Deciding whether or not to purchase a new
machine for the production line.
1. A ______ is responsible for evaluating and
recommending proposed long-term investments. -
Answers-capital expenditures manager
Which of the following legal forms of organization has the
ease of dissolution? - Answers-sole proprietorships
1. Which of the following forms of organizations is the
easiest to form? - Answers-sole proprietorships
During the year, the Senbet Discount Tire Company had
gross sales of $865,000. The firm's cost of goods sold and
selling expenses were $455,000 and $210,000,
respectively. The company also had notes payable of
$680,000. These notes carried an interest rate of 4
,3|Page
percent. Depreciation was $105,000. The tax rate was 21
percent.
What was the company's operating cash flow? (Do not
round intermediate calculations. Enter your answer in
dollars, not millions of dollars, rounded to the nearest
whole dollar amount, e.g., 1,234,567.)
Hint: OCF = EBIT + Depreciation − Taxes - Answers-
185,762
OCF = EBIT + Depreciation − Taxes
OCF = $95,000 + 105,000 − 14,238
OCF = $185,762
During the year, the Senbet Discount Tire Company had
gross sales of $865,000. The firm's cost of goods sold and
selling expenses were $455,000 and $210,000,
respectively. The company also had notes payable of
$680,000. These notes carried an interest rate of 4
percent. Depreciation was $105,000. The tax rate was 21
percent.
What was the company's net income? (Do not round
intermediate calculations. Enter your answer in dollars, not
millions of dollars, rounded to the nearest whole dollar
amount, e.g., 1,234,567.)
, 4|Page
Hint: Build the income statement. The interest expense for
the company is the amount of debt times the interest rate
on the debt. - Answers-53,562
Income Statement
Sales $865,000
Cost of goods sold 455,000
Selling costs 210,000 Depreciation 105,000
EBIT$95,000
Interest 27,200
Taxable income$67,800 Taxes (21%) 14,238
Net income$53,562
Penguin Pucks, Inc., has current assets of $3,400, net
fixed assets of $18,500, current liabilities of $2,900, and
long-term debt of $7,700.
How much is net working capital?
Hint: NWC = CA − CL. - Answers-$500
