MCA 1 EXAM
MCA 1 EXAM QUESTIONS AND ANSWERS GRADED A+
Which of the following is likely to be the most
informative source if you were interested in a company's
business plan or strategy? ANS >> Management discussion
and analysis
Wilco Company reports the following:
2005-2004
retained earnings 2,000,000-1,300,000
common stock 500,000-500,000
paid-in capital 3,000,000-3,000,000
net income for year 900,000-400,000
Dividend payout ratio for 2005 was: ANS >> 22.2%
,MCA 1 EXAM
If a company receives an unqualified audit opinion it
means the auditors: ANS >> are providing assurance that
the company's financial statements fairly present
company's financial performance and position.
You are analysing a large stable company. For the year
ending 12/31/2015 the company reported earnings of
$58,900 and book value at the end of 2015 was
$371,700. You expect earnings to grow at 5% a year in
perpetuity, and the dividend payout ratio of 70% to
continue. The company borrows at 8%, and has a cost of
equity of 12%. The company has 25,000 shares
outstanding. What is your estimate of price per share
using the dividend discount model at 12/31/2015? ANS >>
24.74
You are analysing a large stable company. For the year
ending 12/31/2015 the company reported earnings of
$58,900 and book value at the end of 2015 was
$371,700. You expect earnings to grow at 5% a year in
perpetuity, and the dividend payout ratio of 70% to
continue. The company borrows at 8%, and has a cost of
equity of 12%. The company has 25,000 shares
, MCA 1 EXAM
outstanding. What is your estimate of price using the
residual income valuation model at 12/31/05? ANS >> 24.72
Which of the following is not a common tool used in
financial statement analysis? ANS >> random walk analysis
You have prepared a trend series for Company XYZ for
three years, 2004-2006 inclusive, using 2004 as the base
year. Below are selected data.
Sales 100-120-135
Net income 99-118-128
Total assets 100-119-130
From the above information, you can infer that: ANS >> rate
of sales growth has decreased
Following question 7, which of the following statements
is incorrect? ANS >> XYZ’s net income to sales (return on
sales) is higher in 2006 as compared to 2004.
While determining the most profitable company from the
given number of companies, which of the following
MCA 1 EXAM QUESTIONS AND ANSWERS GRADED A+
Which of the following is likely to be the most
informative source if you were interested in a company's
business plan or strategy? ANS >> Management discussion
and analysis
Wilco Company reports the following:
2005-2004
retained earnings 2,000,000-1,300,000
common stock 500,000-500,000
paid-in capital 3,000,000-3,000,000
net income for year 900,000-400,000
Dividend payout ratio for 2005 was: ANS >> 22.2%
,MCA 1 EXAM
If a company receives an unqualified audit opinion it
means the auditors: ANS >> are providing assurance that
the company's financial statements fairly present
company's financial performance and position.
You are analysing a large stable company. For the year
ending 12/31/2015 the company reported earnings of
$58,900 and book value at the end of 2015 was
$371,700. You expect earnings to grow at 5% a year in
perpetuity, and the dividend payout ratio of 70% to
continue. The company borrows at 8%, and has a cost of
equity of 12%. The company has 25,000 shares
outstanding. What is your estimate of price per share
using the dividend discount model at 12/31/2015? ANS >>
24.74
You are analysing a large stable company. For the year
ending 12/31/2015 the company reported earnings of
$58,900 and book value at the end of 2015 was
$371,700. You expect earnings to grow at 5% a year in
perpetuity, and the dividend payout ratio of 70% to
continue. The company borrows at 8%, and has a cost of
equity of 12%. The company has 25,000 shares
, MCA 1 EXAM
outstanding. What is your estimate of price using the
residual income valuation model at 12/31/05? ANS >> 24.72
Which of the following is not a common tool used in
financial statement analysis? ANS >> random walk analysis
You have prepared a trend series for Company XYZ for
three years, 2004-2006 inclusive, using 2004 as the base
year. Below are selected data.
Sales 100-120-135
Net income 99-118-128
Total assets 100-119-130
From the above information, you can infer that: ANS >> rate
of sales growth has decreased
Following question 7, which of the following statements
is incorrect? ANS >> XYZ’s net income to sales (return on
sales) is higher in 2006 as compared to 2004.
While determining the most profitable company from the
given number of companies, which of the following
