FIN 515 (FIN515)

FIN 515 - Week 4 Midterm Version 1/FIN 515 - Week 4 Midterm Version 1. Question (TCO G) The firm’s equity multiplier measures Question (TCO G) Suppose Novak Company experienced a reduction in its ROE over the last year. This fall could be attributed to Question (TCO B) A certain investment will pay $10,000 in 20 years. If the annual return on comparable investments is 8%, what is this investment currently worth? Show your work. Question (TCO B) You start saving $100 per month in an account...

FIN 516 FINAL EXAM (TCO E) Dakota Trucking Company (DTC) is evaluating a potential lease for a truck with a 4-year life that costs $40,000 and falls into the MACRS 3-year class. If the firm borrows and buys the truck, the loan rate would be 10%, and the loan would be amortized over the truck's 4-year life. The loan payments would be made at the end of each year. The truck will be used for 4 years, at the end of which time it will be sold at an estimated residual value of $10,000. If DTC buys th...

FIN 515 FINAL EXAM STUDY GUIDE 2 (TCO G) The Chadmark Corporation's budgeted monthly sales are $3,000. month, 40% of its customers pay and take the 2% discount. The remaining 60% pay in the month following the sale and don't receive a discount. Chadmark's bad debts are very small and are excluded from this analysis. Purchases for next month's sales are constant each month at $1,500. Other payments for wages, rent, and taxes are constant at $700 per month. Construct a single month's cash budge...

FIN 515 Final Exam 1 Study Guide TCO G) The Chadmark Corporation's budgeted monthly sales are $3,000. In the first month, 40% of its customers pay and take the 2% discount. The remaining 60% pay in the month following the sale and don't receive a discount. Chadmark's bad debts are very small and are excluded from this analysis. Purchases for next month's sales are constant each month at $1,500. Other payments for wages, rent, and taxes are constant at $700 per month. Construct a single month's...

FIN 515 MID-TERM EXAM (TCO B) A certain investment will pay $10,000 in 20 years. If the annual return on comparable investments is 8%, what is this investment currently worth? Show your work. (TCO F) A project requires an initial cash outlay of $60,000 & has expected cash inflows of $15,000 annuall for 8 years. The cost of capital is 10%. What is the project’s NPV Show your work. (TCO F) A project requires an initial cash outlay of $40,000 & has expected cash inflows of $12,000 annually for...

MANAGERIAL FINANCE MIDTERM EXAM

FIN 515 Midterm Exam 2 Questions and Answers