Fi515 Final Exam Week 8

1. Which of the interest does not always increase a ascend with market value a. Increase the evaluate growth exercising weight of sales b. increase the expected operating profitability (NOPAT/SALES) c. nightfall the detonator requirements (Capital /sales0 d. Decreasing the weighted average cost of swell e. Increasing the expected aim of recidivate on invested capital 2. Which of the following statement is correct a. The MIRR and MPV decision could neer meshing b. The IRR manner can never be subject to the septuple IRR problems, while the MIRR method can be c. One resolve quite a little prefer the MIRR to the regular IRR is that the MIRR is found on a chiefly more reasonable re-investment sum up assumption. d. The higher the WACC , the shorter the discounted payback period. e. The MIRR method assumes that cash flow atomic number 18 reinvested at the cross e genuinelywhere rate 3. The Ackert companys last dividend was a $1.55 , the dividend gro wth rate is expected to be changeless at 1.5% for two years, after which dividends be expected to grow a rate of 8.0% for ever. The firm required return the (rs) is 12.0% what is the best melodic theme of the current stock price. a.$37.05 b. 38.16 c.39.30 c. 40.48 d.41.7 Last dividend (D0)$1.55 short growth rate1.50% long growth rate8.

00% require return12.00% Year0123 1.50%1.50%8.00% Dividend$1.5500$1.5733$1.5968$1.7246 Terminal value = D3/(rs ? g3) =43.1149 Total CFs$1.5733$44.7118 PV of CFs$1.4047$35.6439 expense = Sum of PVs = $37.05 4. The Chadmark flock budgeted calendar monthl y sales are $3,000. In the first month, 40% ! of his customers paid and take the 2% discount the remaining 60% in the month following the sale and dont receive a discount. Chadmark bad debts are very small and is excluded from this analysis. Purchases for the next month sale are constant each month at $1500. Other payments for wages, rent, in taxes are constant at $700 per month, ramp up a single...If you wish to get a full essay, suppose it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay