FIN 401 Midterm: Practice midterm

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carminelocust386

14 May 2011

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Thursday, october 22, 3:00 p. m. version a. Aids allowed: closed book except for an 8"1/2 by 11" note sheet. Answer all multiple choice questions on the scan sheet. All multiple choice questions are worth 1 mark each. Take it: a, b, in the article dated september 09, 2009, titled barrick dumps hedges, barrick states that they will place an equity issue. Assume no taxes or transactions costs, and a discount rate of 12%: ,152. 59, . 32, ,897. 44, 55,493. 22, none of the above www. notesolution. com, the discount rate in the question was 12%. If the discount rate in the question was actually. What is the ytm on the bonds: 1. 77, 3. 54, 5. 31, 7. 08, none of the above, please fill in the blank. Planning and managing the firm"s current assets and liabilities is called _____________: working capital management, capital budgeting, risk management, corporate governance, financial engineering, please fill in the blank.

Related Questions

Assume a semi-annual coupon bond matures in 3 years, has a facevalue of $1,000, a current market price of $989, and a 5 percentcoupon. Which one of the following statements is correct concerningthis bond?

Multiple Choice

The current coupon rate is greater than 5 percent.
The bond is a money market instrument.
The bond will pay less annual interest now than when it wasoriginally issued.
The current yield exceeds the coupon rate.
The bond will pay semi-annual payments of $50 each.

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Question9of10Total9 of 10

jadewoodchuck60

On October 1, 2013, Koppa Corp. issued $948,000, 7%, 10-year bonds at face value. The bonds were dated October 1, 2013, and pay interest annually on October 1. Financial statements are prepared annually on December 31.

Prepare the adjusting entry to record the accrual of interest on December 31, 2013. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

and

Assume that the following are independent situations recently reported in the Wall Street Journal.

1.		General Electric (GE) 7% bonds, maturing January 28, 2015, were issued at 110.80.
2.		Boeing 7% bonds, maturing September 24, 2029, were issued at 98.64.

(c)

Prepare the journal entry to record the issue of each of these two bonds, assuming each company issued $700,000 of bonds in total. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

there is parts of the question that can only be shown after i answer this part.

byzantiumchinchilla492

Question 1

The most recent financial statements for Heine, Inc., are shownhere:

Income Statement			Balance Sheet
Sales	$	23,700	Assets	$	55,200	Debt	$	20,400
Costs		14,400				Equity		34,800

Taxable income	$	9,300	Total	$	55,200	Total	$	55,200
Taxes (40%)		3,720

Net income	$	5,580

Assets and costs are proportional to sales. Debt and equity arenot. A dividend of $1,800 was paid, and the company wishes tomaintain a constant payout ratio. Next yearâs sales are projectedto be $29,625.

What is the external financing needed? (Do not roundintermediate calculations.)

External financing needed

Question 2

Al's Sport Store has sales of $2,830, costs of goods sold of$2,120, inventory of $507, and accounts receivable of $419. Howmany days, on average, does it take the firm to sell its inventoryassuming that all sales are on credit?

Multiple Choice

119.3
65.4
87.3
86.1
119.5

Answer ____________

blackrhinoceros795

FIN 401 Midterm: Practice midterm

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