BUSFIN 4220 Study Guide - Midterm Guide: Accounts Payable, Capital Budgeting, Asset
30 Oct 2014
School
Department
Course
Professor
Document Summary
This sample exam contains questions representative of those used on exam 1. An answer key follows the questions; chapter references in the key are based on the 5th edition of the text. by chapter. Unlimited liability is faced by the owners of: corporations, partnerships and corporations, sole proprietorships and partnerships, corporations and sole proprietorships. Tuttle products had . 460 million in sales last year, . 257 million in cost of goods sold, depreciation expense of . 097 million, interest payments on outstanding debt of ,400, and cash dividends paid of ,150. The company"s marginal income tax rate is 35%. Net corporation has an roe of 24% and would like to see earnings grow at an 18% annual rate. Under these circumstances, what percent of earnings can they afford to pay as dividends: 35. 00, 13. 33, 75. 00, 25. 00% Business finance 620 sample exam 1 / page 2. Issuing debt in the form of long-term bonds sold to the public: repurchasing shares of common stock.
