Fin 350 Mini Test 1 Chapter 2 a-Z

Related Essays

Mini Case Chapter 11
Mini Case Chapter 11 BUS 401 Principles of Finance Lisa Parker Mini Case 11 Chapter 11 ... where we can all benefit from. My job has indeed been put to the test
Test Chapter 17 Office Management
Review Test Chapter 17 - Other Workplace Productivity Systems Instructions | | * Question 1 1 out of 1 points | | | On-demand copying best
Take Home Test Chapter 30 Ap Human Geography
Take Home Test Chapter 30 1. Describe the dispute between the United States and Russia at the end of World War II. How and why
Fin 350
The Role of Financial Institutions in Financial Markets Paper Carlson E. Willins FIN 350 Week 4 Prof. Angela Harris Financial Markets Assignment #1 October 31

Submitted by to the category Other Topics on 12/03/2011 11:04 AM

   Build your own FREE website at  Share: | digg | reddit | Twitter | facebook



1.      A firm has notes payable of $1,546,000, long-term debt of $13,000,000, and total interest expense of $1,300,000. If the firm pays 8 percent interest on its long-term debt, what interest rate does it pay on its notes payable?

        16.8%


2.      A start-up firm is making an initial investment in new plant and equipment. Currently, equipment is depreciated on a straight-line basis over 10 years. Assume that Congress is considering legislation that will allow the corporation to depreciate the equipment over 7 years. If the legislation becomes law, and the firm implements the 7-year depreciation basis, which of the following will occur?

        The firm's net cash flow will increase.


3.      A stock analyst has acquired the following information for Palmer Products:

      Retained earnings on the year-end 2001 balance sheet was $700,000.

      Retained earnings on the year-end 2002 balance sheet was $320,000.

      The company does not pay dividends.

      The company's depreciation expense is its only non-cash expense.

      The company has no non-cash revenues.

      The company's net cash flow for 2002 was $150,000.

On the basis of this information, which of the following statements is most correct?

        Palmer Products had negative net income in 2002.


4.      A stock market analyst has forecasted the following year-end numbers for Raedebe Technology:

      Sales                 $70 million

      EBITDA             $20 million

      Depreciation     $ 7 million

      Amortization     $ 0

The company's tax rate is 40 percent. The company does not expect any changes in its net operating working capital. This year the company's planned gross capital expenditures will total $12 million. (Gross capital expenditures represent capital expenditures before deducting depreciation.) What...

View Full Essay
Full Essay Stats...
  • Words: 62526
  • Pages: 251
  • Views: 1205