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STR581 STR/581 Final Examination Part 2 Week four
1 . Just how firms approximate their cost of capital: The WACC for the firm is 13. 00 percent. You know that the business's cost of financial debt capital is definitely 10 percent and the cost of value capital can be 20% What proportion from the firm can be financed with debt? installment payments on your Ajax Corp. is wanting the following funds flows – $79, 000, $112, 500, $164, 000, $84, 500, and $242, 000 – over the following five years. If you�re able to send opportunity cost is 15 percent, what is the present value of those cash flows? (Round for the nearest dollar. ) 3. Variance reviews are:
four. A cost which in turn remains frequent per device at various levels of activity is a: five. Regatta, Inc., has six-year bonds excellent that shell out a 8. 25 percent coupon rate. Buyers buying the connection today can anticipate to earn a deliver to maturity of six. 875 percent. What if the company's provides be priced at today? Believe annual discount payments. (Round to the local dollar. ) 6. The convention of consistency refers to consistent utilization of accounting concepts: 7. The element in financial control is definitely:
eight. Firms that achieve larger growth rates without in search of external auto financing: 9. Gateway, Corp. has an inventory yield of five. 6. What is the firm's days's product sales in products on hand? 10. Which usually of the pursuing financial assertions is concerned while using company in a point with time? 11. The money conversion pattern?
12. The process of evaluating economic data that change below alternative courses of action is known as 13. Jayadev Athreya is his initially job. He can invest $5, 000 by the end of each yr for the next forty five years within a fund that could earn an excellent return of 10 %. How very much will Jayadev have towards the end of forty-five years? 16. If a industry�s weighted typical cost of capital is less than the required returning on value, then the firm: 15. Plug Robbins is definitely saving for a new car. This individual needs to have $21, 000 to get the car in three years. How much will this individual have to commit today within an account paying 8 percent annually to...