Back to Explore

Finc 332: Corporate Finance, Pt 2

Question 1 of 3

Q1 . Which one of the following does not affect the total equity of a firm but does increase the number of shares outstanding?

Q2 . A firm has an accounts payable period of 51 days, an inventory period of 38 days, and an accounts receivable period of 32 days. What is the length of the cash cycle?

Q3 . The value of the firm is maximized when the:

Q4 . Which one of the following is a direct cost of bankruptcy?

Q5 . Billingsley United declared a $0.20 a share dividend on Thursday, October 16. The dividend will be paid on Monday, November 10 to shareholders of record on Friday, October 31. Which one of the following is the ex-dividend date?

Q6 . Steve purchased 300 shares of Alpha Beta stock on May 9. On May 15, he purchased another 200 shares and then on May 22 he purchased a final 400 shares of Alpha Beta stock. The company declared a dividend of $1.60 a share on April 30 to holders of record on Friday, May 23. The dividend is payable on June 2. How much dividend income will Steve receive on June 2 from Alpha Beta?

Q7 . Which one of the following is a source of cash?

Q8 . A stock split:

Q9 . The ex-dividend date is defined as ___ business day(s) before the date of record.

Q10 . Which one of the following states that a firm's WACC is the same regardless of the firm's debt-equity ratio?

Q11 . Revol-Tech is a technology firm with excellent growth prospects. The firm wishes to do something to acknowledge the loyalty of the shareholders but needs all of its available cash to fund the firm's rapid growth. The market price of the stock is currently trading at the upper end of its preferred trading range. The firm is most apt to consider which one of the following in this situation?

Q12 . Your firm has projected quarterly sales of $900, $1,500, $1,600, and $2,000, respectively for the next year starting with the first quarter. The accounts receivable period is 60 days. How much will you collect in Quarter 3? Assume that a year has 360 days.

Q13 . Which one of the following is the preferred source of funding according to the pecking-order theory?

Q14 . Which one of the following favors a low dividend policy?

Q15 . The information content of a dividend increase generally signals that:

Q16 . A restrictive short-term financial policy:

Q17 . M&M Proposition I with tax implies that a firm's weighted average cost of capital:

Q18 . Peterson's Nursery has sales of $640,000 and COGS equal to 60% of sales. The beginning inventory is $54,000 and the ending inventory $58,000. What is the length of the inventory period?

Q19 . Which one of the following will increase your disbursement float?

Q20 . A bank account which receives funds only as needed to cover the demands for payments is called a ______ account.

Q21 . A stock repurchase program:

Q22 . Which one of the following statements is correct?

Q23 . Collection time includes each of the following EXCEPT the time it takes:

Q24 . Which one of the following statements is correct?

Q25 . Your firm has projected monthly sales of $800, $700, $1,100, and $1,300 for the months of January through April, respectively. Your cost of goods sold is 70 percent of the selling price and your AP period is 30 days. You purchase goods one month prior to the month to the month of sale. What are your cash disbursements for March?

Q26 . A flexible short-term financial policy is characterized by:

Q27 . You have a $60,000 line of credit with your local bank. The interest rate is 9 percent compounded quarterly. The loan agreement requires that 5 percent of the unused amount be maintained at the bank in a non-interest bearing account. On average, you earn a rate of 1 percent per quarter on your short-term investments. What is the effective annual rate of this agreement assuming that you never borrow any money during the year?

Q28 . When you reconciled your checkbook to the bank, you had outstanding deposits of $11,219 and outstanding checks of $14,708. Your adjusted check book balance is $5,239.

Q29 . Your firm receives the following checks each month. The average amount of each check and the average collection delay are as shown below. What is the weighted average delay assuming that each month has 30 days? A 31,000 3 days B 48,000 5 days C 91,000 2 days

Q30 . Which one of the following does not affect the total equity of a firm but does increase the number of shares outstanding?

Q31 . A firm has an accounts payable period of 51 days, an inventory period of 38 days, and an accounts receivable period of 32 days. What is the length of the cash cycle?

Q32 . The value of the firm is maximized when the:

Q33 . Which one of the following is a direct cost of bankruptcy?

Q34 . Billingsley United declared a $0.20 a share dividend on Thursday, October 16. The dividend will be paid on Monday, November 10 to shareholders of record on Friday, October 31. Which one of the following is the ex-dividend date?

Q35 . Steve purchased 300 shares of Alpha Beta stock on May 9. On May 15, he purchased another 200 shares and then on May 22 he purchased a final 400 shares of Alpha Beta stock. The company declared a dividend of $1.60 a share on April 30 to holders of record on Friday, May 23. The dividend is payable on June 2. How much dividend income will Steve receive on June 2 from Alpha Beta?

Q36 . Which one of the following is a source of cash?

Q37 . A stock split:

Q38 . The ex-dividend date is defined as ___ business day(s) before the date of record.

Q39 . Which one of the following states that a firm's WACC is the same regardless of the firm's debt-equity ratio?

Q40 . Revol-Tech is a technology firm with excellent growth prospects. The firm wishes to do something to acknowledge the loyalty of the shareholders but needs all of its available cash to fund the firm's rapid growth. The market price of the stock is currently trading at the upper end of its preferred trading range. The firm is most apt to consider which one of the following in this situation?

Q41 . Your firm has projected quarterly sales of $900, $1,500, $1,600, and $2,000, respectively for the next year starting with the first quarter. The accounts receivable period is 60 days. How much will you collect in Quarter 3? Assume that a year has 360 days.

Q42 . Which one of the following is the preferred source of funding according to the pecking-order theory?

Q43 . Which one of the following favors a low dividend policy?

Q44 . The information content of a dividend increase generally signals that:

Q45 . A restrictive short-term financial policy:

Q46 . M&M Proposition I with tax implies that a firm's weighted average cost of capital:

Q47 . Peterson's Nursery has sales of $640,000 and COGS equal to 60% of sales. The beginning inventory is $54,000 and the ending inventory $58,000. What is the length of the inventory period?

Q48 . Which one of the following will increase your disbursement float?

Q49 . A bank account which receives funds only as needed to cover the demands for payments is called a ______ account.

Q50 . A stock repurchase program:

Q51 . Which one of the following statements is correct?

Q52 . Collection time includes each of the following EXCEPT the time it takes:

Q53 . Which one of the following statements is correct?

Q54 . Your firm has projected monthly sales of $800, $700, $1,100, and $1,300 for the months of January through April, respectively. Your cost of goods sold is 70 percent of the selling price and your AP period is 30 days. You purchase goods one month prior to the month to the month of sale. What are your cash disbursements for March?

Q55 . A flexible short-term financial policy is characterized by:

Q56 . You have a $60,000 line of credit with your local bank. The interest rate is 9 percent compounded quarterly. The loan agreement requires that 5 percent of the unused amount be maintained at the bank in a non-interest bearing account. On average, you earn a rate of 1 percent per quarter on your short-term investments. What is the effective annual rate of this agreement assuming that you never borrow any money during the year?

Q57 . When you reconciled your checkbook to the bank, you had outstanding deposits of $11,219 and outstanding checks of $14,708. Your adjusted check book balance is $5,239.

Q58 . Your firm receives the following checks each month. The average amount of each check and the average collection delay are as shown below. What is the weighted average delay assuming that each month has 30 days? A 31,000 3 days B 48,000 5 days C 91,000 2 days