ALL FI515 Week 5 Exam Answers ------------------------------------------------- Top of Form QUESTION 1: Which of the following statements is CORRECT? 1. One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability. 2. It is generally easier to transfer one’s ownership interest in a partnership than in a corporation. 3. One of the advantages of the corporate form of organization is that it avoids double taxation. 4. One of the advantages of a
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(3-1) Days sales outstanding Green Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year? Days of Sales Outstanding DSO= Receivables Average sales per day 20 days = Receivables Average sales per day Receivables= 20 days *$20,000 Receivables= $400,000 (3-2) Debt Ratio Vigo vacations has an equity multiplier of 2.5 .The company’s assets are financed with some
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CHAPTER 1 HOMEWORK 1. What is the most important difference between a corporation and all other organizational forms? A corporation is a legal entity separate from its owners. 4. What are the main advantages and disadvantages of organizing a firm as a corporation? Advantages: Limited liability, liquidity, infinite life Disadvantages: Double taxation, separation of ownership and control 8. You have decided to form a new start-up company developing applications for the
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FIN515 Homework Week # 3 Brian Jack D01609334 Managerial Finance briancjack@hotmail.com 03-23-2014 Professor: Paul Tovbin Chapter 5 29. Suppose the term structure of risk-free interest rates is as shown below: Top of Form |Term |1 year | |Treasury |3.1
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FIN515 Week 5 Project Equipment’s Basic Cost 70,000 To Modify it to Firm 15,000 The Spectrometer (MARC 3 year Class Would be sold after 3yrs 30,000 Equipment’s requires increase in net working capital 4,000 The Spectrometer no effect on Revenue But expected to save 25,000 per year before-tax operating cost Federal plus state tax rate 40% A. What is the net cost of the spectrometer- Price – 70,000+ 15,000 + 4,000 Net Cost – (89,000) B. What are the net operating cash
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Managerial Finance ; FIN515 1. What is the most important difference between a corporation and all other organizational forms? A corporation is a legal entity separate from its owners. 2. What does the phrase limited liability mean in a corporate context? Owners’ liability is limited to the amount they invested in the firm. Stockholders are not responsible for any encumbrances of the firm; in particular, they cannot be required to pay back any debts incurred by the firm. 3. Which
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Managerial Finance FIN515 Homework1 Mini case (a) Corporate Finance Investors provide enough funding for corporations to make quality goods and services that are highly valued by costumers and enables growth of the corporation. So managers’ primary goal is to generate enough cash to distribute compensation to investors. Understanding corporate finance allows managers to make monetary decisions that achieve the goal of adding value for investors and thus contribute to a company’s competitiveness
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========================================================== FIN515: Week-1 Assignment ========================================================== MINI-CASE (p. 45): Consulting Michelle DellaTorre To explain the U.S. Financial System to Ms. DellaTorre, I would provide her with the following answers to the questions given to me by my boss: 1. Why is corporate finance important to all managers? Corporate finance is a basic component of how a business is run. All managers should keep this
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