FIN 571 Week 3 Interpreting Financial Results Home

Depot Answer
FIN 571 Week 3 Interpreting Financial Results Home Depot Answer
FIN 571 Week 3 Interpreting Financial Results Home Depot Answer
Review the assigned companys financial statements from the past three years.
Calculate the financial ratios for the assigned companys financial statements, and then
interpret those results against company historical data as well as industry benchmarks:
Compare the financial ratios with each of the preceding three (3) years (e.g. 2014 with
2013; 2013 with 2012; and 2012 with 2011).
Compare the calculated financial ratios against the industry benchmarks for the
industry of your assigned company.
Use Yahoo Finance for help Write a 500 to 750 word summary of your analysis.
Show financial calculations where appropriate.

Pennfoster Exam 050472RR Introduction to Economics

and the Economy Answer
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Pennfoster Exam 050472RR Introduction to Economics and the Economy Answer
1. Which one of the following statements about trade blocs is correct?
A. A trade bloc is a tariff or quota that impedes imports.
B. A trade bloc is a group of nations that allows free trade among member nations but
restricts imports from nonmember nations via tariffs and quotas.
C. A trade bloc is an area of a nation where manufacturers can import product
components without paying tariffs.
D. A trade bloc is a group of nations that advertise their common export goods abroad.
2. The largest functional share of the national income consists of
A. corporate profits.
B. wages and salaries.
C. proprietors income, that is, the income of unincorporated businesses.
D. interest and rental income.
3. Black markets are associated with _______ and the resulting product _______.
A. price floors, surpluses
B. ceiling prices, shortages
C. price floors, shortages
D. ceiling prices, surpluses
4. According to the concept of comparative advantage, a good should be produced in
that nation where
A. money is used as a medium of exchange.
B. the terms of trade are maximized.

C. its domestic opportunity cost is greatest.

D. its domestic opportunity cost is least.
5. Governments economic role is complicated by the fact that
A. the public sector cant base decisions on marginal costs and marginal benefits.
B. the marginal utility of public goods rises rather than falls.
C. economic decisions are made in a political context.
D. public goods entail no opportunity costs.
6. Taxes on commodities or on purchases are known as _______ taxes.
A. corporate income
B. payroll
C. personal income
D. sales and excise
7. Which one of the following is not an important source of revenue for the federal
government?
A. Personal income taxes
B. Payroll taxes
C. Corporate income taxes
D. Property taxes
8. The economizing problem is one of deciding how to make the best use of
A. unlimited resources to satisfy limited wants.
B. virtually unlimited resources to satisfy virtually unlimited wants.
C. limited resources to satisfy limited wants.
D. limited resources to satisfy virtually unlimited wants.
9. If a product is in surplus supply, its price
A. is below the equilibrium level.
B. will rise in the near future.
C. is in equilibrium.
D. is above the equilibrium level.
10. Macroeconomics approaches the study of economics from the viewpoint of
A. individual firms.
B. the operation of specific product and resource markets.
C. the entire economy.
D. governmental units.
11. Macroeconomic stability is said to exist in an economy whenever
A. output matches production capacity, labor is fully employed, and inflation is low and
stable.
B. total spending exceeds production capacity.
C. the rates of output growth, unemployment, and inflation are all zero.
D. theres no inflation.
12. Money is not considered to be an economic resource because
A. it isnt scarce.
B. idle money balances dont earn interest income.

C. money, as such, isnt productive.

D. money isnt a free gift of nature.
13. Which one of the following is not a characteristic of the market system?
A. Government ownership of the major industries
B. Private property
C. Competition in product and resource markets
D. Freedom of enterprise
14. Joe sold gold coins for $1,000 that he bought a year ago for $1,000. He says, At least
I didnt lose any
money on my financial investment. His economist friend points out that in effect he did
lose money,
because he could have received a 3 percent return on the $1,000 if he had bought a bank
certificate of
deposit instead of the coins. The economists analysis in this case incorporates the idea
of
A. normative economics.
B. marginal benefits that exceed marginal costs.
C. imperfect information.
D. opportunity costs.
15. When an economist says that the demand for a product has increased, this means
that
A. consumers are now willing to purchase more of this product at each possible price.
B. the demand curve has shifted to the left.
C. the product has become particularly scarce for some reason.
D. product price has fallen and, as a consequence, consumers are buying a larger
quantity of the product.
16. Which one of the following statements about the scarcity problem is correct?
A. The scarcity problem persists only because countries have failed to achieve
continuous full employment.
B. The scarcity problem persists because economic wants exceed available productive
resources.
C. The scarcity problem has been eliminated in affluent societies such as the United
States and Canada.
D. The scarcity problem has been solved in all industrialized nations.
17. An income tax is progressive if the
A. absolute amount paid as taxes varies directly with income.
B. percentage of income paid as taxes is the same regardless of the size of income.
C. tax rate varies inversely with income.
D. percentage of income paid as taxes increases as income increases.
18. The U.S. Food Stamp program, which provides coupons that allow low-income
individuals to buy
food, is an illustration of
A. the redistributional function of government.
B. public provision of a suitable legal framework for the market system.

C. the stabilization function of government.

D. a government action designed to enhance competition.
19. Which one of the following statements about stocks is correct?
A. Stock are issued by sole proprietorships.
B. Stock are also known as bonds.
C. Stock are promises to repay a loan.
D. Stock are shares of ownership of a corporation.
20. Other things equal, an excise tax on a product will increase
A. its price.
B. its supply.
C. its demand.
D. the quantity sold
Pennfoster Exam 050472RR Introduction to Economics and the Economy Answer

Off Road, Inc. (ORI) is considering a new product a shock

absorbing seat cushion Answer
Off Road, Inc. (ORI) is considering a new product a shock absorbing seat cushion
Answer
Off Road, Inc. (ORI) is considering a new producta shock absorbing seat cushion to
be sold to its Dune Buggy customers. Currently, ORI does not sell any accessories, so
this product will not affect the sales or costs of any other product.
The seat cushion is expected to sell for $60 per unit. Variable production cost is
estimated at $7 per unit, packaging at $2 per unit, and other variable costs at $1 per
unit. Fixed costs, above those already incurred by the company, expected to result from
this product are estimated at $1,000 annually. In addition, the product will tie up an
average of $5,000 in working capital, which will not be freed up until termination of the
product.
ORI feels it can add the product cheaply because it has excess capacity in its
administrative functions. For example, preparation of orders, billing, and shipping of
the seat cushions can be handled by the current staff. In addition, production and
storage will use a small currently idle portion of the existing plant and warehouse.
Under the current cost allocation system, the existing overhead that could be allocated
to the new product totals $4,000 annually.
ORI is in the 30% income tax bracket and uses the same accounting policies and
procedures for income tax reporting as it does for financial reporting.
ORIs weighted average cost of capital is 13%. Its average borrowing rate is 12%; its
borrowing rate on its most recent loan is 14%; and its incremental borrowing rate for it
next loan is 15%. No new borrowing is expected to result from addition of this product.
Management has asked you to determine the level of annual sales necessary for this
product to break even. Management is aware that there is infrequently one right
answer; therefore, management wants you to provide three alternative computations
in rank order from best to third best and provide brief explanations of the strengths and
weaknesses of each solution along with the computation.

ACT 350 Week 2 Transactions for Hunter Marketing Trial

Balanace Complete Answer
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ACT 350 Week 2 Transactions for Hunter Marketing Trial Balanace Complete Answer
Listed below are the transactions for Hunter Marketing. Inc. for the month of July:
July 1 Hunter begins his marketing company and invests $50,000 cash.
July 5 Purchases computers and office equipment on account from OfficeMax for
$10,250.
July 6 Pays rent for office space $800 for the month.
July 6 Employs a secretary, Mary Jones.
July 8 Purchases office supplies for cash $960.
July 9 Receives $2,430 from customer for services performed.
July 11 Pays miscellaneous office expenses $375.
July 13 Bills customers $4,900 for serviced performed.
July 15 Pays Office Max $3,500 on account.
July 18 Withdraws $2,000 from business for personal use.
July 20 Receives $1,900 from customers on account.
July 23 Bills customers $6,320 for services performed.
July 30 Pays the following expenses in cash: office salaries $2,300 and utilities $400.
Enter the transactions shown above in appropriate general ledger accounts (use Taccounts). Use the following ledger accounts: Cash, Accounts Receivable, Supplies on
Hand, Office Equipment, Accumulated Depreciation, Accounts Payable, HunterCapital, Service Revenue, Rent Expense, Miscellaneous Office Expense, Office Salaries
Expense, Supplies Expense, Utilities Expense, Depreciation Expense and Income
Summary.
Prepare an unadjusted trial balance.
Record depreciation using a 5-year life on the office equipment, the straight-line
method, and no salvage value. Round to whole numbers. Also, record an adjustment for
office supplies used in the amount of $510.
Prepare an adjusted trial balance.
Prepare an income statement, a statement of retained earnings, and an unclassified
balance sheet.
Close the ledger.
Prepare a post-closing trial balance.
ACT 350 Week 2 Transactions for Hunter Marketing Trial Balanace Complete Answer

PROJ 591 Sustainability Proj Management Final Week 7

Course Project Answer
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PROJ 591 Sustainability Proj Management Final Week 7 Course Project Answer
Course Project: Development of a Green Multiuse Academic Building
The embedded US Green Building Council link below is to www.usgbc.org
The project for this course is a group assignment where each group will follow project
management best practices and prepare several key project management deliverables to
support the efficient and effective delivery of a green multiuse academic building. To
learn more about green building practices, view the Tutorial and visit the US Green
Building Council http://www.usgbc.org/ to learn about their LEED program, which
stands for Leadership in Energy and Environment Design. LEED is a series of
guidelines to ensure buildings are sustainable. The guidelines address the following
issues that you should consider for your project:
Site Location
Water Conservation
Energy Efficiency
Materials
Indoor Air Quality
The project for this course is a group assignment where each group will follow project
management best practices and prepare several key project management deliverables to
support the efficient and effective delivery of a green multiuse academic building. The
required deliverables will center around the most common and value-added components
of any project following a standard project management methodology.
Each group will submit specific deliverables over the course of the 8-week semester with
a concluding final report and a PowerPoint presentation of the summary documents.
Please note that each team needs only one person to submit the assignment via the
Dropboxmake sure to include all the members in each deliverable. The PowerPoint
presentation should include annotated footnotes that provide clarification of any
highlights from the individual slides. The final written report will be submitted during
Week 7 and must include the following components.
1. The project charter
2. The scope statement
3. The work breakdown structure (WBS)
4. The communications plan
5. The risk register
The component parts of the final report will be developed as draft documents
(milestones) during each weekly session, according to the schedule as provided below.
Other considerations include
report formatting and documentation;
using case study references;
graphic images;
consistency between groups;
quality versus quantity;
team members cooperation; and
problem resolutions.
Topic Due Date Description
Project Charter Week 2 Using the template provided in Doc Sharing (Project Charter

Template), develop a project charter. The charter should include (1) background and
description, (2) objectives and benefits, (3) initial risks, (4) assumptions, (5) constraints,
(6) success criteria, and (7) management of change requests.
Scope Statement Week 3 Using the template provided in Doc Sharing (Scope Statement
Template), develop a scope statement. The scope statement should include (1) detailed
background and description, (2) specific project deliverables, (3) expectations of what is
in scope, (4) clear identification of what is not in scope (exclusions), and (5) additional
risks identified since the creation of the charter.
Work Breakdown Structure (WBS) Week 4 Using the example provided in Doc Sharing
(WBS Example), develop a three-level WBS reflecting the decomposition of major
deliverables to a lower level of detail.
Communications Plan Week 5 Using the template provided in Doc Sharing
(Communication Plan Template), develop a communications plan. The communications
plan should include (1) what information needs to be communicated, (2) to whom this
information needs to be communicated, (3) the frequency of this communication, (4) the
format of the communication, and (5) who is responsible for the communication.
Risk Register Week 6 Using the template provided in Doc Sharing (Risk Register
Template), develop a risk register. The risk register should include (1) a minimum of 10
risks, (2) the probability of each risk on a scale of 1 to 5, (3) the impact of each risk on a
scale of 1 to 5, (4) the risk score, and (5) the risk response (mitigation, contingency, and
many more).
Final Course Project Week 7 The Final Course Project is the comprehensive collection
of the deliverables completed through the course to date and provides detailed insight
into the projects goals, objectives, scope, risk, and communications efforts.
PROJ 591 Sustainability Proj Management Final Week 7 Course Project Answer

Mini Case GM vs. Toyota common-size income statement

and common-size balance sheet Answer
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Mini Case GM vs. Toyota common-size income statement and common-size balance
sheet Answer
Mini Case GM vs. Toyota
A. Common-sized income statement
Toyota
Common-Sized Income Statement 2008 2009
Sales $262,394 100.0% $172,749 100.0%
Cost of goods sold 199,912 73.5% 129,100 74.7%
Gross profit 62,482 26.5% 43,649 25.3%

Selling, general, and administrative expenses

24,938
9.5%
25,804
12.3%
1%
General Motors
Common-Sized Income Statement 2007 2008
Sales $179,984 100.0% $148,979 100.0%
Cost of goods sold 160,856 89.4% 149,311 100.2%
Gross profit 19,128 10.6% 149.311 0.2%
Selling, general, and administrative expenses
14,412
8.0%
149,311
9.9%
Depreciation and amortization 9,513 5.3% 9,931 6.7%
Operating profit (4,797) 2.7% (25,064) 16.8%
Interest expense 3,307 1.8% 3,055 2.1%
Net income (38,732) 21.5% (30,860) 20.7%
Toyota
Common-Sized Balance Sheet 2008 2009
Assets:
Cash & Equivalents $23,012 7.1% $30,386 10.3%
173,633 53.6% 175,027 59.2%
Accumulated depreciation (95,661) 29.5% (99,677) 33.7%
Net plant, property & equipment 77,972 24.1% 75,350 25.5%
Investments 0.0% 0.0%
Intangibles 0.0% 0.0%
Other assets 125,363 38.7% 105,482 35.7%
Total assets $323,968 100.0% $295,857 100.0%
Liabilities:
Accounts payable $22,086 6.8% $13,229 4.5%
Paid-in capital 4,966 1.5% 5,102 1.7%
Retained earnings 121,443 37.5% 106,117 35.9%
Less: Treasury stock (11,902) 3.7% (12,836) 4.3%
Common equity 118,470 36.6% 102,425 34.6%
Total liabilities and equity $323,968 100.0% $295,857 100.0%
General Motors
Common-Sized Balance Sheet 2008 2009
Assets:
Other assets 38,751 26.0% 7,846 8.6%
Total assets $148,883 100.0% $91,047 100.0%

Liabilities:
Accounts payable $29,439 19.8% $22,236 24.4%
Notes payable 6,047 4.1% 15,754 17.3%
Accrued expenses 34,024 22.9% 35,921 39.5%
Short-term notes 0.0% 0 0.0%
Paid-in capital 15,319 10.3% 15,755 17.3%
Retained earnings (53,356) 35.8% (102,926) 113.0%
Common equity (37,094) 24.9% (86,154) 94.6%
Total liabilities and equity $148,883 100.0% $91,0447 100.0%
1. Prepare a common-size income statement and common-size balance sheet for each
firm for both years.
2. How much profit (loss) was each company making per dollar of sales?
a. To what would you attribute any differences?
3. What difference do you notice in the common-sized balance sheets that could account
for the problems of GM relative to Toyota?
Mini Case GM vs. Toyota common-size income statement and common-size balance sheet
Answer

BUSN 379 Midterm Exam Perfect A+ Answers

BUSN 379 Midterm Exam Perfect A+ Answers
1. (TCO 1) What is the goal of financial management for a sole proprietorship? (Points :
3)
decrease long-term debt to reduce the risk to the owner
maximize net income given the resources of the firm
maximize the market value of the equity
minimize the tax impact on the proprietor
minimize costs and increase production
2. (TCO 1) Working capital management includes which of the following? (Points : 3)
establishing the inventory level
deciding when to pay suppliers
determining the amount of cash needed on a daily basis
establishing credit terms for customers
all of the above
3. (TCO 1) Market value reflects which of the following: (Points : 3)
The amount someone is willing to pay today for an asset.
The value of the asset based on generally-accepted accounting principles.
The assets historical cost.
A and B only
None of the above

4. (TCO 1) Which of the following is true regarding income statements? (Points : 3)

It shows the revenue and expenses, based upon selected accounting methods.
It reveals the net cash flows of a firm over a stated period of time.
It reflects the financial position of a firm as of a particular date.
It records revenue only when cash is received for the product or service provided.
It records expenses based on the recognition principle
5. (TCO 1) Tatos Pizza has sales of $625,000. They paid $43,000 in interest during the
year and depreciation was $79,000. Administrative costs were $100,000 and other costs
were $160,000. Assuming a tax rate of 35 percent, what is Tatos Pizza net income?
(Points : 3)
$157,950
$322,000
$243,000
$200,000
6. (TCO 1) Home Best Hardware had $315,000 in taxable income last year. Using the tax
rates provided in Table 2.3, what is the marginal tax rate?(Points : 3)
35%
39%
34%
32%
7. (TCO 1) Pizza A had earnings after taxes of $390,000 in the year 2008 and 300,000
shares outstanding. In year 2009, earnings after taxes increased by 20 percent to
$468,000 and 25,000 new shares were issued for a total of 325,000 shares. What is the
EPS figure for 2008? (Points : 3)
$1.30
$1.44
$0.77
$0.69
8. (TCO 1) The income statement reflects: (Points : 3)
income and expenses at the time when those items affect the cash flows of a firm.
income and expenses in accordance with GAAP.
the cash flows in accordance with GAAP.
the flow of cash into and out of a firm during a stated period of time.
the flow of cash into and out of a firm as of a particular date
9. (TCO 1) Print Imaging has EBIT of $150,000, interest of $30,000, taxes of $50,000,
and depreciation of $50,000. What is the companys operating cash flow? (Points : 3)
$120,000
$180,000
$170,000

$150,000
$120,000
10. (TCO 3) Mark deposited $1,000 today, in an account that pays eight percent interest,
compounded semi-annually. Which one of the following statements is correct concerning
this investment? (Points : 3)
Mark will earn more interest in year 4 than he will in year 3.
Mark will receive equal interest payments every six months over the life of the
investment.
Mark would have earned more interest if he had invested in an account paying 8
percent simple interest.
Mark would have earned more interest if he had invested in an account paying annual
interest.
Mark will earn less and less interest each year over the life of the investment
11. (TCO 3) Mr. Smith will receive $7,500 a year for the next 14 years from his trust. If
the interest rate on this investment is eight percent, what is the approximate current
value of these future payments? (Points : 3)
$61,800
$53,500
$113,400
$97,200
12. (TCO 3) Your neighbor just received a credit offer in an e-mail. The company is
offering him $6,000 at 12.8 percent interest. The monthly payment is only $110. If he
accepts this offer, how long will it take him to pay off the loan? (Points : 3)
81.00 months
81.50 months
83 months
82.17 months
90.70 months
13. (TCO 3) Fine Oak Woodworks is considering a project that has cash flows of $5,000,
$3,000, and $8,000 for the next three years. If the appropriate discount rate of this
project is 10 percent, which of the following statements is true? (Points : 3)
The current value of the projects inflows is $16,000
The approximate current value of the projects inflows is $13,000
The current value of the projects inflows is somewhere in between $14,000 and $16,000
The project should be rejected because its present value is negative
14. (TCO 4) You are considering two investments. Investment I is in a software
company, and Investment II is an engineering company. The investments offer the
following cash flows:
Year Software Company Engineering Company

If the appropriate discount rate is 10 percent, what is the approximate present value of
the Engineering Company investment? (Points : 3)
$33,200
$34,500
$42,000
$43,500
15. (TCO 3) North Bank offers you an APR of 9.76 percent compounded semiannually,
and South Bank offers you an effective rate of 9 percent on a business loan. Which bank
should you choose and why? (Points : 3)
South Bank because its effective rate is higher.
North Bank because the APR is lower.
South Bank because its effective rate is lower.
North Bank because its effective rate is lower
1. (TCO 3) Tim needs to borrow $5,000 for two years. The loan will be repaid in one
lump sum at the end of the loan term. Which one of the following interest rates is best
for Tim? (Points : 3)
7.5 percent simple interest
7.5 percent interest, compounded monthly
8.0 percent simple interest
8.0 percent interest, compounded annually
8.0 percent interest, compounded monthly
2. (TCO 3) Which one of the following is an example of an annuity, but not a
perpetuity? (Points : 3)
unequal payments each month, for 18 months
payments of equal amount each quarter forever
unequal payments each year forever
equal payments every six months for 48 months
unending equal payments every other month
3. (TCO 3) Fanta Cola has $1,000 par value bonds outstanding at 12 percent interest.
The bonds mature in 25 years. What is the current price of the bond if the YTM is 16
percent? Assume annual payments. (Points : 3)
$1315
$1300
$756
$1000
4. (TCO 6 and 8) Which one of the following statements is correct? (Points : 3)
Bond issuers maintain a listing of bondholders when bonds are issued in bearer form.
An indenture, is a contract between a corporation and its shareholders.
Collateralized bonds are called debentures.
The description of any property used to secure a bond issue is included in the bond
indenture

5. (TCO 3) Bonds issued by Blue Sky Airlines have a face value of $1,000 and currently
sell for $1,180. The annual coupon payments are $125. If the bonds have 20 years until
maturity, what is the approximate YTM of the bonds? (Points : 3)
10.50%
11.50%
11.75%
12%
6. (TCO 3) Bean Coffee issued preferred stock many years ago. It carries a dividend of
$8 per share, fixed. As time has passed, yields have decreased from the original eight
percent (at the time of issuance) to six percent. What was the current price of the stock?
Hint: Yield is the same as required rate of return. (Points : 3)
$100
$133
$102
$86.40
None of the above
7. (TCO 3) Intelligence Research, Inc. will pay a common stock dividend of $1.60 at the
end of the year. The required rate of return by common stockholders is 13 percent. The
firm has a constant growth rate of seven percent. What is the current price of the stock?
(Points : 3)
$23
$32
$27
$29
8. (TCO 3) Royal Electric paid a $4 dividend last year. The dividend is expected to grow
at a constant rate of six percent over the next four years. Common stockholders require
a 13 percent return. What are the values of the dividends for years 1, 2 and 3,
respectively? (Points : 3)
$4, $4.5 and $4.8
$4.24, $4.76 and $5.05
$4.24, $4.49, $4.76
$4, $4.50, $5.05
9. (TCO 6) Which of the following is true regarding the primary market? (Points : 3)
it is the market where the largest number of shares are traded on a daily basis.
it is the market in which the largest number of issues are listed.
it is the market with the largest number of participants.
it is the market where new securities are offered.
it is the market where shareholders trade most frequently with each other
10. (TCO 6) A member of the NYSE who trades on the floor of the exchange for his or
her personal account is called a(n): (Points : 3)

specialist.
independent broker.
floor trader.
stand-alone agent.
dealer
11. (TCO 6) The annual interest on a bond divided by the bonds market price is called
the: (Points : 3)
yield to maturity.
yield to call.
total yield.
required yield.
current yield
12. (TCO 6) Star Industries has one outstanding bond issue. An indenture provision
prohibits the firm from redeeming the bonds during the first two years. This provision
is referred to as a _____ provision. (Points : 3)
deferred call
market
liquidity
debenture
sinking fund
13. (TCO 8) Which of the following is true regarding bonds? (Points : 3)
Most bonds do not carry default risk.
Municipal bonds are free of default risk.
Bonds are not sensitive to changes in the interest rates.
Moodys and Standard and Poors provide information regarding a bonds interest rate
risk.
None of the above is true
14. (TCO 6) Which of the following is not a floating-rate bond? (Points : 3)
A bond that adjusts the coupon payments based on an interest rate index, such as the Tbill.
An EE Savings Bond issued by the U.S. government.
A bond that does not have any coupons until maturity.
A bond that adjusts the coupon and face value payment based on inflation.
TIPS
15. (TCO 6) Which of the following is true regarding put bonds? Select all that apply:
(Points : 3)
Have coupons that depend on the companys income
Can be exchanged for a fixed number of shares before maturity only
Can be exchanged for a fixed number of shares before maturity
Allow the holder to require the issuer to buy the bond back

1. (TCO 1) In a general partnership, each partner is personally liable for: (Points : 3)

the partnership debts that he or she personally obtained for the firm.
his or her proportionate share of all partnership debts, regardless of which partner
incurred that debt.
the total debts of the partnership, even if he or she was unaware of those debts.
the debts of the partnership, up to the amount he or she invested in the firm.
all personal and partnership debts incurred by any partner, even if he or she was
unaware of those debts
2. (TCO 1) Trademarks are classified as: (Points : 3)
short-term assets.
current liabilities.
long-term debt.
tangible fixed assets.
intangible fixed assets
1. (TCO 1) Can you provide some examples of recent, well-known unethical behavior
cases? Explain the situation in one or two sentences.
2. What are some real-life scenarios where you can apply the time value of money?
Present two or three scenarios. Briefly explain your rationale.
3. Explain some of the key risks associated with bonds.
4. What are some of the features of zero-coupon bonds that make them attractive to
certain investors? Which type of investors will be most interested in these bonds?

BUSN 379 Week 8 Final Exam Perfect A+ Answers

BUSN 379 Week 8 Final Exam Perfect A+ Answers
1. (TCO 4) Which of the following is true regarding the evaluation of projects? (Points :
4)
sunk costs should be included
erosion effects should be considered
financing costs need to be included
opportunity costs are irrelevant
Question 2. 2. (TCO 4) Which of the following investment ranking methods does not
consider the time value of money? (Points : 4)
net present value method
payback method
internal rate of return method

all of these are time-adjusted methods

Question 3. 3. (TCO 3 and 4) You can ensure that an investment is expected to create
value for (Points : 4)
have a PI equal to zero.
produce negative rates of return.
have positive AARs.
have positive IRRs.
have positive NPVs.
Question 4. 4. (TCO 3 and 4) What is the net present value of a project with the
following cash flows, if the discount rate is 10 percent?
Year
0
1
2
3
4
Cash flow
-$32,000
$9,000
$10,000
$15,200
$7,800
(Points : 4)
$1,085.25
$1,193.77
$3,498.28
$4,102.86
$4,513.15
Question 5. 5. (TCO 4) Howard Company is considering a new project that will require
an initial cash investment of $575,000. The project will produce no cash flows for the
first three years. The projected cash flows for years 4 through 8 are $73,000, $112,000,
$124,000, $136,000, and $145,000, respectively. How long will it take the firm to recover
its initial investment in this project? (Points : 4)
5.81 years
6.05 years
6.96 years
7.90 years

This project never pays back

Question 6. 6. (TCO 4) The postponement of a project until conditions are more
favorable:(Points : 4)
is a valuable option.
is referred to as the option to extend.
could not cause a negative net present value project to become a positive net present
value project.
will generally cause the internal rate of return for a project to decline.
Question 7. 7. (TCO 4) ___________, occurs when a firm cannot raise financing for a
project under any circumstances. (Points : 4)
contingency planning.
hard rationing.
soft rationing.
capital constraint.
scenario analysis.
Question 8. 8. (TCO 4) ABC Cameras is considering an investment that will have a cost
of $10,000 and the following cash flows: $6,000 in year 1, $4,000 in year 2 and $3,000 in
year 3. Assume the cost of capital is 10%. Which of the following is true regarding this
investment? (Points : 4)
The net present value of the project is approximately $1,011
This project should be accepted because it has a negative net present value
This projects payback period is 10 years or more
All of the above are true
Question 9. 9. (TCO 4) Assume Company X plans to invest $60,000 in industrial
equipment. Using Tables 9.6 and 9.7 of your textbook (Page 277), which is the first year
depreciation amount under MACRS? (Points : 4)
$12,000
$8,574
$19,800
None of the above
Question 10. 10. (TCO 1 and 4) Assume a corporation has earnings before depreciation,
and taxes of $100,000, depreciation of $40,000, and that it has a 30 percent tax bracket.
What are the after-tax cash flows for the company? (Points : 4)
$82,000
$110,000

$42,000
none of these
Question 11. 11. (TCO 8) Which of the following statements is true regarding systematic
risk? (Points : 4)
is diversifiable
is the total risk associated with surprise events
it is measured by beta
it is measured by standard deviation
Question 12. 12. (TCO 8) Which statement is true regarding risk? (Points : 4)
the expected return is usually the same as the actual return
a key to assess risk is determining how much risk an investment adds to a portfolio
risks can always be decreased or mitigated by the financial manager
the higher the risk, the lower the return investors require for the investment
Question 13. 13. (TCO 8) The stock of Chocolate Galore is expected to produce the
following returns, given the various states of the economy. What is the expected return
on this stock?
State of Economy
Probability of State of Economy
Rate of Return
Recession
.02
-.06
Normal
.88
.11
Boom
.10
.17
(Points : 4)
7.33 percent
9.82 percent
11.26 percent
11.33 percent
11.50 percent
Question 14. 14. (TCO 8) You own a portfolio that consists of $8,000 in stock A, $4,600
in stock B, $13,000 in stock C, and $5,500 in stock D. What is the portfolio weight of
stock D? (Points : 4)
17.68 percent

17.91 percent
18.42 percent
19.07 percent
19.46 percent
Question 15. 15. (TCO 8) You currently own a portfolio valued at $24,000 that has a
beta of 1.1. You have another $8,000 to invest, and would like to invest it in a manner
such that the risk of the new portfolio matches that of the overall market. What does the
beta of the new security have to be? (Points : 4)
.46
.55
.61
.70
.90
1. (TCO 8) If the financial markets are strong form efficient, then: (Points : 4)
only the most talented analysts can determine the true value of a security.
only company insiders have a marketplace advantage.
technical analysis provides the best tool to gain a marketplace advantage.
no one person has an advantage in the marketplace.
every security offers the same rate of return.
Question 2. 2. (TCO 5) Royal Petroleum Co. can buy a piece of equipment that can be
financed with debt at a cost of 9 percent (after-tax) and common equity at a cost of 16
percent. Assume debt and common equity each represent 50 percent of the firms capital
structure. What is the weighted average cost of capital? (Points : 4)
between 4.5% and 8%
more than 13%
between 12 and 13%
between 13 and 14%
none of the above
Question 3. 3. (TCO 5, 6 and 7) An issue of common stock is expected to pay a dividend
of $4.80 at the end of the year. Its growth rate is equal to eight percent. If the required
rate of return is 13 percent, what is its current price? (Points : 4)
$103.68
$36.92

$96.00
none of these
Question 4. 4. (TCO 5, 6 and 7) Which of the following is not true regarding the cost of
debt? (Points : 4)
It is the return that the firms creditors demand on new borrowing.
It is the interest rate that the firm pays on current/existing borrowing.
An appropriate method to compute the cost of debt is using the YTM of current bonds
outstanding.
It needs to be converted into an after-tax cost.
Question 5. 5. (TCO 5) Which of the following is not true regarding the cost of retained
earnings? (Points : 4)
it is relevant to the WACC
does not require new funds to be raised
has associated flotation costs
has a cost, which is the opportunity cost associated with stockholder funds
Question 6. 6. (TCO 4) A project has the following cash flows. What is the internal rate
of return?
Year
0
1
2
3
Cash flow
-$195,600
$99,800
$87,600
$75,300
(Points : 4)
less than 5%
between 5 and 15%
between 15 and 18%
more than 21%
Question 7. 7. (TCO 5, 6 and 7) Which one of the following is a correct statement
regarding a firms weighted average cost of capital (WACC)? (Points : 4)
the WACC can be used as the required return for all new projects.
the WACC of a leveraged firm will decrease when the tax rate decreases.
an increase in the market risk premium will tend to decrease a firms WACC.

the WACC is a starting point for the subjective approach to setting discount rates.
a reduction in the risk level of a firm will tend to increase the firms WACC.
Question 8. 8. (TCO 5, 6 and 7) The six percent preferred stock of FKH Manufacturing
is selling for $62 a share. What is the firms cost of preferred stock, if the tax rate is 34
percent and the par value per share is $100? (Points : 4)
5.98%
7.06%
8.05%
9.68%
10.10%
Question 9. 9. (TCO 2) Which one of the following occurs if a firm files for Chapter 7
bankruptcy, but does not generally occur if the firm files for Chapter 11 bankruptcy?
(Points : 4)
a petition is filed in federal court
administrative fees are incurred
a list of creditors is compiled
pre-bankruptcy shareholders tend to lose part, if not all, of their investment in the firm
a trustee-in-bankruptcy is elected by the creditors
Question 10. 10. (TCO 5) Which of the following statements is false regarding the cost of
capital? (Points : 4)
The cost of capital should consider the flotation costs.
All other being equal, it is preferable to use market value weights than book value
weights.
The WACC is the most appropriate discount rate for all projects.
Should include the cost of retained earnings.
Question 11. 11. (TCO 2) Select any actions that do not affect the cash account. (Points :
4)
Goods are sold cash
An interest payment on a notes payable is made
A payment due is received from a client
Dividends are paid to shareholders
Inventory is purchased and paid for with credit
Question 12. 12. (TCO 2) Which of the following statements is true? (Points : 4)
There is an opportunity cost associated with not offering credit.

The costs of the credit application process and the costs expended in the collection
process are not carrying costs of granting credit.
Character, refers to the ability of a firm to meet its credit obligations out its operating
cash flows.
The optimal credit policy, is the policy that produces the largest amount of sales for a
firm.
Question 13. 13. (TCO 2) Which one of the following industries is most apt to have the
shortest cash cycle? (Points : 4)
electric utility company
airplane manufacturer
fast-food restaurant
furniture store
clothing manufacturer
Question 14. 14. (TCO 2) Delphinias has the following estimated quarterly sales for
next year. The accounts receivable period is 30 days. What is the expected accounts
receivable balance at the end of the second quarter? Assume each month has 30 days.
Q1
Q2
Q3
Q4
Sales
$1,800
$1,700
$2,100
$1,900
(Points : 4)
$567
$600
$821
$1,134
$1,200
Question 15. 15. (TCO 1) Why is maximization of the current value per share a more
appropriate financial management goal than profit maximization? (Points : 4)
Because by maximizing the current stock value, you also maximize the companys profit
for the year.
Because this criterion is non-ambiguous.
Because financial managers always act in the best interest of shareholders.

Because it creates short-term gains in the financial statements.

6. (TCO 1) Provide three examples of recent well-known unethical behavior cases.
Explain the situation in one or two paragraphs. How do you believe that this behavior
affected the firms value? (Points : 10)
7. (TCO 4) What are sunk costs? Provide at least two real-life examples of sunk costs for
a project. Should sunk costs be included as incremental cash flows? Why or why not?
Explain your rationale. (Points : 10)
8. (TCO 8) What is the difference between business risk and financial risk? If Company
A has a higher business risk than Company B, should its cost of capital be higher? Why
or why not? Explain your rationale. (Points : 10)
9. (TCO 2) What are some important factors to consider when conducting a credit
evaluation and scoring? (Points : 10)
0. (TCO 6 and 7) Do you believe that it is appropriate for some industries to be more
leveraged than others? Explain your rationale. (Points : 10)
1. (TCO 1) Which of the following are capital structure concerns?
I. how to obtain short-term financing
II. the companys financing mix
III. the cost of funds
IV. how and where to raise money (Points : 4)
I and II
I, II and III
II, III and IV
I, III and IV
All of the above
Question 2. 2. (TCO 1) Book values are different from market values because: (Points :
4)
Book values reflect the value of the asset based on generally-accepted accounting
principles.
Book values are used in the companys balance sheet.
Book values do not reflect the amount someone is willing to pay today for an asset.
All of the above
None of the above
Question 3. 3. (TCO 1) Use the following tax table to answer this question:
Taxable Income
Tax Rate
$0$50,000
15%

$50,00175,000
25
$75,001100,000
34
$100,001335,000
39
$335,00110,000,000
34
John has taxable income of $389,745. What is Johns average tax rate? (Points : 4)
33%
34%
36%
37%
38%
Question 4. 4. (TCO 3) Regional Bank offers you an APR of 19 percent compounded
semiannually, and Local Bank offers you an EAR of 19.50 percent for a new automobile
loan. You should choose ______________ because its _______ is lower. (Points : 4)
Regional Bank, APR
Local Bank, EAR
Regional Bank, EAR
Local Bank, APR
Question 5. 5. (TCO 3) You deposited $11,000 in your bank account today. Which of the
following will decrease the future value of your deposit, assuming that all interest is
reinvested? Assume the interest rate is a positive value. Select all that apply: (Points : 4)
a decrease in the interest rate
increasing the initial amount of your deposit
increasing the frequency of the interest payments
decreasing the length of the investment period
Question 6. 6. (TCO 3) Amy needs to save $20,000 in cash to buy a new car five years
from today. She expects to earn 6.5 percent, compounded annually, on her savings. How
much does she need to deposit today, if this is the only money she saves for this purpose?
(Points : 4)
$12,468.07
$12,502.14

$14,597.62
$17,044.32
$17,129.01
Question 7. 7. (TCO 3) Paper Pro needed a new store. The company spent $65,000 to
refurbish an old shop and create the current facility. The firm borrowed 75 percent of
the refurbishment cost at eight percent interest for 11 years. What is the amount of each
monthly payment? (Points : 4)
$91.05
$284.13
$556.50
$682.87
$731.60
Question 8. 8. (TCO 3) John borrowed $5,500 four years ago at an annual interest rate
of 10 percent. The loan term is seven years. Since he borrowed the money, Sonny has
been making annual payments of $550 to the bank. Which type of loan does John have?
(Points : 4)
interest-only
pure discount
compounded
amortized
complex
Question 9. 9. (TCO 3) Fanta Cola has $1,000 par value bonds outstanding at 12 percent
interest. The bonds mature in 25 years. What is the current price of the bond, if the
YTM is 11 percent? Assume annual payments. (Points : 4)
$1080
$1085
$925
$1000
Question 10. 10. (TCO 6) The market where one shareholder sells shares to another
shareholder is called the _____ market. (Points : 4)
primary
main
secondary
principal

dealer
Question 11. 11. (TCO 7) Which one of the following statements concerning financial
leverage is correct? (Points : 4)
Financial leverage increases profits and decreases losses.
Financial leverage has no effect on a firms return on equity.
Financial leverage, refers to the use of common stock.
Financial leverage magnifies both profits and losses.
Increasing financial leverage will always increase the earnings per share.
Question 12. 12. (TCO 3) What is the approximate yield to maturity for a seven-year
bond that pays 11 percent interest on a $1000 face value annually if the bond sells for
$952?(Points : 4)
10.5%
10.6%
11.5%
12.1%
Question 13. 13. (TCO 8) Which of the following is true regarding bonds? (Points : 4)
Most bonds do not carry default risk.
Municipal bonds are free of default risk.
Bonds are not sensitive to changes in the interest rates.
Moodys and Standard and Poors provide information regarding a bonds interest rate
risk.
None of the above is true
Question 14. 14. (TCO 8) Which one of the following bonds is the most sensitive to
interest rate movements? (Points : 4)
zero-coupon, five year
seven percent annual coupon, five year
zero-coupon, 10 year
five percent semi-annual coupon, 10 year
five percent annual coupon, 10 year
Question 15. 15. (TCO 6) A sinking fund is an account managed by a bond trustee for
the sole purpose of: (Points : 4)
paying interest payments on a semi-annual basis.
redeeming bonds early.

repaying the face value at maturity.

paying the expenses required to reissue outstanding bonds.
paying the balloon payment at maturity.

BUSN 319 Week 8 Final Exam Perfect A+ Answers

BUSN 319 Week 8 Final Exam Perfect A+ Answers
1. (TCO 4) Three commonly used methods of evaluating marketing programs are
(Points : 5)
sales analysis, marginal analysis, and cost analysis.
sales analysis, profitability analysis, and marketing audits.
marketing ROI, metrics, and dashboards.
sales audits, cost audits, and marketing audits.
internal audits, external audits, and marketing control boards.
Question 2. 2. (TCO 1) Ideally in effective marketing planning, goals should be _____ in
terms of what is to be accomplished and when. (Points : 5)
loose and vague
as general as possible
flexible or elastic
quantified and measurable
None of the above
Question 3. 3. (TCO 3) Which marketing strategy focuses on a single market segment
but adds additional product lines? (Points : 5)
Full coverage
Market specialization
Product specialization
Selective specialization
Market-product concentration

Question 4. 4. (TCO 1) Based on relative competitive scope (broad target to narrow

target) and source of competitive advantage (lower cost to differentiation), Porters four
generic business strategies are differentiation, cost focus, cost leadership, and (Points :
5)
xclusivity.
electronic-focus.
quality focus.
differentiation focus.
service leadership.
Question 5. 5. (TCO 2) Which of the following pieces of information is used in the
implementation phase of the strategic marketing process? (Points : 5)
Corporate return on investment
Marketing research reports
Revenues associated with each point of market share
Trends in past and current revenues for industry and competitors in total and by
segment
Possible cannibalization effects on other products in the line
Question 6. 6. (TCO 6) Which of the following pieces of information is used in a SWOT
analysis, the first step of the planning phase of the strategic marketing process?
(Points : 5)
Corporate return on investment
Market share for the product
Revenues associated with each point of market share
Projection of future sales, expenses, and profits
Possible cannibalization effects on other products in the line
Question 7. 7. (TCO 3) The first decision in developing an advertising program is to
(Points : 5)
set the budget.
state the mission of the advertising program.
identify the target audience.
select the appeal.

select the media.

Question 8. 8. (TCO 2) The proper blend of elements in the promotional mix depends on
the type of product. The three specific characteristics to be considered are _____, risk,
and ancillary services.(Points : 5)
complexity
size
durability
accessibility
acceptability
Question 9. 9. (TCO 4) Reminding buyers of the products existence is the promotional
objective during which stage of the product life cycle? (Points : 5)
Introduction
Growth
Maturity
Decline
All of the above
Question 10. 10. (TCO 2) The _____ can be used to inform prospective buyers about the
benefits of the product. (Points : 5)
Question 11. 11. (TCO 8) Which of the following statements about the terms used for
marketing intermediaries is true? (Points : 5)
Question 12. 12. (TCO 7) Which of the following statements about the legal and
regulatory aspect of pricing is true? (Points : 5)
Question 13. 13. (TCO 2) Pricing objectives may change depending on (Points : 5)
Question 14. 14. (TCO 3) The ratio of perceived benefits to _____ is called value. (Points
: 5)
Question 15. 15. (TCO 6) Market segmentation involves aggregating prospective buyers
into groups that will respond similarly to a marketing action and (Points : 5)
Question 16. 16. (TCO 5) The process of continually acquiring information on events
occurring outside the organization to identify and interpret potential trends is called
(Points : 5)

Question 17. 17. (TCO 1) The marketing department helps keep the organization
focused on creating value both for it and for customers. This is accomplished by
(Points : 5)
Question 18. 18. (TCO 1) Which of the following acts as a barrier to the development of
relationship marketing? (Points : 5)
Question 19. 19. (TCO 1) Your neighbor is tired of conventional soft drinks and wants
something different. Coincidentally, Cadbury Beverages Inc. has begun distributing
Country Time lemonade through the supermarket at a price comparable to that of soft
drinks. Which of the conditions needed for marketing to occur is described in this
situation? (Points : 5)
Question 20. 20. (TCO 6) Kraft produces Lunchables, a prepackaged meal usually
consisting of several crackers, small slices of meat, and small slices of cheese. Some
versions contain Capri Sun drinks. Others are called Cracker Stackers and Fun Fuel.
The box is bright yellow and the quantity of food contained within is small. The target
market for Kraft Lunchables is most likely (Points : 5)
Question 21. 21. (TCO 3) Which element of the marketing mix is demonstrated when
the Mars Company has a sale on M&Ms brand candies? (Points : 5)
Question 22. 22. (TCO 5) The Lemon Tree is a high-fashion boutique selling top-of-theline womens clothing and accessories. The keys to its success include knowing the
customers changing tastes and providing something different from other retailers. In
addition, because of the high value of the merchandise, The Lemon Trees management
is exploring the use of computerized inventory controls and sales order processing.
From this description, one can infer that the environmental category of least importance
to The Lemon Tree is (Points : 5)
Question 23. 23. (TCO 7) In 1998, F. Hoffman-LaRoche Ltd. and BASF AG, two
international pharmaceutical companies, were ordered to pay $725 million in fines for
plotting to raise and fix prices of vitamins used in virtually every home in the United
States. This is an example of how _____ forces affect the marketing environment.
(Points : 5)
Question 24. 24. (TCO 6) Mile High Frozen Foods is a distributor for McDonalds. It
also bakes the buns used by McDonalds in several states. Mile High purchases flour,
yeast, and sesame seeds, manufactures the buns, and then distributes them to the retail
stores. Mile High Frozen Foods is operating in a(n) _____ market. (Points : 5)
Question 25. 25. (TCO 1) Several years ago, SwissAir made some unwise investments to
pay for a planned expansion. As a result, the company had to make some cost-cutting
moves that alienated its customers. Eventually the company declared bankruptcy,
regrouped, and found itself able to resume business. Its board of directors recently
announced that the company would like to resume flying. Before resuming flying,
SwissAir needed to determine what percentage of its former customers it could expect to
return to the airline. If not enough former customers were willing to use SwissAir again,
the resumption of flights would not be profitable. The determination of the percentage

of returning patrons that would be needed to resume operation is an example of a

(Points : 5)
Question 26. 26. (TCO 3) When Marine Midland Bank sent market researchers with
surveys door-to-door in the neighborhoods of its branch banks to ask people with
savings accounts why they did not also have checking accounts and credit cards with
Marine Midland, the researchers were gathering _____ data. (Points : 5)
Question 27. 27. (TCO 4) Sara Burns is the owner of a company called Spice and was
looking for a new product to go with her companys line of food condiments when a
friend suggested combining spices with tea. In the _____ stage of the new-product
process, the spices and tea mixtures were exposed to prospective consumers under
realistic purchase conditions. (Points : 5)
Question 28. 28. (TCO 4) A few years ago, Who Wants to Be a Millionaire premiered as
the first nighttime game show in several decades. The marketing for the show was intent
on making television viewers aware of its existence and excited enough about the show
that they would watch the first episode. Based on this description, in which stage of the
product life cycle would this show be? (Points : 5)
Question 29. 29. (TCO 8) In an episode of the Andy Griffith television series, two local
farmers were selling the produce they grew on their farms from the backs of their
pickup trucks to local people who drove by on the road. The farmers selling their
products without wholesalers or retailers were an example of a (Points : 5)
Question 30. 30. (TCO 2) Disney is using an integrated marketing communications
program (IMC) to promote group travel to its theme parks, because (Points : 5)
Question 31. 31. (TCO 2) When a news story covers a terrible disaster and viewers are
asked to send donations to the American Red Cross, the American Red Cross is
receiving (Points : 5)
Question 32. 32. (TCO 8) For several years, advertisements for Arm & Hammer Baking
Soda have prompted consumers to place an opened box of the product in the
refrigerator to lessen food odor and to replace that box monthly. The same ads advise
customers to pour the used box down their kitchen sinks to freshen drains. Arm &
Hammer employed a _____ strategy in its attempt to sell more baking soda. (Points : 5)
33. (TCO 3) Imagine that you are creating a marketing plan for a company that will sell
motor scooters . As you consider the marketing program, what types of strategy should
you consider including in the plan? Propose one specific example of each type of
strategy that you are considering, and present your rationale (reasoning) for your
strategy selections. (Points : 30)
Discriminate between primary data and secondary data and their usefulness to business
decision making, being sure to discuss the advantages and disadvantages of each. Your
response should also identify the typical sources for primary and secondary data and
what you would rely on most heavily in making your marketing decisions. (Points : 30)

35. (TCO 4) You are the product manager responsible for a horrible product failure, but
in your wisdom, you are evaluating why the product failed. What factors would you
consider in your evaluation? What actions could you have taken to prevent the failure?
Does product innovation need a willingness to accept failure? (Points : 30)

BUSN 319 All Discussion Questions Perfect A+ Answers

BUSN 319 All Discussion Questions Perfect A+ Answers
BUSN 319 Week 1 DQ 1 What Is Needed for Marketing to Occur
BUSN 319 Week 1 DQ 2 Strategic Marketing Process
BUSN 319 Week 2 DQ 1 Purchase Decision Process
BUSN 319 Week 2 DQ 2 Buyers and Markets
BUSN 319 Week 3 DQ 1 Understanding Consumers
BUSN 319 Week 3 DQ 2 Target Marketing
BUSN 319 Week 4 DQ 1 New Products
BUSN 319 Week 4 DQ 2 Building a Brand
BUSN 319 Week 5 DQ 1 Price Perception
BUSN 319 Week 5 DQ 2 Flexible Pricing
BUSN 319 Week 6 DQ 1 Integrated Marketing Communications
BUSN 319 Week 6 DQ 2 Using Social Media
BUSN 319 Week 7 DQ 1 Delivering the Goods
BUSN 319 Week 7 DQ 2 Marketing Mash Up- The Four Ps Marketing Mix