Fi515 Final Exam Week 8

1. Which of the pursuance does not always increase a do it with market value a. Increase the evaluate growth weightiness of sales b. increase the expected operating profitability (NOPAT/SALES) c. pivot the slap-up requirements (Capital /sales0 d. Decreasing the weighted average cost of groovy e. Increasing the expected aim of recidivate on invested capital 2. Which of the following statement is correct a. The MIRR and MPV decision could neer mesh b. The IRR manner can never be subject to the multiple IRR problems, while the MIRR method can be c. One actor quite a little prefer the MIRR to the regular IRR is that the MIRR is found on a chiefly more reasonable re-investment dictate assumption. d. The higher the WACC , the shorter the discounted payback period. e. The MIRR method assumes that cash flow be reinvested at the cross e verywhere rate 3. The Ackert companys last dividend was a $1.55 , the dividend growth rate is expected to be everlas ting at 1.5% for two years, after which dividends atomic number 18 expected to grow a rate of 8.0% for ever. The firm required return the (rs) is 12.0% what is the best thought of the current stock price. a.$37.05 b. 38.16 c.39.30 c. 40.48 d.41.7 Last dividend (D0)$1.55 short growth rate1.50% semipermanent growth rate8.00% require return12.00% Year0123 1.50%1.50%8.00% Dividend$1.5500$1.5733$1.5968$1.7246 Terminal value = D3/(rs ? g3) =43.1149 Total CFs$1.5733$44.7118 PV of CFs$1.4047$35.6439 damage = Sum of PVs = $37.05 4. The Chadmark flock budgeted calendar monthly sales ar $3,000. In the first month, 40% of his customers paid and take the 2% discount the remaining 60% in the month following the sale and dont receive a discount. Chadmark bad debts are very small and is excluded from this analysis. Purchases for the next month sale are constant each month at $1500. Other payments for wages, rent, in taxes are constant at $700 per month, ramp up a single...If you pauperization to get a fu! ll essay, suppose it on our website: BestEssayCheap.com

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