For Complete Capstone Exam WEEK 4  (All 39 Questions) Tutorial buy Part 1 & Part 2 (This is Part 1)

Sample Questions:

1.  How firms estimate their cost of capital: The WACC for a firm is 13.00 percent. You know that the firm’s cost of debt capital is 10 percent and the cost of equity capital is 20% What proportion of the firm is financed with debt?
2. Ajax Corp. is expecting the following cash flows – $79,000, $112,000, $164,000, $84,000, and $242,000 – over the next five years.  If the company’s opportunity cost is 15 percent, what is the present value of these cash flows? (Round to the nearest dollar.)
3.  Variance reports are:
4.   A cost which remains constant per unit at various levels of activity is a:
5.     Regatta, Inc., has six-year bonds outstanding that pay a 8.25 percent coupon rate. Investors buying the bond today can expect to earn a yield to maturity of 6.875 percent. What should the company’s bonds be priced at today? Assume annual coupon payments. (Round to the nearest dollar.)
6. The convention of consistency refers to consistent use of accounting principles:
7.  The major element in budgetary control is:
8.   Firms that achieve higher growth rates without seeking external financing: 
9.   Gateway, Corp.  has an inventory turnover of 5.6.  What is the firm’s days’s sales in inventory?
10.  Which of the following financial statements is concerned with the company at a point in time?
11.  The cash conversion cycle?
12. The process of evaluating financial data that change under alternative courses of action is called
13. Jayadev Athreya has started his first job. He will invest $5,000 at the end of each year for the next 45 years in a fund that will earn a return of 10 percent.  How much will Jayadev have at the end of 45 years?
14.  If a company’s weighted average cost of capital is less than  the required return on equity, then the firm:
15.  Jack Robbins is saving for a new car. He needs to have $21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target? (Round to nearest dollar)
16. Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time:
17.   Process costing is used when
18.  What decision criteria should managers use in selecting projects when there is not enough capital to invest in all available positive NPV projects?
19.   Which of the following is considered a hybrid organizational form