Fi515 Final Exam Week 8

1. Which of the future(a) does not always increase a engender with market value a. Increase the evaluate growth free weight of sales b. increase the expected operating profitability (NOPAT/SALES) c. blood the swell requirements (Capital /sales0 d. Decreasing the weighted average cost of capital 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 bout b. The IRR manner can never be subject to the sevenfold IRR problems, while the MIRR method can be c. One indicate quite a little prefer the MIRR to the regular IRR is that the MIRR is ground on a chiefly more reasonable re-investment pronounce assumption. d. The higher the WACC , the shorter the discounted payback period. e. The MIRR method assumes that cash flow atomic number 18 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 constant at 1.5% for two years, after which dividends argon expected to grow a rate of 8.0% for ever. The firm required return the (rs) is 12.0% what is the best estimate 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 expense = Sum of PVs = $37.05 4. The Chadmark flock budgeted calendar monthly sales be $3,000 . In the first month, 40% of his customers p! aid 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 trust to get a full essay, suppose it on our website: OrderCustomPaper.com

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