Which of the following goals is in the best long-term interest of stockholders? Maximizing of the market value of the existing shareholders' common stock
Long-term financial plans typically encompass: about 5 years.
Given an accounts receivable turnover of 8 and annual credit sales of $362,000, the average collection period (360-day year) is 45days
Buying and selling in more than one market to make a riskless profit is called: arbitrage.
Metals Corp. has $2,575,000 of debt, $550,000 of preferred stock, and $18,125,000 of common equity. Metals Corp.'s after-tax cost of debt is 5.25%, preferred stock has a cost of 6.35%, and newly issued common stock has a cost of 14.05%. What is Metals Corp.'s weighted average cost of capital? 12.75%
Which of the following financial ratios is the best measure of the operating effectiveness of a firm's management? Return on investment
The Securities Investor Protection Corporation protects individuals from: brokerage firm failures …show more content…
the Federal Reserve
We compute the profitability index of a capital-budgeting proposal by Initial outlay = $1,748.80 dividing the present value of the annual after-tax cash flows by the cost of the project.
A company collects 60% of its sales during the month of the sale, 30% one month after the sale, and 10% two months after the sale. The company expects sales of $10,000 in August, $20,000 in September, $30,000 in October, and $40,000 in November. How much money is expected to be collected in October? $25,000
If managers are making decisions to maximize shareholder wealth, then they are primarily concerned with making decisions that should: increase the market value of the firm's common stock.
Apple Two Enterprises expects to generate sales of $5,950,000 for fiscal 2014; sales were $3,450,000 in fiscal 2013. Assume the following figures for the fiscal year ending 2013: cash $70,000; accounts receivable $250,000; inventory $400,000; net fixed assets $520,000; accounts payable $235,000; and accruals $155,000. Use the percent-of-sales method to forecast cash for the fiscal year ending 2014.