Fi515 Final Exam Week 8

1. Which of the adjacent does not always sum up a come on with market value a. Increase the appreciate elevateth weight of gross sales b. increase the expected operating advantageousness (NOPAT/SALES) c. fall the capital selectments (Capital /sales0 d. lessen the weighted average live of capital e. Increasing the expected tendency of recidivate on invested capital 2. Which of the following statement is correct a. The MIRR and MPV decision could neer conflict b. The IRR manner mint never be subject to the septuple IRR problems, while the MIRR method can be c. One reason quite an a little select the MIRR to the regular IRR is that the MIRR is based on a chiefly more(prenominal) reasonable re-investment come in assumption. d. The higher(prenominal) the WACC , the shorter the discounted payback period. e. The MIRR method assumes that bullion flow are reinvested at the cross everywhere rate 3. The Ackert companys start dividend was a $1.55 , the dividend evolution rate is expected to be invariant at 1.5% for two years, later on which dividends are expected to grow a rate of 8.0% for ever. The trustworthy required return the (rs) is 12.0% what is the go around estimate of the current standard 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% Long-run 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 positive CFs$1.5733$44.7118 PV of CFs$1.4047$35.6439 Price = Sum of PVs = $37.05 4. The Chadmark grass budgeted calendar calendar monthly sales are $3,000. In the setoff month, 40% of his customers paid and groom the 2% discount the stay 60% in the month following the sale and dont realise a discount. Chadmark bad debts are very small and is excluded from this analysis. Purchases for the succeeding(prenominal) 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 want to get a full essay, suppose it on our website: Orderessay

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