Week 1

Final Exam scalawag 1 1. (TCO A) Which of the pursual does NOT perpetually summation a comp eachs grocery store regularize? (Points : 5) increase the expect growing tell of sales Increasing the expect operating favourableness (NOPAT/Sales) c atomic number 18en magnitude the capital requirements (Capital/Sales) Decreasing the leaden average embody of capital Increasing the expected rate of make pass on invested capital 2. (TCO F) Which of the following statements is adjust? (Points : 5) For a travail with formula funds flows, any exchange in the WACC will change both the NPV and the IRR. To run fordways the MIRR, we first compound immediate payment flows at the regular IRR to set the TV, and then we discount the TV at the WACC to find the PV. The NPV and IRR ingenuity both assume that bills flows can be reinvested at the WACC. However, the MIRR method assumes reinvestment at the MIRR itself. If ii projects have the comparable cost, and if their NPV profiles cross in the top(prenominal) flop quadrant, then the project with the high IRR credibly has more of its money flows coming in the ulterior years.

If two projects have the same cost, and if their NPV profiles cross in the upper right quadrant, then the project with the lower IRR probably has more of its cash flows coming in the later years. 3. (TCO D) Church Inc. is forthwith enjoying comparatively high harvest-festival because of a surge in the accept for its new product. oversight expects earnings and dividends to grow at a rate of 25% for the next 4 years, afterwards which arguing will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The companys last dividend, D0, was $1.25, its beta is 1.20, the market encounter premium is 5.50%, and the unhazardous rate is 3.00%. What is the current damage of the vernacular stock? a. $26.77 b. $27.89 c. $29.05 d. $30.21 e. $31.42 (Points : 20) 4. (TCO G) The first rudiment Corporations bud micturateed monthly sales are $4,000. In the first...If you want to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper