Test Bank Fundamentals of Corporate Finance, 13th Edition 2024 Release by Stephen Ross | Algorithmic Test Questions
31 views 1 purchase
Module
Corporate Finance
Institution
Corporate Finance
Test Bank for Fundamentals of Corporate Finance,13e 13th Edition 2024 Release by Stephen Ross, Randolph Westerfield and Bradford Jordan | Algorithmic Test Questions. These are EXTRA PRACTICE questions for this test bank and given for below chapters. Complete test bank is given in Package deal of t...
A firm has common stock of $89, paid-in surplus of $260, total liabilities of $405, current assets of
$380, and net fixed assets of $590. What is the amount of the shareholders' equity?
$970
$525
$754
$185
$565
Shareholders' equity = Current assets + Net fixed assets − Total liabilities.
Shareholders’ equity = $380 + 590 − 405 = $565
References
Multiple Choice Learning Objective:
02-01 Describe the
difference between
accounting value (or
book value) and
market value.
Difficulty: 1 Basic Section: 2.1 The
Balance Sheet
,2. Award: 10.00 points
Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her
business. The company built a building at a cost of $1,190,000 that is currently appraised at
$1,390,000. The equipment originally cost $670,000 and is currently valued at $417,000. The
inventory is valued on the balance sheet at $360,000 but has a market value of only one-half of that
amount. The owner expects to collect 97 percent of the $200,200 in accounts receivable. The firm
has $11,200 in cash and owes a total of $1,390,000. The legal problems are personal and unrelated
to the actual business. What is the market value of this firm?
Multiple Choice Learning Objective:
02-01 Describe the
difference between
accounting value (or
book value) and
market value.
Difficulty: 1 Basic Section: 2.1 The
Balance Sheet
,3. Award: 10.00 points
Ivan's, Incorporated, paid $468 in dividends and $579 in interest this past year. Common stock
increased by $189 and retained earnings decreased by $115. What is the net income for the year?
$353
$468
$932
$579
$768
Net income = Dividends paid + Change in retained earnings
Net income = $468 + (− $115) = $353
In this case, the change in retained earnings was a negative value.
References
Multiple Choice Learning Objective:
02-02 Describe the
difference between
accounting income
and cash flow.
Difficulty: 1 Basic Section: 2.2 The
Income Statement
, 4. Award: 10.00 points
A firm paid taxes of $48,290 for the year. What is the average tax rate for the firm if it had taxable
income of $199,800?
rev: 09_11_2023_QC_HETS-11423
29.00%
26.59%
24.17%
30.21%
21.75%
Average tax rate = $48,290.00 ÷ $199,800
Average tax rate = .2417, or 24.17%
References
Multiple Choice Learning Objective:
02-03 Describe the
difference between
average and
marginal tax rates.
Difficulty: 1 Basic Section: 2.3 Taxes
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller StepsSol. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £15.85. You're not tied to anything after your purchase.
