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FIN 310 Exam 1 Questions With Complete Solutions
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FIN 310 Exam 1 Questions With Complete Solutions
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FIN 310 Exam 1 Questions With Complete SolutionsAllison & Co. and Bee, Inc. reported the following numbers (in
millions) for fiscal year 2010.
Allison & Co. Bee, Inc. Net income$575.70 $197.24 Shares
outstanding 87.15 57.20 Stock price$90.59 $35.26 Total
equity$1,718.30 $939.48
Required:
Calculate the earnings per share, market-to-book ratio, and
price-earnings ratio for each company.
For Allison & Co.:
Earnings per share:
Market-to-book ratio:
Price-earnings ratio:
For Bee,Inc:
Earnings per share:
Market-to-book ratio:
Price-earnings ratio: Correct Answer 6.61
4.59
13.71
3.45
2.15
10.23
Andersen's Nursery has sales of $318,400, costs of $199,400,
depreciation expense of $28,600, interest expense of $1,100, and
, a tax rate of 34 percent. The firm paid out $16,500 in dividends.
What is the addition to retained earnings? Correct Answer
$42,438
Andre's Dog House had current assets of $67,200 and current
liabilities of $71,100 last year. This year, the current assets are
$82,600 and the current liabilities are $85,100. The depreciation
expense for the past year is $9,600 and the interest paid is
$8,700. What is the amount of the change in net working
capital? Correct Answer $1,400
Arredondo, Inc., has current assets of 2,755, net fixed assets of
9500, current liabilities of 1360, and LT of debt of 4000. What
is the value of the shareholders' equity account for this firm?
Correct Answer $6,895
Below are examples of business transactions. Choose the type of
financial management decision that is relevant to each.
Deciding whether to expand a manufacturing plant
Deciding whether to issue new equity and use the proceeds to
retire outstanding debt
Modifying the firm's credit collection policy with its customers
Correct Answer 1) Capital budgeting
2) Capital structure
3) Working capital management
Bethesda Mining Company reports the following balance sheet
information for 2009 and 2010.
BETHESDA MINING COMPANYBalance Sheets as of
December 31, 2009 and 2010 2009 2010 2009 2010 Assets
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