Finc 5310 - Study guides, Class notes & Summaries

FINC 5310 1. The Blue Giant has a profit margin of 6.2 percent and a dividend payout ratio of 40 percent. The capital intensity is 1.08 and the debt-equity ratio is .54. What is the sustainable rate of growth? A. 6.30% B. 5.53% C. 5.89% D. 5.60% E. 6.41% - Correct Answer-D 2. Which of the following statements is CORRECT? A. Relative to sole proprietorships, corporations generally face fewer regulations, which makes raising capital easier for corporations. B. One disadvantage of opera...

1. A 3-year project is expected to produce a cash flow of $82,400 in the first year and $148,600 in the second year. The project has a present value of $303,764.34 at a discount rate of 12.75 percent. What is the expected cash flow in the third year of the project? A. $164,400 B. $163,800 C. $163,700 D. $163,100 E. $164,900 - Correct Answer-D QUESTION 2 A credit card compounds interest monthly and has an effective annual rate of 12.67 percent. What is the annual percentage rate? A. 11...

FINC 5310 A 3-year project is expected to produce a cash flow of $82,400 in the first year and $148,600 in the second year. The project has a present value of $303,764.34 at a discount rate of 12.75 percent. What is the expected cash flow in the third year of the project? A. $164,400 B. $163,800 C. $163,700 D. $163,100 E. $164,900 - Correct Answer-D QUESTION 2 A credit card compounds interest monthly and has an effective annual rate of 12.67 percent. What is the annual percentage r...