Reference no: EM13853490
1. Tax deductibility is a characteristic of
2. EPS dilution is a characteristic of
3. Debt cost is
4. Increased risk is a characteristic of
5. The return on equity is
6. Discuss financial ratios and their usefulness, and then talk about what to do if they don't necessarily follow the company or industry norm.
7. Give an example of a negative ratio, an undefined ratio or a zero ratio and what could make that occur. (Points: 10)
8. Which is the correct descending order of priority of rights in liquidation?
9. Discuss market efficiency and the difference between weak form efficient, semi-strong form efficient and strong form.
10. Define the "interest tax shield" and explain how it works with debt financing.
11. What is the ratio used to calculate the "interest tax shield?"
12. When will an "interest tax shield" not help a company?
13. Discuss how Scott's Miracle Grow recapitalization turned out in the down economy of '08-09. Specifically: The executives for Scott's, in the author's estimate, doubled their debt, to buy back 17 million shares of common stock, in order to ratchet up the EPS, which is a key determinant of bonuses. Since this is a closed book exam, tell me what you remember in general terms.
14. From the Scott's executives' standpoint, how did THEY do?
15. From the Scott's stockholders' standpoint, how did THEY do?
16. Beta measures an asset's relative systematic risk.
17. Give me at least two of the four pitfalls to avoid in discounted cash flow analysis.
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Investment account earning
: Assuming an age of 28. At the beginning of each year, starting today, you put $3,000 in an investment account earning 8% per year and you continue making $3,000 contributions every year until you reach age 70.
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Strengths and weaknesses of this market research project
: You are in charge of preparing a memo for the Board of Directors analyzing how to best build ticket sales for the remaining 4 months of the season. What decisions did you make? What are the strengths and weaknesses of this market research project
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A man slides down a ramp on a wheel chair
: A man slides down a ramp on a wheel chair. If the mass of the chair is 50kg, calculate the mass of the person sitting on the chair.
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Logarithm using the properties of logarithms
: Approximate the logarithm using the properties of logarithms, given logb 2 ≈ 0.3562, logb 3 ≈ 0.5646, and logb 5 ≈ 0.8271.(Round your answer to four decimal places.) logb(5b)-3Determine the principal P that must be invested at rate r = 3
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Define the interest tax shield
: Discuss market efficiency and the difference between weak form efficient, semi-strong form efficient and strong form. Define the "interest tax shield" and explain how it works with debt financing.
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Suppose the supply and price for a prescription
: Suppose the supply and price for a prescription are related by P=.0015q +1 where p is the price in dollars of a 30 day prescribtion if the demand is related to price by P= 0025q + 64.36. What is the equilibrium quantity and price.
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Describe the five stages of the negotiation process
: Describe the five stages of the negotiation process. Explain how the negotiation can be unsuccessful if you leave out one of the steps
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Yield and frequency
: Consider a 5 year bond with face value of 100 and price of 101 that has a coupon of 6% . What is the yield of this bond if the coupon is paid?
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Develop an agenda for your first meeting with project team
: Develop an agenda for your first meeting with the project team, scheduled for October 1st. Include a description of the project and rough scope, time, and cost goals. Assume the purpose of the first meeting is to get everyone up to speed and to bu..
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