Reference no: EM133118464

1. Consider this simplified balance sheet for Geomorph Trading:

What are Geomorph's net working capital and total long-term capital?

A. $160, $710

B. $926, $926

C. $470, $680

D. $516, $1,000

2. An analyst at Rockville Enterprises estimates that a project has the following after-tax net cash flows:

Cash Flows By Year

Year    Net Cash Flows

0          (500,000)

1          170,000

2          180,000

3          170,000

4          130,000

5            80,000

6            50,000

PV Factor Table Period            12.00%

1                      0.8929

2                      0.7972

3                      0.7118

4                      0.6355

5                      0.5674

6                      0.5066

7                      0.4523

If the company's cost of capital is 12%, the project's discounted payback period is closest to:

A. 4.48 years

B. 3.73 years.

C. 4.02 years

D. 1.73 years

3. Coca-Cola has sales of $20 million, total debt of $1.5 million, and a debt ratio of 40%. What is Coca-Cola's total asset turnover?

A. 5.33

B. 13.33

C. 6.55

D. 9.11

4. A company has forecast sales in the first three months of the year as follows (figures in millions): January, $80; February, $60; March, $40. 70 percent of sales are usually paid for in the month that they take place, 20 percent in the following month, and the final 10 percent in the month after that. Receivables at the end of December were $23 million. What are the forecasted collections on accounts receivable in March?

A. $13 million

B. $48 million

C. $180 million

D. $40 million

5. Construct a balance sheet for Galactic Enterprises given the following data:

What is shareholders' equity?

A. $106,000

B. $270,000

C. $14,000

D. $150,000

6. Consider the preferred shares of KLY Company that are trading at $25 per share. What will be the cost of preferred equity if these stocks have a par value of $35 and pay annual dividend of 4%?

A. 4%

B. 2.9%

C. 5.6%

D. 6.5%