Multiple choice questions on managerial finance

Reference no: EM1345881

1) The present value of a $25,000 perpetuity at a 14 percent discount rate is
A) $350,000
B)285,000
C)178,571
D)219,298

2) What annual rate of return would Grandma Zoe need to earn if she deposits $1,000 per month into an account beginning one month from today in order to have a total of $1,000,000 in 30 years ?
A)5.98%
B)5.28%
C)6.23%
D)4.55%

3) The advantage of issuing preferred stock from the common stockholder's perspective include all of the following EXCEPT
A)Increased leverage
B)flexibility
C)Use in mergers
D)Seniority of preferred stockholder's claim over common stockholders.

4) Nico Corporation expects to generate free-cash flows of $200,000 per year for the next five years . Beyond that time, free cash flows are expected to grow at a constant rate of 5 percent per year forever. If the firm's average cost of capital is 15 percent, the market value of the firm's debt is $500,000, and Nico has a million shares of stock outstanding, what is the value of Nicos's stock ?
A)$0.00
B)$1.43
c)$3.43
D)$2.43

5) The cost to a corporation of each type of capital is dependent upon
A)the risk free rate of each type of capital plus the business risk and the financial risk of the firm.
B)the risk free rate of each type of capital plus the business risk of the firm.
C)the risk free rate of each type of capital plus the financial risk of the firm
D)the risk free rate of bonds plus the business risk of the firm

Reference no: EM1345881

Questions Cloud

Find out the mass of the collar if the mass of the puck : Two magnetic air pucks are approaching each other for a glancing blow. This time one of the pucks will have an additional mass (lead collar). estimate the mass of the collar if the mass of the puck itself is 0.199 kg and the mass of the second puck..

Analyzing the financial performance of the city : You are in a new city council person for the City of Scottsdale, Arizona. You are aware that many cities have been in the news recently for financial crises for which the council or board is being held accountable.

What constant torque will be required to bring it up : A sanding disk with rotational inertia 8.1 x 10-3 kg·m2 is attached to an electric drill whose motor delivers a torque of magnitude 20N·m about central axis of the disk. About that axis and with torque applied for 29 ms, what is the magnitude of (..

Question based onintercultural communication : Intercultural Communication: Interpreting Phrases In Different Languages - explain how can someone in a non-dominant culture interpret the squeaky wheel gets the grease

Multiple choice questions on managerial finance : What yearly rate of return would Grandma Zoe need to earn if she deposits dollar 1,000 per month into an account starting one month from today in order to have a total of $1,000,000 in thirty years ?

Executing stringed musical instrument class : Create and execute a stringed musical instrument class.

Explain how fast will the electron be moving : A charge of -3.80 nC and a charge of -6.00 nC are separated by a distance of 60.0 cm. Find out the position at which a third charge of +7.30 nC could be placed so that the net electrostatic force on it is zero.

Foreign exchange rates and us interest rates : Assume the Federal Reserve Bank of US unexpectedly raises interest rates in US. How do you think this will impact foreign-exchange market?

Direct impact on ethical climate of organization : Leaders must understand their actions have a direct impact on the ethical climate of the organization please describe

User Account

All Pages