BUS475-New-Set2

BUS 475 Final Exam Study Guide – Set 2 1. Metal Corp has 2,575,000 of debt, 550,000 preferred stock, and 18,125,000 of common equity. Metal Corp.'s after-tax cost of debt is 5.25%, preferred stock has a cost of 6.35%, a ...

BUS 475 Final Exam Study Guide – Set 2 1. Metal Corp has 2,575,000 of debt, 550,000 preferred stock, and 18,125,000 of common equity. Metal Corp.'s after-tax cost of debt is 5.25%, preferred stock has a cost of 6.35%, and newly issued common stock has of 14.05%. What is Metals Corp.'s weighted average cost of capital? 2. Mitch Company's ending inventory is understated by $4,000. The effects of this error on the current year's cost of goods sold and net income, respectively, are 3. In the stockholders equity section of the balance sheet, treasury stock is deducted from the following: 4. To decrease the nation’s money supply, the Fed can? 5. The DMAIC process is relevant to? 6. A. survey of 134 cell phone users fielded the data found in the table below. The table compares gender and type of phone. 7. A ____ is an articulation of a simple criterion or characterization of what the leader sees the company must become to establish and sustain global leadership. 8. Organizational requirements to support and sustain differentiation activities include which of the following? 9. Which of the following statements about ethical behavior in business is true? 10. The market opportunities most relevant to a particular company are those that 11. Which of the four basic financial statements adds net income and subtracts dividends to arrive at its key data element at the end of each period? 12. Ethnic markets are becoming more important to marketers because the 13. In the long run framework, budget surpluses 14. When an accountant makes an adjusting entry for accrued expenses, which statement best reflects what the accounts look like before the adjustment? 15. Which of the following will decrease the nominal deficit? 16. To arrive at net cash provided by operating activities the statement of cash flows prepared by the indirect method starts with net income and then adds or deducts various items. In making this calculation. the following items are added to net income under the indirect method: . 17. Organizational requires to support and sustain cost leadership are . 18. What principle dictates that efforts (expenses) be recorded with accomplishments (revenues)? 19. If a country’s trade deficit increases, then 20. Under the percentage of receivables method. the allowance for a doubtful accounts balance will occasionally have a balance due to write-off's that occur during the year, which exceed the previous provisions for bad debts. In such cases, what must a company do to this account? 21. One reason for international investment is that 22. Strategic management involves the ___ , directing. ___ and controlling of a company's strategy-related decisions and actions 23. The overriding goal of a control system is to enable the ____ and ____ of the business. 24. The appropriate alternative hypothesis for a two-tail test to determine if mean body weight of all the men who have joined a health club is same as 185 pounds would be 25. The main reason that vertical marketing systems are becoming more common is that: 26. ____ is the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message 27. A random sample of 81 team leaders and supervisors from Fortune 500 companies revealed that on average a person spent 6.5 years on the job before being promoted _ The standard deviation of the sample was 1.7 years. Assuming that the population standard deviation is unknown, the 99% confidence interval within which the population mean lies is approximately between ____ and ____ years 28. When predicting grade point average from number of hours spent studying per week, the equation for the best fit line found to t 0.0855x + 0.944. \Vhat is the predicted grade point average of a student that studies 26 hours per week? 29. Penn Corp. acquired a truck to haul widgets between its manufacturing facility and its sales offices. Penn acquired the truck for $55,000. Penn sold the truck years later for $15,000. Before the year of the sale, Penn had depreciated the asset by $32,000. Penn depreciated the truck by another $2,000 during the year it was sold. Does Penn record gain or loss on the sale and how much? 30. Cargill, Inc. is finally earning a profit on the unique product it introduced 6 months ago. Cargill's advertising is both informative and persuasive. Much money is being spent on Place development. There is little price competition, although several competitors have come out with reasonable imitations. Total industry sales and profits are both rising. In which stage of the product life cycle is Cargill operating? 31. Internal control is used in a business to enhance the accuracy and reliability of its accounting records and to 32. If XYZ Co. had 100 units of beginning inventory valued at $15 per unit in January, purchased an additional 100 units of inventory in February at $16 per unit, and additional 100 units of inventory in May at $19 per unit, what would the unit cost of ending inventory be under each of the three inventory methods (assuming that XYZ only sold 79 units during this time frame)? 33. A distribution center for a chain of electronics supply stores fills and ships orders to retail outlets. A random sample of orders is selected as they are received and the dollar amount of the order (in thousands of dollars) is recorded, and then the time (in hours) required to fill the order and have it ready for shipping is determined. A scatterplot showing the times as the response variable and the dollar amounts (in thousands of dollars) as the predictor shows a linear trend. The least squares regression line is determined to be: yˆ= 0.76 +1.8x. A plot of the residuals versus the dollar amounts showed no pattern, and the following values were reported: Correlation r + 0.90; R 2 = 0.81; standard deviation of the residuals is 0.48. What percentage of the variation in the times required to prepare an order for shipping is accounted for by the fitted line? 34. Suppose Stock A has had a mean price of $6.58 per share with a standard deviation of $1.88, while Stock B has had a mean price of $10.57 per share with a standard deviation of $3.02. Which stock shows a higher coefficient of variation or volatility? 35. A correlation value of r = 0.5 between the x-variable and y-variable means 36. Which of the following is the most important factor that affects a firm's financing mix? 37. Which of the following statements best describes the modem view of marketing? 38. P. Noel's Inc.'s current ratio is 2. Current liabilities are $500,000. P. Noel's current assets equal __________ and net working capital is __________. 39. What is the present value of S 12,500 to be received 10 years from today? Assume a discount rate of 8% compounded annually and round to the nearest $10 40. The Oviedo Thespians are planning to present performances of their Florida Revue on two consecutive nights in January. It will cost them $5,000 per night for theater rental, event insurance, and professional musicians. The theater will also take 10% of gross ticket sales. How many tickets must they sell at $10.00 per ticket to break even? 41. Which account will have a zero balance after a company has journalized and posted closing entries 42. H&R Block wants to analyze its clients' tax returns over the past 10 years for each of the client' s tax filings. The type of data generated will be 43. Segmenting, in contrast to combining, 44. The following is an example of an unethical action committed by ABC, Inc.'s accountant, Fred Anderson 45. In horizontal analysis, each item is expressed as a percentage of the following 46. Identifying and assessing a company's resource strengths and weaknesses and its external opportunities and threats is called a 47. In what situations are notes payable used in lieu of accounts payable? 48. l Printing Equipment (NPE) produces equipment that helps to print newspapers and magazines. The company sells directly to printers and through wholesalers. Its salespeople negotiate prices. National Printing Equipment's new Gutenberg NP201 should probably use 49. Which of the following financial instruments entails the most risk and potentially the highest returns for investors? 50. Woodstock Inc. expects to own a building for 5 years, and then sell it for $1,500,000 net of taxes, sales commissions, and other selling costs. Woodstock's cost of capital is 11%. How much will the sale of the building contribute to the NPV of the project?