FIN 317 FIN317 MIDTERM ANSWERS (STRAYER UNIVERSITY)
Mezzanine financing is associated with which one of the following life cycle stages:
The type of financing that occurs during the development stage of a venture’s life cycle is typically referred to as:
Obtaining bank loan, issuing bonds, and issuing stock is characteristic of which type of financing during the venture’s life cycle?
Which of the following advise and assist corporations on the type, timing, and costs of issuing new debt and equity securities and facilitate the sale of firms?
At which stage of the venture’s life cycle stage is best characterized by the period when revenues start to grow and when cash flows from operations begin covering cash outflows?
Determine gross profit of a venture with the following financial information: cost of goods sold = $30,000; net profit = $17,000; asset turnover = 1.6; return on assets 32%
The definition of an entrepreneurial firm is:
Firms that allow owners to pursue specific lifestyles while being paid for doing what they like to do are referred to as:
The evaluation of “entry barriers” occurs under which one of the following parts of the VOS indicator?
Determine the return on assets (ROA) for a venture with the following financial information:
Wealthy individuals who invest in early stage ventures in exchange for the excitement of launching a business and a share in any financial rewards are known as:
Based on 2009 tax schedules, the first dollar of corporate income is taxed at which of the following marginal tax rates:
Which of the following are intellectual property rights granted for inventions that are useful,novel, and non-obvious?
In which form of business organization is the taxation effects characterized by the income flowing to shareholders taxed at personal tax rates?
Based on 2009 tax schedules, the highest marginal tax rate on personal taxable income is:
In its first year, Joe’s Start-Up Company had revenues of $125,000 and cost of goods sold of $81,250, which was the only variable cost. Depreciation was $20,000, and cash costs were $5,000 in financing costs, admin expenses of $50,000, and $45,000 in marketing expenses – all of which were fixed. What is the survival breakeven revenue?
What is the survival revenues breakeven based on the following: Administrative expenses = $200,000; Marketing expenses = $180,000; Depreciation expenses = $100,000; and Interest expenses = $20,000; and a variable cost revenue ratio = .50?
Acme Pest Control has sales of $13,500, cost of goods sold of $4,000, selling expenses of $3,500, depreciation of $2,000, interest expense of $2,000, and a tax rate of 34%.
Which of the following is a use of cash?
A lease that provides maintenance in addition to financing and is also usually cancelable is called:
Which of the following is used to examine a venture’s performance over time?
Which of the following measures the average time it takes a firm to complete its operating cycle after deducting the days supported by trade credit and delayed payroll financing?
Last year, Nemo’s Fish ‘n Chips recorded the following financial data: sales = $85,000; cost of goods sold = $45,000; selling and administrative expenses = $25,000; depreciation and amortization = $7,000; interest expense = $12,000. The tax rate was 30%. Find Nemo’s interest coverage for last year.
Your firm recorded sales for the most recent year of $10 million generated from an asset base of $7 million, producing a $500,000 net income. Sales are projected to grow at 20%, causing spontaneous liabilities to increase by $200,000. In the most recent year, $200,000 was paid out as dividends, and the current payout ratio will continue in the upcoming years. What is your firm’s AFN?
Determine a venture’s sustainable growth rate based on the following information: sales =$1,000,000; net income = $100,000; common equity at the beginning of the year = $500,000; and the retention rate = 50%.
If a venture has a return on assets (ROA) = 12%, an equity multiplier based on beginning equity = 3.0 times, and a sustainable growth rate of 18%, the retention rate would be:
Lola is in the process of forecasting the sales growth rate for an early-stage venture specializing in the production of durable running shoes. Lola predicts a .2 probability of an 80% growth in sales, a .3 probability of a 60% growth in sales, a .4 probability of a 40% growth in sales, and a .1 probability of a 10% decrease in sales. What is the expected sales growth rate of the venture?
When projecting financial statements, one first and proceeds to :
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