1. Which of the following is considered a hybrid organizational form?
limited liability partnership
partnership
sole proprietorship
corporation
2. Which of the following is a principal within the agency relationship?
a company engineer
the board of directors
the CEO of the firm
a shareholder
3. Teakap, Inc., has current assets of $ 1,456,312 and total assets of $4,812,369 for the year ending September 30, 2006. It also has current liabilities of $1,041,012, common equity of $1,500,000, and retained earnings of $1,468,347. How much long-term debt does the firm have?
$803,010
$1,844,022
$2,303,010
$2,123,612
4. Which of the following presents a summary of the changes in a firm's balance sheet from the beginning of an accounting period to the end of that accounting period?
The statement of retained earnings.
The statement of working capital.
The statement of cash flows.
The statement of net worth.
5. Efficiency ratio: Gateway Corp. has an inventory turnover ratio of 5.6. What is the firm's days's sales in inventory?
65.2 days
57.9 days
61.7 days
64.3 days
6. Leverage ratio: Your firm has an equity multiplier of 2.47. What is its debt-to-equity ratio?
1.47
0.60
1.7
7. Which of the following is not a method of "benchmarking"?
Identify a group of firms that compete with the company being analyzed.
Evaluating a single firm's performance over time.
Conduct an industry group analysis.
Utilize the DuPont system to analyze a firm's performance.
8. 2 Present value: Jack Robbins is saving for a new car. He needs to have $ 21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target? (Round to nearest dollar.)
$22,680
$26,454
$16,670
$19,444
9. 3 PV of multiple cash flows: Ferris, Inc., has borrowed from their bank at a rate of 8 percent and will repay the loan with interest over the next five years. Their scheduled payments, starting at the end of the year are as follows-$450,000, $560,000, $750,000, $875,000, and $1,000,000. What is the present value of these payments? (Round to the nearest dollar.)
$2,815,885
$2,735,200
$2,615,432
$2,431,224
10. PV of multiple cash flows: Ajax Corp. is expecting the following cash flows-$79,000, $112,000, $164,000, $84,000, and $242,000-over the next five years. If the company's opportunity cost is 15 percent, what is the present value of these cash flows? (Round to the nearest dollar.)
$477,235
$480,906
$414,322
$429,560