Analysis of a common stock
- A common stock paid a dividend of 53.75 this year. It is expected to grow at 8% each year for a point the foreseeable future. Investors require an 11% return rate. What is die value of a share of this stock? 0 $135.00 0 3125.00 00322.50 033.97
- You bought stock for $25.47 per share One year la, you sold it for $45.85. What is the a point) holding period (historical or realized) rate of return on your investment? 080.02% 044.44% 0 20.38% 0 1.80%
- When comparing ratios, remember that a point) published peer groups and industry averages are scientifically derived. 0 industry averages are a gold standard for performance. 0 determining the firm’s true peers can be challenging. 0 accounting practices are uniform.
Webs, Online, Inc.. millions,
Current Assets
$10.555
Accounts Receivable
5,32
Cash
3.053
Inventories
t .734
Sales
..938
Cost of goods sold
3,938
Total current liabilities
11,609
0.29 .0 0.82 0 2.84 0 3.49 - The purpose of inventory management is best explained as a ;Joint) “.’ malting sure supplies run out before being restocked since inventory is costly. making sure to maintain enough inventory to support salts and production,but not too much inventory since inventory is costly.
- Which costs are correlated with the firm’s sales and include the costs of labor, raw materials, a point)
direct 0 fixed 0 flotation variable
Flew
63 396 0039, tr”::11ster ‘766:”6″1.7
,n.S….u.P,•“. pas Tax annedurds of sdieg pv,of
t%71
11717:7 c=112:171Z: 71`”1=1 and..=,7=.!::
station, is called a(n) financing cost. clearheaded cOs7 sunk cost. - Given the following information about New Gm,. Garden Shop, what is Ilse current ratio, a point)
New Growth Garden Shop
Current Assets
5105,367
Accounts Receivable
56.457
Cash
31,320
Invenlanes
17,90
Cost of goods sold
25,346
Total cuirent liabilities
96560 0
1.43 1.10 0.91 0.83 - What is the future value of 52,000.00 at 6, interest compounded annually after eight years? a point) 0 53.187.70 0 53,173.75 0 52,960.00 0 52,737.14
- A firm’s phone system no longer meets its needs. The fims has four bids from different companies for a new system. This sinuttion is an example of a(n) project. empeansion mutually exclusive replacement
a poin, - On April 1, a firm announces that holders of record on May I will receive a dividend on June a point, 1. Which of the knowing statements is false? Arhsh:reirlder:t boort Tick M the firm on May 2 will receive a dividend on June 1.
- Which is one of the purposes for a firm to use a cash budget? a point) 0 to prepare for changes in cash flow €) to avoid tax liability to minimize profits and losses to review past expenditures
- Which of the following is the best example of market risk? a poin, A firm decides to donate a percentage of its retained earning to charity rather than reinvest. A firm wants to cash in on chocolate prices and expands to the Ivory Coast, which is embroiled in a civil war. A .in’s investments benefit from an upsn,g in technology stocks. An accounting error resuhs in a tax penalty, which affects both retained earnings and thvidends.