STR 581 Week 4 Capstone Final Examination Part 2 UOP Students

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$2,123,612 18. The cash conversion cycle? begins when the firm invests cash to purchase the raw materials that would be used to produce the goods that the firm manufactures. estimates how long it takes on average for the firm to collect its outstanding accounts receivables balance. begins when the firm uses its cash to purchase raw materials and ends when the firm collects cash payments on its credit sales. shows how long the firm keeps its inventory before selling it. Click here to download STR 581 Week 4 Capstone Final Examination Part 2 19. 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.) $480,906 $429,560 $414,322 $477,235 20. 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) $26,454 $19,444 $22,680 $16,670 21. Which of the following presents a summary of changes in a firm’s balance sheet from the beginning of an accounting period to the end of that accounting period?
the statement of net worth the statement of cash flows the statement of working capital the statement of retained earnings 22. M&M Proposition 1: Dynamo Corp. produces annual cash flows of $150 and is expected to exist forever. The company is currently financed with 75 percent equity and 25 percent debt. Your analysis tells you that the appropriate discount rates are 10 percent for the cash flows, and 7 percent for the debt. You currently own 10 percent of the stock. If Dynamo wishes to change its capital structure from 75 percent equity to 60 percent equity and use the debt proceeds to pay a special dividend to shareholders, how much debt should they use? $225 $600 $375 $321 Click here to download STR 581 Week 4 Capstone Final Examination Part 2 23. Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time: that has been arranged from the highest number to the lowest number. to determine the amount and/or percentage increase or decrease that has taken place. to determine which items are in error. that has been arranged from the lowest number to the highest number. 24. Jayadev Athreya has started his first job. He will invest $5,000 at the end of each year for the next 45 years in a fund that will earn a return of 10 percent. How much will Jayadev have at the end of 45 years? $2,667,904 $5,233,442
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STR 581 Week 4 Capstone Final Examination Part 2 UOP Students

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