Question 1 (10 points)
The __________ provides a snapshot of a firm’s financial position.
Question 2 (10 points)
The alternative minimum tax (AMT) is designed to:
Question 3 (10 points)
The __________ summarizes a firm’s revenues, expenses, and profit during a specific period.
Question 4 (10 points)
Acme Inc. turns its inventory over 6 times each year, what is Acme’s Average Age of Inventory:
Question 5 (10 points)
The rate of interest actually paid or earned that includes compounded interest is called the ____________ rate.
Question 6 (10 points)
The after-tax cost of debt for a firm with a 10% before-tax cost of debt and a 30% percent marginal tax rate is:
Question 7 (10 points)
The ability of a firm to pay its short-term debts is measured by:
Question 8 (10 points)
According to the DuPont analysis, return on assets (ROA) consists of:
Question 9 (10 points)
A firm’s capital structure is composed of the following sources and after-tax costs: 30% long-term debt (cost 6%), 10% preferred stock (cost 8%), and 60% common stock (cost 14%). The weighted average cost of capital is:
Question 10 (10 points)
What is the present value of $100 received in one year, $200 received in two years, and $300 received in three years if the opportunity cost is 12%?