Midterm CF Lớp 1

An ordinary annuity is best defined by which one of the following?

• A series of increasing payments paid for a definitive period of time.
• A series of increasing payments paid forever.
• A series of constant or level cash flows that occur at the end of each period, and the cash flows continue forever.
• A series of constant or level cash flows that occur at the end of each period for some fixed number of periods.

Binh An Corp. has a 10% return on assets (ROA) at the ending of the period and a 60% retention ratio. What is its internal growth rate?  

• 6.38%
• 9.54%
• 10.01%
• 11.84%

You just won the grand prize in a national writing contest. As your prize, you will receive $5,000 a year for 3 years. If you can earn 7% per year of your money, what is this prize worth to you today?

• $11,978
• $12,411
• $13,122
• $16,987

Company R.P's sales last year were $410,000, and its net income after taxes was $30,000. What was its profit margin (PM)?

• 0.0509
• 0.0615
• 0.0707
• 0.0732

 VBC Corporation is expected to pay a $3.00 dividend at the end of this year. If you expect VBC's dividend to grow by 6% per year forever and VBC's equity cost of capital is 15%, then the value of a share of VBC stock is closest to: 

• $33.33
• $44.44
• $55.55
• $66.66

The sustainable growth rate …

• assumes there is no external financing of any kind.
• assumes no additional long-term debt is available.
• assumes the debt-equity ratio is constant.
• assumes the debt-equity ratio is 1.0.

Ratios that measure a firm's financial leverage are known as … …ratios.

• asset management
• long-term solvency
• short-term solvency
• profitability

Which one of the following statements concerning a sole proprietorship is CORRECT?

• A sole proprietorship is designed to protect the personal assets of the owner.
• The profits of a sole proprietorship are subject to double taxation.
• Sole proprietors are personally liable for the sole proprietorship's debts.
• A sole proprietorship is structured the same as a limited liability company.

Earning before interest and tax (EBIT) is calculated as …….

• total sales - cost of goods sold – rent – interest expenses.
• total sales - cost of goods sold – selling and administrative expenses.
• total sales - cost of goods sold - selling and administrative expenses - depreciation and amortization.
• total sales - cost of goods sold - depreciation and amortization - tax.

The expected risk premium on a stock is equal to the expected return on the stock minus the ..........

• expected market rate of return.
• risk-free rate.
• inflation rate.
• standard deviation