multiple choice/true or false quiz

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questions are in attached doc. Document Preview: Question #1 (1 point) Huffy Inc. manufactures a line of bicycles. Their average selling price is $200 per unit with a variable cost of $120 per unit. Huffy's annual fixed expenses are $240,000 per year. What is the break-even point in units for the company? 5,000 4,000 3,000 2,000 Question #2 (1 point) A company expects to receive the following cash flows at the end of each respective period: Year 1 - $1,000
Year 2 - $1,200
Year 3 - $2,200
and then $1,300 each year for the next five years after (years 4 through 8). With a discount rate of 5%, what is the present value of the cash flows? $8,429 $8,803 $7,262 $6,943 Question #3 (1 point) If shareholder wealth is measured by the market capitalization of the firm, what would be the total shareholder wealth of a firm that has 150,000 common shares outstanding and 25,000 preferred shares issued? Its current common stock price is $50.00, and its current preferred stock price per share is $25.00. $8,750,000 $8,000,000 $7,500,000 $7,000,000 Question #4 (1 point) Huffy Inc. manufactures a line of bicycles. Their average selling price is $200 per unit with a variable cost of $120 per unit. Huffy's annual fixed expenses are $240,000 per year. Calculate the company's EBIT at 9,000 units. $160,000 $800,000 $480,000 $0 Question #5 (1 point) In 2011, Whitetree Inc. had a net income of $240,000, depreciation expense of $30,000, a decrease in accounts receivable of $35,000, an increase in inventory of $20,000, a decrease in accounts payable of $25,000, an increase in plant and equipment of $200,000, an increase in bonds payable of $70,000, and $80,000 of common stock dividends paid. What is the net increase (decrease) in Whitetree Inc.'s cash flows? net increase of $25,000 net increase of $50,000 net decrease of $25,000 net decrease of $50,000 Question #6 (1 point) Friedrich Inc. has total assets of $580,000, total liabilities of $210,000, a preferred stock obligation of $20,000, and 50,000... Attachments: midterm-finc.....docx

 

Solution ID:565845 | This paper was updated on 26-Nov-2015

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