#### Description

##### multiple choice/true or false quiz

Description

Question

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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