STR 581 Capstone Final Examination Part Two

1. STR 581 PART TWO FINAL EXAM Bywww.uopeassignments.com/ Copyright. All Rights Reserved by www.uopeassignments.com/

2. 1. Internal reports that review the actual impact of decisions are prepared by:           the controller  department heads     factory workers          management accountants 2. Horizontal analysis is also known as:         trend analysis vertical analysis         linear analysis            common size analysis Copyright. All Rights Reserved by www.uopeassignments.com/

3. 3. Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?    most common form of organization reduced legal liability for investors  lower taxes     harder to transfer ownership Complete Answers here STR 581 Complete Course 4. Serox stock was selling for $20 two years ago. The stock sold for $25 one year ago, and it is currently selling for $28.  Serox pays a $1.10 dividend per year.  What was the rate of return for owning Serox in the most recent year? (Round to the nearest percent.)           32%    16%    12%    40% Copyright. All Rights Reserved by www.uopeassignments.com/

4. 5. External financing needed: Jockey Company has total assets worth $4,417,665. At year-end it will have net income of $2,771,342 and pay out 60 percent as dividends. If the firm wants no external financing, what is the growth rate it can support?           30.3% 27.3% 32.9% 25.1% 6. An unrealistic budget is more likely to result when it:     has been developed by all levels of management.           has been developed in a top down fashion.          has been developed in a bottom up fashion. is developed with performance appraisal usages in mind. Download now STR 581 Copyright. All Rights Reserved by www.uopeassignments.com/

5. 7. Which of the following financial statements is concerned with the company at a point in time?            balance sheet            retained earnings statement            statement of cash flows income statement 8. Next year Jenkins Traders will pay a dividend of $3.00.  It expects to increase its dividend by $0.25 in each of the following three years.  If their required rate of return if 14 percent, what is the present value of their dividends over the next four years?     $12.50            $11.63            $9.72  $13.50 Copyright. All Rights Reserved by www.uopeassignments.com/

6. 9. An activity that has a direct cause-effect relationship with the resources consumed is a(n):            product activity          cost driver      cost pool        overhead rate Complete paper here STR 581 Final Exam 10. The major element in budgetary control is:         the approval of the budget by the stockholders     the valuation of inventories   the preparation of long-term plans  the comparison of actual results with planned objectives. Copyright. All Rights Reserved by www.uopeassignments.com/

7. 11. Tule Time Comics is considering a new show that will generate annual cash flows of $100,000 into the infinite future. If the initial outlay for such a production is $1,500,000 and the appropriate discount rate is 6 percent for the cash flows, then what is the profitability index for the project? 0.11    1.11    0.90    1.90 12. How firms estimate their cost of capital: The WACC for a firm is 13.00 percent. You know that the firm’s cost of debt capital is 10 percent and the cost of equity capital is 20% What proportion of the firm is financed with debt? 70%    50%    33%    30% Want more details? Download now STR 581 Entire Course Copyright. All Rights Reserved by www.uopeassignments.com/

8. 13. The most important information needed to determine if companies can pay their current obligations is the:  relationship between current assets and current liabilities           relationship between short-term and long-term liabilities projected net income for next year  net income for this year 14. Process costing is used when:       dissimilar products are involved      production is aimed at fulfilling a specific customer order.          the production process is continuous.        costs are to be assigned to specific jobs. Copyright. All Rights Reserved by www.uopeassignments.com/

9. 15. A cost which remains constant per unit at various levels of activity is a:    fixed cost        mixed cost     manufacturing cost    variable cost Find the final exam answers here STR 581 Individual Assignment 16.The group of users of accounting information charged with achieving the goals of the business is its:       investors         auditors          creditors         managers Copyright. All Rights Reserved by www.uopeassignments.com/

10. 17. Teakap, Inc. has current assets of $1,456,312 and total assets of $4,812,369 for the year ending September 30, 2006.  It also has current liabilities of $1,041,012, common equity of $1,500,000 and retained earnings of $1,468,347. How much long-term debt does the firm have?            $803,010       $2,303,010    $1,844,022    $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. Find the quiz answers here STR 581 Final Exam Answer Copyright. All Rights Reserved by www.uopeassignments.com/

11. 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 Copyright. All Rights Reserved by www.uopeassignments.com/

12. 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 Download for answers STR 581 Knowledge Check 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 Copyright. All Rights Reserved by www.uopeassignments.com/

13. 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. JayadevAthreya 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    $1,745,600    $3,594,524 Click here and download STR 581 Week 6 Complete Copyright. All Rights Reserved by www.uopeassignments.com/

14. 25. Turnbull Corp. had an EBIT of $247 million in the last fiscal year.  Its depreciation and amortization expenses amounted to $84 million.  The firm has 135 million shares outstanding and a share price of $12.80. A competing firm that is very similar to Turnbull has an enterprise value/EBITDA multiple of 5.40. What is the enterprise value of Turnbull Corp.? Round to the nearest million dollars. $1,344 million            $453.6 million            $1,315 million $1,787 million 26. Firms that achieve higher growth rates without seeking external financing:         Have a low plowback ratio   are highly leveraged have less equity and/or are able to generate high net income leading to a high ROE. None of these Copyright. All Rights Reserved by www.uopeassignments.com/

15. 27. In a process cost system, product costs are summarized:     on job cost sheets.    when the products are sold. after each unit is produced. on production cost reports. Want help? Click to download STR 581 Final Exam Questions With Answers 28. The convention of consistency refers to consistent use of accounting principles:         within industries         among accounting periods  throughout the accounting period    among firms Copyright. All Rights Reserved by www.uopeassignments.com/

16. 29. If a company’s weighted average cost of capital is less than  the required return on equity, then the firm:           is financed with more than 50% debt          is perceived to be safe         partnership     has debt in its capital structure 30. Your firm has an equity multiplier of 2.47.  What is the debt-to-equity ratio?          0          1.74    0.60    1.47 Complete Answers just a click away STR 581 Complete Assignment Copyright. All Rights Reserved by www.uopeassignments.com/

17. 31. The accumulation of accounting data on the basis of the individual manager who has the authority to make day-to-day decisions about activities in an area is called:   master budgeting      static reporting          responsibility accounting flexible accounting 32. Regatta, Inc., has six-year bonds outstanding that pay a 8.25 percent coupon rate. Investors buying the bond today can expect to earn a yield to maturity of 6.875 percent. What should the company’s bonds be priced at today? Assume annual coupon payments. (Round to the nearest dollar.)        $1014 $972   $923   $1,066 Copyright. All Rights Reserved by www.uopeassignments.com/

18. 33. Variance reports are:  internal reports for management     SEC financial reports           external financial reports all of these Final Exam Answers just a click away STR 581 Entire Course 34. The break-even point is where:       contribution margin equals total fixed costs.          total sales equal total variable costs.          total sales equal total fixed costs. total variable costs equal total fixed costs. Copyright. All Rights Reserved by www.uopeassignments.com/

19. 35. When a company assigns the costs of direct materials, direct labor, and both variable and fixed manufacturing overhead to products, that company is using:       operations costing    product costing          absorption costing    variable costing 36. Which of the following is considered a hybrid organizational form?            sole proprietorship    partnership     limited liability partnership   corporation Quiz Answers just a click away STR 581 Final Exam Copyright. All Rights Reserved by www.uopeassignments.com/

20. 37. Gateway, Corp.  has an inventory turnover of 5.6.  What is the firm’s days’s sales in inventory?    57.9    61.7    65.2    64.3 38. The process of evaluating financial data that change under alternative courses of action is called:           incremental analysis contribution margin analysis            cost-benefit analysis double entry analysis Copyright. All Rights Reserved by www.uopeassignments.com/

21. 39. What decision criteria should managers use in selecting projects when there is not enough capital to invest in all available positive NPV projects?      the modified internal rate of return  the profitability index the discounted payback       the internal rate of return About Author This article covers the topic for the University Of Phoenix STR 581 Final Exam. The author is working in the field of education from last 5 years. This article covers the basic of STR 581Final Exam Assignment from UOP. Other topics in the class are as follows: STR 581 Week 1 Ethics Reflection Paper STR 581 Week 1 Complete STR 581 Week 2 Research Proposal STR 581 Week 2 Learning Team Activity STR 581 Week 2 Complete Copyright. All Rights Reserved by www.uopeassignments.com/

22. STR 581 Week 3 External and Internal Environmental Analysis STR 581 Week 3 Learning Team Peer Evaluation STR 581 Week 3 Complete STR 581 Week 4 Strategic Choice and Evaluation STR 581 Week 4 Learning Team Peer Evaluation STR 581 Week 4 Complete STR 581 Week 4 Capstone Final Examination, Part Two STR 581 Week 5 Implementation Strategic Controls and Contingency Plans STR 581 Week 5 Learning Team Peer Evaluation STR 581 Week 5 Complete STR 581 Week 6 Strategic Plan and Presentation STR 581 Week 6 Complete Copyright. All Rights Reserved by www.uopeassignments.com/

23. STR 581 Week 1 Knowledge Check (Latest) STR 581 Week 2 Knowledge Check (Latest) STR 581 Week 3 Knowledge Check (Latest) STR 581 Week 4 Knowledge Check (Latest) STR 581 Week 5 Knowledge Check (Latest) Want to check other classes..?? Visitwww.uopeassignments.com Copyright. All Rights Reserved by www.uopeassignments.com/