# STR581/ STR581 FINAL EXAM (100% SOLUTION) - 95262

Solution Posted by

## anjis_devis

Rating : (20)B
Solution Detail
Price: \$25.00
• Posted on: Tue 02 Feb, 2016
• Request id: None
• Purchased: 0 time(s)
• Average Rating: No rating
Request Description
Solution Description

Question

Q1: Gateway, Corp. has an inventory turnover of 5.6. What is the firm’s days’s sales in inventory?

64.3

65.2

57.9

61.7

Q2: Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?

reduced legal liability for investors

most common form of organization

lower taxes

harder to transfer ownership

Q3: 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.)

\$414,322

\$477,235

\$480,906

\$429,560

Q4: 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.)

12%

32%

16%

40%

Q5: An unrealistic budget is more likely to result when it:

has been developed in a bottom up fashion.

has been developed in a top down fashion.

is developed with performance appraisal usages in mind.

has been developed by all levels of management.

Q6: Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time:

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 highest number to the lowest number.

that has been arranged from the lowest number to the highest number.

Q7: 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)

\$22,680

\$16,670

\$26,454

\$19,444

Q8: Internal reports that review the actual impact of decisions are prepared

Attachments