National scan, Inc., sells radio frequency inventory tags (Answer Key)

National scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month
period were as follows:
Month Sales
Feb 19
Mar 18
Apr 17
May 20
Jun 19
Jul 22
Aug 20
a. Forecast September sales volume using the naïve approach.
b. Forecast September sales volume using a linear equation. a=17.43, b = 0.46.
c. Forecast September sales volume using a five-month moving average
d. Forecast September sales volume using a weighted average using .60 for August, .30 for
July, and .10 for June.
e. Forecast September sales volume using Exponential smoothing with a smoothing
constant equal to .20, assuming a March forecast of 19.

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BUS 372 Week 5 Final Assignment – Working Together Unions and Management

BUS 372 Week 5 Final Assignment – Working Together Unions and Management

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BUS 610 Week 6 Assignment – Organizational Behavior Analysis (A+ Guaranteed)

Organizational Behavior Analysis 

In order to effectively analyze various behavioral components within an organization, the following suggestions are provided for guidance: 
Critique the observable actions of individuals within the organization. 
Describe demonstrated attitudes exhibited by individuals within the organization. 
How do groups interact with each other both from an internal and external standpoint? 
How well does the organization function from a performance standpoint? Is synergy and cohesiveness apparent? 
In this assignment you will analyze the organizational behavior of your current or former employer by describing how each of the components listed below influences the behavior of the organization in a negative or positive manner. 
Analyze the organizational behavior by describing the following areas: 
Type of culture (Pluralism, Dualism or Salad bowl?) 
Modes of communication (Describe the dominant communication form used . e.g.written or verbal) 
Nature of authority (recognized social rank) 
Motivational techniques (Describe the motivational driving forces e.g. Intrinsic or extrinsic used to influence productivity and performance?) 
Areas of EQ incorporated (Describe how the organization embraces the theory of emotional intelligence ) 
How are the components of a virtual organization embraced? (Explain how the organization embraces new paradigms such as teleworking and virtual offices?)

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BUS 640 Week 6 Assignment – Managerial Decision Making Research and Analysis (A+ Guaranteed)

Managerial Decision Making Research and Analysis

Focus of the Final Paper

Research a specific company of your choice and identify some of the managerial decisions that were made over time and in response to changes in its market or competitive environment. Use Ashford University Online library and web-based resources for your research. At least 3 external resources must be used. Address all of the following areas:

  • Describe the company and provide a brief history of its operations. Find or use graphs to illustrate its financial performance over the years.
  • Identify any sources of risk or uncertainty in its operations. Do the financial reports indicate risky or uncertain activities or changes to the economic environment that ultimately appear to have affected the company’s financial outcomes? Be specific.
  • Are there any government regulations that have affected this company’s operations domestically or abroad? Explain.
  • Describe the inputs that are used in this company’s production function and identify any challenges to securing these inputs.
  • Determine if the company has introduced new products in existing markets or created new markets over time. What is the impact on its finances?
  • Determine if the price of its products increased or declined over time and analyze the reasons for price fluctuations. Study the demand elasticity for its products and discuss the availability of close substitutes for its products. How does that affect pricing decisions?  
  • Analyze the company’s profitability. Identify the economy or industry influences on its costs, operations, and profitability.
  • Describe the competitive environment in which the firm operates, the distribution of market power, and the strategic behavior of the firm and its competitors. Apply your knowledge of the theory of this company’s market structure. How does the company make pricing and production decisions?  Is your observation supported by the theoretical models? Refer to the financial reports for illustration. 
  • Identify any non-price competitive strategies that the company might be engaging in? Provide specific examples.
  • Evaluate if the company made any mistakes in its decisions over time, and recommend any changes or improvements for the future operations. Refer to the financial reports when making specific observations or recommendations.
  • Use economic language and demonstrate your understanding of the concepts and theories of this course.

Writing the Final Paper

The Final Paper:

1.      Must be 8 to 10 double-spaced pages in length, and formatted according to APA style as outlined in the Ashford Writing Center.

2.      Must include a title page with the following:

a.       Title of paper

b.      Student’s name

c.       Course name and number

d.      Instructor’s name

e.       Date submitted

3.      Must begin with an introductory paragraph that has a succinct thesis statement.

4.      Must address the topic of the paper with critical thought.

5.      Must end with a conclusion that reaffirms your thesis.

6.      Must use at least 3 scholarly sources.

7.      Must document all sources in APA style, as outlined in the Ashford Writing Center

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MKT220 FINAL EXAM – Of the following choices, which would be the easiest brand name to legally protect


Of the following choices, which would be the easiest brand name to legally protect?

a.  Western County Distributors

b. Tarzink Yogurt

c. Scout Camping Supplies

d. Sullivan Water Filtering Systems

e. Learn and Grow Daycare



A product mix is best described as

a. all products offered by a firm.

b. many products sold by one firm.

c. a group of closely related products that are considered a unit because of market, technical, or end-use considerations.

d. product, distribution, promotion, and price.

e. all products of a particular type.



To make intangible products more tangible or real to the consumer, marketers often

a. use external reference prices.

b. use symbols or cues to help symbolize product benefits.

c. use multiple channels of distribution.

d. offer more support services with such products.

e. use low prices on intangible goods.



The Anderson Advertising Agency was developing a name for their client’s new paper towel product. They finally settled on the name, “Soaker.” Regarding the factors that marketers consider when selecting a brand name, which one does this best fulfill?

a. Keeping the brand name easy to remember

b. Flexibility to be used in various types of media

c. Indicating the product’s major benefits

d. Using fabricated names that cannot be duplicated

e. Compatibility with other products in the line



Sales usually start to decline during the ____ stage of the product life cycle.

a. beginning of the decline

b. end of the growth

c. beginning of the growth

d. beginning of the termination

e. end of the maturity



Which of the following statements about nonprice competition is false?

a. A firm using nonprice competition can build loyalty to both its company and its products.

b. When using nonprice competition, a company should promote the distinguishing characteristics of its brand.

c. Companies that use nonprice competition do not need to keep track of their competitor’s prices.

d. A company must be able to distinguish its brand through some unique feature in order to successfully engage in nonprice competition.

e. Buyers must view the distinguishing characteristics of a product offered through nonprice competition as being important.



Price is considered to be the variable in the marketing mix that is

a. First to be decided.

b. Least flexible.

c. Most difficult.

d. Last to be decided.

e. Most flexible.



One advantage of nonprice competition is that

a. a firm can build customer loyalty.

b. pricing is no longer a factor.

c. market share becomes less important.

d. a firm can react quickly to competitive efforts.

e. marketing efforts are completely eliminated.



Sony management decided to use skimming as a pricing strategy for its newest line of high-definition television (HDTV) sets. It should be aware that this strategy does not

a. provide flexibility in the introductory base price.

b. reduce the stress that may be placed on the firm’s production capabilities.

c. generate capital to cover research and development costs.

d. protect the firm from covering costs if prices are set too low.

e. discourage competitors from entering the market.



When a company that produces computer printers prices them somewhat low, but the ink required to operate the printer is priced higher per relative usage, it is using

a. penetration pricing.

b. captive pricing.

c. a price leader.

d. bait pricing.

e. price lining.



Paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation is

a. personal selling.

b. advertising.

c. public relations.

d. individual promotion.

e. personal promotion.



Latisha works for a promotional consultant who develops sweepstakes, games, coupons, and rebate plans for various marketers. Latisha is developing which of the following?

a. publicity examples.

b. direct marketing techniques.

c. advertising techniques.

d. personal selling techniques.

e. sales promotion techniques.



Chris sees a television commercial for Arby’s promoting its roast beef sandwiches at 5 for $5.95. Later that day he goes to the nearest Arby’s for a roast beef feast, but is told that the special offer is not available at that location. Arby’s seems to lack

a. channel capacity.

b. promotional efforts.

c. integrated marketing communications.

d. coordinated awareness.

e. communication.



The Sharper Image likes to use nonpersonal communication in news story form such as press releases for its new and improved products. This is an example of

a. sales promotion.

b. publicity.

c. personal selling.

d. direct marketing.

e. social media.



A major benefit of using event sponsorship is that it

a. is cost-free.

b. neutralizes the effects of unfavorable public relations.

c. enhances personal selling efforts.

d. can provide large amounts of free media coverage.

e. provides excellent support for advertisements.



Children often achieve ____ by observing parents and older siblings in purchase situations and then through their own purchase experiences.

a. consumer socialization

b. social class

c. personality

d. attitude formation

e. role identification



A major determining factor in deciding which type of problem-solving process should be used depends on the individual’s intensity of interest in a product and the importance of the product for that person. This is known as an individual’s

a. level of involvement.

b. routinized response behavior.

c. motivational structure.

d. evaluative criteria.

e. cognitive dissonance.



The three major categories of influences on the consumer buying decision process are:

a. social influences, situational influences, and marketer-dominated influences.

b. situational influences, social influences, and psychological influences.

c. situational influences, demographic influences, and psychological influences.

d. marketer-dominated influences, psychological influences, and person-specific influences.

e. demographic influences, situational influences, and marketer-dominated influences.



In a period of economic recovery, the best marketing strategy for FedEx would be characterized by which of the following features?

a. Austerity

b. Boldness

c. Flexibility

d. Aggressiveness

e. Retrenchment



Many aspects of consumer buying decisions are affected by the individual’s level of involvement. Level of involvement is

a. the amount of external search that an individual puts into the decision-making process.

b. the importance and intensity of interest in a product in a particular situation.

c. a combination of an individual’s demographic factors.

d. the particular circumstance or environment in which consumers find themselves.

e. the buyer’s perception, motives, and abilities.



If Hefty Bags expresses concern that its products are having too great an impact on the pollution of ground water under landfills, this concern is directly related to the firm’s

social responsibility.

marketing concept.



distribution system.



In testing her firm’s new TV ads for Pokémon action figures, Beth discovers the ads make children think many of the action figures can actually fly. Beth now faces an ethical decision regarding which element of the marketing mix?








Sometimes business must find a balance between society’s demand for social responsibility and investors’ desires for profits. This is an example of a(n) ___________ responsibility.








Cameron Inc. is a very profitable automobile repair shop. The company is well known for its great service and involvement in the community, but it fails to properly dispose of its used oil as outlined in environmental regulations. Cameron is failing in its ______ responsibilities.








The Browardton Quilters’ Guild has contacted all the major networks to try to warn people about the poor performance of miniature, hand-held sewing machines. These quilters are engaging in

publicity stunts.

the right to safety.



political action.



The undifferentiated targeting strategy for finding a target market will likely not be successful if

a. people within the market have heterogeneous needs.

b. the firm is capable of developing a single marketing mix that satisfies all people’s needs.

c. product positioning is needed.

d. the firm defines the total market as its target market.

e. people within the market have homogeneous needs.



A business advantage of the concentrated targeting strategy for any company is that it

a. requires less market research and information.

b. allows a firm to utilize all of its production capacity.

c. requires less intensive analysis of customers’ characteristics and needs.

d. maintains the firm’s flexibility in moving into other market segments.

e. allows a firm to develop a special marketing mix for a single market segment.



A targeting strategy in which an organization directs its marketing efforts at several segments is called a(n) ____ targeting strategy.

a. total market

b. undifferentiated

c. concentrated

d. integrated

e. differentiated



Segmentation variables are usually grouped into four categories:

a. attitudes, lifestyles, behaviors, and gender.

b. demographic, geographic, psychographic, and behavioristic.

c. demographic, geographic, religion, and income.

d. geographic, demographic, psychographic, and attitudes.

e. geopolitical, income, behavioristic, and psychographic.



The ProMark Company manufactures a pencil that is about five inches long and has no eraser. It sells the product primarily to golf courses and universities. What type of targeting strategy is the ProMark Company using?

a. Extensive

b. Intensive

c. Differentiated

d. Concentrated

e. Undifferentiated



The forces of the marketing environment primarily affect marketers in three ways: They influence customers by affecting their lifestyles and preferences for products; they determine whether or how a marketing manager can perform certain marketing activities; and they

a. dictate that changes be made to the existing marketing mix despite any negative reactions from customers.

b. affect a marketing manager’s decisions and actions by influencing buyers’ reactions to the firm’s marketing mix.

c. change a customer’s decisions about the appropriate marketing mix for the company and its various products.

d. cause most advertising to be ineffective at communicating product benefits due to rapidly changing environmental forces.

e. make most new products obsolete very quickly so that research and development must continually develop new products.



The equation a buyer applies to assess a product’s value is

a. value = monetary price – customer benefits.

b. value = customer costs – customer benefits.

c. value = customer benefits – customer costs.

d. value = customer benefits – time and effort.

e. value = customer benefits – monetary price.



The focal point of all marketing activities is

a. profits.

b. the marketing mix.

c. products.

d. sales.

e. customers.



Marketing is the process of

a. promoting products through personal selling and advertising to develop and maintain favorable relationships with customers and stakeholders.

b. focusing on customers’ needs.

c. creating, distributing, promoting, and pricing products to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment.

d. delivering a standard of living to a society.

e. creating, distributing, promoting, and pricing goods, services, and ideas to facilitate the achievement of the firm’s objectives.



Making modifications to packaging or brand names involves the ____ component of the marketing mix.

a. product

b. promotion

c. market

d. price

e. distribution



Consumers buying products online have dramatically affected the ____ variable of the marketing mix.

a. distribution

b. product

c. research

d. price

e. promotion



Which of the following is most likely to be an idea marketer?

a. Car salesperson

b. Attorney

c. Airline pilot

d. Orthodontist

e. Abuse counselor



Boca Burger’s website features information about products, recipes, and nutritional values, but customers cannot actually purchase products from the website. This website is most likely used primarily as a ____ marketing tool.

a. production

b. pricing

c. promotional

d. targeting

e. distributional



The definition of marketing implies that ____ should receive benefits from exchange relationships.

a. only businesses

b. company management

c. only customers

d. only the most important customers

e. both customers and businesses



When Ikea showcases rooms of furniture on its website, it lists each item in the room. However, if customers like all of the items, they can purchase them as a bundle. Which of the following aspects of the marketing mix is Ikea likely altering?

a. Promotion

b. Distribution

c. Product

d. Target market

e. Price



In managing customer relationships, the three primary ways profits can be obtained are by

a. enhancing the profitability of existing customers, eliminating customers who provide smaller profits, and finding new customers.

b. enhancing the profitability of existing customers, extending the duration of relationships with customers, and obtaining new customers.

c. eliminating long-term customers who have decreased purchases, finding new customers, and increasing sales to existing customers.

d. extending the length of relationships with customers, cutting organizational costs, and enhancing the profitability of new customers.

e. acquiring new customers, enhancing the profitability of new customers, and shortening the duration of relationships with existing customers.



Marketing managers strive to develop a marketing mix that

a. generates the highest level sales.

b. matches the needs of the target market.

c. matches what competitors are offering.

d. minimizes marketing costs.

e. best matches the abilities of the firm.



The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n)

a. issue.

b. experience.

c. service.

d. good.

e. idea.



The three basic forms that a product can take are

a. brands, services, and tangibles.

b. markets, products, and images.

c. services, ideas, and goods.

d. goods, ideas, and intangibles.

e. ideas, services, and things.



Which of the following scenarios involves the distribution element of the marketing mix?

a. Determining whether an advertising message would be more effective on television or in magazines

b. Developing a new warranty policy for an existing product

c. Deciding whether or not a certain product should continue to be sold

d. Deciding whether or not to have retail outlets in addition to a website

e. Choosing between a company jet or the airlines for executive travel



The advertising campaign for Crest toothpaste lets consumers know about its newest flavor, and also mentions its history as an established brand. The ad also mentions Crest’s advantages and benefits. Crest’s advertising would be classified as

a. repetitive.

b. pioneer.

c. competitive.

d. reinforcement.

e. reminder.



Soft drink companies advertise that their products beat the competition in national “taste tests,” and they refer to the rival brands by name. This type of advertising is best described as

a. comparative.

b. pioneer.

c. competitive.

d. defensive.

e. selective.



The two major types of product advertising are

a. informative and comparative.

b. competitive and comparative.

c. advocacy and competitive.

d. institutional and advocacy.

e. pioneer and competitive.



The cost per thousand (CPM) indicator shows

a. the cost to expose 1,000 people to a television commercial.

b. how one media source compares to a different source for reaching target markets.

c. the cost to expose a million people to any type of advertisement.

d. the cost to expose 1,000 people to a one-page magazine advertisement.

e. the return on investment marketers get for their advertising dollar.



Toyota’s sponsorship of a major Professional Golf Association tournament would be an example of a(n) ____ tool.

a. personal selling

b. advertising

c. sales promotion

d. publicity

e. public relations

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MGT 521 Final Exam – John writes a memo to his employees

1) John writes a memo to his employees. Putting his thoughts onto paper is an example of
A. communicating
B. messaging
C. encoding
D. cryptography

2) Chantel received an invitation to a web meeting that will take place at 3:00 p.m. She accepted the invitation. This is an example of
A. formal channels of communication
B. spontaneous communication
C. feedback as a function of communication
D. informal channels of communication

3) You are doing research on political issues and find that you are on a conservative leaning site. What type of source credibility issue is this?
A. Credentials
B. Impartiality
C. Currency
D. Style

4) When reviewing an educational math website, you find the author’s background is in English. What type of source credibility issue is this?
A. Credentials
B. Impartiality
C. Currency
D. Style

5) A famous ice cream manufacturer sent workers to a nearby grocery store to offer shoppers a sample of its new flavor. The workers provided samples to 300 shoppers and noted that 80% of the sample population stated they liked the flavor. Based on this scenario, which of the following is an example of an inference?
A. Workers provided samples to 300 shoppers.
B. 20 percent of the sample population did not like the new flavor or were indifferent.
C. The ice cream manufacturer began producing the new ice cream flavor and offered it in stores.
D. The workers were offering samples to see if the general public liked the new flavor.

6) Persuading or convincing others to accept your argument means the reasoning must be logical. Which of the following is an example of logical flaws or fallacies?
A. Opposing views are considered
B. Hasty Generalization
C. Argument presents alternative explanations
D. Reasoning from specific evidence

7) What is the best way for the CEO to deal with managers in key positions who continue to resist a major change?
A. Minimize their interactions with fellow employees and work around them
B. Replace them with people who will support the change
C. Give them space and hope they will come to see why the change was necessary
D. Keep increasing the pressure on them to support the change

8) Finding a win-win solution that allows parties who are involved to have their goals achieved is an example of
A. accommodation
B. collaboration
C. team building
D. compromising

9) What is emphasized more in ethical leadership theories than in transformational leadership?
A. Leader values
B. Leader behaviors
C. Leader skills
D. Leader traits

10) Ethical behavior and integrity for a leader is most likely to result in
A. higher unit performance
B. higher performance ratings for the leader by bosses
C. higher subordinate satisfaction and trust
D. less stress for the leader

11) A common characteristic of most entrepreneurs is that they
A. accept the risks involved in starting and managing a business
B. have a high level of scientific and technical expertise
C. possess a great deal of personal wealth
D. have experience in running large, complex organizations

12) In order to make an intelligent investment decision, entrepreneurs should
A. limit their options to those business investments that are backed by theU.S.government
B. invest in businesses that have generated a stable rate of profit for at least the past ten years
C. invest only in business opportunities where it is possible to take an active role in management
D. compare the risks of potential investments to their expected profits and find the right balance between profit and risk

13) The customers, employees, stockholders, suppliers, creditors, and others who stand to gain or lose by the policies and activities of a business represent the firm’s
A. market makers
B. economic environment
C. stakeholders
D. social mentors

14) When a firm makes use of the SWOT analysis, one of its objectives is to
A. identify the best employees to fill each position within the organization
B. set specific short-term performance standards for each department
C. evaluate the desirability of issuing stocks or bonds in the current financial climate
D. identify the things it does well as an organization and the things it needs to improve

15) The process of rating an organization’s practices, processes, and products against the best of the world is known as
A. webworking
B. outsourcing
C. benchmarking
D. core competencies

16) Companies benefit today by inter-firm cooperation. One of the ways they cooperate is through networking. Another way is by seeking technological knowledge and learning new processes from other firms that usually fall outside of their respective industries. We call this
A. competency capturing
B. technology swapping
C. benchmarking
D. broadening the knowledge basez

17) An important difference between accounting and other business functions, such as marketing and management, is that
A. accounting functions must be performed by an “outsider” (rather than by an employee of the business) in order to avoid conflicts of interest
B. accounting offers us insight into whether the business is financially sound
C. accounting involves mainly clerical activities and thus requires very little analysis
D. accounting deals exclusively with numbers

18) Although accounting has several specific uses, the overall purpose of accounting can be summarized as
A. to provide financial information that is useful to decision makers
B. to meet the legal requirements of the Financial Accounting Standards Board (FASB)
C. to allow the government to track business activity levels
D. to compute the profit or loss and declared dividend of a business firm

19) An important advantage that knowledge technology has over older versions of business technology is that it
A. is much cheaper to incorporate into most business operations
B. delivers timely information directly to the people who need it
C. allows businesses to locate anywhere and still reach their customers
D. eliminates the need for business to store information electronically

20) First Engineering, a largeU.S.based mechanical engineering firm, is considering entering the global market. Upon careful analysis of the global market, they will find that global trade
A. opportunities are diminishing
B. is dominated by emerging, developing countries
C. is likely to be severely restricted in the future by nontariff trade barriers
D. is big business today and is expected to be more important in the future

21) The process of setting up individual functional units of the business to do specialized tasks is called
A. departmentalization
B. division of labor
C. job specialization
D. delegation of authority

22) The proven success of job specialization lies in the fact that
A. it leads to groupthink
B. it avoids the pitfalls of division of labor, where workers become removed from thinking conceptually about the business
C. it is a detractor to others who are thinking about entering your industry because it successfully creates barriers to entry
D. it adds efficiency to the business’s operation by identifying tasks that some do better than others

23) Economics is the study of how a society
A. invests wisely in the stock market
B. employs resources to produce goods and services and distribute them among competing groups and individuals
C. employs statistical techniques to make predictions about the evolution of society over the long run
D. governs itself for the good of its citizens

24) How is it that people working in their own self-interest produce goods, services, and wealth for others?
A. By taking advantage of a vast supply of labor, people working in their own self-interest could hire others at very low wages.
B. In order to earn money and produce goods that improve lives, self-directed gain would provide jobs, and subsequently wages for others.
C. The government pays entrepreneurs in theUnited Statesto produce goods, services, and wealth for others.
D. Entrepreneurs tend to include themselves in a group of people who need charitable support. A portion of the entrepreneur’s profit (as required by law) goes to the charity of one’s choice to support the less fortunate.

25) The ultimate resource of a firm is its
A. business plan
B. marketing mix
C. capital budget
D. employees

26. Today, human resource management has become so important that in many firms it has become
A. a function performed by managers in all areas of the organization
B. the main responsibility of the firms’ legal staff
C. a function handled only by specialist in the human resource department
D. function handled only by the firm’s top management

27. Which of the following is included in performing a business analysis?
A. Hiring new employees
B. Entering global markets
C. Conducting SWOT Analysis
D. Networking

28. When the competition is intense and the environment is changing rapidly, it is especially important to
A. maintain a high level of external monitoring
B. have detailed plans and operating procedures
C. increase the power of the chief executive
D. strengthen the organization culture

29. Which of the following would be a concern addressed in a strategic plan?
A. Which specific jobs should be assigned to each employee?
B. How much output should be produced this week in a given production facility?
C. Which computer software package should the firm’s human resources office use to manage the payroll?
D. Should the firm make a long-term commitment to expand into new markets?

30. Tactical planning is concerned with
A. determining the best way to cope with an emergency situation
B. devising temporary courses of action to be used if the primary plans do not achieve the desired results
C. developing detailed strategies about what is to be done, who is to do it, and how it is to be done
D. setting long run goals that will govern the general course of the organization for years

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FIN 201 Final Exam – At 11 percent interest, how long would it take to quadruple your money

1) At 11 percent interest, how long would it take to quadruple your money?

2) Which one of the following will decrease if a firm can decrease its operating costs, all else constant?
Return on equity
Return on assets
Profit margin
Equity multiplier
Price-earnings ratio

3) Chelsea Fashions is expected to pay an annual dividend of $0.80 a share next year. The market price of the stock is $22.40 and the growth rate is 5 percent. What is the firm’s cost of equity?
7.58 percent
7.91 percent
8.24 percent
8.57 percent
9.00 percent

4) According to the Rule of 72, you can do which one of the following?
Double your money in five years at 7.2 percent interest
Double your money in 7.2 years at 8 percent interest
Double your money in 8 years at 9 percent interest
Triple your money in 7.2 years at 5 percent interest
Triple your money at 10 percent interest in 7.2 years

5) If a firm has a debt-equity ratio of 1.0, then its total debt ratio must be which one of the following?

6) Shareholders’ equity:
Increases in value anytime total assets increases.
Is equal to total assets plus total liabilities.
Decreases whenever new shares of stock are issued.
Includes long-term debt, preferred stock, and common stock.
Represents the residual value of a firm.

7) Which one of the following statements correctly states a relationship?
Time and future values are inversely related, all else held constant.
Interest rates and time are positively related, all else held constant
An increase in the discount rate increases the present value, given positive rates.
An increase in time increases the future value given a zero rate of interest.
Time and present value are inversely related, all else held constant.

8) A loan where the borrower receives money today and repays a single lump sum on a future date is called a(n) _____ loan
pure discount

9) Which one of following is the rate at which a stock’s price is expected to appreciate?
current yield
total return
dividend yield
capital gains yield
coupon rate

10) What is the net present value of a project that has an initial cash outflow of $34,900 and the following cash inflows? The required return is 15.35 percent.

11) You are investing $100 today in a savings account at your local bank. Which one of the following terms refers to the value of this investment one year from now?
future value
present value
principal amounts
discounted value
invested principal

12) A business created as a distinct legal entity and treated as a legal “person” is called a:
Sole proprietorship.
General partnership.
Limited partnership.
Unlimited liability company.

13) When the present value of the cash inflows exceeds the initial cost of a project, then the project should be:
Accepted because the internal rate of return is positive.
Accepted because the profitability index is greater than 1.
Accepted because the profitability index is negative.
Rejected because the internal rate of return is negative.
rejected because the net present value is negative

14) An amortized loan:
requires the principal amount to be repaid in even increments over the life of the loan
May have equal or increasing amounts applied to the principal from each loan payment.
Requires that all interest be repaid on a monthly basis while the principal is repaid at the end of the loan term.
Requires that all payments be equal in amount and include both principal and interest.
Repays both the principal and the interest in one lump sum at the end of the loan term.

15) The difference between the price that a dealer is willing to pay and the price at which he or she will sell is called the:
Call price.

16) Which one of the following methods of project analysis is defined as computing the value of a project based upon the present value of the project’s anticipated cash flows?
Constant dividend growth model
Discounted cash flow valuation
Average accounting return
Expected earnings model
Internal rate of return

17) Mary just purchased a bond which pays $60 a year in interest. What is this $60 called?
Face value
Call premium

18) What are the distributions to shareholders by a corporation called?
Retained earnings
Net income
Capital payments
Diluted profits

19) Which one of the following is defined as a firm’s short-term assets and its short-term liabilities?
Working capital
Investment capital
Net capital
Capital structure

20) An ordinary annuity is best defined by which one of the following?
Increasing payments paid for a definitive period of time
Increasing payments paid forever
Equal payments paid at regular intervals over a stated time period
Equal payments paid at regular intervals of time on an ongoing basis
Unequal payments that occur at set intervals for a limited period of time

21) Which one of the following terms is used to describe a loan that calls for periodic interest payments and a lump sum principal payment?
Amortized loan
Modified loan
Balloon loan
Pure discount loan
Interest-only loan

22) Which of the following questions are addressed by financial managers?
I. How should a product be marketed?
II. Should customers be given 30 or 45 days to pay for their credit purchases?
III. Should the firm borrow more money?
IV. Should the firm acquire new equipment?
I and IV only
II and III only
I, II, and III only
II, III, and IV only
I, II, III, and IV

23) You want to be on the board of directors of Wisely Foods. Since you are the only shareholder that will vote for you, you will need to own more than half of the outstanding shares of stock if you are to be elected to the board. What is the type of voting called that requires this level of stock ownership to be successfully elected under these conditions?

24) Tracy invested $1,000 five years ago and earns 4 percent interest on her investment. By leaving her interest earnings in her account, she increases the amount of interest she earns each year. The way she is handling her interest income is referred to as which one of the following?

25) A monthly interest rate expressed as an annual rate would be an example of which one of the following rates?
Stated rate
Discounted annual rate
Effective annual rate
Periodic monthly rate
Consolidated monthly rate

26) The decision to issue additional shares of stock is an example of which one of the following?
Working capital management
Net working capital decision
Capital budgeting
Controller’s duties
Capital structure decision

27) The average of a firm’s cost of equity and after-tax cost of debt that is weighted based on the firm’s capital structure is called the:
Reward to risk ratio.
Weighted capital gains rate.
Structured cost of capital.
Subjective cost of capital.
Weighted average cost of capital.

28) Wayco Industrial Supply has a pre-tax cost of debt of 7.6 percent, a cost of equity of 14.3 percent, and a cost of preferred stock of 8.5 percent. The firm has 220,000 shares of common stock outstanding at a market price of $27 a share. There are 25,000 shares of preferred stock outstanding at a market price of $41 a share. The bond issue has a face value of $550,000 and a market quote of 101.2. The company’s tax rate is 37 percent. What is the firm’s weighted average cost of capital?
10.18 percent
10.84 percent
11.32 percent
12.60 percent
12.81 percent

29) A project has an initial cost of $27,400 and a market value of $32,600. What is the difference between these two values called?
Net present value
Internal return
Payback value
Profitability index
Discounted payback

30) Which one of the following terms is defined as the management of a firm’s long-term investments?
Working capital management
Financial allocation
Agency cost analysis
Capital budgeting
Capital structure

31) Which one of the following is computed by dividing next year’s annual dividend by the current stock price?
Yield to maturity
Total yield
Dividend yield
Capital gains yield
Growth rate

32) Alex invested $10,500 in an account that pays 6 percent simple interest. How much money will he have at the end of four years?

33) The length of time between the sale of inventory and the collection of the payment for that sale is called the:
Operating cycle.
Inventory period.
Accounts receivable period.
Accounts payable period.
Cash cycle.

34) Your grandmother has promised to give you $5,000 when you graduate from college. She is expecting you to graduate two years from now. What happens to the present value of this gift if you delay your graduation by one year and graduate three years from now?
Remains constant
Becomes negative
Cannot be determined from the information provided

35) Wind Power Systems has 20-year, semi-annual bonds outstanding with a 5 percent coupon. The face amount of each bond is $1,000. These bonds are currently selling for 114 percent of face value. What is the company’s pre-tax cost of debt?
3.98 percent
4.42 percent
4.71 percent
5.36 percent
5.55 percent

36) Rachel’s has a $50,000 line of credit with Uptown Bank. The line of credit calls for an interest rate of 8 percent and a compensating balance of 4 percent. The compensating balance is based on the total amount borrowed and will be held in an interest-free account. What is the effective annual interest rate if the firm borrows $35,000 for one year?
7.76 percent
8.00 percent
8.17 percent
8.33 percent
8.42 percent

37) The cash flow of a firm which is available for distribution to the firm’s creditors and stockholders is called the:
Operating cash flow.
Net capital spending.
Net working capital.
Cash flow from assets.
Cash flow to stockholders.

38) Which one of the following is a source of cash?
Increase in accounts receivable
Decrease in notes payable
Decrease in common stock
Increase in accounts payable
Increase in inventory

39) An agent who maintains an inventory from which he or she buys and sells securities is called a:

40) You cannot attend the shareholder’s meeting for Alpha United so you authorize another shareholder to vote on your behalf. What is the granting of this authority called?
Cumulative voting
Straight voting
Indenture agreement
Voting by proxy

41) The length of time between the purchase of inventory and the receipt of cash from the sale of that inventory is called the:
Operating cycle.
Inventory period.
Accounts receivable period.
Accounts payable period.
Cash cycle.

42) Phil can afford $180 a month for 5 years for a car loan. If the interest rate is 8.6 percent, how much can he afford to borrow to purchase a car?

43) Which one of the following is computed by dividing next year’s annual dividend by the current stock price?
Yield to maturity
Total yield
Dividend yield
Capital gains yield
Growth rate

44) The decision to issue additional shares of stock is an example of which one of the following?
Working capital management
Net working capital decision
Capital budgeting
Controller’s duties
Capital structure decision

45) An ordinary annuity is best defined by which one of the following?
Increasing payments paid for a definitive period of time
Increasing payments paid forever
Equal payments paid at regular intervals over a stated time period
Equal payments paid at regular intervals of time on an ongoing basis
Unequal payments that occur at set intervals for a limited period of time

46) Which one of the following is a capital budgeting decision?
Determining how many shares of stock to issue
Deciding whether or not to purchase a new machine for the production line
Deciding how to refinance a debt issue that is maturing
Determining how much inventory to keep on hand
Determining how much money should be kept in the checking account

47) Travis invested $9,250 in an account that pays 6 percent simple interest. How much more could he have earned over a 7-year period if the interest had compounded annually?

48) Net working capital is defined as:
Total liabilities minus shareholders’ equity.
Current liabilities minus shareholders’ equity.
Fixed assets minus long-term liabilities.
Total assets minus total liabilities.
Current assets minus current liabilities.

49) Bert owns a bond that will pay him $75 each year in interest plus a $1,000 principal payment at maturity. What is the $1,000 called?
Face value
Dirty price

50) Which one of the following will increase the value of a firm’s net working capital?
Using cash to pay a supplier
Depreciating an asset
Collecting an accounts receivable
Purchasing inventory on credit
Selling inventory at a profit

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FIN 571 Week 6 Final Exam – Which of the following is considered a hybrid organizational form

1. Which of the following is considered a hybrid organizational form?

Limited liability partnership



Sole proprietorship

2.  Which of the following is a principal within the agency relationship?

A shareholder

A company engineer

The board of directors

The CEO of the firm

3. Which of the following presents a summary of the changes in a firm’s balance sheet from the beginning of an accounting period to the end of that accounting period?

The statement of cash flows.

The statement of retained earnings.

The statement of working capital.

The statement of net worth

4. 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?





5.   Gateway Corp. has an inventory turnover ratio of 5.6. What is the firm’s days’s sales in inventory?

64.3 days

57.9 days

65.2 days

61.7 days

6. Your firm has an equity multiplier of 2.47. What is its debt-to-equity ratio?





7.       Which of the following is not a method of “benchmarking”?

Utilize the DuPont system to analyze a firm’s performance.

Identify a group of firms that compete with the company being analyzed.

Conduct an industry group analysis

Evaluating a single firm’s performance over time.

8.  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.)





9.       Ferris, Inc., has borrowed from their bank at a rate of 8 percent and will repay the loan with interest over the next five years. Their scheduled payments, starting at the end of the year are as follows—$450,000, $560,000, $750,000, $875,000, and $1,000,000. What is the present value of these payments? (Round to the nearest dollar.)





10.   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.)





 11.   Jayadev Athreya has started on his first job. He plans to start saving for retirement early. 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? (Round to the nearest dollar.)





12.   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.)





13.   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.)





14.   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 is 14 percent, what is the present value of their dividends over the next four years?





15.   TuleTime 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?





16.   What decision criteria should managers use in selecting projects when there is not enough capital to invest in all available positive NPV projects?

the internal rate of return

the discounted payback

the modified internal rate of return

the profitability index

 17.   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?





18.   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

has debt in its capital structure


 19.   Gangland Water Guns, Inc., is expected to pay a dividend of $2.10 one year from today. If the firm’s growth in dividends is expected to remain at a flat 3 percent forever, then what is the cost of equity capital for Gangland if the price of its common shares is currently $17.50?





20.   A firm’s capital structure is the mix of financial securities used to finance its activities and can include all of the following except



equity options.

preferred stock.

21.   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 to 60 percent equity and use the debt proceeds to pay a special dividend to shareholders, how much debt should they issue?





 22.   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.

$1,315 million

$1,334 million

$1,787 million

$453.6 million

23.   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?





24. Which of the following cannot be engaged in managing the business?

a sole proprietor

a general partner

a limited partner

none of these

25. Which of the following does maximizing shareholder wealth not usually account for?

Government regulation.


The timing of cash flows.

Amount of Cash flows.

26. The strategic plan does NOT identify

working capital strategies.

the lines of business a firm will compete in.

major areas of investment in real assets.

future mergers, alliances, and divestitures.

27. Firms that achieve higher growth rates without seeking external financing

none of these.

have a low plowback ratio.

have less equity and/or are able to generate high net income leading to a high ROE.

are highly leveraged.

28. Drekker, Inc., has revenues of $312,766, costs of $220,222, interest payment of $31,477, and a tax rate of 34 percent. It paid dividends of $34,125 to shareholders. Find the firm’s dividend payout ratio and retention ratio.

85%, 15%

45%, 55%

15%, 85%

55%, 45%

29. The cash conversion cycle

begins when the firm uses its cash to purchase raw materials and ends when the firm collects cash payments on its credit sales.

estimates how long it takes on average for the firm to collect its outstanding accounts receivable balance.

shows how long the firm keeps its inventory before selling it.

begins when the firm invests cash to purchase the raw materials that would be used to produce the goods that the firm manufactures.

30. You are provided the following working capital information for the Ridge Company:

Ridge Company

Cash conversion cycle: What is the cash conversion cycle for Ridge Company?

129.9 days

46.4 days

83.5 days

38.3 days

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Lonsway Corporation acquired a computer server by agreeing to pay $100,000

Lonsway Corporation acquired a computer server by agreeing to pay $100,000 at the end of each year for the next 5 years. If an appropriate discount rate is 6%, what is the cash equivalent price of the server and how much interest will Lonsway pay by choosing the payment option? You must show calculations.

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The following information was taken from Zyski Enterprises accounts

The following information was taken from Zyski Enterprises accounts for the current year. From the data, calculate the Retained Earnings balance as of December 31, 2006.

Retained earnings, December 31, 2005, $537,000; Increase in accounts receivable during the year, $52,000; Decrease in cash during the year, $44,000; Net income for the year, $83,000; Cost of building purchased during the year; $250,000; Dividends declared and paid during the year, $70,000; Cost of goods sold during the year, $125,000.

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