FIN 571 NERD Education Specialist /fin571nerd.com FIN 571 NERD Education Specialist /fin571nerd.com | Page 11

sold 22. The Wintergrass Company has an ROE of 15.1 percent and a
payout ratio of 40 percent. What is the company’s sustainable growth
rate? (Do not round intermediate calculations and enter your answer
as a percent rounded to 2 decimal places, e.g., 32.16.) 23. If the
Hunter Corp. has an ROE of 7 and a payout ratio of 15 percent, what
is its sustainable growth rate?(Do not round intermediate calculations
and enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.) 24.The length of time between the acquisition of inventory
and its sale is called the: operating cycle. accounts receivable period.
inventory period. accounts payable period. cash cycle. 25.The most
common means of financing a temporary cash deficit is a: long-term
secured bank loan. long-term unsecured bank loan. short-term secured
bank loan. short-term issue of corporate bonds. short-term unsecured
bank loan. 26. Consider the following financial statement information
for the Rivers Corporation: 27.Here are the most recent balance sheets
for Country Kettles, Inc. Excluding accumulated depreciation,
determine whether each item is a source or a use of cash, and the
amount. (Do not round intermediate calculations and round your
answers to the nearest whole number, e.g., 32. Input all amounts as
positive values): Ancient Industries just paid a dividend of $1.03 a
share. The company announced today that it expects to pay $.90 a
share next year and a final liquidating dividend of $18.44 in two
years. What is one share of this stock worth today if the required rate
of return is 16 percent? 28.The relationship between nominal rates,
real rates, and inflation is known as the: Gordon growth model. term
structure of interest rates. Miller and Modigliani theorem. interest rate
risk premium. Fisher effect. 29.What would be the maximum an
investor should pay for the common stock of a firm that has no
growth opportunities but pays a dividend of $1.36 per year? The
required rate of return is 12.5 percent. 31.A newspaper listing of bond
prices has an "Asked yield" column. This yield is based on the asked
price and represents the: coupon rate. difference between the current
yield and the yield to maturity. 32.Mullineaux Corporation has a
target capital structure of 65 percent common stock and 35 percent
debt. Its cost of equity is 14 percent, and the cost of debt is 8 percent.
The relevant tax rate is 30 percent. What is the company’s WACC?
(Do not round intermediate calculations and enter your answer as a