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What is the days' sales in receivables? (use 2009 values)
19. Marcie's Mercantile wants to maintain its current dividend policy, which
is a payout ratio of 35 percent. The firm does not want to increase its equity
financing but is willing to maintain its current debt-equity ratio. Given these
requirements, the maximum rate at which Marcie's can grow is equal to:
20. The maximum rate at which a firm can grow while maintaining a
constant debt-equity ratio is best defined by its:
21.The return on equity can be calculated as:
24. The length of time between the sale of inventory and the collection of
cash from receivables is called the:
25.The length of time between the acquisition of inventory and its sale is
called the:
28. What is the value of a 20-year, zero-coupon bond with a face value of
$1,000 when the market required rate of return is 9.6 percent, compounded
semiannually?
29.Next year's annual dividend divided by the current stock price is called
the:
32. Jack's Construction Co. has 80,000 bonds outstanding that are selling
at par value. Bonds with similar characteristics are yielding 8.6 percent.
The company also has 4 million shares of common stock outstanding. The
stock has a beta of 1.1 and sells for $40 a share. The U.S. Treasury bill is
yielding 4 percent and the market risk premium is 8 percent. Jack's tax rate
is 34 percent. What is Jack's weighted average cost of capital?
34.When computing the weighted average cost of capital, which of these
are adjusted for taxes?