rate is 6 percent for the cash flows, then what is the profitability index for the project?
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?
13. The most important information needed to determine if companies can pay their current obligations is the:
14. Process costing is used when:
15. A cost which remains constant per unit at various levels of activity is a:
16. The group of users of accounting information charged with achieving the goals of the business is its:
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?
18. The cash conversion cycle?
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.)
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)