STR 581 help A Guide to career/uophelp.com STR 581 help A Guide to career/uophelp.com | Page 59

21. Which of the following presents a summary of changes in a firm’s
balance sheet from the beginning of an accounting period to the end of
that accounting period?
22. M&M Proposition 1: 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 equity
to 60 percent equity and use the debt proceeds to pay a special dividend
to shareholders, how much debt should they use?
23. Horizontal analysis is a technique for evaluating a series of financial
statement data over a period of time:
24. JayadevAthreya has started his first job. 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?
25. 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.
26. Firms that achieve higher growth rates without seeking external
financing:
27. In a process cost system, product costs are summarized:
28. The convention of consistency refers to consistent use of accounting
principles: