STR 581 help A Guide to career/uophelp.com STR 581 help A Guide to career/uophelp.com | Page 6

The company is in the 35 percent tax bracket. Assuming that the cost of
capital is 12%, calculate the net present value.
A. $314,452

B. $64,463

C. $(64,452)
D. $204,394
12 Which of the following scenarios illustrates a violation of the
Sarbanes-Oxley Act?
• Natalie is assigned to audit a company’s financial records. She finds it
impossible to arrive at a conclusion and issues a disclaimer of opinion.

• Ronan, the CFO of Puvane Inc., is granted an unsecured loan by the
company to pay his son’s medical bills.

• Tina, an accountant, fails to detect a fraud in the financial statements of
the company she audits.
• Wong is a member of the audit committee of a public corporation.
However, he is an external member and was not employed by the
corporation.
13 Tanial Inc. has $950,000 in assets and $400,000 in debt. If it earns
net income of $350,000, calculate the return on assets
A. 63.6%

B. 36.8%

C. 271.4%
D. 87.5%
The financial manager of a company needs to measure
how efficiently the company’s total assets are being used to generate
sales. From the information given below, calculate the relevant ratio he
needs for this purpose.
Cash $220,000
Accounts receivable 1,800,000