FIN /571 Final Exam Question 1 Which of the following is considered a hybrid organizational form? [removed] corporation [removed] sole proprietorship [removed] limited liability partnership [removed] partnership Question 2 Which of the following is a principal within the agency relationship? [removed] the CEO of the firm [removed] a shareholder [removed] the board of directors [removed] a company engineer Question 3 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? [removed] $1,844,022 [removed] $2,303,010 [removed] $2,123,612 [removed] $803,010 Question 4 Which of the following presents a summary of the changes in a firm’s balance sheet from the beginning of an accounting period to the end of that accounting period? [removed] The statement of working capital. [removed] The statement of cash flows. [removed] The statement of retained earnings. [removed] The statement of net worth. Question 5 Efficiency ratio : Gateway Corp. has an inventory turnover ratio of 5.6. What is the firm's days's sales in inventory? [removed] 57.9 days [removed] 64.3 days [removed] 65.2 days [removed] 61.7 days Question 6 Leverage ratio: Your firm has an equity multiplier of 2.47. What is its debt-to-equity ratio? [removed] 1.47 [removed] 0 [removed] 1.74 [removed] 0.60 Question 7 Which of the following is not a method of “benchmarking”? [removed] Evaluating a single firm’s performance over time. [removed] Identify a group of firms that compete with the company being analyzed. [removed] Utilize the DuPont system to analyze a firm’s performance. [removed] Conduct an industry group analysis. Question 8 Present value: 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.) [removed] $26,454 [removed] $16,670 [removed] $19,444 [removed] $22,680 estion 9 PV of multiple cash flows: Ferris, Inc., has borrowed from their bank at a rate of 8 percent and will repay the loan with interest over the next five years. Their scheduled payments, starting at the end of the year are as follows—$450,000, $560,000, $750,000, $875,000, and $1,000,000. What is the present value of these payments? (Round to the nearest dollar.) [removed] $2,615,432 [removed] $2,815,885 [removed] $2,431,224 [removed] $2,735,200 Question 10 PV of multiple cash flows: 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 val.