[单项选择]Use the following data for a company leasing a machine with a capital lease: The lease period is ten years. The lease payments are $ 2980.59 at the end of each year. The firm will own the asset at the end of the lease term but the salvage value will be negligible. 8.5 % is the firm’ s incremental borrowing rate. 8% is the implicit lease rate. If the company uses straight-line depreciation, the first year’ s reported lease expense is:（）
A. $ 2635
B. $ 2980
C. $ 3600

[单项选择]A company has the following data associated with it: A target capital structure of 10% preferred stock, 50% common equity and 40% debt. Outstanding 20-year annual pay 6% coupon bonds selling for $894. Common stock selling for $45 per share that is expected to grow at 8% and expected to pay a $2 dividend one year from today. Their $100 par preferred stock currently sells for $90 and is earning 5%. The company’s tax rate is 40%. What is the after tax cost of debt capital and after tax cost of preferred stock capital Debt Capital Preferred Stock Capital（）①A. 4.2% 6.3% ②B. 4.5% 5.6% ③C. 4.2% 5.6%
A. ①
B. ②
C. ③

[单项选择]The following data applies to LeVeit Company: LeVeit has a target debt-to-equity ratio of 0.5. LeVeit’s bonds are currently yielding 10%. LeVeit is a constant growth firm that just paid a dividend of $ 3.00. LeVeit’s stock sells for $ 31.50 per share. Return on Equity (ROE) is 20%. The dividend payout ratio is 75%. The company’s marginal tax rate is 40%. The company’s weighted after-tax cost of capital is（）
A. 10. 5%.
B. 11.0%.
C. 12.0%.

[单项选择]The following data is regarding the Link Company: A target debt/equity ratio of 0.5 Bonds are currently yielding 10% Link is a constant growth firm that just paid a dividend of $3.00 Stock sells for $31.50 per share, and has a growth rate of 5% Marginal tax rate is 40% What is Link’s after-tax cost of capital（）
A. 12.0%.
B. 12. 5%.
C. 11.0%.

[单项选择]The following data applies to the XTC Company: Sales = $1000000 Receivable = $ 260000 Net Income = $ 50000 COGS = $ 800000 Total Assets = $ 800000 Payables = $ 600000 Debt/Equity = 200% Inventory = $ 400000 What is the average collection period, the average inventory processing period, and the payables payment period respectively for XTC Company Average Average Inventory Payables Collection Period Processing Period Payments Period（）①A. 55 days 195 clays 231 days ②B. 95 days 183 clays 274 days ③C. 45 days 45 days 132 clays
A. ①
B. ②
C. ③

[单项选择]The following data pertains to a company’s common-sized financial statements. Current assets 40% Total debt 40% Net income 16% Total assets $ 2000 Sales $1500 Total asset turnover ratio 0.75 The firm has no preferred stock in its capital structure. The company’ s after-tax return on common equity is :（）
A. 15%.
B. 16%.
C. 20%.

[单项选择]A. Following the company’s poor annual results in November, the share price plunged and has since remained around 200p. Analysts now believe that the company is seriously undervalued by the stock market. The company’s biggest problems were in Germany and France last year where supply outstripped demand, leading to a 20 million loss for the year. However, the company has recently appointed a new chairman who has a first-rate track record of reviving failing companies. It is believed that he will be successful in turning round the company’s fortunes.
B. Analysts are impressed with the company’s recent performance. In the last six months, it has managed to increase prices by 3 per cent without adversely affecting sales. In such a low-margin, high-sales sector, this ought to translate directly into increased profits. The company’s recent sale of its packaging division has eliminated all its debts. Shares have risen in the past month from 80p to 100p. Despite these promising. Signs, it

[单项选择]Given the following information about a company: Receivables turnover = 10 times Payables turnover = 12 times Inventory turnover = 8 times What are the average receivables collection period, the average payables payment period, and the average inventory processing period respectively Average Receivables Average Payables Average Inventory Collection Period Payment Period Processing Period（）①A. 37 30 52 ②B. 37 45 46 ③C. 37 30 46
A. ①
B. ②
C. ③

[单项选择]Which of the following statements about a company that capitalizes significant costs this year is least likely correct Compared with expensing, a company that capitalized these costs would:（）
A. show smoother reported income and lower return on assets in future years.  
B. have higher cash flow from operations and lower cash flow from investing.  
C. have lower profitability ratios this year and higher cash flows from operations.

[单项选择]Which of the following arises when a company incurs expenses that have not yet been paid as of the end of an accounting period
A. Prepaid expense.
B. Accrued expense.
C. Unearned revenue.

[单项选择]A company records the following two transactions: Ⅰ. $ 300 000 of rental revenue is received in advance on a two-year lease. It is taxed on a cash basis, but deferred for accounting purposes. Ⅱ. $500 000 of installment sales. No payments are required for one year after which collections will be made on an equal basis over 12 months and taxed on a cash basis. The entire sale and related profit will he recognized for financial reporting purposes in the year of sale. Which of the above transactions will most likely give rise to a deferred tax liability on the balance sheet（）
A. Ⅰ only.
B. Ⅱ only.
C. Both Ⅰ and Ⅱ.

[单项选择]A company reports the following information in its financial statements in 2011:
·Net income is $85000
·Common share dividends is $40000
·Average total assets is $570500
·Average total liabilities is $320500
·Tax rate is 40%
The company's sustainable growth rate is closest to:
A. 8%
B. 11%
C. 18%

[单项选择] Bentlom’ s long-term debt-to-equity ratio and current ratio are closest to:（）
A. 77.8% ;2.25.
B. 98.2% ;2. 50.
C. 98.2% ;2. 25.

[单项选择]A company has the following capital structure: Target weightings: 30% debt, 20% preferred stock, 50% common equity. Tax Rate: 35%. The firm can issue $1000 face value, 7.00% semi-annual coupon debt with a 15-year maturity for a price of $1047.46. An 8.0% dividend preferred stock issue has a value of $35 per share. The company’s growth rate is estimated at 6.0%. The company’s common shares have a value of $40 and a dividend in year 0 of DO = $3.00. The company’s weighted average cost of capital is closest to:（）
A. 9.84%.
B. 9.28%.
C. 9.21%.