[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]The following information pertains to a company’s stock: The current stock price is $ 45 per share. Earnings and dividends have been growing at an annual rate of 8%. The company’s earnings per share during the past year was $ 5. The dividend payout ratio is 40%. The company pays a 7% flotation cost if it sells new shares of stock. Based on the dividend discount model, the stockholders’ required rare of return is.（）
A. 12.0%.
B. 12.4%.
C. 12.8%.

[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]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 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]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 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%.

[填空题]
· Look at the following members of a company. It shows different jobs and position.
· For questions 6-10, decide which person (A-H) is the most suitable for each job below.
· For each question, mark the correct letter (A-H) on your Answer Sheet.