Solved by verified expert :61.
Economic value added is calculated from:
A.
Average total assets, current
liabilities, net income, and the cost of capital.
B.
EVA net income and EVA
invested capital.
C.
Net income, cost of
capital, and net assets.
D.
Net income and the cost
of capital.
E.
EVA net income, the cost
of capital, and EVA invested capital.
62.
Performance shares grant stock for achieving certain performance goals:
A.
In the following year.
B.
In two years or more.
C.
In the current period.
D.
When stock prices
improve.
63.
There is a current tax deduction for the firm for which of the following types
of compensation?
A.
Qualified stock options.
B.
Nonqualified stock
options.
C.
Deferred bonus.
D.
Current bonus.
E.
Performance shares.
64.
There is a current tax for the manager when which of the following types of
compensation is received?
A.
Qualified stock options
B.
Nonqualified stock
options
C.
Deferred bonus
D.
Current bonus
E.
Performance shares
65.
Which of the following types of compensation does not provide a deduction to
the firm for tax purposes?
A.
Perks
B.
Qualified stock options
C.
Retirement plans
D.
Current bonus
E.
Performance shares
66.
Bonus payment options include all of the following except:
A.
Perks.
B.
Current bonus.
C.
Deferred bonus.
D.
Stock options.
E.
Performance shares.
67. A
CFO whose compensation plan may have had the effect of creating an incentive
for unethical actions includes:
A.
Kenneth Lay
B.
Scott Sullivan
C.
Bernie Madoff
D.
Dennis Kozlowski
68.
The
King Mattress Company had the following operating results for 2009-2010. In
addition, the company paid dividends in both 2009 and 2010 of $60,000 per year
and made capital expenditures in both years of $30,000 per year. The company’s
stock price in 2009 was $8 and $7 in 2010. The industry average earnings
multiple for the mattress industry was 9 in 2010 and the free cash flow and
sales multiples were 18 and 1.5, respectively. The company is publicly owned
and has 1,200,000 shares of outstanding stock at the end of 2010.
The accounts
receivable turnover ratio for 2010 is:
A.
11.2
B.
12.7
C.
13.7
D.
14.9
69.
The King Mattress
Company had the following operating results for 2009-2010. In addition, the
company paid dividends in both 2009 and 2010 of $60,000 per year and made
capital expenditures in both years of $30,000 per year. The company’s stock
price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for
the mattress industry was 9 in 2010 and the free cash flow and sales multiples
were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000
shares of outstanding stock at the end of 2010.
The inventory
turnover ratio for 2010 is (rounded):
A.
11.2
B.
12.7
C.
13.7
D.
14.9
70.
The King Mattress
Company had the following operating results for 2009-2010. In addition, the
company paid dividends in both 2009 and 2010 of $60,000 per year and made
capital expenditures in both years of $30,000 per year. The company’s stock
price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for
the mattress industry was 9 in 2010 and the free cash flow and sales multiples
were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000
shares of outstanding stock at the end of 2010.
The current
ratio for 2010 is:
A.
1.8
B.
2.0
C.
3.9
D.
4.7
71.
The King Mattress
Company had the following operating results for 2009-2010. In addition, the
company paid dividends in both 2009 and 2010 of $60,000 per year and made
capital expenditures in both years of $30,000 per year. The company’s stock
price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for
the mattress industry was 9 in 2010 and the free cash flow and sales multiples
were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000
shares of outstanding stock at the end of 2010.
The gross margin
percentage for 2010 is (rounded):
A.
11.2%
B.
12.7%
C.
13.7%
D.
14.9%
72.
The King Mattress
Company had the following operating results for 2009-2010. In addition, the
company paid dividends in both 2009 and 2010 of $60,000 per year and made
capital expenditures in both years of $30,000 per year. The company’s stock
price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for
the mattress industry was 9 in 2010 and the free cash flow and sales multiples
were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000
shares of outstanding stock at the end of 2010.
Return on assets
for 2010 is:
A.
9.2%
B.
16.4%
C.
13.7%
D.
19.2%
73.
The King Mattress
Company had the following operating results for 2009-2010. In addition, the
company paid dividends in both 2009 and 2010 of $60,000 per year and made
capital expenditures in both years of $30,000 per year. The company’s stock
price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for
the mattress industry was 9 in 2010 and the free cash flow and sales multiples
were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000
shares of outstanding stock at the end of 2010.
Return on equity
for 2010 is (rounded):
A.
11.6%
B.
14.6%
C.
15.5%
D.
18.9%
74.
The King Mattress
Company had the following operating results for 2009-2010. In addition, the company
paid dividends in both 2009 and 2010 of $60,000 per year and made capital
expenditures in both years of $30,000 per year. The company’s stock price in
2009 was $8 and $7 in 2010. The industry average earnings multiple for the
mattress industry was 9 in 2010 and the free cash flow and sales multiples were
18 and 1.5, respectively. The company is publicly owned and has 1,200,000
shares of outstanding stock at the end of 2010.
The value of the
company, calculated using the earnings multiple for 2010 is:
A.
$1,220,000
B.
$1,620,000
C.
$2,520,000
D.
$8,335,000
75.
The King Mattress
Company had the following operating results for 2009-2010. In addition, the
company paid dividends in both 2009 and 2010 of $60,000 per year and made
capital expenditures in both years of $30,000 per year. The company’s stock
price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for
the mattress industry was 9 in 2010 and the free cash flow and sales multiples
were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000
shares of outstanding stock at the end of 2010.
The value of the
company, calculated using the free cash flow multiple for 2010 is:
A.
$1,220,000
B.
$1,620,000
C.
$2,520,000
D.
$8,400,000
