Final Assessment

9/4/21, 9:12 PM Final Assessment
Final Assessment
The respondent's email (212001706@eastdelta.edu.bd) was recorded on submission of this
form.
Student's Name *
212001706
Untitled Section
Which of the following is not an inventory? *
Raw material
Finished products
Machines
Untitled Section
From the information below, select the optimal capital structure for the
company. *
Debt = 70%; Equity = 30%; EPS = $3.31; Stock price = $30.00
Debt = 40%; Equity = 60%; EPS = $2.95; Stock price = $26.50
Debt = 80%; Equity = 20%; EPS = $3.42; Stock price = $30.40.
https://docs.google.com/forms/d/e/1FAIpQLSf2FihFsGuzBc-E6SxGk7bwffAUmkTLO71bClILzlmLxsUlsQ/viewscore?viewscore=AE0zAgCYHKejPRW… 1/13
Untitled Section
Because of the changes in credit standards, profit has been reduced to $25000.
Benefit from reduced marginal investment in account receivable is $6000 & the
cost of bad debt has been reduced to 5000. Should the company recommend
such changes? *
Yes, because there is a net profit of $36000
Yes, because there is a net profit of $14000
No, because there is a net loss of $14000
Untitled Section
The expected market return is 15% next year and the risk-free rate is 7%. If the
expected return on a stock is 17.40%, what is the beta of the stock according to
CAPM? *
1.74
1.30
1.71
1.40
Untitled Section
As a firm's cash conversion cycle increases, the firm: *
incurs more shortage costs.
becomes less profitable.
increases its investment in working capital.
reduces its accounts payable period.
Untitled Section
If EOQ = 40 units, order costs are $2 per order, and carrying costs are $.20 per
unit, what is the usage in units? *
80 units
16 units
10 units
40 units
Untitled Section
The company sells 60,00,000 units. Sales are increased to 72,00,000. Selling
price per unit is $60 and variable cost per unit is $55. Average collection period is
60 days and it is increased to 25%, what will be the marginal investment in A/R. *
27,123,288
23,868,493
26,038,356
28,647,356
Untitled Section
The average debt equity ratio for the company is 35%. Beta is 1.30. The average
tax rate is 40%. Calculate unlevered beta. *
1.07
1.72
1.57
0.982
Untitled Section
If the weighting of debt is 0.33, that of equity is 0.67, the cost of equity is 20%
and that of debt is 15% and the corporate tax rate is 32%, what is the Weighted
Average Cost of Capital (WACC)? *
18.35%
16.766%
9.533%
13.434%
Untitled Section
The firm is currently selling for 15000 units and because of the changes in
average collection period, sales will be changed to 12000 units. If selling price
per unit is $40 and variable cost per unit is $35, calculate the profit contribution
from this changes. *
15000
12000
(12000)
(15000)
Untitled Section
The company has inventory days of 24.69, payable days of 35.35 and receivables
days of 32.75. What is the company's cash conversion cycle? *
+ 27.29 days
+ 22.09 days
+ 92.79 days
+ 43.41 days
Untitled Section
at debt ratio 30%, after tax cost of debt is 10% required return on stock is 11.6%at
debt ratio 45%, after tax cost of debt is 13% , required return on stock is 14%if
the tax rate is 40%, Find out the optimal capital structure. *
30% debt as WACC is 9.92%
Untitled Section
The following classes of costs are usually involved in inventory decisions except *
Machining cost
Carrying cost
Cost of ordering
Untitled Section
At the peak of its selling season, the firm's cash changed to $35000 , inventory
to 130,000 , account receivable to $75000 and account payable to 65000.
During the slow selling season, $10000 in cash 55,000 in inventory, $40000 in
account receivable and 35000 in accounts payable.calculate peak funding
requirement. *
70000
105000
175000
Untitled Section
Which of the following statements is correct regarding inventory if there were an

inventory shortage? *
All of the above answers are
The firm will likely lose sales today via cancelled orders or future sales because of
past customer experiences if customers do not receive their orders as expected and
agreed upon.
Customers of our firm will likely be irritated (or disappointed) if their purchases are
late or delayed because an inventory shortage slows production at our firm.
The firm will possibly need to layoff workers temporarily if there is an inventory
shortage.
Untitled Section
Under which strategy the amount of financing exactly equals the estimated
funding needs? *
Aggressive strategy
conservative strategy
Untitled Section
An increase in the Average Payment Period will result in -------the Cash

Conversion Cycle *
an increase
no change
an undetermined change
a decrease
Untitled Section
Which of the following is the ongoing review of a firm’s accounts receivable ? *
Cash management
Credit monitoring
Credit scoring
Untitled Section
If EOQ = 400 units, order costs are $2 per order, and carrying costs are $.20 per
unit, annual usage is 800 units. if it takes 7 days to receive the order, what is the
reorder point? use 365 in a year. *
7.67 units
7.77 units
15.55 units
15.34 units
Untitled Section
if the annual usage is 60000 unit per yer, ordering cost $200 per order, carrying
cost is $1 per unit, calculate average inventory. *
10 unit
2450 unit
24.49 unit
300 unit
Untitled Section
A firm's operating cycle is equal to its inventory turnover in days *
plus its receivable turnover in days minus its payable turnover in days
minus its receivable turnover in days
minus its receivable turnover in days minus its payable turnover in days
plus its receivable turnover in days
Untitled Section
Debt-to-total assets (D/TA) ratio is 0.4. What is its debt-to-equity (D/E) ratio?) *
0.2
0.667
0.333
0.6
Untitled Section
The unlevered beta is 1, levered beta is 1.89. Risk free return is 6%, market return
is 12%. calculate the required rate of return on stock according to CAPM. *
12%
28.68%
18%
17.34%
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Untitled Section
-----varies inversely with profitability *
Liquidity.
Liabilities
Financing.
Risk.
Untitled Section
The company sells 60,00,000 units. Sales are increased by 20%. Selling price per
unit is $60 and variable cost per unit is $55. If average collection period will be
changed from 60 days to 72 days, what will be the marginal investment in A/R. *
26,538,356
28,647,356
26,038,356
23,868,493
Untitled Section
The company sells 60,00,000 units. Sales are increased by 20%. if selling price
per unit is $20 and variable cost per unit is $15, calculate the profit contribution
from the increased sales. *
$18000000
$6000000
$24000000
Untitled Section
Which of the following is not a metric to use for measuring the length of the cash
conversion cycle? *
Acid test days
Accounts receivable days
Accounts payable days.
inventory days
Untitled Section
if the annual usage is 60000 unit per yer, ordering cost $200 per order, carrying
cost is $1 per unit, calculate EOQ *
600 unit
20 unit
4899 unit
24.49 unit
Untitled Section
Decision model to calculate optimal quantity of inventory to be ordered is called

*
Optimum Order Quantity
Economic Order Quantity
Efficient Order Quantity
Untitled Section
If credit standards are relaxed, bad debt expenses will be reduced. *
True
False
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9/4/21, 9:12 PM Final Assessment

Which of the following is not an inventory? *

Debt = 70%; Equity = 30%; EPS = $3.31; Stock price = $30.00

Debt = 40%; Equity = 60%; EPS = $2.95; Stock price = $26.50

Debt = 80%; Equity = 20%; EPS = $3.42; Stock price = $30.40.

Debt = 60%; Equity = 40%; EPS = $3.18; Stock price = $31.20.

Debt = 50%; Equity = 50%; EPS = $3.05; Stock price = $28.90.

Yes, because there is a net profit of $36000

Yes, because there is a net profit of $14000

No, because there is a net loss of $14000

As a firm's cash conversion cycle increases, the firm: *

incurs more shortage costs.

becomes less profitable.

increases its investment in working capital.

reduces its accounts payable period.

30% debt as WACC is 9.92%

30% debt as WACC is 11.12%

45% debt as WACC is 13.55%

45% debt as WACC is 11.21%

Which of the following statements is correct regarding inventory if there were an

All of the above answers are

An increase in the Average Payment Period will result in -------the Cash

Which of the following is the ongoing review of a firm’s accounts receivable ? *

A firm's operating cycle is equal to its inventory turnover in days *

minus its receivable turnover in days

plus its receivable turnover in days

-----varies inversely with profitability *

Acid test days

Accounts receivable days

Accounts payable days.

Decision model to calculate optimal quantity of inventory to be ordered is called

Optimum Order Quantity

Economic Order Quantity

Efficient Order Quantity

If credit standards are relaxed, bad debt expenses will be reduced. *

This form was created inside of East Delta University.

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