devry busn 379 week 1 homework ES

| August 14, 2017

(TCO 1) Which of the following statements is not true
regarding the goal of financial management?

The goal of maximizing the value per share of
existing stock is relevant to all organizations.
A way of aligning management goals to
shareholder’s interest is to tie managerial compensation to the market value of
the firm’s stock.
For a company considering international
operations, the goal will be the same but the company will have to consider the
local social, economical and political environment in the decision-making
process.
All of the above are true.

Question 2. Question
:
(TCO 1) Book values are different to market values because:

Book values reflect the value of the asset
based on generally-accepted accounting principles.
Book values are used in the company’s balance
sheet.
Book values do not reflect the amount someone
is willing to pay today for an asset.
All of the above

Question 3. Question
:
For this question, use the information for Sports Baseballs,
Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells
baseballs across several states in the Southeast. It had sales of $2.7 million
during the last year. Expenses were as follows:
Cost of goods sold…………………………. $1.2 million
Administrative expenses…………………… $250,000
Marketing and selling expenses…………… $175,000
Depreciation…………………………………. $500,000
Interest expense……………………………. $200,000
Dividends paid………………………………. $150,000

(TCO 1) Suppose that Sports Baseball has 30,000 shares of
stock. What is the dividends per share figure?

5.0
8.75
5.25
8.50
Instructor Explanation: Chapter 2, page 28, Net Income/Total Shares
Outstanding= $150,000 /30,000=$5

Question 4. Question
:
For this question, use the information for Sports Baseballs,
Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells
baseballs across several states in the Southeast. It had sales of $2.7 million
during the last year. Expenses were as follows:
Cost of goods sold…………………………. $1.2 million
Administrative expenses…………………… $250,000
Marketing and selling expenses…………… $175,000
Depreciation…………………………………. $500,000
Interest expense……………………………. $200,000
Dividends paid………………………………. $150,000

(TCO 1) Assuming a tax rate of 30%, what is the operating
cash flow for the year?

$1,260,000
$962,000
$962,500
$1,265,000
Can not be determined with the information
given

Question 5. Question
:
For this question, use the information for Sports Baseballs,
Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells
baseballs across several states in the Southeast. It had sales of $2.7 million
during the last year. Expenses were as follows:
Cost of goods sold…………………………. $1.2 million
Administrative expenses…………………… $250,000
Marketing and selling expenses…………… $175,000
Depreciation…………………………………. $500,000
Interest expense……………………………. $200,000
Dividends paid………………………………. $150,000

(TCO 1) Select all items that will be included in Sports
Baseballs, Inc. Income Statement. For this exercise you will be choosing more
than one option for your answer:

Student Answer: Accounts
receivable
Cost of goods sold
Net working capital
Interest expense
Taxes
Current assets
Short-term loans
Cash on hand
Inventory

Question 6. Question
:
(TCO 1) Which one of the following activities best exemplify
capital structure decisions. For this exercise you will be choosing more than
one option for your answer:

Student Answer: Determine
the most adequate mixture of debt and equity to be maintained.
Obtain a short-term loan to
purchase materials.
Identify two capital investment
projects.
Determine the cost of each
source of capital.
Determine the return of a
potential project.
Calculate the cash flows for a
project.
Assess
the terms of loans and evaluate potential long-term financing options.

Question 7. Question
:
(TCO 1) Match the following terms with the examples as
appropriate:

: Managerial compensation
» : incentive to encourage
managers to increase share value.

: Social responsibility » : McDonald’s work to redesign packaging items
with recyclable materials.

: Sarbanes-Oxley Act established an oversight board responsible
for improving auditing standards within companies.

: Agency relationship The relation between a manager and a owner
of the corporation.

: Antitrust case : Microsoft’s monopolistic behavior.

Comments:

Question 8. Question
:
(TCO 1) Can you provide some examples of recent well-known
unethical behavior cases? Explain the situation in one or two sentences.

Student Answer:
Comments:

*

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