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Which one of the following statements is a correct reflection of the U.S. financial markets for the period 1926–2019?

You are considering the following two mutually exclusive projects. The crossover rate between these two projects is ___ percent and Project ___ should be accepted if the required return is greaterthan the crossover rate. Year Project A Project B 0 −$ 33,000 −$ 33,000 1 21,000 13,160 2 13,000 11,000 3 13,000 24,500

Cloche’s Hats had sales for the year of $669,200 and cost of goods sold equal to 67 percent of sales. The inventory at the beginning of the year was $118,600 and the end-of-year inventory was $133,700. What was the company’s inventory period? Assume 365 days in a year.

Bruno’s Lunch Counter is expanding and expects operating cash flows of $30,900 a year for 6 years as a result. This expansion requires $99,500 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $7,600 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 13 percent?

There is a project with the following cash flows : Year Cash Flow 0 −$ 23,000 1 6,700 2 7,550 3 6,950 4 4,800 What is the payback period?

Which one of these best describes a characteristic of a flexible financing policy?

Small-company stocks, as the term is used in the textbook, are best defined as the:

The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $352,000 and expenses by $244,000. The project will require $153,000 in fixed assets that will be depreciated using the straight-line method to a zero book value over the 9-year life of the project. The company has a marginal tax rate of 21 percent. What is the depreciation tax shield?

Upton Umbrellas has a cost of equity of 12.9 percent, the YTM on the company’s bonds is 5.4 percent, and the tax rate is 21 percent. The company’s bonds sell for 104.5 percent of par. The debt has a book value of $447,000 and total assets have a book value of $965,000. If the market-to-book ratio is 3.13 times, what is the company’s WACC?

Matterhorn Mountain Gear is evaluating two projects with the following cash flows: Year Project X Project Y 0 −$ 318,200 −$ 296,950 1 146,700 137,600 2 164,200 154,800 3 129,300 120,550 What interest rate will make the NPV for the projects equal?