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If two firms have identical net profit margins and identical total asset turnover ratios, the firm with the higher equity multiplier will have a higher return on equity.

Use the following Weighted Average Cost of Capital (WACC) and the cash flows for years 0-4 to calculate the Net Present Value (NPV) for Project Freefall.  WACC 5% CF 0         (131,000) CF 1             45,000 CF 2             47,000 CF 3             49,000 CF 4             38,000                                  

Which of the following does NOT affect a company’s Free Cash Flow (FCF)?

Use the following information to determine the net profit margin.  Total assets  $   200,000.00 Total liabilities          85,000.00 Total equity        115,000.00 Sales        580,000.00 Cost of goods sold        360,000.00 Net income          31,320.00 Enter your answer rounded to 3 decimal places.  In other words, if your answer is 6.0589%, enter 0.0606.  If your answer is 8.1418%, enter 0.0814.

In the CAPM model, the market beta is by definition equal to 1.

If the estimated cost of equity is 6.69%, the estimated cost of debt is 5.50%, the tax rate is 15.40% and the market value of debt and equity is 61 million and 39 million, respectively, what is the weighted average cost of capital (WACC) for the firm?

Which of the following is NOT an important characteristic of Hill Country Snack Foods (HCSF)?

Given the following information, what is the company’s Cash Conversion Cycle (CCC)? Inventory period                 65.00 Collection period                 30.00 Payables period                 17.00

If two firms have identical net profit margins and identical total asset turnover ratios, the firm with the lower equity multiplier will have a higher return on equity.

Use the following information to determine the equity multiplier.  Total assets  $  172,200.00 Total liabilities      102,200.00 Total equity        70,000.00 Sales      440,000.00 Cost of goods sold      310,000.00 Net income        27,060.00 Enter your answer rounded to 2 decimal places.  In other words, if your answer is 8.4278, enter 8.43.  If your answer is 6.4112, enter 6.41.