FIN370 EXAM

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When utilizing the percentage of sales approach, managers fin 370 final exam: Webster United is paying a dividend of $1.32 per share today. There are 350,000 shares outstanding with a market price of... $22.40 per share prior to the dividend payment. Ignore taxes. Before the dividend, the company had earnings per share of $1.68. As a result of this dividend, the: A news flash just appeared that caused about a dozen stocks to suddenly drop in value by 20 percent. What type of risk does this news flash best represent? Which one of the following terms is defined as the mixture of a firm’s debt and equity financing? Which one of the following should earn the most risk premium based on CAPM? The Dry Dock is considering a project with an initial cost of $118,400. The project’s cash inflows for years 1 through 3 are $37,200, $54,600, and $46,900, respectively. What is the IRR of this project? You are comparing two investment options that each pay 6 percent interest, compounded annually. Both options will provide you with $12,000 of income. Option A pays $2,000 the first year followed by two annual payments of $5,000 each. Option B pays three annual payments of $4,000 each. Which one of the following statements is correct given these two investment options? Assume a positive discount rate. [Show More]

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