66、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. Madison Inc. is planning a bond issue. They are considering issuing either a straight coupon bond or a coupon bond with warrants attached. The proceeds from either issue would be the same. What will be the effect on their interest expense and balance sheet liability if they issue the bonds with warrants as compared to the straight bonds? For the bonds with warrants the: | interest expense
will be | balance sheet
liability will be | A. | lower | lower | B. | lower | higher | C. | higher | lower | D. | higher | higher |
Select exactly 1 answer(s) from the following:
A. AnswerA. B. AnswerB. C. AnswerC. D. AnswerD.
67、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. Kim Lee, CFA, is trying to forecast net income for Robinson's Ltd, a chain of retail furniture outlets. He has prepared the following common sized data from their recent annual report and has estimated sales for 2008 using a forecasting model his firm developed for consumer goods. | 2008
forecast | 2007
actual | 2006
actual | Sales $ millions | 2,250 | 2,150 | 1,990 | Sales as % of sales |
| 100.00% | 100.00% | Cost of goods sold |
| 45.00% | 45.00% | Operating expenses |
| 40.00% | 40.00% | Interest expense |
| 3.72% | 4.02% | Restructuring expense |
| 0% | 7.2% | Pre-tax margin |
| 11.28% | 3.78% | Taxes (35%) |
| 3.95% | 1.32% | Net income |
| 7.33% | 2.46% |
The capital structure of the company has not changed. The projected net income (in $ millions) for 2008 is closest to: Select exactly 1 answer(s) from the following:
A. 110.1. B. 162.8. C. 164.9. D. 167.4.
68、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. Where are the unrealized gains and losses arising from changes in the market value of available-for-sale securities reported under U.S. GAAP and IFRS? They are reported in:
| U.S. GAAP | IFRS | A. | equity | equity | B. | equity | Income statement | C. | Income statement | equity | D. | Income statement | income statement |
Select exactly 1 answer(s) from the following:
A. AnswerA. B. AnswerB. C. AnswerC. D. AnswerD.
69、A large corporation recently decided to accept a project with a negative net present value. That project most likely is classified in which of the following categories? Select exactly 1 answer(s) from the following:
A. Expansion project. B. Replacement project. C. New product or service. D. Regulatory or environmental project.
70、Howard Quarries has recently opened a limestone quarry at a location outside their traditional service area. Because limestone is a major ingredient in concrete, if the quarry is successful Howard plans to build a ready-mix concrete plant at the same location. The investment in the concrete plant is best described as: Select exactly 1 answer(s) from the following:
A. an externality. B. project sequencing. C. a mutually exclusive project. D. an example of investment synergy.
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发表于 2008-11-6 14:26
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