1.A firm has a capital structure of 60% debt and 40% equity and a dividend payout ratio of 50%. If a surplus results from first-pass pro forma financial statements based on estimated sales growth and assuming the capital structure and dividend payout ratio are maintained, which of the following changes in assumptions would eliminate any surplus in a single step? A) The entire surplus will be used to pay down long-term debt. B) The dividend payout ratio will decrease to 30%. C) The entire surplus will be used to repurchase common stock. D) No change in assumptions is necessary.
2.Jane Epworth, CFA, is preparing pro forma financial statements for Gavin Industries, a mature U.S. manufacturing firm with three distinct geographic divisions in the Midwest, South and West. Epworth prepares estimates of sales for each of Gavin’s divisions using economists’ estimates of next-period GDP growth and sums the three estimates to forecast Gavin’s sales. Epworth’s approach to estimating Gavin’s sales is:
A) inappropriate, because sales should be forecast on a firm-wide basis. B) inappropriate, because sales are unlikely to be related to GDP growth. C) inappropriate, because sales should be forecast on a firm-wide basis and are unlikely to be related to GDP growth. D) appropriate.
3.Which item is least likely assumed to be a constant percentage of sales on a pro forma balance sheet?
A) Inventory. B) Long-term debt. C) Accounts payable. D) Property, plant and equipment. | 
发表于 2008-4-9 16:31
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