8/14/2019 MGT201 Fall 2006 Assignment 08 Solution.doc

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QUIZ NO: 03

FINANCIAL MANAGEMENT

MGT 201-Semester Fall 2006

Marks Ota!"e#: Ma$ Marks: 10

NOTE: 1% ATTEM&T ALL QUESTIONS%

2% 'IG'LIG'T T'E CO((ECT ANS)E( OUT OF T'E FOU(

GI*EN C'OICES FO( EAC' QUESTION:

1% I" +al+,lat!" t.e +/sts / t.e !"#!!#,al +/m/"e"ts / a !rms !"a"+!"4 t.e

+/r/rate ta$ rate !s !m/rta"t t/ 5.!+. / t.e /ll/5!" +/m/"e"t +/st

/rm,las

a% Common stock.% 7et%

+% Preferred stock#% None of the given options

2% Ot!mal +a!tal str,+t,re reers t/ t.e art!+,lar +/m!"at!/" t.at m!"!m!8es

t.e------------5.!le ma$!m!8!" t.e------------%

a% Operating cost, sales% Taxes, Interest expense+% C/st / +a!tal4 St/+k r!+e

#% None of the given options

3% T.e #!!#e"#-a9/,t rat!/ !s e,al t/:

a% The dividend yield plus the capital gains yield.% 7!!#e"#s er s.are #!!#e# 9 ear"!"s er s.are.+% Dividends per share divided y par value per share.#% Dividends per share divided y current price per share.

;% ).!+. / t.e /ll/5!" 5/,l# e +/"s!ste"t 5!t. a m/re aress!e ar/a+. t/

!"a"+!" 5/rk!" +a!tal

a% !inancing short"term needs #ith short"term funds.% !inancing permanent inventory uildup #ith long"term det.+% !inancing seasonal needs #ith short"term funds.#% F!"a"+!" s/me l/"-term "ee#s 5!t. s./rt-term ,"#s%

8/14/2019 MGT201 Fall 2006 Assignment 08 Solution.doc

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6% ).!+. / t.e /ll/5!" s/,r+e / !"a"+!" !"/le "/ tra"sa+t!/"s +/sts

a% Common shares% Preferred shares+% (eta!"e# ear"!"s

#% $ll of the given options

=% Te$as &r/#,+ts I"+% .as a #!!s!/" t.at makes last!+ +/m/s!te as /r t.e

sa+e !"#,str9% T.e #!!s!/" .as !$e# +/sts / >;=%00

+% %(.''#% %).''

?% T.e Free I"#ee# C/ma"9 ma",a+t,res la#!es s./es t.at are s/l# t.r/,.#!s+/,"t ./,ses% T.e s./es are s/l# /r >20 ea+. a!r@ t.e !$e# +/sts are

>1104000 /r , t/ 304000 a!rs / s./es@ ar!ale +/sts are >13 er a!r / s./es%

).at !s t.e !rms reakee" /!"t !" ,"!ts s/l#

a% *',''' pairs of shoes% 1