İŞLETME FİNANSI II

Which of the following statements is not true about net income approach for capital structure?

Suppose that “White Company” has a project proposal, requiring initial investment of 200 million USD. to consider. The expected rate of return from expansion investments discount rate is 20%. Projected non-cumulative cash inflows (USD in millions) of the project for the next four years are as follows.


Year 1 - 60
Year 2 - 60
Year 3 - 100
Year 4 - 120


(1.22  1.44; 1.23  1.73; 1.24 2.07)


Relying above information, how long (in years) is the discounted payback period of the project?

On November 11, 2017, the directors of X Corporation declared the regular quarterly dividend of 75 cents per share, payable to holders of record as of Friday, December 10. When is the ex-dividend date?

Which of the following is not amongst the factors influencing dividend policy?

Which of the following is not amongst the Constraints on dividend payments?

What does stock split mean?

What is the main operational weakness of a licensing type of international business?

Which of the following is not amongst the parity conditions?

Which of the following defines the cash flow risk and deals with the effect of exchange rate moves on transactional account exposure?

Which of the following is not an international credit rating agency?

The difference between standard deviation and value at risk is -------.



Which of the following completes sentence above?

An investment with a large spread between possible payoffs will generally have -------.



Which of the following completes sentence above?

Leverage ------- .



Which of the following completes sentence above?

If an investment has a 40% (0.40) probability of returning $5,000; and a 60% (0.60) probability of returning is $5000.



According to above data, what is the expected value of the investment?

Which of the following is the last phase of the M&A process?

Which of the following is the process of bargaining between the acquiring firm and the target firm aimed at coming to an agreement over the terms, needs and aims of both parties?

In which post-acquisition integration style speed of change is rapid, organizational configuration is dissolved, and the need for integration of capabilities is low?

Which concept refers to the value of all future cash flows expected from a company?

Which of the following refers to mortgage security?

X Corp. has the optimal capital structure that long-term debt has 15% of weight, preferred stocks have 25% of weight and common equity has 60% of weight. The interest rate on the company’s long-term borrowing is 10%. Preferred stockholders require 12% return on their investments and common shareholders are paid 10% on equity capital.



According to above data, If the company has a tax rate of 40%, what is the WACC for X Corp?