ACC501 Current Final Term Fall 2013 Shared by SADIA KHAN

3 marks
* Difference b/w Sunk cost and opportunity cost.
* Objectives cash management.
* Optimal capital structure
* ROE find (your answer should be rounded to two decimal places only)
Cash                                    15000
Account receivable             89000
Investment                          60000
Net finance                          45000
Sales                                    530000
Cost of good sold                 360000
Return                                 53000
Equity multiplier                 1.66


5 marks
* Bankruptcy and its type
* Agency relationship and problems
* Carrying cost and shortage cost
*XYZ company equipment that is sales 5 year property for MRACR the equipment cost 62900% ?
1: what is the book value equipment is first year?
2: what is the book value equipment is forth year?
Year        MACRS percentage
1              20.00
2              32.00
3              19.20
4               11.52
5               11.52
6               5.76