# DeVry BUSN 379 Final Exam - Updated

## DeVry BUSN 379 Final Exam - Updated

DeVry BUSN 379 Final Exam - Updated

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1.(TCO 1) ) Likeline, Inc., has sales of \$445,000, costs of \$173,000, depreciation expense of \$72,000, interest expense of \$36,000, and a tax rate of 35 percent. What is their net income?(Points : 20)

Question 2.2.(TCO 1) Hammett, Inc. has sales of \$19,570, costs of \$9,460, depreciation expense of \$2,130, and interest expense of \$1,620. If the tax rate is 35 percent, what is the operating cash flow, or OCF?
(Points : 20)

Question 3.3.(TCOs 2 and 3) App Co. issued 15-year, \$1,000 bonds at a coupon rate of 6 percent. The bonds make annual payments. If the YTM on these bonds is 5 percent, what is the current bond price?(Points : 20)

Question 4.4.(TCO 3) Sixteenth Bank has an issue of preferred stock with a \$10 stated dividend that just sold for \$70 per share. What is the bank’s cost of preferred stock? (Show your work and round your answer to two decimal places.(Points : 20)

Question 5.5.(TCOs 3 and 5) You own a portfolio that has \$2,500 invested in Stock A and \$3,500 invested in Stock B. If the expected returns on these stocks are 10 percent and 16 percent, respectively, what is the expected return on the portfolio? (Show your work.)(Points : 20)

Question 6.6.(TCO 3) A stock has a beta of 1.25, the expected return on the market is 12 percent, and the risk-free rate is 2 percent. What must the expected return on this stock be? (Show your work and express your percentage in two decimal places).(Points : 20)

Question 7.7.(TCO 4) Suppose Tom, Ltd. just issued a dividend of \$2.00 per share on its common stock. The company’s dividends have been growing at a rate of 7%. If the stock currently sells for \$50.00, what is your best estimate of the...