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STR 581 Capstone Final Examination, Part Two | STR 581 answers - UOP E Tutors

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vertical analysis<br />

linear analysis<br />

common size analysis<br />

3. Which of the following is an advantage of corporations relative to<br />

partnerships and sole proprietorships?<br />

most common form of organization<br />

reduced legal liability for investors<br />

lower taxes<br />

harder to transfer ownership<br />

4. Serox stock was selling for $20 two years ago. The stock sold for $25 one<br />

year ago, and it is currently selling for $28. Serox pays a $1.10 dividend per<br />

year. What was the rate of return for owning Serox in the most recent year?<br />

(Round to the nearest percent.)<br />

32%<br />

16%<br />

12%<br />

40%<br />

5. External financing needed: Jockey Company has total assets worth<br />

$4,417,665. At year-end it will have net income of $2,771,342 and pay out 60<br />

percent as dividends. If the firm wants no external financing, what is the<br />

growth rate it can support?<br />

30.3%<br />

27.3%<br />

32.9%<br />

25.1%

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