For on one hand, they are busy with their work, they have to get the BEC Prep Material certification by the little spread time. On the other hand, it is not easy to gather all of the exam materials by themselves. So our BEC Prep Material study questions are their best choice. With the rise of internet and the advent of knowledge age, mastering knowledge about computer is of great importance. This BEC Prep Material exam is your excellent chance to master more useful knowledge of it. As long as you click on them, you can find the information easily and fast.
AICPA BEC Prep Material exam is a Technical Specialist exam.
AICPA Certification BEC Prep Material - CPA Business Environment and Concepts Besides, it can all the time provide what you want. The purchase rate and favorable reception of this material is highest on the internet. Omgzlook's AICPA BEC Reliable Dumps Files exam training materials have a part of free questions and answers that provided for you.
Omgzlook can not only provide all the information related to the AICPA certification BEC Prep Material exam for the candidates, but also provide a good learning opportunity for them. Omgzlook be able to help you pass AICPA certification BEC Prep Material exam successfully. Having a AICPA BEC Prep Material certification can enhance your employment prospects,and then you can have a lot of good jobs.
AICPA BEC Prep Material - There are two versions of Omgzlook dumps.
In order to meet the request of current real test, the technology team of research on Omgzlook AICPA BEC Prep Material exam materials is always update the questions and answers in time. We always accept feedbacks from users, and take many of the good recommendations, resulting in a perfect Omgzlook AICPA BEC Prep Material exam materials. This allows Omgzlook to always have the materials of highest quality.
If you still worry about your BEC Prep Material exam; if you still doubt whether it is worthy of purchasing our software, what you can do to clarify your doubts is to download our BEC Prep Material free demo. Once you have checked our demo, you will find the study materials we provide are what you want most.
BEC PDF DEMO:
QUESTION NO: 1
Youngsten Electric is contemplating new projects for the next year that will require
$30,000,000 of new
financing. In keeping with its capital structure, Youngsten plans to use debt & equity financing as follows:
* Issue $10,000,000 of 20-year bonds at a price of 101.5, with a coupon of 10%, and flotation costs of
2 .5% of par value.
* Use internal funds generated from earnings of $20,000,000.
The equity market is expected to earn 15%. U.S. treasury bonds currently are yielding 9%. The beta coefficient for Youngsten's common stock is estimated to be .8. Youngsten is subject to a 40% corporate
income tax rate. Youngsten has a price/earnings ratio of 10, a constant dividend payout ratio of 40%, and
an expected growth rate of 12%.
An analysis of Youngsten's planned equity financing using Capital Asset Pricing Model (or Security
Market Line) would incorporate only the:
A. Expected market earnings, the current U.S. Treasury bond yield, and the beta coefficient.
B. Expected market earnings and the price' earnings ratio.
C. Current U.S. Treasury bond yield, the price/earnings ratio, and the beta coefficient.
D. Current U.S. Treasury bond yield and the dividend payout ratio.
Answer: A
Explanation:
Choice "a" is correct. The capital asset pricing model formula is:
R = RF + B (RM-RF)
Where:
R = Required return rate on equity
RF = Risk free rate earned on U.S. treasury bonds.
B = Beta coefficient
RM = Expected market return (earnings).
Choices "b", "c", and "d" are incorrect, per the above Explanation:.
QUESTION NO: 2
A project's net present value, ignoring income tax considerations, is normally affected by the:
A. Proceeds from the sale of the asset to be replaced.
B. Carrying amount of the asset to be replaced by the project.
C. Amount of annual depreciation on the asset to be replaced.
D. Amount of annual depreciation on fixed assets used directly on the project.
Answer: A
Explanation:
Choice "a" is correct. A project's net present value is a function of current and future cash flows, including
proceeds from the sale of the old asset.
Choice "b" is incorrect. A project's net present value is a function of current and future cash flows.
The carrying amount of the asset does not affect cash flows.
Choice "c" is incorrect. A project's net present value is a function of current and future cash flows.
Depreciation is a noncash item and does not affect cash flows.
Choice "d" is incorrect. A project's net present value is a function of current and future cash flows.
Depreciation is a noncash item and does not affect cash flows.
QUESTION NO: 3
Corbin Inc. can issue three-month commercial paper with a face value of $1,000,000 for
$980,000.
Transaction costs would be $1,200. The effective annualized percentage cost of the financing, based on a
3 60-day year, would be:
A. 2.16%
B. 8.48%
C. 8.65%
D. 8.00%
Answer: C
Explanation:
Choice "c" is correct. The cost to issue the commercial paper is the $20,000 original issue discount ( $1 million - $980,000), plus transaction costs of $1,200 for a total of $21,200. Therefore, it costs $21,200 to
borrow $980,000 for 3 months. The 3-month interest cost is 2.16% ($21,200 / $980,000).
The annual interest cost is 8.65%
Choices "a", "b", and "d" are incorrect, per the above calculation.
QUESTION NO: 4
If a firm increases its cash balance by issuing additional shares of common stock, working capital:
A. Remains unchanged and the current ratio remains unchanged.
B. Increases and the current ratio remains unchanged.
C. Increases and the current ratio decreases.
D. Increases and the current ratio increases.
Answer: D
Explanation:
Choice "d" is correct. If a firm increases its cash balance by issuing additional shares of common stock,
working capital increases and the current ratio increases.
QUESTION NO: 5
An increase in government spending will tend to cause:
A. Real GDP to fall and unemployment to rise.
B. Real GDP to rise and unemployment to fall.
C. Real GDP to rise and unemployment to rise.
D. Real GDP to fall and unemployment to fall.
Answer: B
Explanation:
Choice "b" is correct. An increase in government spending causes an increase in aggregate demand
(i.e.,
causes the aggregate demand curve to shift right). As a result, an increase in government spending causes real GDP to rise and unemployment to fall.
Choice "a" is incorrect. Real GDP will rise, not fall.
Choice "c" is incorrect. Unemployment will fall, not rise.
Choice "d" is incorrect. Real GDP will rise, not fall.
EMC D-ZT-DS-P-23 - This certification exam can also help you tap into many new avenues and opportunities. Our Cisco 350-601 exam software is developed by our IT elite through analyzing real Cisco 350-601 exam content for years, and there are three version including PDF version, online version and software version for you to choose. Do you want to pass the AICPA IIA IIA-CIA-Part2-CN exam better and faster? Then please select the Omgzlook. We constantly updated the HP HPE7-A05 exam materials at the same time with the exam update. Will you seize Omgzlook to make you achievement? Omgzlook AICPA SAP C_THR87_2405 certification training materials will guarantee your success.
Updated: May 26, 2022