2023 1 NOPREM Inc is a firm whose shareholders don t possess the preemptive right The firm currently has 1 000 | Assignments Online

1) NOPREM Inc. is a firm whose shareholders don’t possess the preemptive right. The firm currently has 1,000 shares of stock outstanding; the price is $100 per share. The firm plans to issue an additional 1,000 shares at $90.00 per share. Since the shares will be offered to the public at large, what is the amount per share that old shareholders will lose if they are excluded from purchasing new shares? 

a. $90.00 

b. $5.00 

c. $10.00 

d. $0 

e. $2.50 

 

2) For the Cook County Company, the average age of accounts receivable is 60 days, the average age of accounts payable is 45 days, and the average age of inventory is 72 days. Assuming a 365-day year, what is the length of the firm’s cash conversion cycle? 

a. 87 days 

b. 90 days 

c. 65 days 

d. 48 days 

e. 66 days

 

3) A firm has $5,000,000 of inventory on average and annual sales of $30,000,000. Assume there are 365 days per year. What is the firm’s inventory conversion period? 

a. 30.25 days 

b. 60.83 days 

c. 45.00 days 

d. 72.44 days 

e. 55.25 days 

 

4) Matheson Manufacturing Inc. is planning to borrow $12,000 from the bank. The bank offers the choice of a 12 percent discount interest loan or a 10.19 percent add-on, 1-year installment loan, payable in 4 equal quarterly payments. What is the effective rate of interest on the 10.19 percent add-on loan? 

a. 9.50% 

b. 10.19% 

c. 15.22% 

d. 16.99% 

e. 22.05%