Take Test: Quiz 06 (Lecture 07) 49098-2017-AUTUMN-CITY https://online.uts.edu.au/webapps/assessment/take/launch.jsp?course_ass...

Applied Financial Management Autumn 2017 49098-2017-AUTUMN-CITY Quizzes

Take Test: Quiz 06 (Lecture 07)

Test Information
Description Quiz 06 is based on lecture 07 Free Cash Flow. There are 2 attempts only for each quiz.
Each attempt has a time limit of 1 hour. Each quiz has a weight of 2% of the total mark. The
quiz deadline is on Monday (8 May) at 5pm.

Instructions
Timed Test This test has a time limit of 1 hour.You will be notified when time expires, and you
may continue or submit.
Warnings appear when half the time, 5 minutes, 1 minute, and 30 seconds
remain.
Multiple This test allows 2 attempts. This is attempt number 1.
Attempts
Force This test can be saved and resumed later. The timer will continue to run if you leave
Completion the test.

QUESTION 1

1 of 8 5/7/17, 1:38 PM
Take Test: Quiz 06 (Lecture 07) 49098-2017-AUTUMN-CITY https://online.uts.edu.au/webapps/assessment/take/launch.jsp?course_ass...

53 minutes,11 seconds.
Remaining Time:

Question Completion Status:

Delta Limited has the following transactions:

EBITDA 40

Depreciation expense 10

Interest expense 5

Tax rate 30%

Purchases of fixed assets 20

Change in net operating working capital 8

Net borrowing 3

Common dividends 7

(1) Calculate net income (NI).

$17.50

$19.50

$25.00

$30.00

QUESTION 2

2 of 8 5/7/17, 1:38 PM
Take Test: Quiz 06 (Lecture 07) 49098-2017-AUTUMN-CITY https://online.uts.edu.au/webapps/assessment/take/launch.jsp?course_ass...

53 minutes,11 seconds.
Remaining Time:

Question Completion Status:

Delta Limited has the following transactions:

EBITDA 40

Depreciation expense 10

Interest expense 5

Tax rate 30%

Purchases of fixed assets 20

Change in net operating working capital 8

Net borrowing 3

Common dividends 7

(2) Calculate cash flow from operations (CFO).

$17.50

$19.50

$25.00

$30.00

QUESTION 3

3 of 8 5/7/17, 1:38 PM
Take Test: Quiz 06 (Lecture 07) 49098-2017-AUTUMN-CITY https://online.uts.edu.au/webapps/assessment/take/launch.jsp?course_ass...

53 minutes,11 seconds.
Remaining Time:

Question Completion Status:

Delta Limited has the following transactions:

EBITDA 40

Depreciation expense 10

Interest expense 5

Tax rate 30%

Purchases of fixed assets 20

Change in net operating working capital 8

Net borrowing 3

Common dividends 7

(3) Calculate net payments to debtholders.

0.50

2.50

3.00

7.00

QUESTION 4

4 of 8 5/7/17, 1:38 PM
Take Test: Quiz 06 (Lecture 07) 49098-2017-AUTUMN-CITY https://online.uts.edu.au/webapps/assessment/take/launch.jsp?course_ass...

53 minutes,11 seconds.
Remaining Time:

Question Completion Status:

Delta Limited has the following transactions:

EBITDA 40

Depreciation expense 10

Interest expense 5

Tax rate 30%

Purchases of fixed assets 20

Change in net operating working capital 8

Net borrowing 3

Common dividends 7

(4) Calculate net payments to shareholders.

0.50

2.50

3.00

7.00

QUESTION 5

5 of 8 5/7/17, 1:38 PM
Take Test: Quiz 06 (Lecture 07) 49098-2017-AUTUMN-CITY https://online.uts.edu.au/webapps/assessment/take/launch.jsp?course_ass...

53 minutes,11 seconds.
Remaining Time:

Question Completion Status:

Delta Limited has the following transactions:

EBITDA 40

Depreciation expense 10

Interest expense 5

Tax rate 30%

Purchases of fixed assets 20

Change in net operating working capital 8

Net borrowing 3

Common dividends 7

(5) Calculate free cash flow to firm (FCFF).

0.50

2.50

3.00

7.00

QUESTION 6

6 of 8 5/7/17, 1:38 PM
Take Test: Quiz 06 (Lecture 07) 49098-2017-AUTUMN-CITY https://online.uts.edu.au/webapps/assessment/take/launch.jsp?course_ass...

53 minutes,11 seconds.
Remaining Time:

Question Completion Status:

Delta Limited has the following transactions:

EBITDA 40

Depreciation expense 10

Interest expense 5

Tax rate 30%

Purchases of fixed assets 20

Change in net operating working capital 8

Net borrowing 3

Common dividends 7

(6) Calculate free cash flow to equity (FCFE).

0.50

2.50

3.00

7.00

QUESTION 7

Free cash flow to firm is the free cash flow available to

Creditors only

Shareholders only

Both (a) and (b)

Neither (a) nor (b)

QUESTION 8

7 of 8 5/7/17, 1:38 PM
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53 minutes,11 seconds.
Remaining Time:

Question Completion Status:

Free cash flow to equity is the free cash flow available to

Creditors only

Shareholders only

Both (a) and (b)

Neither (a) nor (b)

QUESTION 9

When we use nominal cash flow, we should discount it using

Nominal discount rate

Real discount rate

Both (a) and (b)

Neither (a) nor (b)

QUESTION 10

When we use post-tax cash flow, we should discount it using

Post-tax WACC

Pre-tax WACC

Both (a) and (b)

Neither (a) nor (b)

Save All Answers Save and Submit

8 of 8 5/7/17, 1:38 PM