FIN 370T Assignment Week 1 Apply Exercise(All Possible Questions/Answers)
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www.tutorialrank.com FIN 370T ASSIGNMENT Week 1 Apply: Week 1 Exercise Review the Week 1 “Knowledge Check” in Connect® in preparation for this Assignment . Complete the Week 1 “Exercise” in Connect®. Note: You have only one attempt available to complete this Assignment . Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date. Materials Learn: McGraw-Hill Connect® Access
Maximizing owners’ equity value means carefully considering all of the following EXCEPT Multiple Choice
how best to return the profits from those projects to the owners over time.
which projects to invest in.
how to best bring additional funds into the firm.
how best to increase the firm’s risk. Not all cash a company generates will be returned to the investors. Which of the following will NOT reduce the amount of capital returned to the investors?
Multiple Choice
taxes
dividends
retained earnings As individual legal entities, corporations assume liability for their own debts, so the shareholders hold
Multiple Choice
unlimited liability.
shared liability.
joint liability.
only limited liability.
For corporations, maximizing the value of owner’s equity can also be stated as
Multiple Choice
maximizing the stock price.
maximizing earnings per share.
maximizing retained earnings.
maximizing net income.
Which of the following is not an impact of the slowdown occurring in China’s economy?
Multiple Choice
falling community prices
lower demand in materials such as steel, iron ore, and copper
real estate market declining in Sydney, Australia
money going out of Manhattan, New York
What is the debt ratio for a firm with an equity multiplier of 3.5?
Multiple Choice
58.51 percent
66.25 percent
44.09 percent
71.43 percent
Which of the following refer to ratios that measure the relationship between a firm’s liquid (or current) assets and its current liabilities?
Multiple Choice
internal-growth
market value
liquidity
cross-section
For publicly traded firms, which of these ratios measure what investors think of the company’s future performance and risk?
Multiple Choice
profitability ratios
liquidity ratios
price value ratios
market value ratios
Which of the following is the maximum growth rate that can be achieved by financing asset growth with new debt and retained earnings?
Multiple Choice
sustainable growth rate
weighted growth rate
internal growth rate
retained earnings growth rate
To interpret financial ratios, managers, analysts, and investors use which of the following type of benchmarks?
Multiple Choice
time series analysis
time-industry analysis
competitive analysis
cross-industry analysis ********************************
FIN 370T Assignment Week 1 Apply: Finance and Financial Statement Analysis Homework(All Possible Questions/Answers)
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FIN 370T ASSIGNMENT Week 1 Apply: Finance and Financial Statement Analysis Homework Review the Week 1 “Practice: Finance and Financial Statement Analysis Quiz” in Connect®.
Complete the Week 1 “Apply: Finance and Financial Statement Analysis Homework” in Connect®.
Note: You have only one attempt available to complete this Assignment . Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.
Which of the following is the firm’s highest-level financial manager?
Multiple Choice
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chief executive officer
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corporate governance
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chief financial officer
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board of directors Which of these must effectively distribute capital between investors and companies?
Multiple Choice
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companies
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individuals
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international investors
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financial institutions Which of the following statements is correct?
Multiple Choice
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Financial managers double-check the accountant’s statements.
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Accountants are focused on what happened in the past.
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Both accountants and financial managers use total quality management systems to standardize data.
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Financial managers are focused on what happened in the past. This is a general term for securities like stocks, bonds, and other assets that represent ownership in a cash flow.
Multiple Choice
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investment
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real asset
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financial asset
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financial markets
The portion of a company’s profits that are kept by the company rather than distributed to the stockholders as cash dividends is referred to as
Multiple Choice
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institutional investment.
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restricted earnings.
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venture capital.
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retained earnings. A potential future negative impact to value and/or cash flows is often discussed in terms of probability of loss and the expected magnitude of the loss. This is called
Multiple Choice
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risk.
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options.
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standard deviation.
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coefficient of variation.
Which of the following is defined as a group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations?
Multiple Choice
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market instruments
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financial markets
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asset classes
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investments
What is the difference in perspective between finance and accounting?
Multiple Choice
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ownership
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timing
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liability
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risk
This subarea of finance is important for adapting to the global economy.
Multiple Choice
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financial management
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financial institutions and markets
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investments
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international finance For corporations, maximizing the value of owner’s equity can also be stated as
Multiple Choice
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maximizing net income.
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maximizing retained earnings.
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maximizing the stock price.
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maximizing earnings per share.
Which of the following is NOT a function of the board of directors?
Multiple Choice
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evaluate the CEO
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design compensation contracts for the CEO
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provide reports to the auditors
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hire the CEO
This is the set of laws, policies, incentives, and monitors designed to handle the issues arising from the separation of ownership and control.
Multiple Choice
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corporate governance
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defined benefit plan
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invisible hand
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agency theory
Which of the following statements is incorrect?
Multiple Choice
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Most sole proprietors raise money by borrowing from banks.
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S corporations are considered a hybrid organization.
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An advantage of sole proprietorships is that the owner has complete control.
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Partnerships have unlimited liability.
Agency problems exist in which forms of business ownership?
Multiple Choice
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partnership
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sole proprietorship
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corporation
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S corporation
An angel investor differs from a venture capitalist because of the
Multiple Choice
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investment time frame.
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voting rights.
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type of investment.
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size of investment.
Which statement is incorrect regarding hybrid organizations?
Multiple Choice
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They offer single taxation.
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They offer limited risk to the owners.
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They offer the same type of control as a sole proprietorship.
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All of these choices are correct.
From a taxation perspective, the form of business organization with the highest business level taxes is the
Multiple Choice •
S corporation.
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corporation.
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sole proprietorship.
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partnership.
Corporate stakeholders include all of the following EXCEPT
Multiple Choice
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employees.
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suppliers.
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shareholders.