FIN/370T Finance For Business The Latest Version A+ Study Guide **********************************************
FIN 370T Entire Course Link http://www.onlinehelp123.com/FIN-370 ********************************************** FIN 370T Wk 1 – Apply: Homework This subarea of finance helps facilitate the capital flows between investors and companies. Multiple Choice • financial institutions and markets • treasury management • investments • financial management
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 • venture capital. • institutional investment. • retained earnings. • restricted earnings.
This subarea of finance looks at firm decisions in acquiring and utilizing cash received from investors or from retained earnings. Multiple Choice • financial management • investments • treasury management
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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financial markets investment financial asset real asset
This type of business organization is relatively easy to start, and it is subject to much lighter regulatory and paperwork burden than other business forms. Multiple Choice • partnership • corporation • hybrid organization • sole proprietorship
Which of these is the system of incentives and monitors that tries to overcome the agency problem? Multiple Choice • corporate Governance • checks and Balances • board of Directors • Security Exchange Commission
From the perspective of access to capital, the best form of business organization is the Multiple Choice • corporation. • sole proprietorship. • S corporation. • partnership.
The board of directors Multiple Choice • are employed by the Securities Exchange Commission to ensure its rules and regulations have been met. • have unlimited liability since they oversee the day-to-day operations of the firm. • are elected by shareholders. • are hired by the CEO.
The agency relationship in corporate finance occurs Multiple Choice
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when the board of directors oversee the CEO. when the corporate hires an advertising agency to market their new product or service. when the board of directors are elected to staggered terms. when the shareholders hire a manager to run their company.
Which of the following statements is in? Multiple Choice • Sole proprietorships are subject to less regulation. • Shareholders are responsible for paying off the corporate bonds in the event of a bankruptcy. • Both angel investors and venture capitalists exchange capital for ownership. • All of these choices are .
Which of the following statements is ? Multiple Choice • It is relatively easy for sole proprietorships to raise money. • If the sole proprietorship gets sued, the owner is not liable. • Sole proprietorships are easy to start. • Profits from the sole proprietorship are subject to double taxation.
An employee stock option plan is Multiple Choice • a plan that only partnerships can use to defer compensation to partners. • a way to align the interests of employees with those of the owners. • a perk usually only given to the board of directors as compensation.
All of the following are an example of a fiduciary relationship EXCEPT Multiple Choice • a CEO manages the firm. • a financial advisor advises her clients. • a bank employee manages deposits. • the shareholder elects a board member.
Which of the following is not an impact of the slowdown occurring in China’s economy? Multiple Choice • money going out of Manhattan, New York • real estate market declining in Sydney, Australia • lower demand in materials such as steel, iron ore, and copper • falling community prices
A firm reported year-end sales of $20 million. It listed $7 million of inventory on its balance sheet. Using a 365-day year, how many days did the firm's inventory stay on the premises? Multiple Choice • 157.75 days • 127.75 days • 87.75 days • 97.75 days
Which ratio measures how many days inventory is held before the final product is sold? Multiple Choice • inventory intensity ratio • total asset turnover • inventory turnover • days' sales in inventory
Which of the following ratios measure how efficiently a firm uses its assets, as well as how efficiently the firm manages its accounts payable? Multiple Choice • asset management • internal-growth • cash • quick or acid-test
Which of these ratios measure the extent to which the firm uses debt (or financial leverage) versus equity to finance its assets? Multiple Choice • financial ratios • equity ratios • liquidity ratios • debt management ratios
A firm has EBIT of $300,000 and depreciation expense of $12,000. Fixed charges total $44,000. Interest expense totals $7,000. What is the firm's cash coverage ratio? Multiple Choice • 3.76 times • 7.09 times • 7.25 times • 4.91 times
Which ratio assesses how efficiently a firm uses its fixed assets? Multiple Choice • average collection period • fixed asset turnover • current ratio • capital intensity ratio
Which of these is NOT considered a coverage ratio? Multiple Choice • current ratio • fixed-charge coverage ratio • times interest earned • cash coverage ratio
Trina'sTrikes, Inc. reported a debt-to-equity ratio of 2 times at the end of 2018. If the firm's total debt at year-end was $10 million, how much equity does Trina's Trikes have? Multiple Choice • $5 million • $2 million • $10 million • $20 million
CornProducts Corp. ended the year 2018 with an average collection period of 40 days. The firm's credit sales for 2018 were $9 million. What is the approximate year-end 2018 balance in accounts receivable for Corn Products? rev: 03_30_2019_QC_CS-164558 Multiple Choice • $986,300 • $4,444,400 • $225,000 • $360,000,000
Which of the following measures the number of days that the firm holds accounts payable before it has to extend cash to buy raw materials? Multiple Choice • average payment period • accounts payable turnover • accounts receivable turnover • average collection period
Which ratio measures the overall return on the firm's assets including financial leverage and taxes? Multiple Choice • ROA • ROE • basic earning power • profit margin
Which of these ratios show the combined effects of liquidity, asset management, and debt management on the overall operation results of the firm? Multiple Choice • liquidity • coverage • financial • profitability
Tina's Track Supply's market-to-book ratio is currently 4.5 times and PE ratio is 10.5 times. If Tina's Track Supply's common stock is currently selling at $100 per share, what is the book value per share and earnings per share? Multiple Choice • $1,050, $450, respectively • $22.2222, $9.5238, respectively • $450, $1,050, respectively • $9.5238, $22.2222, respectively
Which of the following statements is ? Multiple Choice • To interpret financial ratios, users should analyze the performance of the firm over time and the performance of the firm against one or more companies in the same industry. • Performing cross-sectional analysis is easy since industries are usually clustered with firms that are identical. • Time-series analysis is useless in assessing improvement or deterioration of ratios since the data is historical. • Performing cross-sectional ratio analysis refers to assessing how a firm performed over a certain section of time.
Last year Rain Repel Corporation had an ROA of 5 percent and a dividend payout ratio of 90 percent. What is the internal growth rate? Multiple Choice
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0.50 percent 50.00 percent 52.63 percent 4.75 percent
Which is true? Ratio analysis Multiple Choice • can provide useful information on a firm's current position but should never be used to forecast future performance. • can provide useful information on a firm's current position and hint at future performance. • can provide useful information on a firm's past and current position, but should never be used to forecast future performance. • can provide useful information on a firm's past but not current position.