which of the following is not one of the three major types of financial management decisions?
what is a capital budgeting decision?
which of the following is an advantage of a corporation form of organization?
which form of business organization is most associated with agency problem?
working capital management deals with the long-term financial activities.
capital structure decides where a firm should get long-term financing to pay for its investments.
the goal of stakeholder wealth maximization considers the risk and timing associated with expected earnings per share in order to maximize the price of the firm's common stock.
the corporate form is inferior to partnership form when it comes to raising capital.
a lost opportunity is considered to be a direct agency cost.
you just computed the present value of a 100,000 yuan you will receive in the future. the interest rate you used in this process is referred to as which one of the following?
you are comparing two annuities which offer monthly payments of 2,000 yuan for five years and pay 1 percent interest per month. annuity a will pay you on the first day of each month while annuity b will pay you on the last day of each month. which one of the following statements is correct concerning these two annuities?
all else constant, a bond will sell at _____ when the coupon rate is _____ the yield to maturity.
which one of the following is an underlying assumption of the idend growth model?
company a’s preferred stock pays a 7.50 yuan annual idend. what is the maximum price you are willing to pay for one share of this stock today if your required return is 7.5 percent?
interest earned on both the initial principal and the interest reinvested from prior periods is called compound interest.
the effective annual rate equals the annual percentage rate when interest is compounded annually.
perpetuities are finite but annuities are not.
decreasing the time to maturity increases the price of a discount bond, all else constant.
zero-growth stocks have no market value.
the quick ratio uses the same numerator as the current ratio less:
which one of the following is the formula that breaks down roe into three component parts?
the primary purpose of portfolio ersification is to:
financial plans:
firm a combines the aller investment proposals from each operational unit into a single project for planning purposes. this process is referred to as which one of the following?
trend ysis is used to see how the firm’s performance is changing through time.
the greater the positive correlation coefficient, the greater the ersification effect of adding a stock to a portfolio.
the beta of a market portfolio is equal to zero.
financial planning focuses solely on the short-term outlook for a firm.
consider the following information about two proposed capital investments, project a and b. each project has a cost of $10000 and the cost of capital for each project is 12%. the projects’ expected cash flows are as follows: cash flow year project a project b 0 ($10000) ($10000) 1 6500 3500 2 3000 3500 3 3000 3500 4 1000 3500 calculate each project a’s npv.
consider the following information about two proposed capital investments, project a and b. each project has a cost of $10000 and the cost of capital for each project is 12%. the projects’ expected cash flows are as follows: cash flow year project a project b 0 ($10000) ($10000) 1 6500 3500 2 3000 3500 3 3000 3500 4 1000 3500 calculate each project’s npv. calculate each project b’s npv.
based on (1) and (2), which project or projects should be accepted if they are mutually exclusive?
based on (1) and (2), which project or projects should be accepted if they are independent?
information content effect means the financial market's reaction to a change in the amount of a company's idend.
a firm desires a weighted average cost of capital of 8 percent. the firm has an aftertax cost of debt of 4.8 percent and a cost of equity of 15.2 percent. what debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?
with a compromise financial policy companies will finance all of their assets with various short-term loans.
a firm's total investment in accounts receivables depends primarily on the firm's total sales and cash discount period.
the cash cycle is equal to the operating cycle minus the accounts payable period.
the underlying rationale of the abc approach is that a all portion of inventory in terms of quantity might represent a large portion in terms of inventory value.
the decision to issue additional shares of stock is an example of:
which one of the following is an underlying assumption of the idend growth model?
the profitability index is most closely related to which one of the following?
which one of these statements is correct?
the operating cycle is equal to the:
the financial planning method that uses the projected sales level as the basis for determining changes in balance sheet and income statement account values is referred to as the percentage of sales method.
the underlying rationale of the abc approach is that a all portion of inventory in terms of quantity might represent a large portion in terms of inventory value.
a firm abc bond has a 8 percent coupon rate and a 100 yuan face value. interest is paid semiannually, and the bond has 6 years to maturity. if investors require a 10 percent yield, what is the bond’s value?
consider the following two mutually exclusive projects: cash flow year project a project b 0 (340,000) (60,000) 1 40,000 31,000 2 58,000 25,000 3 60,000 21,000 4 520,000 50,000 required rate of return: 10% (1) if the payback criterion is applied, which project will be chosen? why? (2) if the npv criterion is applied, which project will be chosen? why？ (3) based on the answers in (1) and (2), which project will be finally chosen? why?
the decision to issue additional shares of stock is an example of:
which one of the following is an underlying assumption of the idend growth model?
the profitability index is most closely related to which one of the following?
which one of these statements is correct?
the operating cycle is equal to the:
the financial planning method that uses the projected sales level as the basis for determining changes in balance sheet and income statement account values is referred to as the percentage of sales method.
the underlying rationale of the abc approach is that a all portion of inventory in terms of quantity might represent a large portion in terms of inventory value.
a firm abc bond has a 8 percent coupon rate and a 100 yuan face value. interest is paid semiannually, and the bond has 6 years to maturity. if investors require a 10 percent yield, what is the bond’s value?
consider the following two mutually exclusive projects: cash flow year project a project b 0 (340,000) (60,000) 1 40,000 31,000 2 58,000 25,000 3 60,000 21,000 4 520,000 50,000 required rate of return: 10% (1) if the payback criterion is applied, which project will be chosen? why? (2) if the npv criterion is applied, which project will be chosen? why？ (3) based on the answers in (1) and (2), which project will be finally chosen? why?