Fundamentals of Corporate Finance Study Set 23

Business

Quiz 4 :

Introduction to Valuation: the Time Value of Money

Quiz 4 :

Introduction to Valuation: the Time Value of Money

Question Type
search
arrow
Phil is working on a financial plan for the next three years.This time period is referred to as which one of the following?
Free
Multiple Choice
Answer:

Answer:

B

Tags
Choose question tag
close menu
arrow
A firm is currently operating at full capacity.Net working capital, costs, and all assets vary directly with sales.The firm does not wish to obtain any additional equity financing.The dividend payout ratio is constant at 40 percent.If the firm has a positive external financing need, that need will be met by:
Free
Multiple Choice
Answer:

Answer:

B

Tags
Choose question tag
close menu
arrow
Which one of the following ratios identifies the amount of assets a firm needs in order to generate $1 in sales?
Free
Multiple Choice
Answer:

Answer:

D

Tags
Choose question tag
close menu
arrow
The internal growth rate of a firm is best described as the:
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Which one of the following is correct in relation to pro forma statements?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Which one of the following statements is correct?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Which one of the following terms is applied to the financial planning method which uses the projected sales level as the basis for determining changes in balance sheet and income statement account values?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Which one of the following correctly defines the retention ratio?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
When utilizing the percentage of sales approach, managers: I.estimate company sales based on a desired level of net income and the current profit margin. II.consider only those assets that vary directly with sales. III.consider the current production capacity level. IV.can project both net income and net cash flows.
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Which one of the following statements concerning financial planning for a firm is correct?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Atlas Industries combines the smaller investment proposals from each operational unit into a single project for planning purposes.This process is referred to as which one of the following?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
You are getting ready to prepare pro forma statements for your business.Which one of the following are you most apt to estimate first as you begin this process?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
The sustainable growth rate of a firm is best described as the:
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Which one of the following terms is defined as dividends paid expressed as a percentage of net income?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Financial planning accomplishes which of the following for a firm? I.determination of asset requirements II.development of plans to contend with unexpected events III.establishment of priorities IV.analysis of funding options
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Which of the following questions are appropriate to address during the financial planning process? I.Should the firm merge with a competitor? II.Should additional shares of stock be sold? III.Should a particular division be sold? IV.Should a new product be introduced?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
You are developing a financial plan for a corporation.Which of the following questions will be considered as you develop this plan? I.How much net working capital will be needed? II.Will additional fixed assets be required? III.Will dividends be paid to shareholders? IV.How much new debt must be obtained?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Financial planning:
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
When constructing a pro forma statement, net working capital generally:
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
A pro forma statement indicates that both sales and fixed assets are projected to increase by 7 percent over their current levels.Given this, you can safely assume that the firm:
Multiple Choice
Answer:
Tags
Choose question tag
close menu
Showing 1 - 20 of 101