PLEASE AS MANY QUESTIONS AS POSSIBLE AND IF POSSIBLE SOME EXPLANATIONS
1. Start-up or emerging growth companies are advised to seek equity financing, not debt financing.
True
False
Insufficient data
2. Company A has $10 million of current assets and $1 million of long-term liabilities. Bankruptcy is not a possibility at this time.
True
False
Insufficient data
3. Why do publicly traded stocks tend to see more price volatility than publicly traded corporate bonds?
4. Company B seeks capital to build and launch a streaming video app. It should use equity rather than debt.
True
False
Insufficient data
5. Companies should always avoid debt financing.
True
False
Insufficient Data
6. A share of stock:
Is a slice of ownership in a company
Needs to be repaid by the company
Always pays a dividend
Sees recovery ahead of debt in a corporate liquidation
7. A corporate bond is a slice of ownership in a company.
True
False
Insufficient Data
8. If a bond selling at par yields 7%, at $96 the same bond yields:
~5%
~6%
~7%
~8%
9. Who is obligated to do what on a bond's maturity date?
10. A capital expenditure flows through a company's income statement as a cash expense.
True
False
Insufficient data
11. A company with an enterprise value of $600 million would be generating how much in revenue to have a 3x P/S ratio?
12. Testing goodwill for impairment (circle all that apply):
is done semi-annually
requires analysis of the financial performance of assets acquired that created the goodwill
creates a non-cash expense that flows through the income statement if the impairment charge is taken
creates a rise in the value of the goodwill on the balance sheet if the impairment charge is taken
13. If a company's stock price is near an all-time high, it should consider using it as acquisition currency.
True
False
Insufficient data
14. Which company offers a better investment value, theoretically, one trading at a 6x EV/EBITDA ratio or one at a 7x EV/EBITDA ratio?