Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Management Expert

1) Which of the following would NOT affect the current ratio?

a. Borrow long term fundsto finance additional property, plant and equipment.
b. Issue long-term debt to buy inventory.
c. Issue ordinary shares to reduce current liabilities.
d. Sell property, plant and equipment to reduce accounts payable.
e. Increasing accounts payable through additional credit purchases.

2) Companies may adopt an aggressive or a conservative working capital policy. An aggressive policy means that a company:

a. holds high levels of cash and inventories (current assets).
b. has a low level of flexibility.
c. expects a lower level of profitability.
d. faces a low level of risk.
e. has large investments in property, plant and equipment.

3) Financial managers evaluating decision alternatives or potential actions must consider:

a. only risk.
b. only return.
c. both risk and return.
d. risk, return, and the impact on share price.
e. the impact on the local stakeholders.

4) The primary concern of creditors when assessing the strength of a firm is the firm's:

a. profitability.
b. leverage.
c. short-term liquidity.
d. share price.
e. dividend policy.

5) The key variables in the ‘owner wealth maximization process’ are:

a. earnings per share and risk.
b. cash flows and risk.
c. earnings per share and share price.
d. profits and risk.
e. none of the above.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M93103

Have any Question? 


Related Questions in Financial Management

Hr industries hri has a beta of 24 while lr industriess lri

HR Industries (HRI) has a beta of 2.4, while LR Industries's (LRI) beta is 0.5. The risk-free rate is 6%, and the required rate of return on an average stock is 13%. The expected rate of inflation built into rRF falls by ...

Walters and witt a law firm is analyzing the profitability

Walters and Witt, a law firm, is analyzing the profitability of its cases. During the year, the firm represented the Umberg Company in numerous routine legal issues, for which it charged a monthly retainer fee of $2,500. ...

Assume that you just won the state lottery your prize can

Assume that you just won the state lottery. Your prize can be taken either in the form of $40,000 at the end of each of the next twenty-five years (i.e., $1 million over twenty-five years) or as a lump sum of $500,000 pa ...

You have been given the following information for

You have been given the following information for Moore’s HoneyBee Corp.: a. Net sales = $33,000,000. b. Gross profit = $18,300,000. c. Other operating expenses = $2,300,000. d. Addition to retained earnings = $4,300,000 ...

The 2010 sales forecast for clearwater development co is

The 2010 sales forecast for Clearwater Development Co. is $150 million. Interest expense will not change in the coming year. Use Clearwater's 2009 income statement ($ in thousands) presented below to answer the questions ...

You have accumulated 1269650 for your retirement how much

You have accumulated $1,269,650 for your retirement. How much money can you withdraw for the next 17 years in equal annual end-of-the-year cash flows if you invest the money at a rate of 8.17 percent per year compounded ...

What factors contribute to the difficulty of making a delta

What factors contribute to the difficulty of making a delta hedge be truly risk-free? A stock is priced at $50 with a volatility of 35 percent. A call option with an exercise price of $50 has an expiration in one year. T ...

For a financial operation involving selling bonds at a 10

For a financial operation involving selling bonds at a 10% discount with a flotation cost of 3%, what would be the before- and after-tax costs of capital if the par value of the coupon is $2,000 at a coupon rate of 7% an ...

A firm recently paid a 065 annual dividend the dividend is

A firm recently paid a $0.65 annual dividend. The dividend is expected to increase by 14 percent in each of the next four years. In the fourth year, the stock price is expected to be $50. If the required return for this ...

1 eight years ago you bought a 1000 par bond with a 5

1. Eight years ago you bought a $1,000 par bond with a 5% semi-annual coupon and 15 years to maturity. If the yield to maturity is currently 3.8%, what is the current price of the bond? 2. The return on US T-Bills is 6%, ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen