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

1 what advantages do financial intermediaries have over

1. What advantages do financial intermediaries have over small savers in dealing with the transactions costs involved in making loans? 2. How has the growth of the Internet affected the problem of transactions costs and ...

Summer tyme inc is considering a new 6-year expansion

Summer Tyme, Inc., is considering a new 6-year expansion project that requires an initial fixed asset investment of $2.862 million. The fixed asset will be depreciated straight-line to zero over its 6-year tax life, afte ...

1 which of the following statements regarding annuities is

1. Which of the following statements regarding annuities is FALSE? A. Most car loans, mortgages, and some bonds are annuities B. PV of an annuity= C X 1/r (1- (1/ (1+r)^N) C. An annuity is a stream of N equal cash flows ...

Nonconstant growthnbspcarnes cosmetics cos stock price is

Nonconstant growth   Carnes Cosmetics Co.'s stock price is $45.32, and it recently paid a $1.50 dividend. This dividend is expected to grow by 27% for the next 3 years, then grow forever at a constant rate, g; and rs = 1 ...

Standards life insurance offers a perpetuity that pays

Standards Life Insurance offers a perpetuity that pays annual payments of $12,000. This contract sells for $250,000 today. What is the interest rate? 4.80 percent 3.87 percent 4.10 percent 4.21 percent 4.39 percent

Consider international business machine corporation ibm the

Consider International Business Machine Corporation (IBM). The shares of IBM are currently trading at $87. Assume the yearly volatility of IBM is around 40%. Using a three step binomial tree approach prices of options wi ...

Market values and book values klingon widgets inc purchased

Market Values and Book Values. Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $6 million. The machinery can be sold to the Romulans today for $5.6 million. Klingon’s current balance sheet sho ...

Polycom systems earned 516 million last year and paid out

Polycom Systems earned $516 million last year and paid out 28 percent of earnings in dividends. a. By how much did the company’s retained earnings increase? (Do not round intermediate calculations. Input your answer in d ...

1 an article in the economist magazine observes that it is

1. An article in the Economist magazine observes that: "It is in the nature of black-swanlike events that they are near-impossible to predict." What are black swan events? Why are they nearly impossible to predict? 2. In ...

What effective interest rate per compounding period

What effective interest rate per compounding period corresponds to the following interest rate? a) r = 16% compounded monthly. b) r = 30% compounded daily.

  • 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