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

Your job pays you only once a year for all the work you did

Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $58,000 and you plan to spend all of it. However, you want to start saving for ...

Panellis is analyzing a project with an initial cost of

Panelli's is analyzing a project with an initial cost of $110,000 and cash inflows of $65,000 in year 1 and $74,000 in year 2. This project is an extension of the firm's current operations and thus is equally as risky as ...

1 find the intrinsic value of a call for both the buyer and

1. Find the intrinsic value of a call for both the buyer and writer if the market price of the underlying stock is $37.50 per share, up from $34.00 three months ago. 2. Find the buyer's and writer's intrinsic value of a ...

The crude oil futures contract on the new york mercantile

The crude oil futures contract on the New York Mercantile Exchange covers 1,000 barrels of crude oil. The contract is quoted in dollars and cents per barrel, e.g., $27.42, and the minimum price change is $0.01. The initi ...

Given an interest rate of 46 percent per year what is the

Given an interest rate of 4.6 percent per year, what is the value at date t = 5 of a perpetual stream of $3,000 payments that begins at date t = 10? (Do not round intermediate calculations and round your answer to 2 deci ...

A hummer h3 sells for 92000 tax included gmac lends money

A Hummer H3 sells for $92,000 tax included. GMAC lends money at the rate of 9.2 % APR. If you buy the car and borrow through GMAC, then what are the monthly? (end-of-month) payments for a 10 ?-year term? What is the amou ...

Broussard skateboards sales are expected to increase by 15

Broussard Skateboard's sales are expected to increase by 15% from $7.8 million in 2015 to $8.97 million in 2016. Its assets totaled $5 million at the end of 2015. Baxter is already at full capacity, so its assets must gr ...

Tresnan brothers is expected to pay a 33 per share dividend

Tresnan Brothers is expected to pay a $3.3 per share dividend at the end of the year (i.e., D1 = $3.3). The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock, rs, is 9 ...

Advance inc is trying to determine its cost of debt the

Advance, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 18 years to maturity that is quoted at 106 percent of face value. The issue makes semiannual payments and has a coupon ra ...

Smith receives income from his investments in japanese

Smith receives income from his investments in Japanese currency (yen). Smith does not convert the yen to dollars, but invests the yen in a term deposit that pays interest in yen. He finds a bank that will issue such a te ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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