Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Management Expert

You are required to select the most appropriate/correct answer by writing only the problem number.

1) A conflict of interest between the shareholders and management of a firm would best be referred to as an ex of:

a. shareholders’ liability.
b. corporate breakdown.
c. the agency problem.
d. corporate activism.
e. legal liability.

2) A stakeholder is:

a. any person or entity that owns shares of a corporation.
b. any person or entity that has voting rights based on share ownership of a corporation.
c. a person who initially started a firm and currently has management control over the cash flows of the firm due to his/her current ownership of company share.
d. a creditor to whom the firm currently owes money and who consequently has a claim on the cash flows of the firm.
e. any person or entity other than a shareholder or lender who potentially has a claim on the cash flows of the firm.

3) The decisions made by financial managers should be made with the primary motive to increase the:

a. size of the firm.
b. growth rate of the firm.
c. marketability of the managers.
d. market value of the existing owners’ equity.
e. financial distress of the firm.

4) _____ refers to the cash flow that results from the firm’s on-going, core business activities.

a. Operating cash flow
b. Capital spending
c. Net working capital
d. Cash flow from assets
e. Cash flow to lenders

5) Earnings per share (EPS) is a market measure which indicates/provides information in relation to...

a. the profitability of a firm.
b. the amount of a company's profit that can be allocated to one share of its stock.
c. the gross income of the firm.
d. the amount of dividend paid out per share.
e. net profit after tax received in total to all shareholders.

6) Thompson’s Marketers CC has operating cash flow of R218. Depreciation is R45 and interest paid is R35. A net total of R69 was paid on long-term debt. The firm spent R180 on non-current assets and increased net working capital by R38. What is the amount of cash flow available to equity investors/to shareholders?

a. -R104
b. -R28
c. R28
d. R114

e. R142

7) The total long-term debt and equity of the firm is frequently called:

a. total assets.
b. total capitalization.
c. total financing.
d. debt- equity consolidation.
e. debt-equity reconciliation.

8) If a firm decreases their operating costs, all else constant, then:

a. the profit margin increases while the equity multiplier decreases.
b. the return on assets increases while the return on equity decreases.
c. the total asset turnover rate decreases while the profit margin increases.
d. both the profit margin and the equity multiplier increase.
e. both the return on assets and the return on equity increase.

9) Which of the following represent problems/weaknesses encountered when comparing the financial statements of one firm with those of another firm?

I. Either one, or both, of the firms may be conglomerates and thus have unrelated lines of business.
II. The operations of the two firms may vary geographically.
III. The firms may use differing accounting methods for inventory purposes.
IV. The two firms may be seasonal in nature and have different fiscal year ends.

a. I and II only
b. II and III only
c. I, III, and IV only
d. I, II, and III only
e. I, II, III, and IV

10) Which one of the following statements would be considered FALSE?

a. One would consider current assets and noncurrent assets when making investment decisions.
b. The performance of an entity’s operations would be represented in the Statement of Comprehensive Income.
c. Risk would be considered as the chance that an actual result may differ from a planned outcome.
d. A company would be considered highly geared if its operations were financed more by debt than funds from equity participants.
e. A financial manager would place primary emphasis on the accrual based profits of an organisation for decision making.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M93101

Have any Question? 


Related Questions in Financial Management

The demand for rutabagas is q 2000 - 100p and the supply

The demand for rutabagas is Q = 2,000 - 100P, and the supply of rutabagas is Q = 2100 - 200P. Who bears the statutory incidence of a $2 per unit tax on the sale of rutabagas? Who bears the economic incidence of this tax?

Consider given figurewhat is the size of each of the

Consider Given Figure. What is the size of each of the following? (Each answer should be a number.) a. World product without international lending. b. World product with free international lending. c. World product with ...

Research around 1980 showed that stocks of small firms had

Research around 1980 showed that stocks of small firms had higher average returns than stocks of large firms. This finding gained much attention, as it seemed to contradict the efficient markets hypothesis. It suggested ...

Under the maastricht treaty a country may adopt the euro

Under the Maastricht Treaty, a country may adopt the euro only if its government budget deficit is less than 3 percent of GDP. What is the rationale for this requirement?

The fact that such a large fraction of us health care costs

The fact that such a large fraction of U.S. health care costs are spent on people in their last six months of life has led many people to call the American health care system "wasteful." Why might this be an overgenerali ...

Commercial paper yield assume an investor purchased

Commercial Paper Yield: Assume an investor purchased six-month commercial paper with a face value of $1 million for $940,000. What is the yield?

Principals of financial markets group assignmentin groups

Principals of Financial Markets Group Assignment In groups of 3-4, students should choose firstly an industry and secondly two (2) ASX listed companies in this same industry upon which to undertake a fundamental analysis ...

Suppose the united states has capital inflows of 100

Suppose the United States has capital inflows of $100 billion and capital outflows of $200 billion. What is the balance on the capital account?

What is persistent dumpingdoes an exporter lose profit

What is persistent dumping? Does an exporter lose profit because of the low export price? Does persistent dumping harm the importing country?

Jessie bought a share of stock for 100 she borrowed 50 from

Jessie bought a share of stock for $100. She borrowed $50 from her broker. There is a 25 percent maintenance margin requirement established by the brokerage firm she does business with. The price of the stock falls to $8 ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate