JIGDAN COLLEGE ( DISTANCE & CONTINUING EDUCATION PROGRAM FINANCIAL MANAGEMENT I (ACEN 3031) ASSIGNMENT 40%) Name Term . ID - Batch Center - - Department Part It Write True or False for The Following Statements 1.5) 62? The goal of the firm should be to maximize earnings per share. For a given nominal interest rate, the more numerous the compounding periods, the less 64. interest rate There is more uncertainty associated with the future returns of common stocks than with th and preferred stock In valuing a security, we only need to know what the future cash flows will be. A firm's operating cycle is equal to its inventory turnover in days (ITD) plus its receivable turnover in days. 6. The current ratio is never larger than the quick ratio. 17. A forecast balance sheet could be estimated based on a firm's past financial ratios. Capital budgeting is the process of identifying, analyzing, and selecting investment projects whos will all be received within one year. A mutually exclusive project is one whose acceptance does not preclude the acceptance of alternative 10. A profitability index of one tells us that the project should be rejected. Part: II Choose the best answer from the given alternatives for the following questions (20 %) 1. The only viable goal of financial management is A. Profit maximization B. Wealth maximization C. Sales maximization D. Assets maximization E. None of the above 2. Finance function involves A. Procurement of finance only B. Expenditure of funds only C. Safe custody of funds only D. Procurement and effective utilization of fiance E. None of the above 3. Company J and Company K each recently reported the same earnings per share (EPS). Co however, trades at a higher price. Which of the following statements is most correct? A. Company J must have a higher P/E ratio. B. Company J must have a higher market to book ratio. C. Company J must be riskier. D. Company J must have fewer growth opportunities. E) All of the above 4. What type of ratios helps to assess a company's ability to meet its short-term obligations? A. Liquidity ratios B) Profitability ratios C) Activity ratios D) Leverage ratios FINANCIAL MANAGEMENT I (ACEN3031) ASSIGNMENT PAG