Question: Please help me with my final review! 30 multiple choice- I really need it in 2 hours.... 1. The anc-eaa cf phnning and managing a





Please help me with my final review! 30 multiple choice- I really need it in 2 hours....





1. The anc-eaa cf phnning and managing a tinri'a lung-term aaaeta ia called: gencv ceat analvaia. Flnanciel deprec'alicn. Capital budgeting- Genital etructura- lIl'll'crliing capital nunagament. iii?! 2. The pnn'arv geal eftirahcial managemenl ie tc: Minimize cp-aretianal cc-ala and mimiza tirm efciency. Maintain ateadvgrawlh in bath aalea and net eaminga. Avaid nanc'al dialrecc. Hat-ciniza the current value per chare ct'lhe exiating ateck. Hat-ciniza current dividenda per ahare at the existing alcclc. iii?! 3. The higher the invenlcrj.I turr'rcver. the: Leaaer the amcunl all invantcrv held by a rm. Larrger iI taken a rm In aell il.a imrantarv. Higher Iha irwantarv aa a percentage eftaiel aaaeta. Leaa time invenlcrg.r ilame remain an the ahell'. Greater the arncunt ct inventcrg.r held lava linn- l'l'l'l'l' 4. The undeltvirrg eccumplicn at the dividend grceu'lh medal ia that e etc-cl: in aerlh: * The aame erneunt aa an].I ether ale-cl: lt'al pave the ante current dividend and haa the aarne required rate at nature. An ameunt ccmpuled ea the next annual dividend divided by [he required rate cfrelurn. An ameunt ccmpuled ea the next annual dividend divided by the market rate cfralum. The aame erneunt lc ever!"I invaalar regardlaaa at their deaired rate ef return- The preaent value ef the future incama that [he ale-cl: ia expected tc generate. l'l'l'l' 5. The ceah tic-iv reeultingfrcn'l a Iirr'n'a artg-cirig. ncanal buainecc activitiea ic referred 1c aa the: Generating caeh 11cm. Gaah tic-iv tc retained aarrringa- Gaah tic-iv tc irlvealqra. Addilicna te rial writing capital- Net capital ac-aridiig. l'l'l'l'l' E. The diacaunt rate that nial-raa the net preearit value at an inveetmant exactly equal in rare ia called the: Average eccaunling relum. Equalizer. External rate at Ialum. Inlen'al rate at relum. F'rctitahiliig,I index. I'l'l'l'l' T. An efcient capital nurket ic cne in Iwhich: SeeJntv pricee rettect all evahble inferrnatien. Texee are irrelevant. All irrvealrnenla earn the marl-rel. rate ef return. SeeJnliea alwaya ctfera peaitive NW. Brcl-raraga camn'liaaierie are rare. I'l'l'l'l' 5.1". rrn haa e debt-equity relie ef .54. e pretax eeat efdeht ef 5.5 pereent. and a required return en eeaeta at 12.5 percent. 1.I'Il'hat ie the metefeeuity if {Ileu ignere tea-lee? 15-33% 11.12% 5.55% 15.22% 5.05% iii?! 9'. Which ena ef the fattening eteternente elJeut preferred eta-air ta true? i There ia ne aignilillnt diFferend-e in the 1triing. righta grented te prefermd and demrnen aherehaldera- * Diu'idenda en preferred atedlr pey'ehta during the naxttwafu'e menthe ere eenaidered te iJEt aerperete liability. * Unlike diuidenda peid en eemrnen eta-air. dividends paid an preferred ate-air are e ten-deductible expenae. * tFpreferred diuidenda ere nenau muhatiu'e. than preferred d'widenda net peid in a particular feer will be carried ferwerd la the naxtya-er. * Preferred steal: uaLuaIy' hes a etetad liquidating value af$1tt per share. 11]. A preiaet l'Iea an in it'ual peat efEEE-- The mah inmtra are $1]. 55m. 59m, and SEEN] fer Teen: 1 te It. reapeativeh'. What ia the payback periad'i" ur- ur- ur- ur- ur- E 11. All else held eenetenL intereat rate rial: will increase when the lime te nuturity: Indreeaae er the eeupen rete deareeaea. Deareeaea end the eaup-pn rate equela zere. Deareeaea er the deepen rete indreeaae. Inpreeaae er the eaupen rete inareeeea. Deareeaea er the deepen rete deareeaee. 12. Under the rnethed. the underwriter huge the aeauritiaefer laae then the efferinp pride end eaeapte the rial: efnat aellir'rpn the iaaLIa. while under the methed. the underwriter daea net purdheea the eheree but rnerelfedle es en eg-enL Beat efhrte; rm mrrlnitrnent Eeeaanad: uneaeaanad Competitive elfer. Flagnlieted effer FIITT'I mmihnent; beet ett'erta Neg-etieted effer. mmpetitiu'e effer iii?! l'l'l'l'l' 13- 11"pu plen te invaetI-Ej fer three yeara et ll. percent aimple intereat. Iil'll'het will wur irwa-ehnant he werthettha endetthalhnaeyeera-'F Wi Weapon $5.941" tampon $1311.52 l'l'l'l'l' 14-. 'Whiah ene atthe fellewing ateternenta ia falae'i" ll'aalee are aaaeanal. tha garaentagea ahewn an an aging eehadule 'l'l'lll 1l'ary during the year. An eging aphadula inaludea enly everdue ammunta. Hging aphedulea ere uaed te meniter earaunta reeeivable. Gelleatian aerla may imrelve la-gel aptipn. lnveatrnenla in ammunta repairable equal averege deily aalaa Iimea averege ralledien pariqd- i'i'ff!' 15. Aliin'n haa a Intel debt ratie at .41 This rneana the rm ha 4? eenta in debt fer every: $1 in purrant aaaata. $.53 in tetal equity. $1 in xed aaaata. $.53 in total aaaeta. $1 in tetal equity. *1'1'?!' 16. Beat: valua: la equivalent te market value far rrna with xed aaeeta. la inure at e nenI-l than an eemunling valLuaIien. la adjuatard te market value Wl'IBI'IB'I'E'I' the market value exraeda the atated beelr valua- la healed en hiaterieel maL Generally tenda te exbead market value when xed aaaeta are inphded. *1'1'?!' 1]". 'Whiah Ierrn datinaa the tax rate that appliea tethe next duller e1 taxable inaeme eemed? Deductible Tetal Marginal Heaiduel Average *1'1'?!' 13. Rene that rrraeeura a lin'n'a ability te pay ila billa ever the aherl n.|n withaut undua atreee are knewn ea: Langterm aelvenpy rneaaurea- Pretability retiea. Market value ratiea. Aeeal menegen'lent ratiea. Liquidity rneaaurea. 19. Which ene artheea ia a barred denitim'n? Tangible eaaata are xed aaaeta aueh aa patahta. Current l'bililiea are debta. that muat be repaid in 1H mentha er leaa. Net marking capital equala current aaeela plua eurrent lhbiliea- Langterm debt ia dened ea a reaid uel claim an a tirm'a aaaata. Current eaaeta are eaaala with ahelt I'rvaa. auah aa inyantary. ED. Leia ia puraheaing an annuity thetwill pey $5.605 ann uellyt'er 2D year-e. will": the lirat annuity payment made an the date all purehaae. Ill'll'l'iat ia the value ef the annuity en the purahaee date given a diabeunt rate at TI" percent? 553.1915" aamm 554.2191: mamam manna i'i'ff!' if??? i'i'ff!' 2?- Whih ane elthe fella-wing ie an example eta rlbnlzli'u'ereit'uable rieln? * A vtell-reepeded chairman elthe Federel Reeerve Bani: suddenly- resigns * A well-nuneged I'ITn reduaee iammfeme and auternatee eeverel jabe A panrly' manage-El rm suddenly geee eut efbuaineee value In belt. at ealee A Itell-runeFilament preeidenl ele rm suddenly reeigne A kevemplevee eun::lI:|er'nlg,I reeigne and accept: err'qalay'manl wilh a irev mmpetiter 2-H- An inlereet lele lhel ie eempeunded mnnthly. bul ie exp-renamed ee ilthe rate were anmpeunded annually. ie bell-ed the rate- ail!"r intereel Ferib-die intereet Effective annual Damp-bend interact Stated inlereet l'l'l'l'l' 29- Fuluree mnlleele mntreet with fem-ere mntreela by: Fraviding an eplibn fer the buyer rather then an ebligelian- Allawing [he eeler la deliver em.I dE' during the i:leli'i.nia|rl_.r rnenlh- Marking la lhe nurlcet en a weekly beeie. Requiring eentreelfuliln'lenl. by the twe enginaling pertiee. Allawing [he parliee lb negatiele the centred eize. l'l'l'l'l' 311. All elee equal. the mnb'ibutien margin rnuel inereeae ae: Eelee prine per unit deelinee- The variable eeel. per unit dedinee. The ealee price minus the xed eeel per unit inere-eeee. The tine-El eeel. per unit deelinee- Beth the ealee price end variable eeel. per unit innreeee- l'l'l'l'l
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
