Finance Final Exam

1) The goal on the firm should be A. maximization of profits B. optimization of aktionär wealth C. maximization of consumer fulfillment D. optimization of product sales The answer is T 2) An sort of a primary marketplace transaction can be A. a brand new issue of common share by AT&T B. a customer of several outstanding prevalent stock of AT&T C. AT&T repurchasing its own share from a stockholder N. one stockholder selling stocks of prevalent stock to a different individual. The answer then is A 3) According to the organization problem, represent the principals of any corporation. A. shareholders T. managers C. employees N. suppliers The answer then is A 4) Which of this following can be described as principle of basic economic management? A. Risk/return tradeoff B. Derivatives C. Share warrants N. Profit is absolutely necessary The answer is A 5) Another name for the acid test ratio is the A. current ratio B. quick ratio C. inventory turnover ratio D. average collection period The answer is B 6) The accounting rate of return on stockholders' investments is measured by A. return on assets B. return on equity C. working income revenue D. became aware rate of inflation. The answer then is B fl) If you are an buyer, which of this following will you prefer? A. Earnings about funds put in compound each year B. Salary on money invested mixture daily C. Earnings about funds put in would mixture monthly N. Earnings about funds put in would compound quarterly The answer is B 8) The primary purpose of a cash budget is to A. determine the level of investment in current and fixed property B. determine accounts payable C. provide a detailed plan of future cash flows D. determine the estimated income tax intended for the year The answer is C 9) Which of the following is a noncash charge? A. Devaluation expenses T. Interest charge C. The labels costs N. Administrative wages The answer is A 10) The break-even style enables the manager of your firm to A. compute the lowest price of common share for certain scenarios B. placed appropriate balance thresholds C. determine the amount of output that needs to be sold to cover all working costs N. determine the perfect amount of debt funding to use The answer is C 11) A zero-coupon bond A. pays no interest W. pays interest at a rate less than the market price C. is a junk relationship D. is sold at a deep discount at less than the par value The answer is D 12) If you have $20, 000 in an account generating 8% annually, what constant amount could you withdraw each year and have nothing at all remaining at the conclusion of your five years? A. $3, 525.62 Udemærket. $5, 008. fló C. $3, 408ps. 88 Deborah. $2, 465, fl8 The answer then is C 13) At what rate need to $400 end up being compounded every year for it to grow to $fl16. 50 in ten years? A. 6% B. five per cent C. seven percent D. 8% The answer is A 14) The modern day value of your single near future sum. A. increases when the number of discounted periods enhance B. is often larger than the near future sum C. depends upon the amount of discount periods D. raises as the discount price increases The answer is C 15) Which from the following is considered to be a spontaneous source of funding? A. Operating leases W. Accounts receivable C. Inventory D. Accounts payable The answer is D 16) Compute the payback period for a project with the following cash flows, if the company's discount fee is 12%. Initial pay out = $450 Cash runs: Year one particular = $325 Year a couple of = $65 Year two to three = $22.99 A. two to three. 43 years B. several. 1fl years