FIN 419 UOP Complete Class, FIN 419 UOP Assignment, FIN 419 UOP Course Flashcards Preview

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Flashcards in FIN 419 UOP Complete Class, FIN 419 UOP Assignment, FIN 419 UOP Course Deck (37):
1

FIN 419 Complete Class
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FIN 419 Week 5 Learning Team International Finance Paper
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FIN 419 Week 5 Learning Team International Finance Paper
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Locate an organization that has an international presence.

· Write a 1,400- to 1,750-word paper on your organization in which you address the following:

· How the global investment banking process has assisted the organization

· How regulatory bodies affect financial decision-making

· Identify and evaluate contemporary issues in international financial management

· Format your paper according to APA standards.

· All written Paper Assignments must have 5 References. References must also be properly cited with the Paper.

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FIN 419 Week 5 Individual Assignments from the Readings
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FIN 419 Week 5 Individual Assignments from the Readings
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Resource: Principles of Managerial Finance

· Prepare responses to the following problems from the text:

· Problems 4.2 and 4.3 in Ch. 4

· Problems 12.4, 12.19, and 12.21 in Ch. 12

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FIN 419 Week 5 DQ 4
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FIN 419 Week 5 DQ 4
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What would be the constraints specifically dealing with different currencies and market rate fluctuations?

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FIN 419 Week 5 DQ 3
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What is a multinational corporation? What are some of the constraints facing today’s multinational corporations? Predict how joint ventures and international mergers might address some of those constraints.

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FIN 419 Week 5 DQ 2
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What would you consider to be a global equivalent(s) to the SEC within the USA? Are there individual reporting requirements comparable? Explain?

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FIN 419 Week 5 DQ 1
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What is the SEC? How does it impact financial decision-making? What constraints might it put on a company?

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FIN 419 Week 4 Summary
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FIN 419 Week 4 Learning Team Working Capital Strategies Paper And Presentation
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FIN 419 Week 4 Learning Team Working Capital Strategies Paper And Presentation
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Resource: Financial Outcomes Paper

· Write a 1,400- to 2,100-word paper in which you review your organization’s most recent financial reports, such as balance sheets, statements of cash flow, management comments, and footnotes to financial statements, to explain how each current asset and liability account has affected cash management strategies.

· Assume next year’s forecasted revenues increase by 20%.

· Provide a detailed working capital recommendation to senior management based on next year’s increase in revenue along with assumptions you make regarding other line items in the pro forma financial statements.

· Discuss the effect of this revenue increase on the firm’s working capital policy.

· Identify lessons learned and discuss areas for further development in your conclusion.

· Format your paper according to APA standards.

· All written Paper Assignments must have 5 References. References must also be properly cited with the Paper.



· Create a 5- to 8-slide Microsoft PowerPoint presentation for the organization’s senior management with an executive summary of your Working Capital Strategies paper.

· References must also be listed on one of the slides.

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10

FIN 419 Week 4 Individual Scott Equipment Organization Paper
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FIN 419 Week 4 Individual Scott Equipment Organization Paper
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Scott Equipment Organization is investigating various combinations of short- and long-term debt in financing assets. Assume the organization has decided to employ $30 million in current assets and $35 million in fixed assets in its operations next year, provided the level of current assets, anticipated sales, and EBIT for next year are $60 million and $6 million, respectively. The organization’s income tax rate is 40%. Stockholders’ equity will be used to finance $40 million of assets, with the remainder financed by short- and long-term debt. The organization is considering implementing one of the policies in the diagram.



Amount of Short-Term Debt

Financial Policy

In mil.

LTD (%)

STD (%)

Aggressive

(large amount of short-term debt)

$24

8.5

5.5

Moderate

(moderate amount of short-term debt)

$18

8.0

5.0

Conservative

(small amount of short-term debt)

$12

7.5

4.5



· Determine the following for each policy:



· Expected rate of return on stockholders’ equity

· Net working capital position

· Current ratio



· Evaluate profitability versus risk trade-offs of these policies. Would you rate them low, medium, or high with respect to profitability? Would you rate them low, medium, or high with respect to risk?

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FIN 419 Week 4 Individual Assignments from the Readings
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FIN 419 Week 4 Individual Assignments from the Readings
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· Resource: Principles of Managerial Finance

· Prepare responses to the following problems from the text:

· Problems 14.9 and 14.16 in Ch. 14

· Problem 15.9 in Ch. 15

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12

FIN 419 Week 4 DQ 4
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FIN 419 Week 4 DQ 4
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What is EBIT-EPS analysis? What is the indifference curve? How is risk factored into the EBIT-EPS analysis? What are the “basic short comings” of EBIT’s analyses?

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FIN 419 Week 4 DQ 3
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FIN 419 Week 4 DQ 3
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What are the risks of having an excessive amount of financial leverage in an organization? What is the degree of total leverage?

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FIN 419 Week 4 DQ 2
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What is the difference between operating and financial leverage? What is the importance of assessing operating vs. financial leverage?

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FIN 419 Week 4 DQ 1
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What is investment banking? How would the investment banker assist an organization in going public? As a CFO, what information would you need to select an investment banker?

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16

FIN 419 Week 3 Summary
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17

FIN 419 Week 3 Learning Team Capital Valuation Paper
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FIN 419 Week 3 Learning Team Capital Valuation Paper
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Resource: Financial Outcomes Paper

· Write a 1,050- to 1,750-word paper in which you justify the current market price of the organization’s debt, if any, and equity, using various capital valuation models.

· Show calculations that support your findings, including those involving rates of return.

· Defend which valuation model best supports your findings.

· All written Paper Assignments must have 5 References. References must also be properly cited with the Paper.

· Format your paper according to APA standards.

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18

FIN 419 Week 3 Individual Assignments from the Readings
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FIN 419 Week 3 Individual Assignments from the Readings
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· Resource: Principles of Managerial Finance

· Prepare responses to the following problems from the text:



· Problems 2.1 and 2.2 in Ch. 2

· Problems 4.23, 4.32, 4.46, and 4.48 in Ch. 4

· Problem 6.15 in Ch. 6

· Problem 7.6 in Ch. 7

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FIN 419 Week 3 DQ 4
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FIN 419 Week 3 DQ 4
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What is zero working capital? How would you define zero working capital? When would this methodology be used? Would this model be applicable to all organizations? Explain.

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FIN 419 Week 3 DQ 3
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Define factoring of accounts receivables. How does factoring effect cash management? Explain the difference between factoring and accounts receivable financing.

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FIN 419 Week 3 DQ 2
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What is an asset? What is a liability? What is the difference between assets and liabilities? Can an organization operate without current liabilities? Explain.

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FIN 419 Week 3 DQ 1
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What is an aggressive financing strategy? What are the components of aggressive finance strategies? What is difference between the aggressive and conservative financing model? Under what circumstances would you use either one?

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23

FIN 419 Week 2 Summary
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24

FIN 419 Week 2 Learning Team Financial Outcomes Paper
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FIN 419 Week 2 Learning Team Financial Outcomes Paper
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Resource: Principles of Managerial Finance

· Choose a faculty-approved Fortune 500 organization.

· Select a financial initiative from the management’s message to the shareholders using its most recent annual report and other financial statements submitted to the Securities and Exchange Commission.

· Write a 1,400- to 1,750-word paper in which you compare and contrast three potential financial outcomes your Learning Team envisions for the initiative.

· Evaluate your findings to determine the most likely outcome.

· Include calculations that support your analysis of various financial outcomes and discuss the financial effect on the organization.

· All written Paper Assignments must have 5 References. References must also be properly cited with the Paper.

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FIN 419 Week 2 Individual Assignments from the Readings
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FIN 419 Week 2 Individual Assignments from the Readings
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Resource: Principles of Managerial Finance

· Prepare responses to the following problems from the text:

· Problems 5.3, 5.4, and 5.13 in Ch. 5

· Problem 10.4 in Ch. 10



· Read the Assessing the Goal of Sports Products, Inc. case study in Ch. 1 of Principles of Managerial Finance and answer the questions.

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FIN 419 Week 2 DQ 4
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FIN 419 Week 2 DQ 4
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How would the intrinsic value of assets differ from the market value? Explain.



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FIN 419 Week 2 DQ 3
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What are the three key inputs to the valuation model? How would you determine the valuation of an asset?

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FIN 419 Week 2 DQ 2
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What is a loan amortization schedule? How would you use it determine your loan interest rate? What factors would impact your choice between two loans?

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FIN 419 Week 2 DQ 1
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What is the difference between present values and future values? How would you use present and future value techniques in preparing a financial plan for retirement? How would various required rates of return affect your decision? Explain.

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30

FIN 419 Week 1 Summary
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31

FIN 419 Week 1 Individual Limited Liability Corporation and Partnership Paper
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Resources: Week One readings



· Write a 700- to 1,050-word paper in which you explain roles of limited liability corporations and partnerships. If you were establishing your own business, under what circumstances would you choose one instead of the other?



· All written Paper Assignments must have 5 References. References must also be properly cited with the Paper.

· Format your paper according to APA standards.

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FIN 419 Week 1 DQ 4
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What is a limited liability corporation? What is a limited liability partnership? What are the differences? What are the advantages and disadvantages of each?

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FIN 419 Week 1 DQ 3
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Based on your assessment of risk using portfolio Management, what factors would you use to make different risk preferences?

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FIN 419 Week 1 DQ 2
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What is a sensitivity analysis? What is a scenario analysis? How would you apply each one to a potential investment opportunity? How would you use the information from this analysis? Explain.

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FIN 419 Week 1 DQ 1
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What are some risk management techniques? How would you use portfolio management to assess the risk and return of an investment? Predict how the results would be different based on different risk preferences?

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FIN 419 Final Exam Guide
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1) The part of finance concerned with design and delivery of advice and financial products to individuals, business, and government is called

A) Managerial Finance.

B) Financial Manager.

C) Financial Services.

D) none of the above.



2) Managerial finance

A) involves tasks such as budgeting, financial forecasting, cash management, and funds procurement.

B) involves the design and delivery of advice and financial products.

C) recognizes funds on an accrual basis.

D) devotes the majority of its attention to the collection and presentation of financial data.



3) Finance can be defined as

A) the system of debits and credits.

B) the science of the production, distribution, and consumption of wealth.

C) the art and science of managing money.

D) the art of merchandising products and services.



4) Financial service

A) is concerned with the duties of the financial manager.

B) involves the design and delivery of advice and financial products.

C) provides guidelines for the efficient operation of the business.

D) handles accounting activities related to data processing.



5) Which of the following legal forms of an organization’s income is NOT taxed under individual income tax rate?

A) Sole proprietorships.

B) Partnerships.

C) Limited partnership.

D) Corporation.



6) Under which of the following legal forms of organization, is ownership readily transferable?

A) Sole proprietorships.

B) Partnerships.

C) Limited partnership.

D) Corporation.



7) The true owner(s) of the corporation is (are) the ________.

A) board of directors

B) chief executive officer

C) stockholders

D) creditors



8) A firm had the following accounts and financial data for 2008:



Sales Revenue $3,060 Cost of goods sold $1,800

Accounts receivable 500 Preferred stock dividends 18

Interest expense 126 Tax rate 40%

Total operating expenses 600 Number of common shares 1,000 outstanding

Accounts payable 240



The firmʹs earnings per share, rounded to the nearest cent, for 2008 was ________.

A) $0.5335

B) $0.5125

C) $0.3204

D) $0.3024



9) A firm had the following accounts and financial data for 2008.

Sales Revenue $3,060 Cost of goods sold $1,800

Accounts receivable 500 Preferred stock dividends 18

Interest expense 126 Tax rate 40%

Total operating expenses 600 Number of common shares 1,000

Accounts payable 240 outstanding



The firmʹs net profit after taxes for 2008 was ______.

A) -$206.40

B) $213.80

C) $320.40

D) $206.25



10) Paid-in-capital in excess of par represents the amount of proceeds



A) from the original sale of stock.

B) in excess of the par value from the original sale of common stock.

C) at the current market value of common stock.

D) at the current book value of common stock.





11) A firm had year end 2007 and 2008 retained earnings balances of $670,000 and $560,000, respectively. The firm paid $10,000 in dividends in 2008. The firmʹs net profit after taxes in 2007

was ________.

A) -$100,000

B) -$110,000

C) $100,000

D) $110,000



12) A corporation had a year end 2007 retained earnings balance of $220,000. The firm reported net profits after taxes of $50,000 in 2008 and paid dividends in 2008 of $30,000. The firmʹs retained earnings balance at year end 2008 was ________.

A) $240,000

B) $250,000

C) $270,000

D) $300,000



13) The 2002 Sarbanes-Oxley Act was designed to

A) limit the compensation that could be paid to corporate CEOs.

B) eliminate the many disclosure and conflict of interest problems of corporations.

C) provide uniform international accounting standards.

D) two of the above.



14) The Public Company Accounting Oversight Board (PCAOB)

A) is a not-for-profit corporation that oversees auditors of public corporations.

B) is a not-for-profit corporation that oversees managers of public corporations.

C) is a for-profit corporation that oversees auditors of public corporations.

D) is a for-profit corporation that oversees managers of public corporations.



15) The future value of $100 received today and deposited at 6 percent for four years is

A) $126.

B) $ 79.

C) $124.

D) $116.



16) The present value of $100 to be received 10 years from today, assuming an opportunity cost of 9 percent, is

A) $236.

B) $699.

C) $ 42.

D) $ 75.



17) If a personʹs required return does not change when risk increases, that person is said to be

A) risk-seeking.

B) risk-indifferent.

C) risk-averse.

D) risk-aware.



18) Last year Mike bought 100 shares of Dallas Corporation common stock for $53 per share. During the year he received dividends of $1.45 per share. The stock is currently selling for $60 per share. What rate of return did Mike earn over the year?

A) 11.7 percent.

B) 13.2 percent.

C) 14.1 percent.

D) 15.9 percent.



19) A common approach of estimating the variability of returns involving forecasting the

pessimistic, most likely, and optimistic returns associated with the asset is called

A) marginal analysis.

B) sensitivity analysis.

C) break-even analysis.

D) financial statement analysis.



20) The ________ is the extent of an assets’ risk. It is found by subtracting the pessimistic outcome from the optimistic outcome.

A) return

B) standard deviation

C) probability distribution

D) range



21) The ________ of an event occurring is the percentage chance of a given outcome.

A) dispersion

B) standard deviation

C) probability

D) reliability



22) The ________ is a measure of relative dispersion used in comparing the risk of assets with differing expected returns.

A) coefficient of variation

B) chi square

C) mean

D) standard deviation



23) The ________ is the annual rate of interest earned on a security purchased on a given date and held to maturity.

A) term structure

B) yield curve

C) risk-free rate

D) yield to maturity



24) Generally, an increase in risk will result in ________ required return or interest rate.

A) a lower

B) a higher

C) an unchanged

D) an undetermined



25) The nominal rate of interest is composed of

A) the real rate plus an inflationary expectation.

B) the real rate plus a risk premium.

C) the risk-free rate plus an inflationary expectation.

D) the risk-free rate plus a risk premium.



26) Dividends in arrears that must be paid to the preferred stockholders before payment of dividends to common stockholders are

A) cumulative.

B) noncumulative.

C) participating.

D) convertible.



27) The cost of preferred stock is

A) lower than the cost of long-term debt.

B) higher than the cost of common stock.

C) higher than the cost of long-term debt and lower than the cost of common stock.

D) lower than the cost of convertible long-term debt and higher than the cost of common

stock.



28) ________ analysis is a technique used to assess the returns associated with various cost structures and levels of sales.

A) Time-series

B) Marginal

C) Breakeven

D) Ratio



29) Earnings before interest and taxes (EBIT) is a descriptive label for

A) operating profits.

B) net profits before taxes.

C) earnings per share.

D) gross profits.



30) ________ costs are a function of time, not sales, and are typically contractual.

A) Fixed

B) Semi-variable

C) Variable

D) Operating



31) The firm’s ________ is the level of sales necessary to cover all operating costs, i.e., the point at which EBIT = $0.

A) cash breakeven point

B) financial breakeven point

C) operating breakeven point

D) total breakeven point



32) At the operating breakeven point, ________ equals zero.

A) sales revenue

B) fixed operating costs

C) variable operating costs

D) earnings before interest and taxes



33) A firmʹs operating breakeven point is sensitive to all of the following variables EXCEPT

A) fixed operating costs.

B) sales price per unit.

C) interest expense.

D) variable operating cost per unit.



34) Net working capital is defined as

A) a ratio measure of liquidity best used in cross-sectional analysis.

B) the portion of the firmʹs assets financed with short-term funds.

C) current liabilities minus current assets.

D) current assets minus current liabilities.



35) In working capital management, risk is measured by the probability that a firm will become

A) liquid.

B) technically insolvent.

C) unable to meet long-term obligations.

D) less profitable.



36) In general, the more net working capital a firm has,

A) the greater its risk.

B) the lower its risk.

C) the less likely are creditors to lend to the firm.

D) the lower its level of long-term funds.



Table 14.1

Irish Air Services has determined several factors relative to its asset and financing mix.



(a) The firm earns 10 percent annually on its current assets.

(b) The firm earns 20 percent annually on its fixed assets.

(c) The firm pays 13 percent annually on current liabilities.

(d) The firm pays 17 percent annually on long-term funds.

(e) The firmʹs monthly current, fixed and total asset requirements for the previous year are summarized in the

table below:



Current Fixed Total

Assets Assets Assets

Month

January $45,000 $100,000 $145,000

February 40,000 100,000 140,000

March 50,000 100,000 150,000

April 55,000 100,000 155,000

May 60,000 100,000 160,000

June 75,000 100,000 175,000

July 75,000 100,000 175,000

August 75,000 100,000 175,000

September 60,000 100,000 160,000

October 55,000 100,000 155,000

November 50,000 100,000 150,000

December 50,000 100,000 150,000



37) The firm’s monthly average permanent funds requirement is ________. (See Table 14.1)

A) $100,000.

B) $57,500.

C) $140,000.

D) $157,500.



38) The firm’s monthly average seasonal funds requirement is ________. (See Table 14.1)

A) $17,500.

B) $57,500.

C) $40,000.

D) $157,500.

39) The firm’s annual financing costs of the aggressive financing strategy are ________. (See Table 14.1)



A) $21,175.

B) $26,075.

C) $24,475.

D) $22,775.



446 Gitman • Principles of Managerial Finance, 12e



40) The firm’s annual financing costs of conservative financing strategy are ________. (See Table

14.1)

A) $22,775.

B) $26,075.

C) $26,775.

D) $21,175.



41) The firm’s annual profits on total assets for the previous year were ________. (See Table 14.1)

A) $20,000.

B) $21,500.

C) $23,625.

D) $25,750.



42) If the firm’s current liabilities in December were $40,000, the net working capital was ________.

(See Table 14.1)

A) $140,000.

B) $60,000.

C) $10,000.

D) -$10,000.

Table 14.2

Flum Packages, Inc.

Assets Liabilities & Equity

Current assets $10,000 Current Liabilities $ 5,000

Fixed assets 20,000 Long-term debt 12,000

Equity 13,000

Total $30,000 Total $30,000



The company earns 5 percent on current assets and 15 percent on fixed assets. The firm’s current liabilities cost 7 percent to maintain and the average annual cost of long-term funds is 20 percent



43) The firm’s initial ratio of current to total asset is ________. (See Table 14.2)

A) 1:3

B) 3:1

C) 2:3

D) 3:2



44) The two major sources of short-term financing are

A) a line of credit and accounts payable.

B) accounts payable and accruals.

C) a line of credit and accruals.

D) accounts receivable and notes payable.



45) Tangshan Mining was extended credit terms of 3/15 net 30 EOM. The cost of giving up the cash discount, assuming payment would be made on the last day of the credit period, would be

A) 75.26%.

B) 18.56%.

C) 72.99%.

D) 37.12%.



46) As part of a union negotiation agreement, the United Clerical Workers Union conceded to be paid every two weeks instead of every week. A major firm employing hundreds of clerical workers had a weekly payroll of $1,000,000 and the cost of short -term funds was 12 percent. The effect of this concession was to delay clearing time by one week. Due to the concession, the firm

A) realized an annual loss of $120,000.

B) realized an annual savings of $120,000.

C) increased its cash cycle.

D) decreased its cash turnover.



47) A firm purchased goods on January 27 with a purchase price of $1,000 and credit terms of 2/10 net 30 EOM. The firm paid for these goods on February 9. The firm must pay _____ for the goods.

A) $1,000

B) $980

C) $800

D) $900



48) By offering credit to customers, the firm may

A) increase the price of the good to cover its costs.

B) decrease its investment in accounts receivable.

C) decrease its investment in accounts payable.

D) decrease the cost of goods purchased.



49) A ________ is normally initiated by a firm that needs funds for operations. An asset previously owned by a lessee is sold to the lessor.

A) direct lease

B) leveraged lease

C) sale-leaseback

D) capital lease



50) ________ leases are non-cancelable and are generally used for leasing land, buildings, and large pieces of fixed equipment.

A) Financial

B) Operating

C) Serial

D) Direct



51) Advantages of leasing from the lessee’s perspective include all of the following EXCEPT

A) capability of effectively depreciating land.

B) ability to avoid restrictive covenants that are normally part of a long-term loan.

C) benefit of the salvage value at the end of the term of the lease reverts to the lessor.

D) 100 percent financing.



52) All of the following must be considered when making a lease-versus-purchase decision EXCEPT

A) the after-tax cash flows for each year under the lease alternative.

B) the after-tax cash flows for each year under the purchase alternative.

C) the present value of all cash flows.

D) the depreciation expense under the lease.

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