By allowing partial year values, the payback method is implying that cash flows occur evenly throughout the year. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which statement is NOT correct about cash flow statements? A) They examine the cash inflows and cash outflows generated by operating activities, investing activities, and financing activities. B) They examine the cash inflows and cash outflows generated by operating activities, budgeting activities, and financing activities. C) They reconcile any changes in cash balances between two […]
Date: September 19th, 2020
Tangshan Mining has 100,000 shares outstanding and just declared a 20% stock dividend. Before the announcement, the firm’s shares were trading at $50.00 per share. After the stock dividend, the firm’s shares should trade at ________ per share. A) $42.00 B) $41.67 C) $46.33 D) $50.00 ANSWER B
Date: September 19th, 2020
The net present value method of capital budgeting fails to incorporate opportunity costs. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Your author states that the CAPM is a more widely used model for estimating the required return on equity than the dividend growth model. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
________ refers to the continual process of generating cash through sales, preserving cash by taking advantage of credit offered by suppliers, and utilizing cash by investing in inventory and offering credit to customers. A) The cash flow cycle B) The working capital cycle C) The accounting equation D) The dual-entry accounting system ANSWER […]
Date: September 19th, 2020
What is Regency’s 2012 cash flow from operating activities? A) $7.4 million B) $6.1 million C) $9.4 million D) $9.7 million ANSWER C Explanation: C) Operating CF = NI + Depreciation -increase in A/R, – increase in Inventory + increase in A/P = $10.6 + $3.6 – ($55.5 – $39.6 ) – ($45.9 […]
Date: September 19th, 2020
________ are the major source of unsecured short-term financing for business firms. A) Accounts receivable B) Term loans C) Notes payable D) Accounts payable ANSWER D
Date: September 19th, 2020
One weakness of the net present value method is that it provides an answer in dollar terms while many managers focus on percentage returns when assessing projects. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The stock repurchase can be viewed as a cash dividend. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
