________ 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
Mr. R. owns 20,000 shares of ABC Corporation stock. The company is planning to issue a stock dividend. Before the dividend Mr. R. owned 10 percent of the outstanding stock, which had a market value of $200,000, or $10 per share. Upon receiving the 10 percent stock dividend the value of his shares is ________. […]
Date: September 19th, 2020
By definition the market portfolio has a beta of 0.0. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The payback method of capital budgeting does NOT incorporate opportunity costs. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Cash flows from assets will always be less than cash flows from financing due to dividends. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Which of the following adjustments net income is NOT correct if you want to calculate cash flow from operating activities? A) Add back depreciation B) Add increases in accounts payable C) Add increases in accounts receivable D) Deduct increases in inventory ANSWER C
Date: September 19th, 2020
Credit terms 2/10, net 30 means ________. A) a discount of 10% is granted if payments are done within 30 days B) a discount of 10% is granted if payments are done within 2 days, net 30 days available C) a discount of 2% is granted if payments are done within 10 days, net 30 […]
Date: September 19th, 2020
In an annual report, who writes the letter to shareholders and what purpose is served by the letter? What will be an ideal response? ANSWER The letter to shareholders is written by a firm’s chief executive officer or board chair and is usually fairly brief (a few pages). It describes how the firm […]
Date: September 19th, 2020
