A field warehouse is ________. A) a warehouse outside the metropolitan area B) a warehouse on the borrower’s premises C) a central warehouse storing the merchandise of several businesses D) a warehouse located near the lender ANSWER B
Date: September 19th, 2020
Appropriate collateral for a loan secured under a trust receipt inventory loan is ________. A) drill bits B) pencils C) vehicles D) bolts ANSWER C
Date: September 19th, 2020
If four plus five equals ten, that’s synergy. Indicate whether the statement is true or false. ANSWER Answer: TRUE
Date: September 19th, 2020
Because of the extensive research conducted in recent years in the area of capital structure theory, it is now possible for financial managers to pinpoint with great accuracy a firm’s optimal capital structure. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Erosion is the additional cash generated by a new project beyond the current cash flow with the addition of a specific new project. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: INCREMENTAL CASH FLOW is the additional cash generated by a new project beyond the current cash flow with […]
Date: September 19th, 2020
Despite the extensive research conducted in recent years in the area of capital structure theory, it is not yet possible to provide financial managers with a specified methodology for use in determining a firm’s optimal capital structure. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
In terms of revenues and costs for a project, which of the statements below is FALSE? A) Projected revenues and costs are estimates of future activity. B) Estimates of revenues and costs begin with operating cash flow of the project. C) Projected revenues and costs form the basis of the potential for a project’s acceptance […]
Date: September 19th, 2020
The projected revenues and costs that form the basis of the potential for a project’s acceptance or rejection are estimates of ________. A) future activity B) past activity C) known activity D) current activity ANSWER Answer: A
Date: September 19th, 2020
Managers typically look at the initial outlay for the project as its capital expenditure and determine ________ from this capital expenditure. A) interest expenses B) dividends C) depreciation D) CEO expenses ANSWER Answer: C
Date: September 19th, 2020
In general, non-U.S. companies have much higher debt ratios than their U.S. counterparts because financial markets are much more developed in the United States than elsewhere. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
