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1. (TCO 1) Which one of the following actions best matches the primary goal of financial management? increasing the net working capital while lowering the long-term asset requirements improving the operating efficiency, thereby increasing the market value of the stock increasing the firm’s market share reducing fixed costs and increasing variable costs increasing the liquidity of the firm by transferring short-term debt into long-term debt
2. (TCO 1) Which of the these activities is not a capital budgeting task? determining the amount of cash needed on a daily basis to operate a firm identifying assets that
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Which bank should you choose and why? South Bank because its effective rate is higher. North Bank because the APR is lower. South Bank because its effective rate is lower. North Bank because its effective rate is lower. |
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1. (TCO 3) Tim needs to borrow $5,000 for two years. The loan will be repaid in one lump sum at the end of the loan term. Which one of the following interest rates is best for Tim? 7.5 percent simple interest 7.5 percent interest, compounded monthly 8.0 percent simple interest 8.0 percent interest, compounded annually 8.0 percent interest, compounded monthly
2. (TCO 3) The difference between an ordinary annuity and an annuity due is the: number of payments to be made amount to be paid each time the timing of the payments frequency of the payments interest rate applied to the first payment
3. (TCO 3) Fanta Cola has $1,000 par value bonds outstanding at 12 percent interest. The bonds mature in 25 years. What is the current price of the bond if the YTM is 11 percent? Assume annual payments. $1080 $1085 $925 $1000
4. (TCO 6 and 8) A bond's debenture will include which of the following? description of any loan collateral call
Tim requested that another employee in the accounting department that had an excellent head on his shoulders, and would be a great help to him with the project management roles. However, that employees current supervisor did not seem interested letting the good employee go for the good of the company, but rather keep the employee put to satisfy the need of his own personal departmental needs. Phil, as the director of project management, could have made it possible for the reallocation of resources and allowed the accounting personnel to be available to work with Tim on the project management task. However, he chose to not to. Instead he only expand on his previous comment about the experience levels of his staff and suggests that Tim come with some new ways to motive his mature staff into wanting the program to be a success. But,
The finance function and its relation to other decision-making areas in the firm; the study of theory and techniques in acquisition and allocation of financial resources from an internal management perspective.
b. As a financial manager, my focus would be on improving the firm’s cash flow and cash return on investments by determining which units in the business are generating or depleting the firm’s cash.
In Question 6, the payment occurs at the beginning of each period rather than at the end, this type of annuity is named as annuity due.
- The Bet-r-Bilt Company has a 5-year bond outstanding with a 4.30 percent coupon. Interest payments are paid semi-annually. The face amount of the bond is $1,000. This bond is currently selling for 93 percent of its face value. What is the company's pre-tax cost of debt?
This Sample Final Exam is provided as a resource to help familiarize students with the content areas and types of questions that they may encounter when they complete the comprehensive BUS/475 Final Exam in Week Five. The student version of the sample Final does not include the correct answers (as marked below in red). Please feel free to share the sample final questions and answers with your students.
As one of the four perspectives of the Balanced Scorecard, the Learning & Growth perspective focuses on how the organization must learn and innovate in order to achieve the set goals. It is the root of the balanced scorecard and requires nutrients to grow. It develops intellectual capital and empowers employees as part of the relationship to the vision and strategy portion of the BSC. Learning & growth perspective can be described as inputs and internal constituents. In order to get a feel for how AAFES has grown we need to look at where and how AAFES began.
4. (TCO B) You want to buy a new sports car three years from now, and you plan to save $4,200 per year, beginning one year from today. You will deposit your savings in an account that pays 5.2% interest. How much will you have just after you make the third deposit, three years from now? (Points : 10)
The semi-annual compounded interest rate is 5.2% (a six-month discount rate of 5.2/2 = 2.6%). (15 points)
21. Which of the following is NOT one of the steps taken in the financial planning process?
It can negatively impact your bottom line. When I first started my company, I started as a business consulting firm. I had just finished my MBA was working on my PhD in Finance and the finance jobs were gone. So, I started the journey of entrepreneurship. I offered everything I could that I knew financial analysis, marketing plans, business plans, etc. One client asked who did my site I did then they asked if I could do theirs so I started offering websites as a service. But business wasn’t moving like I knew it should. So, I stepped back and looked what was selling the most.
Assume that the annual payments in the sixth year is equal to the rental payment in the fifth year ( 112.9 and 86.0) and the remainder of the lump sum values (54.6 and 17.8) is due in the seventh year. With a discount rate of 5.4%, the present values of the rental payments for the years 2006 and 2007 are as follows: