FIN 370T Experience Tradition- tutorialrank.com

1. FIN 370T Assignment Week 1 Apply Exercise(All Possible Questions/Answers) For more course tutorials visit www.tutorialrank.com FIN 370T ASSIGNMENT Week 1 Apply: Week 1 Exercise Review the Week 1 “Knowledge Check” in Connect® in preparation for this Assignment . Complete the Week 1 “Exercise” in Connect®. Note: You have only one attempt available to complete this Assignment . Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date. Materials Learn: McGraw-Hill Connect® Access

2. Maximizing owners’ equity value means carefully considering all of the following EXCEPT Multiple Choice how best to return the profits from those projects to the owners over time. which projects to invest in. how to best bring additional funds into the firm. how best to increase the firm’s risk.

3. Not all cash a company generates will be returned to the investors. Which of the following will NOT reduce the amount of capital returned to the investors? Multiple Choice taxes dividends retained earnings

4. As individual legal entities, corporations assume liability for their own debts, so the shareholders hold Multiple Choice unlimited liability. shared liability. joint liability. only limited liability.

5. For corporations, maximizing the value of owner’s equity can also be stated as Multiple Choice maximizing the stock price. maximizing earnings per share. maximizing retained earnings. maximizing net income. Which of the following is not an impact of the slowdown occurring in China’s economy?

6. Multiple Choice falling community prices lower demand in materials such as steel, iron ore, and copper real estate market declining in Sydney, Australia money going out of Manhattan, New York What is the debt ratio for a firm with an equity multiplier of 3.5?

7. Multiple Choice 58.51 percent 66.25 percent 44.09 percent 71.43 percent Which of the following refer to ratios that measure the relationship between a firm’s liquid (or current) assets and its current liabilities?

8. Multiple Choice internal-growth market value liquidity cross-section For publicly traded firms, which of these ratios measure what investors think of the company’s future performance and risk? Multiple Choice

9. profitability ratios liquidity ratios price value ratios market value ratios Which of the following is the maximum growth rate that can be achieved by financing asset growth with new debt and retained earnings? Multiple Choice

10. sustainable growth rate weighted growth rate internal growth rate retained earnings growth rate To interpret financial ratios, managers, analysts, and investors use which of the following type of benchmarks? Multiple Choice time series analysis

11. time-industry analysis competitive analysis cross-industry analysis ============================================== FIN 370T Assignment Week 1 Apply: Finance and Financial Statement Analysis Homework(All Possible Questions/Answers) For more course tutorials visit www.tutorialrank.com FIN 370T ASSIGNMENT Week 1 Apply: Finance and Financial Statement Analysis Homework Review the Week 1 “Practice: Finance and Financial Statement Analysis Quiz” in Connect®.

12. Complete the Week 1 “Apply: Finance and Financial Statement Analysis Homework” in Connect®. Note: You have only one attempt available to complete this Assignment . Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date. Which of the following is the firm’s highest-level financial manager? Multiple Choice • chief executive officer • corporate governance •

13. chief financial officer • board of directors Which of these must effectively distribute capital between investors and companies? Multiple Choice •

14. companies • individuals • international investors • financial institutions

15. Which of the following statements is correct? Multiple Choice • Financial managers double-check the accountant’s statements. • Accountants are focused on what happened in the past. • Both accountants and financial managers use total quality management systems to standardize data. • Financial managers are focused on what happened in the past.

16. This is a general term for securities like stocks, bonds, and other assets that represent ownership in a cash flow. Multiple Choice • investment • real asset •

17. financial asset • financial markets The portion of a company’s profits that are kept by the company rather than distributed to the stockholders as cash dividends is referred to as Multiple Choice •

18. institutional investment. • restricted earnings. • venture capital. • retained earnings.

19. A potential future negative impact to value and/or cash flows is often discussed in terms of probability of loss and the expected magnitude of the loss. This is called Multiple Choice • risk. • options. • standard deviation. •

20. coefficient of variation. Which of the following is defined as a group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations? Multiple Choice • market instruments • financial markets

21. • asset classes • investments What is the difference in perspective between finance and accounting? Multiple Choice •

22. ownership • timing • liability • risk

23. This subarea of finance is important for adapting to the global economy. Multiple Choice • financial management • financial institutions and markets • investments • international finance

24. For corporations, maximizing the value of owner’s equity can also be stated as Multiple Choice • maximizing net income. • maximizing retained earnings.

25. • maximizing the stock price. • maximizing earnings per share. Which of the following is NOT a function of the board of directors? Multiple Choice

26. • evaluate the CEO • design compensation contracts for the CEO • provide reports to the auditors • hire the CEO

27. This is the set of laws, policies, incentives, and monitors designed to handle the issues arising from the separation of ownership and control. Multiple Choice • corporate governance • defined benefit plan • invisible hand

28. • agency theory Which of the following statements is incorrect? Multiple Choice • Most sole proprietors raise money by borrowing from banks. • S corporations are considered a hybrid organization.

29. • An advantage of sole proprietorships is that the owner has complete control. • Partnerships have unlimited liability. Agency problems exist in which forms of business ownership? Multiple Choice •

30. partnership • sole proprietorship • corporation • S corporation

31. An angel investor differs from a venture capitalist because of the Multiple Choice • investment time frame. • voting rights. • type of investment. • size of investment.

32. Which statement is incorrect regarding hybrid organizations? Multiple Choice • They offer single taxation. • They offer limited risk to the owners. •

33. They offer the same type of control as a sole proprietorship. • All of these choices are correct. From a taxation perspective, the form of business organization with the highest business level taxes is the Multiple Choice •

34. S corporation. • corporation. • sole proprietorship. • partnership.

35. Corporate stakeholders include all of the following EXCEPT Multiple Choice • employees. • suppliers. • shareholders. • auditors.

36. From the perspective of ownership risk, the best form of business organization is the Multiple Choice • sole proprietorship. • partnership. •

37. corporation. • S corporation. Which of the following is NOT considered a hybrid organization? Multiple Choice • all of these choices are correct. •

38. limited partnership • S corporation • limited liability company • limited liability partnership

39. Which of these is the system of incentives and monitors that tries to overcome the agency problem? Multiple Choice • corporate Governance • checks and Balances • Security Exchange Commission • board of Directors

40. When determining a form of business organization, all of the following are considered EXCEPT Multiple Choice • the physical location of the business. • who owns the firm.

41. • the tax ramifications. • the owners’ risks. All of the following are an example of a fiduciary relationship EXCEPT Multiple Choice •

42. a financial advisor advises her clients. • the shareholder elects a board member. • a bank employee manages deposits. • a CEO manages the firm.

43. Restricted stock is Multiple Choice • a special type of stock that can be converted into corporate bonds after a specific amount of time has elapsed. • a special type of stock that is not transferable from the current holder to others until specific conditions are satisfied. • a special type of stock that is a result of offering an employee stock ownership plan.

44. Which of the following refer to ratios that measure the relationship between a firm’s liquid (or current) assets and its current liabilities? Multiple Choice • liquidity • internal-growth • cross-section

45. • market value Which of the following measures the number of days accounts receivable are held before the firm collects cash from the sale? Multiple Choice • accounts receivable turnover •

46. average payment period • accounts payable turnover • average collection period Which ratio measures the number of dollars of operating earnings available to meet the firm’s interest dollars and other fixed charges? Multiple Choice

47. • fixed-charge coverage ratio • basic earning power • times interest earned • ROA

48. Which ratio measures the operating return on the firm’s assets irrespective of financial leverage and taxes? Multiple Choice • profit margin • basic earning power ratio • operating leverage return •

49. return on assets A firm has EBIT of $1,000,000 and depreciation expense of $400,000. Fixed charges total $600,000. Interest expense totals $70,000. What is the firm’s fixed-charge coverage ratio? Multiple Choice • 2.45 times • 1.67 times

50. • 1.00 times • 2.33 times Which of these ratios measure the extent to which the firm uses debt (or financial leverage) versus equity to finance its assets? Multiple Choice •