FIN 351

CHAPTER 8 QUIZ 68 The major device that indicates what the firmowns and how these assets are financed in the form of liabilities or ownership interest: A) the balance sheet. B) the statement of cash flows. C) the income statement. D) the general ledger.

1 Other / Other strayer university / FIN 351 25 Sep 2015

CHAPTER 8 QUIZ 36 TO 40 36. The primary emphasis of the profitability ratios is a determination of the firm's ability to pay off short-term obligations as they come due. 37. Debt-utilization ratios provide an indication of the way the firm is financed between debt (lenders) and equity (owners) and therefore helps the analyst determine the amount of financial risk present in the firm. 38. To examine the long-term performance over a numbe

2 Other / Other strayer university / FIN 351 24 Sep 2015

CHAPTER 7 QUIZ 82 Security analysts following the Witczak Corporation use a simplified income statement method of forecasting. Assume that current sales (2002) are $30 million and are expected to grow by 10.5 percent in 2000 and 2001. The aftertax profit margin is projected at 7.0 percent in 2003 and 7.2 percent in 2002. The number of shares outstanding is anticipated to be 450,000 for 2003 and 500,000 for 2004. Project earnings per sha

1 Other / Other strayer university / FIN 351 23 Sep 2015

CHAPTER 7 QUIZ 46 The constant growth dividend valuation model assumes A) a constant annual dividend B) a constant dividend growth rate for no more than the first 10 years. C) that the discount rate must be greater than the dividend growth rate. D) two of above are true assumptions.

2 Other / Other strayer university / FIN 351 22 Sep 2015

CHAPTER 7 QUIZ 45 The general dividend valuation model assumes the investor knows _______ and the discount rate. A) the exact dividend to be paid in each and every year. B) the current year's dividend, the anticipated annual dividend growth rate. C) the investor's required rate of return. D) none of the above.

2 Other / Other strayer university / FIN 351 22 Sep 2015

CHAPTER 7 QUIZ 44 The purpose of stock valuation is A) to set the fair market price for a given common stock. B) to determine whether the value of a common stock is fairly represented by its market price. C) of limited value since the efficient market hypothesis proves that all common stock is always fairly priced. D) more than one of the above.

2 Other / Other strayer university / FIN 351 22 Sep 2015

CHAPTER 7 QUIZ 36 TO 40 36. Mathematically, the price-earnings ratio (P/E) is simply the price per share divided by earnings per share 37. All things being equal, the less debt that a firm has, the more likely it is to be highly valued in the marketplace. 38. History shows that as inflation increases, price earnings ratios increase along with inflation. 39. In general, if the market perceives that the direction of interest rates

2 Other / Other strayer university / FIN 351 22 Sep 2015

CHAPTER 7 QUIZ 31 TO 35 31. Valuation models using average price ratios and 10-year averages can be more useful with cyclical companies because these variables are more stable 32. Every valuation method has its limitations 33. As inflation increases, the required rate of return on common stocks falls as well as the prices. 34. Economic Value Added is based on the concept that decisions should only be made on projects accepted only

2 Other / Other strayer university / FIN 351 21 Sep 2015

FIN 351 CHAPTER 12 QUIZ 64 a) What is the approximate yield to maturity of a 10 percent coupon rate, $1000 par value bond which is currently priced at $1200 with 11 years to maturity? b) What would be the yield to call if the call can be made in 7 years at a price of $1025?

1 Other / Other strayer university / FIN 351 19 Sep 2015

FIN 351 CHAPTER 12 QUIZ 63 What is the approximate yield to maturity of an 8 percent coupon bond, with a par value of $1000. The bond is currently selling for $920 and has five years to maturity.

1 Other / Other strayer university / FIN 351 19 Sep 2015