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FIN 370T Assignment Week 1 Apply: Finance and Financial Statement Analysis Homework

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®.

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

chief financial officer

board of directors


Which of these must effectively distribute capital between investors and companies?

Multiple Choice

companies

individuals


international investors

financial institutions

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.

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

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

institutional investment.

restricted earnings.

venture capital.


•

retained earnings.

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.

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

asset classes

investments


What is the difference in perspective between finance and accounting?

Multiple Choice

ownership

timing


liability

•

risk

This subarea of finance is important for adapting to the global economy.

Multiple Choice

•

financial management


financial institutions and markets

investments

international finance


For corporations, maximizing the value of owner’s equity can also be stated as

Multiple Choice

maximizing net income.

maximizing retained earnings.

maximizing the stock price.

maximizing earnings per share.


Which of the following is NOT a function of the board of directors?

Multiple Choice

•

evaluate the CEO

•

design compensation contracts for the CEO


•

provide reports to the auditors

•

hire the CEO

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

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.

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

partnership

sole proprietorship


corporation

•

S corporation

An angel investor differs from a venture capitalist because of the

Multiple Choice

•

investment time frame.


voting rights.

type of investment.

size of investment.

Which statement is incorrect regarding hybrid organizations?


Multiple Choice

They offer single taxation.

They offer limited risk to the owners.

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

S corporation.

corporation.


sole proprietorship.

•

partnership.

Corporate stakeholders include all of the following EXCEPT

Multiple Choice

•

employees.


suppliers.

shareholders.

auditors.

From the perspective of ownership risk, the best form of business organization is the


Multiple Choice

sole proprietorship.

partnership.

corporation.

S corporation.


Which of the following is NOT considered a hybrid organization?

Multiple Choice

all of these choices are correct.

limited partnership

S corporation


limited liability company

•

limited liability partnership

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


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.

the tax ramifications.

the owners’ risks.


All of the following are an example of a fiduciary relationship EXCEPT

Multiple Choice

a financial advisor advises her clients.

the shareholder elects a board member.


a bank employee manages deposits.

•

a CEO manages the firm.

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.

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

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

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

fixed-charge coverage ratio

basic earning power


times interest earned

ROA

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

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

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

debt management ratios

financial ratios


liquidity ratios

•

equity ratios

A strong liquidity position means that

Multiple Choice

•

the firm is able to meet its short-term obligations.


•

the firm pays out a large portion of its net income in the form of dividends.

•

the firm uses little debt in its capital structure.

•

the firm pays its creditors on time.

Which type of ratio measures the dollars of current assets available to pay each dollar of current liabilities?


rev: 08_14_2018_QC_CS-133354

Multiple Choice

internal-growth

current

cross-section

quick or acid-test


A firm has EBIT of $300,000 and depreciation expense of $12,000. Fixed charges total $44,000. Interest expense totals $7,000. What is the firm’s cash coverage ratio?

Multiple Choice

7.09 times

3.76 times


7.25 times

•

4.91 times

Incorrect

Which of the following measures the number of dollars of sales produced per dollar of fixed assets?

Multiple Choice

•


fixed asset to working capital ratio

fixed asset management ratio

sales to working capital ratio

fixed asset turnover ratio


The term “capital structure” refers to

Multiple Choice

the amount of current versus fixed assets on the balance sheet.

the amount of long-term debt versus equity on the balance sheet.

the amount of current versus long-term debt on the balance sheet.


A firm reported year-end cost of goods sold of $10 million. It listed $2 million of inventory on its balance sheet. Using a 365-day year, how many days did the firm’s inventory stay on the premises?

Multiple Choice

73 days

2 days

20 days


18.25 days

Tops N Bottoms Corp. reported sales for 2018 of $50 million. Tops N Bottoms listed $4 million of inventory on its balance sheet. Using a 365day year, how many days did Tops N Bottoms’ inventory stay on the premises? How many times per year did Tops N Bottoms’ inventory turn over?

Multiple Choice

29.2 days, 0.0345 times, respectively


29.2 days, 12.5 times, respectively

0.08 days, 12.5 times, respectively

12.5 days, 29.2 times, respectively


Which ratio measures how many days inventory is held before the final product is sold?

Multiple Choice

total asset turnover

inventory turnover

days’ sales in inventory


inventory intensity ratio

Which ratio measures the number of dollars of operating earnings available to meet each dollar of interest obligations on the firm’s debt?

Multiple Choice

times interest earned


ROA

•

cash coverage ratio

•

fixed-charge coverage ratio

You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $100 million in assets with $90 million in debt and $10 million in equity. LotsofEquity, Inc. finances its $100 million in assets with $10 million in debt and $90 million in equity.


What are the debt ratio, equity multiplier, and debt-to-equity ratio for the two firms?

Multiple Choice

LotsofDebt: 90 percent, 10 times, 9 times, respectively; and LotsofEquity: 10 percent, 1.11 times, 0.1111 times, respectively

LotsofDebt: 10 percent, 1.11 times, 0.1111 times, respectively; and LotsofEquity: 90 percent, 10 times, 9 times, respectively

LotsofDebt: 90 percent, 1.11 times, 0.1111 times, respectively; and LotsofEquity: 10 percent, 10 times, 9 times, respectively


LotsofDebt: 10 percent, 10 times, 9 times, respectively; and LotsofEquity: 90 percent, 1.11 times, 0.1111 times, respectively

A firm has an ACP of 38 days and its annual sales are $5.3 million. What is its account receivable balance?

Multiple Choice

•

$759,021

•


$619,304

$551,781

$692,098

Tina’s Track Supply’s market-to-book ratio is currently 4.5 times and PE ratio is 10.5 times. If Tina’s Track Supply’s common stock is


currently selling at $100 per share, what is the book value per share and earnings per share?

Multiple Choice

$9.5238, $22.2222, respectively

$1,050, $450, respectively

$450, $1,050, respectively

$22.2222, $9.5238, respectively


Bree’s Tennis Supply’s market-to-book ratio is currently 9.4 times and PE ratio is 20 times. If Bree’s Tennis Supply’s common stock is currently selling at $20.50 per share, what is the book value per share and earnings per share?

Multiple Choice

$192.70, $410.00, respectively

$1.025, $2.1809, respectively


•

$410.00, $192.70, respectively

•

$2.1809, $1.025, respectively

An investor wanting large returns will be interested in companies that have

Multiple Choice


high current ratios.

high times interest earned.

high ROEs.

high ROAs.


Which of the following measures the operating return on the firm’s assets, irrespective of financial leverage and taxes?

Multiple Choice

return on equity

basic earnings power ratio

return on assets


profit margin

For publicly traded firms, which of these ratios measure what investors think of the company’s future performance and risk?

Multiple Choice

liquidity ratios


profitability ratios

•

market value ratios

•

price value ratios

According to the list provided in the textbook, which of the following is NOT one of the cautions in using ratios to evaluate firm performance?


rev: 07_10_2017_QC_CS-93252

Multiple Choice

The firm has different accounting procedures.

The firm has seasonal cash flow differences.

The firm had a one-time event.

The firm has a different capital structure.


To interpret financial ratios, managers, analysts, and investors use which of the following type of benchmarks?

Multiple Choice

•

competitive analysis

•

time series analysis

•


cross-industry analysis

time-industry analysis

Last year Mocha Java, Inc. had an ROA of 10 percent, a profit margin of 5 percent, and sales of $25 million. What is Mocha Java’s total assets?

Multiple Choice


$0.125m.

$1.25m.

$12.5m.

$12m.


Last year Rain Repel Corporation had an ROE of 10 percent and a dividend payout ratio of 80 percent. What is the sustainable growth rate?

Multiple Choice

•

50.00 percent

•

2.04 percent

44.44 percent

1.11 percent ****************************************


FIN 370T Assignment Week 1 Apply: Week 1 Exercise

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

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.


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

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.

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?

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?

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?

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

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

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

time-industry analysis

competitive analysis


cross-industry analysis **********************************

FIN 370T Assignment Week 1 Practice: Finance and Financial Statement Analysis Quiz

For more course tutorials visit

www.tutorialrank.com FIN 370T ASSIGNMENT Week 1 Practice: Finance and Financial Statement Analysis Quiz Complete the Week 1 “Practice: Finance and Financial Statement Analysis Quiz” in Connect®.

Note: You have unlimited attempts available to complete practice Assignment s. The highest scored attempt will be recorded.

These Assignment s have earlier due dates, so plan accordingly.

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

chief financial officer

board of directors


Which of these must effectively distribute capital between investors and companies?

Multiple Choice

companies

individuals

international investors

financial institutions

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.

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

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

institutional investment.

restricted earnings.

venture capital.

retained earnings.

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.

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

asset classes

investments

What is the difference in perspective between finance and accounting?

Multiple Choice

ownership


timing

liability

risk

This subarea of finance is important for adapting to the global economy.

Multiple Choice

financial management


financial institutions and markets

investments

international finance

For corporations, maximizing the value of owner’s equity can also be stated as

Multiple Choice

maximizing net income.


maximizing retained earnings.

maximizing the stock price.

maximizing earnings per share.

Which of the following is NOT a function of the board of directors?

Multiple Choice

evaluate the CEO


design compensation contracts for the CEO

provide reports to the auditors

hire the CEO

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

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.


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

partnership

sole proprietorship

corporation


S corporation

An angel investor differs from a venture capitalist because of the

Multiple Choice

investment time frame.

voting rights.

type of investment.

size of investment.


Which statement is incorrect regarding hybrid organizations?

Multiple Choice

They offer single taxation.

They offer limited risk to the owners.

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

S corporation.

corporation.

sole proprietorship.

partnership.


Corporate stakeholders include all of the following EXCEPT

Multiple Choice

employees.

suppliers.

shareholders.

auditors.


From the perspective of ownership risk, the best form of business organization is the

Multiple Choice

sole proprietorship.

partnership.

corporation.

S corporation.


Which of the following is NOT considered a hybrid organization?

Multiple Choice

all of these choices are correct.

limited partnership

S corporation

limited liability company

limited liability partnership


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


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.

the tax ramifications.

the owners’ risks.


All of the following are an example of a fiduciary relationship EXCEPT

Multiple Choice

a financial advisor advises her clients.

the shareholder elects a board member.

a bank employee manages deposits.

a CEO manages the firm.

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.

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

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


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

fixed-charge coverage ratio

basic earning power


times interest earned

ROA

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


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

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

debt management ratios

financial ratios

liquidity ratios

equity ratios


A strong liquidity position means that

Multiple Choice

the firm is able to meet its short-term obligations.

the firm pays out a large portion of its net income in the form of dividends.

the firm uses little debt in its capital structure.

the firm pays its creditors on time.


Which type of ratio measures the dollars of current assets available to pay each dollar of current liabilities?

rev: 08_14_2018_QC_CS-133354

Multiple Choice

internal-growth

current

cross-section

quick or acid-test


A firm has EBIT of $300,000 and depreciation expense of $12,000. Fixed charges total $44,000. Interest expense totals $7,000. What is the firm’s cash coverage ratio?

Multiple Choice

7.09 times

3.76 times

7.25 times

4.91 times

Incorrect


Which of the following measures the number of dollars of sales produced per dollar of fixed assets?

Multiple Choice

fixed asset to working capital ratio

fixed asset management ratio

sales to working capital ratio

fixed asset turnover ratio


The term “capital structure� refers to

Multiple Choice

the amount of current versus fixed assets on the balance sheet.

the amount of long-term debt versus equity on the balance sheet.

the amount of current versus long-term debt on the balance sheet.


A firm reported year-end cost of goods sold of $10 million. It listed $2 million of inventory on its balance sheet. Using a 365-day year, how many days did the firm’s inventory stay on the premises?

Multiple Choice

73 days

2 days

20 days

18.25 days

Tops N Bottoms Corp. reported sales for 2018 of $50 million. Tops N Bottoms listed $4 million of inventory on its balance sheet. Using a 365-


day year, how many days did Tops N Bottoms’ inventory stay on the premises? How many times per year did Tops N Bottoms’ inventory turn over?

Multiple Choice

29.2 days, 0.0345 times, respectively

29.2 days, 12.5 times, respectively

0.08 days, 12.5 times, respectively

12.5 days, 29.2 times, respectively


Which ratio measures how many days inventory is held before the final product is sold?

Multiple Choice

total asset turnover

inventory turnover

days’ sales in inventory

inventory intensity ratio


Which ratio measures the number of dollars of operating earnings available to meet each dollar of interest obligations on the firm’s debt?

Multiple Choice

times interest earned

ROA

cash coverage ratio

fixed-charge coverage ratio


You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $100 million in assets with $90 million in debt and $10 million in equity. LotsofEquity, Inc. finances its $100 million in assets with $10 million in debt and $90 million in equity. What are the debt ratio, equity multiplier, and debt-to-equity ratio for the two firms?

Multiple Choice

LotsofDebt: 90 percent, 10 times, 9 times, respectively; and LotsofEquity: 10 percent, 1.11 times, 0.1111 times, respectively

LotsofDebt: 10 percent, 1.11 times, 0.1111 times, respectively; and LotsofEquity: 90 percent, 10 times, 9 times, respectively

LotsofDebt: 90 percent, 1.11 times, 0.1111 times, respectively; and LotsofEquity: 10 percent, 10 times, 9 times, respectively

LotsofDebt: 10 percent, 10 times, 9 times, respectively; and LotsofEquity: 90 percent, 1.11 times, 0.1111 times, respectively


A firm has an ACP of 38 days and its annual sales are $5.3 million. What is its account receivable balance?

Multiple Choice

$759,021

$619,304

$551,781

$692,098


Tina’s Track Supply’s market-to-book ratio is currently 4.5 times and PE ratio is 10.5 times. If Tina’s Track Supply’s common stock is currently selling at $100 per share, what is the book value per share and earnings per share?

Multiple Choice

$9.5238, $22.2222, respectively

$1,050, $450, respectively

$450, $1,050, respectively


$22.2222, $9.5238, respectively

Bree’s Tennis Supply’s market-to-book ratio is currently 9.4 times and PE ratio is 20 times. If Bree’s Tennis Supply’s common stock is currently selling at $20.50 per share, what is the book value per share and earnings per share?

Multiple Choice

$192.70, $410.00, respectively

$1.025, $2.1809, respectively

$410.00, $192.70, respectively


$2.1809, $1.025, respectively

An investor wanting large returns will be interested in companies that have

Multiple Choice

high current ratios.

high times interest earned.

high ROEs.


high ROAs.

Which of the following measures the operating return on the firm’s assets, irrespective of financial leverage and taxes?

Multiple Choice

return on equity

basic earnings power ratio

return on assets

profit margin


For publicly traded firms, which of these ratios measure what investors think of the company’s future performance and risk?

Multiple Choice

liquidity ratios

profitability ratios

market value ratios

price value ratios


According to the list provided in the textbook, which of the following is NOT one of the cautions in using ratios to evaluate firm performance?

rev: 07_10_2017_QC_CS-93252

Multiple Choice

The firm has different accounting procedures.

The firm has seasonal cash flow differences.

The firm had a one-time event.


The firm has a different capital structure.

To interpret financial ratios, managers, analysts, and investors use which of the following type of benchmarks?

Multiple Choice

competitive analysis

time series analysis

cross-industry analysis


time-industry analysis

Last year Mocha Java, Inc. had an ROA of 10 percent, a profit margin of 5 percent, and sales of $25 million. What is Mocha Java’s total assets?

Multiple Choice

$0.125m.

$1.25m.

$12.5m.


$12m.

Last year Rain Repel Corporation had an ROE of 10 percent and a dividend payout ratio of 80 percent. What is the sustainable growth rate?

Multiple Choice

50.00 percent

2.04 percent

44.44 percent


1.11 percent ***************************************

FIN 370T Assignment Week 1 Practice: Week 1 Knowledge Check

For more course tutorials visit

www.tutorialrank.com FIN 370T ASSIGNMENT Week 1 Practice: Week 1 Knowledge Check Complete the Week 1 “Knowledge Check” in Connect®.

Note: You have unlimited attempts available to complete this practice Assignment . The highest scored attempt will be recorded. These Assignment s have earlier due dates, so plan accordingly. Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.


MC Qu. 1-14 Which of the following managers would‌

Which of the following managers would NOT use finance?

Multiple Choice

human resource managers

marketing managers

operational managers

all of these choices are .


MC Qu. 1-11 Which of the following is defined‌

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

investments

financial markets

asset classes


MC Qu. 1-63 An angel investor differs from a‌

An angel investor differs from a venture capitalist because of the

Multiple Choice

size of investment.

voting rights.

type of investment.

investment time frame.


MC Qu. 1-18 This type of business organization is‌

This type of business organization is entirely legally independent from its owners.

Multiple Choice

hybrid organizations

partnership

sole proprietorship

public corporations


MC Qu. 1-67 Which of these is the system‌

Which of these is the system of incentives and monitors that tries to overcome the agency problem?

Multiple Choice

checks and Balances

Security Exchange Commission

board of Directors


corporate Governance

MC Qu. 1-54 From the perspective of control, the‌

From the perspective of control, the best form of business organization is the

Multiple Choice

corporation.

partnership.


S corporation.

sole proprietorship.

MC Qu. 1-19 Which of the following is‌

Which of the following is NOT considered a hybrid organization?

Multiple Choice


limited liability partnership

limited liability company

limited partnership

all of these choices are .

S corporation

MC Qu. 1-1 The increase in oil production in‌


The increase in oil production in the United States characterizes which of the following key financial concepts presented in this book?

Multiple Choice

the Rule of 72

time value of money

capital budgeting

risk and return


MC Qu. 1-59 All of the following are an‌

All of the following are an example of a fiduciary relationship EXCEPT

Multiple Choice

a financial advisor advises her clients.

a CEO manages the firm.

the shareholder elects a board member.

a bank employee manages deposits.


MC Qu. 3-85 Which ratio assesses how efficiently a‌

Which ratio assesses how efficiently a firm uses its fixed assets?

Multiple Choice

capital intensity ratio

current ratio

fixed asset turnover

average collection period


MC Qu. 3-90 A firm reported working capital of‌

A firm reported working capital of $5.5 million and fixed assets of $20 million. Its fixed asset turnover was 1.2 times. What was the firm’s sales to working capital ratio?

Multiple Choice

4.36 times

6.03 times

2.21 times

5.19 times


MC Qu. 3-103 Which ratio measures the number of‌

Which ratio measures the number of dollars of operating cash available to meet each dollar of interest and other fixed charges that the firm owes?

Multiple Choice

fixed-charge coverage ratio

cash coverage ratio

operating coverage ratio


times interest earned

MC Qu. 3-25 You are evaluating the balance sheet‌

You are evaluating the balance sheet for Blue Jays Corporation. From the balance sheet you find the following balances: cash and marketable securities = $200,000, accounts receivable = $800,000, inventory = $1,000,000, accrued wages and taxes = $250,000, accounts payable = $400,000, and notes payable = $300,000. What are Blue Jays’ current ratio, quick ratio, and cash ratio, respectively?

Multiple Choice

3.07692, 1.53846, 0.30769


1.05263, 1.05263, 0.21053

2.10526, 1.05263, 0.21053

3.07692, 1.05263, 0.30769

MC Qu. 3-6 Which of the following ratios measure‌

Which of the following ratios measure how efficiently a firm uses its assets, as well as how efficiently the firm manages its accounts payable?

Multiple Choice

quick or acid-test


cash

internal-growth

asset management

MC Qu. 3-20 For publicly traded firms, which of‌

For publicly traded firms, which of these ratios measure what investors think of the company’s future performance and risk?

Multiple Choice


profitability ratios

liquidity ratios

price value ratios

market value ratios

MC Qu. 3-116 Which ratio measures the overall return‌

Which ratio measures the overall return on the firm’s assets including financial leverage and taxes?


Multiple Choice

basic earning power

ROE

ROA

profit margin

MC Qu. 3-112 The maximum growth rate that can…


The maximum growth rate that can be achieved by financing asset growth with internal financing or retained earnings is called the

Multiple Choice

internal growth rate.

sustainable growth rate.

retention rate.

operating expansion rate.


MC Qu. 3-22 Which of the following is the‌

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

weighted growth rate

internal growth rate

sustainable growth rate

retained earnings growth rate


MC Qu. 3-23 To interpret financial ratios, managers, analysts,‌

To interpret financial ratios, managers, analysts, and investors use which of the following type of benchmarks?

Multiple Choice

time series analysis

cross-industry analysis

time-industry analysis

competitive analysis


MC Qu. 3-42 Last year Poncho Villa Corporation had‌

Last year Poncho Villa Corporation had an ROA of 16 percent and a dividend payout ratio of 25 percent. What is the internal growth rate?

Multiple Choice

13.64 percent

33.33 percent

25.40 percent

1.19 percent **********************************


FIN 370T Assignment Week 2 Apply: Time Value of Money Homework

For more course tutorials visit

www.tutorialrank.com FIN 370T ASSIGNMENT Week 2 Apply: Time Value of Money Homework Review the Week 2 “Practice: Time Value of Money Quiz” in Connect®.

Complete the Week 2 “Apply: Time Value of Money Homework” in Connect®.

Note: You have only one attempt available to complete Assignment s. Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date.

With regard to money deposited in a bank, future values are


Multiple Choice

are completely independent of present values.

larger than present values.

equal to present values.

smaller than present values.

Time value of money concepts can be used by

Multiple Choice

CFOs and CEOs to make business decisions.

individuals doing personal financial planning.


All of these choices are correct.

investors calculating a return on an investment.

Which of the following statements is correct?

Multiple Choice

$100 to be received in the future is worth more than that today since it could be invested and earn interest.

$100 to be received in the future is worth less than that today since it could be invested and earn interest.

Discounting is finding the future value of an original investment.

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FIN 370T Inspiring Innovation--tutorialrank.com  

For more course tutorials visit www.tutorialrank.com FIN 370T ASSIGNMENT Week 1 Apply: Finance and Financial Statement Analysis Homework Re...

FIN 370T Inspiring Innovation--tutorialrank.com  

For more course tutorials visit www.tutorialrank.com FIN 370T ASSIGNMENT Week 1 Apply: Finance and Financial Statement Analysis Homework Re...

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