UOPFIN370 Lessons in Excellence--uopfin370.com

shares outstanding discounting the future dividends and future stock price appreciation compounding the past dividends and past stock price appreciation Which of these is the process of estimating expected future cash flows of a project using only the relevant parts of the balance sheet and income statements? Substitutionary analysis Incremental cash flows Cash flow analysis Pro forma analysis Five years ago, Jane invested $5,000 and locked in an 8 percent annual interest rate for 25 years (ending 20 years from now). James can make a 20-year investment today and lock in a 10 percent interest rate. How much money should he invest now in order to have the same amount of money in 20 years as Jane? $7,346.64 $5,089.91 $3,160.43 $3,464.11 The overall goal of the financial manager is to__________. maximize net income maximize earnings per share maximize shareholder wealth minimize total costs Which of the following can create ethical dilemmas between corporate managers and stockholders? Auditors Board of directors Agency relationship Venture Capitalist A firm is expected to pay a dividend of $2.00 next year and $2.14 the following year. Financial analysts believe the stock will be at their target price of $75.00 in two years. Compute the value of this stock with a required return of 10 percent. $79.14 $65.40 $65.57 $66.67 Which financial statement shows the total revenues that a firm earns and the total expenses the firm incurs to generate those revenues over a specific period of time — generally one year? Statement of cash flows Statement of retained earnings Balance sheet Income statement Which of the following is a true statement? If interest rates fall, all bonds will enjoy rising values. If interest rates fall, corporate bonds will have decreasing values. If interest rates fall, no bonds will enjoy rising values. If interest rates fall, U.S. Treasury bonds will have decreasing values. ==============================================