_____ is the ability to convert an asset into cash quickly...

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Exam 1 Concepts 1. _____ is the ability to convert an asset into cash quickly and without loss of value.
2. Which of the following best describes the goal of the financial manager?
3. The four main areas (or fields) of Finance are Corporate Finance, Investments, International Finance, and _____.
4. Which of the following is NOT one of the major functions performed by financial managers?
5. According to your text, the highest-ranking financial manager in the firm is the _____.
6. _____ is defined as current assets minus current liabilities.
7. _____ is the complement of the dividend payout ratio.
8. _____ is the simplest form of the business organization.
9. The major disadvantage of the corporate form of business ownership in the U.S. is _____.
10. _____ is the name for decision making related to the firm’s short-term assets and short-term liabilities.
11. Company A’s P/E Ratio is 12.50, its Current Ratio is 1.75, and its Net Profit Margin is 9.25%. Company B’s P/E Ratio is 15.75, its Current Ratio is 1.25%, and its Net Profit Margin 10.10%. Which of the following is most correct?
12. _____ is the cash flow that is available for distribution to shareholders and other investors after investments have been made to secure the firm’s productive future. Cash Flow from Assets Exam 2 Concepts 1. A perpetuity, a special form of an annuity, pays cash flows
2. The process of paying off a loan by making regular principal reductions is called
3. The loner money can earn interest,
4. The simple form of an annualized interest rate is called the annual percentage rate (APR). the effective annual rate (EAR) is a
5. You expect to receive an amount of money in the future. The process of figuring out how much that amount is worth today is called:
6. When moving from the left to the right of a time line, we are using
7. How are future values affected by changes in interest rates?

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