FIN 301 Quiz 1

Fundamentals of Corporate Finance Standard Edition

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Question 1 To 15 = 1.67 Points each Question 15 To 25 = 2.50 Points each Student: 1. Which one of the following terms is defined as the management of a firm's long-term investments? A. working capital management B. financial allocation C. agency cost analysis D. capital budgeting E. capital structure 2. Which one of the following is defined as a firm's short-term assets and its short-term liabilities? A. working capital B. debt C. investment capital D. net capital E. capital structure 3. Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers? A. articles of incorporation B. corporate breakdown C. agency problem D. bylaws E. legal liability 4. The _____ tax rate is equal to total taxes divided by total taxable income. A. deductible B. residual C. total D. average E. marginal
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A. operating cash flow. B. capital spending cash flow. C. net working capital. D. cash flow from assets. E . cash flow to creditors. 6. Which of the following are current assets? I. patent II. Inventory III. accounts payable IV. cash A. I and III only B. II and IV only C. I, II, and IV only D. I, II and III only E. II, III, and IV only 7. Which one of the following will increase the value of a firm's net working capital? A. using cash to pay a supplier B. depreciating an asset C. collecting an accounts receivable D. purchasing inventory on credit E. selling inventory at a profit 8. Which one of the following accounts is the most liquid? A. inventory
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This note was uploaded on 07/08/2011 for the course FIN 301 taught by Professor Rahman during the Spring '10 term at Post.

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FIN 301 Quiz 1 - Question 1 To 15 Question 15 To 25 = =...

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