FIN 370 - FINAL - SET 2 -...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
1) The true owners of the corporation are the:  A. holders of debt issues  of the firm. B. preferred  stockholders. C. board of directors of  the firm. D. common  stockholders. 2) Which of the following best describes the goal of the firm?  3) In terms of organizational costs, which of the following sequences is correct,  moving from lowest to highest cost?  4) __________ is a method of offering securities to a limited number of investors. 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
5) When public corporations decide to raise cash in the capital markets, what  type of financing vehicle is most favored?  6) Money market instruments include:  7) Which of the following is NOT a principle of basic financial management?  8) Difficulty in finding profitable projects is due to:  9) According to the agency problem, _________ represent the principals of a  corporation. 
Background image of page 2
10) Which of the following financial ratios is the best measure of the operating  effectiveness of a firm’s management?  11) The accounting rate of return on stockholders’ investments is measured by:  12) Marshall Networks, Inc. has a total asset turnover of 2.5% and a net profit  margin of 3.5%. The firm has a return on equity of 17.5%. Calculate Marshall’s  debt ratio.  13) When George Washington was president of the United States in 1797, his  salary was $25,000. If you assume an annual rate of inflation of 2.5%, how much  would his salary have been in 1997?  A. $954,719 B. $2,525,548 C. $3,489,097 D. $4,085,920
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
E. $1,025,000 14) You have $10,000 to invest. You do not want to take any risk, so you will put  the funds in a savings account at the local bank. Of the following choices, which  one will produce the largest sum at the end of 22 years?  15) If you are an investor, which of the following would you prefer?  16) Purchases of plant and equipment can be determined from the:  17) The primary purpose of a cash budget is to:  18) All of the following are found in the cash budget EXCEPT: 
Background image of page 4
19) Which of the following is a non-cash expense? 
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/30/2011 for the course FIN 370 FIN 370 taught by Professor Joebrennan during the Summer '09 term at University of Phoenix.

Page1 / 14

FIN 370 - FINAL - SET 2 -...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online