{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

MidtermKey

# MidtermKey - Midterm FIN370 Summer 2009 Key 1 The potential...

This preview shows pages 1–4. Sign up to view the full content.

Midterm FIN370 Summer 2009 Key 1. The potential conflict of interest between a firm's owners and its managers is referred to as a(n): A. control issue. B. management conflict. C. organizational problem. D. structure problem. E. agency problem. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #7 SECTION: 1.5 TOPIC: AGENCY PROBLEM TYPE: DEFINITIONS 2. The process of managing a firm's long-term investments is called: A. asset allocation. B. risk management. C. working capital management. D. capital budgeting. E. capital structure management. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #1 SECTION: 1.2 TOPIC: CAPITAL BUDGETING TYPE: DEFINITIONS 3. What is the future value of \$4,900 invested for 8 years at 7 percent compounded annually? A. \$8,419.11 B. \$8,564.35 C. \$5,629.53 D. \$7,644.15 E. \$8,536.85 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 004 #34 SECTION: 4.1 TOPIC: FUTURE VALUE TYPE: PROBLEMS

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

View Full Document
4. A series of unending cash flows of equal amount that occur at equal intervals of time is called a(n): A. ordinary annuity. B. absolute annuity. C. perpetuity. D. perpetuity due. E. annuity due. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEVEL OF DIFFICULTY: BASIC Ross - Chapter 005 #3 SECTION: 5.2 TOPIC: PERPETUITY TYPE: DEFINITIONS 5. Common-size financial statements present all account values: A. as a percentage of sales. B. in percentage terms. C. in millions of dollars. D. as a percentage of the budgeted value. E. in growth terms. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 003 #1 SECTION: 3.1 TOPIC: COMMON-SIZE STATEMENT TYPE: DEFINITIONS 6. Which one of the following will increase the cash flow from assets, all else constant? A. a decrease in the cash flow to creditors B. a decrease in dividends paid C. an increase in depreciation D. an increase in the change in net working capital E. an increase in net capital spending BLOOMS TAXONOMY QUESTION TYPE: ANALYSIS LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: CHALLENGE Ross - Chapter 002 #42 SECTION: 2.4 TOPIC: CASH FLOW FROM ASSETS TYPE: CONCEPTS
7. Conway & Sons had \$26,500 in net fixed assets at the beginning of the year. During the year, the company purchased \$5,700 in new equipment. It also sold, at a price of \$1,000, some old equipment with a book value of \$850. The depreciation expense for the year was \$4,300. What is the net fixed asset balance at the end of the year? A. \$20,800 B. \$27,050 C. \$15,650 D. \$31,200 E. \$26,900 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 002 #57 SECTION: 2.1 TOPIC: NET FIXED ASSETS TYPE: PROBLEMS 8. Larson, Inc. has total assets of \$248,000 and an equity multiplier of 2.5. What is the debt-equity ratio? A.

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 34

MidtermKey - Midterm FIN370 Summer 2009 Key 1 The potential...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online