2009-11-18_011510_FIN400

2009-11-18_011510_FIN400 - 1) D. emphasized...

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

View Full Document Right Arrow Icon
1) Maximization of shareholder wealth is a concept in which D. optimally increasing the long-term value of the firm is  emphasized. 2) Regarding risk levels, financial managers should D. evaluate investor's desire for risk 3) One of the major disadvantages of a sole proprietorship is A. that there is unlimited liability to the owner. 4) Which of the following is an inflow of cash? C. the sale of the firm's bonds 5) Which of the following would represent a use of funds and,  indirectly, a reduction in cash balances? A. an increase in inventories 6) The statement of cash flows does NOT include which of the  following sections? D. cash flows from sales activities 7) For a given level of profitability as measured by profit margin,  the firm's return on equity will
Background image of page 1

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

View Full Document Right Arrow Icon
B. increase as its debt-to assets ratio increases. 8) In examining the liquidity ratios, the primary emphasis is the  firm's . B. ability to pay short-term obligations on time. 9) The most rigorous test of a firm's ability to pay its short-term  obligations is its . D. quick ratio. 10) A firm's long term assets = $75,000, total assets =  $200,000, inventory = $25,000 and current liabilities = $50,000. C. current ratio = 2.5; quick ratio = 2.0 11) View Full Image Refer to the figure above. The firm's fixed asset turnover ratio is A. 3.1x 12) View Full Image Refer to the figure above. The firm's inventory turnover ratio is D. 8x. 13) In general, the larger the portion of a firm's sales that are on  credit, the
Background image of page 2
D. higher will be the firm's need to borrow. 14) In order to estimate production requirements, we
Background image of page 3

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

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 8

2009-11-18_011510_FIN400 - 1) D. emphasized...

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

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