SELF TEST (Financial Statements)
1. Of all its communications with shareholders, a firms _ report is generally the most
2. The income statement reports the results of operations during the past year, the most im
Please write your answers clearly. If you are required to solve the problem, show all the
appropriate steps for your answer. Otherwise, you may not receive the full credit.
1. As the treasurer of a financial institution, your tas
1. Based on the following information, answer the questions.
2011 Income Statement
Costs of goods sold
2011 Balance Sheet
Finance Review Sheet Test #1: 3 Areas: 1) Financial Management 2) Investments 3) Markets & Institutions Financial markets- 1) Primary- first time in market 2) secondary 1) Banks a. Loans & mortgages- people need funds in excess of what they have 2) F
SELF TEST (International Finance)
1. The _ _ determines the number of units of one currency that can be
exchanged for another.
2. International financial transactions were carried out under a(n) _ _ _
system from the end o
SELF TEST (Bonds)
1. A(n) _ is a long-term contract under which a borrower agrees to make payments of
interest and principal on specific dates.
2. _ bonds are issued by state and local governments, and the _ earned on
SELF TEST (Financial Forecasting)
1. If various asset categories increase, _ and/or _ must also increase.
2. Typically, certain liabilities will rise _ with sales. These include accounts
_ and _.
3. _, _ stock, _ stock, an
REFLECT ON THE SIDEWAY MOVEMENTS IN EQUITY PRICES
Based on the notion that market is efficeinet
Earnings and discount them
Earinng estimate has come down and describe A
GDP for first quareter is flat. Economny is not growing so it is hard for cropo
SELF TEST (Risk and Return)
1. Investment risk is associated with the _ of low or negative returns; the greater
the chance of loss, the riskier the investment.
2. A listing of all possible _, with a probability assigned to
SELF TEST (Stocks)
1. One of the fundamental rights of common stockholders is to elect a firms _, who
in turn elect the firms operating management.
2. If a stockholder cannot vote in person, participation in the annual mee
SELF TEST (Capital Budgeting)
1. A firms _ _ outlines its planned expenditures on fixed assets.
2. The number of years necessary to return the original investment in a project is known as the
3. The primary advantage
SELF TEST (Overview)
1. Sole proprietorships are easily formed, but often have difficulty raising _, they
subject proprietors to unlimited _, and they have a limited _.
2. Partnership profits are taxed as _ income in propo
SELF TEST (Analysis of Financial Statements)
1. The current ratio and acid test ratio are examples of _ ratios. They measure a
firms ability to meet its _-_ obligations.
2. The days sales outstanding (DSO) ratio is found b
SELF TEST (Time Value of Money)
1. The beginning value of an account or investment in a project is known as its _
2. Using a savings account as an example, the difference between the account's present value and
You are offered the opportunity to put some money away for retirement. You will
receive five annual payments of $25,000. How much would you be willing to
invest today if you desire an interest rate of 12%?
Firm A issued 12-year bonds with a par value of $1,000 two years ago at a 9
coupon rate, paid semiannually. The yield to maturity on these bonds is 8
a) What is the current bond price?
Use the following information to answer the questions
Case I: Capital structure theory (no tax)
Case II: Capital structure theory (corporate tax)
EBIT : $33 million
EBIT : $33 million
Cost of equity : 14%
Tax rate : 40%
Debt-to-Firm value : 50%
Google.com, founded by Larry Page and Sergey Brin, was registered as a domain on
September 15th 1997. The name was first BlackRub, and then changed to Google to reflect the