The price earnings ratio (PE) is a _ ratio
Which of the following are traditional financial ratio categories?
Financial leverage ratios
The major downside of using financial statements for analysis id that
A good financial decision will do which of the following?
Increase shareholders equity
Increase the value of the firm's existing stock
A corporation is a distinct _ entity and as such can have a name and take
advantage of the legal powers of natural perso
A_gets paid after the employees, suppliers, and creditors.
A sole proprietorship is a business that_.
-Is owned by one person.
Alpha Co. has interest expense of $1.2 million, total assets of $84 million, sales of
$76 million, long t
Penguin Pucks, Inc., has current assets of $5,100, net fixed assets of $23,800, current liabilities of $4,300,
and long-term debt of $7,400. What is the value of the shareholders equity account for this firm? How
much is net working capital?
Finical Management decisions: The process of planning and managing a firm's long-term investments is
called capital budgeting. A firm's capital structure (or financial structure) refers to the specific mixture of
long-term debt and equity the firm uses to
BA 323 S 17 Section 5
Exam III study guide
Key notes to study for
Concept and Calculate (Financial Calculator)
o Net Present Value (237) (8-7/266)
o The Payback Rule (241) (8-2/265)
o Internal Rate of Return (247) (8-5/265)
o Profitability Inde
Future value (FV) refers to amount of money investment will grow over some period of time at some given interest rate.
Put another way, future value is the cash value of an investment at some time in the future. We start out by considering
the simplest ca
Mullineaux Corporation has a target capital structure of 55 percent common stock, 10 percent preferred
stock, and 35 percent debt. Its cost of equity is 9 percent, the cost of preferred stock is 4 percent, and
the pretax cost of debt is 5 percent. The rel
Stock in CDB Industries has a beta of .94. The market risk premium is 7.4 percent, and T-bills are
currently yielding 4.4 percent. CDBs most recent dividend was $2.30 per share, and dividends are
expected to grow at an annual rate of 5.4 percent indefinit