1. The financing provided for start-up, often high-risk, private business enterprises is
a. venture capital.
b. junk bonds.
c. flotation costs.
d. initial public offerings.
e. financial f
Short-Term Finance and Planning
OPERATING CYCLE a 1. The length of time between the acquisition of inventory and the collection of cash from receivables is called the: a. operating cycle. b. inventory period. c. accounts receivab
Cash and Liquidity Management
1. The need to hold cash to take advantage of additional investment opportunities is
called the _ motive.
Long-Term Financial Planning and Growth I. DEFINITIONS
PLANNING HORIZON a 1. The long-range time period, usually the next two to five years, over which the financial planning process focuses is known as the: a. planning horizon. b. planning stra
Risk Management: An Introduction to Financial Engineering
1. _ is the process of reducing a firms exposure to price or rate fluctuations.
d. Value minimization
International Corporate Finance
AMERICAN DEPOSITORY RECEIPT
1. A security issued in the United States that represents shares of a foreign stock and
allows that stock to be traded in the United States is called a(n):
Options and Corporate Finance I. DEFINITIONS
OPTIONS a 1. A financial contract that gives its owner the right, but not the obligation, to buy or sell a specified asset at an agreed-upon price on or before a given future date is called a(n) _ co
Financial Leverage and Capital Structure Policy
1. The use of personal borrowing to change the overall amount of financial leverage to
which an individual is exposed is called:
a. homemade leverage.
1. The purchase of both a stock and a put option on the stock to limit the downside risk
associated with the stock is a strategy called the:
a. put-call parity relation.
b. covered call.
Introduction to Valuation: The Time Value of Money
1. The amount an investment will worth after one or more periods of time is the _
Return, Risk, and the Security Market Line
1. A portfolio is:
a. a group of assets, such as stocks and bonds, held as a collective unit by an investor.
b. the expected return on a risky asset.
c. the expected return
Cost of Capital
COST OF CAPITAL
1. The opportunity cost associated with the firms capital investment in a project is
a. cost of capital.
b. beta coefficient.
c. capital gains yield.
d. sunk cost.
e. internal rate of
Dividends and Dividend Policy I. DEFINITIONS
DIVIDENDS a 1. Payments made out of a firms earnings to its owners in the form of cash or stock are called: a. dividends. b. distributions. c. share repurchases. d. payments-in-kind. e. stock splits.
Mergers and Acquisitions
1. The complete absorption of one company by another, wherein the acquiring firm
retains its identity and the acquired firm ceases to exist as a separate entity, is called
Job income (from paystub) - annual
Scholarship income - annual
SS wage base
Grant money - annual
Student loans - annual
Financial support from parents/others
Project Analysis and Evaluation
1. The possibility that errors in projected cash flows can lead to incorrect estimates of
net present value is called _ risk.
d. Monte Ca
Making Capital Investment Decisions
INCREMENTAL CASH FLOWS
1. The changes in a firms future cash flows that are a direct consequence of accepting a
project are called _ cash flows.
Some Lessons from Capital Market History
1. The excess return required from a risky asset over that required from a risk-free asset
is called the:
a. risk premium.
b. geometric premium.
c. excess return.
Credit and Inventory Management
TERMS OF SALE
1. The conditions under which a firm sells its goods and services for cash or credit are
a. terms of sale.
b. credit analysis.
c. collection policy.
d. payables policy.
Finance 3716 Quiz #2
Due: September 18, 2015
Instructions: Select the best answer for each of the multiple choice questions. If the correct answer is
not an available choice, then select none of the above and write the correct answer in the blank.
LOUISIANA STATE UNIVERSITY
FIN 1060 Personal Money Management
E. J. Ourso College of Business, Department of Finance
FIN 1060 PERSONAL MONEY
COURSE DESCRIPTION & PURPOSE:
1 semester credit hour. Development of core financial strat
Net Present Value and Other Investment Criteria
NET PRESENT VALUE
1. The difference between the present value of an investment and its cost is the:
a. net present value.
b. internal rate of return.
c. payback period.
Stock Valuation I. DEFINITIONS
GROWING PERPETUITY a 1. An asset characterized by cash flows that increase at a constant rate forever is called a: a. growing perpetuity. b. growing annuity. c. common annuity. d. perpetuity due. e. preferred stock
March 14, 2014
Balancing your checkbook is a method of verifying that your records (your
checkbook) match the bank's records, as shown on your monthly bank statement. This
will always be an important task, although the method of acco
January 24, 2014
SFMC Website Evaluation
The purpose of the SFMC is to educate students on real life financial situations
and teach them how to successfully manage their money. I strongly recommend
reviewing this website because it provides
February 21, 2014
In this weeks assignment, I have learned how to create an Emergency savings
fund properly by knowing what to do when unexpected events throw my budget off
without warning. In life you should expect the unexpected, and this
Emergency Fund Analysis
Number of years to reach goal:
Return target for investments:
Gross Annual Income:
Taxes & Social Security:
Other annual deductions from payroll:
List your goals:
I want to
Get an advanced degree (MBA, PhD, Other)
Pursue specialized credentials (CFP, CPA, SPHR, etc.) or get specialized training
By what date?
How much do I need?