You have prepared a trend series for Company XYZ for three years, 2003-2005 inclusive, using
2000 as the base year. Below are selected data.
From the above information yo
20. (TCO 5) A low working capital turnover ratio indicates: (Points : 5)
21. (TCO 5) If the working capital is out of line, then analyze: (Points : 5)
individual current asset and current liability accounts.
22. (TCO 6) For cash to be
Exam 1 FIN370 Fall 2011 Version B Key
1. You are analyzing a company that has cash of $2,000, accounts receivable of $3,700, fixed assets of $10,900,
accounts payable of $6,600, and inventory of $4,100. What is the quick ratio?
Chapter 01 - Limits, Alternatives, and Choices
Limits, Alternatives, and Choices
Multiple Choice Questions
1. Economics is the study of:
A. increasing the level of productive resources so there is maximum output in society.
B. increasing the le
What are some examples of incremental project cash flows? Can you provide some examples
of real-life project scenarios?
Whenever a company takes up the new project, additional operating cash flows are
generated which are termed as incr
What factors increase the riskiness of a project? Consider the project length, the competition and
the estimated sales. How do these factors affect project risk?
An investor should carefully evaluate the risk and return associated with
Portfolio means bunch of investments whether it is held by institutions,
companies or individuals. Therefore investment portfolio management
means managing the investment whether it is made in shares (Equities),
debentures etc. It requires lot of t
Difference between APR and EAR
1) Annual Percentage rate (APR) is the nominal rate while the EAR or
effective percentage rate is the effective rate.
2) APR is the simple interest rate which accrues only on the amount
originally borrowed or lent whi
What are some real-life scenarios where you can apply the time value of money?
The time value of money is one of the important concepts in financial management. It is
used to compare the investment alternatives and select the best alte
Money has a time value because a dollar in todays terms is worth more than a dollar
received a year later or at any time in future. Reason being with money in hand today,
one can invest and earn interest out of it for the time period. This is similar to t
(TCO 3) If you borrow $50,000 today at 10% interest for eight years. How much of your second
payment will be applied to interest? (Points: 3)
can not be determined with the information given
Solution: Computation of the Seco
. Say you are the manager of a perfectly competitive firm selling a product. Your business is
making a loss because total revenue is less than total costs. What would you do-shut down
or continue to operate? Use hypothetical numbers to explain. Informatio
[enter years here]
Your Company Name
What are some of the most important risks associated with bonds?
There are different kinds of risk involved with the bond like Interest Rate Risk; Prepayment Risk; Reinvestment
Interest Rate Risk: this is the most important of all the risk
How do dividends impact the value of a share of stock? Are there any instances in which companies should not
Dividends are the key signal indicator in the market about the prospects of the company. There are always two
sides to it
1. (TCO 2) Select any actions that decrease the cash account. Select all that apply: (Points: 3)
Goods are sold on credit
Solution: - No this transaction will not effect the cash account
Account Receivable A/c-Dr
To Sales A/c
An interest payment on a note
1. Liquidity of a company is generally defined as a measure of: (Points : 2)
the ability of a company to pay its employees in a timely manner.
the ability to pay interest and principal on all debt.
the ability to pay dividends.
the ability to pay current
ECO 211 Microeconomics
William Rainey Harper College
E-Mail: [email protected]
Price Elasticity of Demand
Calculate the price elasticity of demand for the followin
Professor Marie Main
Papa Geos Restaurant
Manchester Airports Price Cap, 2003-2008:
CAA recommendations to the
Cost of Capital for Manchester Airport
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The cost of capital for Manchester Airport
Review: Incremental Cash Flow-1
Review of Incremental Cash Flow Analysis
I. Cash Flow Estimation
Goal: identify incremental, after-tax cash flows
1) how do after tax cash flows of firm change as result of undertaking project?
=> Hint: with vs. witho
Although estimates vary, it is suggested that 80% or more of the job openings that exist are in the
hidden job market. What is the difference between the published job market and the hidden job
market? What techniques would you usually use to ac
Yes, it is true that job searching is very pathetic task and it becomes more fearful and
pathetic in a situation, when we are not getting the expected outcomes. I can explain this
situation best because recently I undergo in this situation.
A career is a sequence of positions or jobs held by a person during the course of his
working life. It is not a series of work related experience but a sequence of attitudes and
behaviour associated with work related activities over the span of a persons
Course Project Part II
You will assume that you still work as a financial analyst for the Coca Cola Co. The
company is considering a capital investment and you are in charge of helping them
launching a new product based on (1) a given rate of
Capital Budgeting Overview
Capital Budgeting is the set of valuation techniques for real asset investment decisions. Capital Budgeting Steps
expected future cash flows for the proposed real asset investment (Chap 12) estimating the firms cos
Course Project Final
Horizontal and Vertical Analysis
Instructor: Nick McGaughey
General information about the Industry and companies.
For my course project I chose to compare Apple Inc. (ticker sym