Liamxavier

A potential project to expand the size of an apartment complex will cost $100,000. Its calculated net present value is $5,000. Given this information, which statement is correct? - -The project should be accepted because it has a positive NPV. -The YTM of a bond went from 8% to 7%. What can be predicted about the price of the bond? - -It will increase. -0 / 1 The company Betsy's Wigs is considering three potential projects that are not mutually exclusive. The IRR, NPV, and PI for each pr...

What is a corporate finance? - -What investments should you take on? Where will you get the financing to pay for your investment? When the business is successful, how will you share in the rewards? -What is a balance sheet? - -The balance sheet is a snapshot of the firm. It is a convenient means of organising and summarising what a firm owns (its assets), what a firm owes (its liabilities), and the difference between the two (the firm's equity) at a given point in time. -What are current...

-52) What is the primary purpose of financial accounting? A) Determine the amount of tax liability owed to the government. B) Communicate business activities to internal management. C) Measure business activities and communicate those measures to external users to make decisions. D) Measure the profitability of the company in order to assist employees with making decisions. - -ch 1 Answer: C -53) The primary purpose(s) of financial accounting is(are) to: A) Measure and record business tr...

Purpose of Financial Accounting - -Provide useful financial information to capital providers (investors and creditors) in making decisions -Cash Basis Accounting - -Difference between cash receipts and cash disbursements from providing goods and services= Net Operating Cash Flow -Short periods of time... - -Operating cash flows may not be an accurate predictor of future operating cash flows, sometimes a company pays or receives cash in one period that relates to performance in multiple per...

Capital Budgeting - -the process of planning and managing a firms long term investments -size -time -risk -capital structure - -mixture of firms long term debt and equity the firm uses to finance it's operations -working capital - -deals w/ a firms short term assets (inventory) and short term liability (money owed to suppliers). managing this is a day to day activity that ensures the firm has sufficient resources to continue operations and avoid costly interruptions -agency prob...

Corporate Finance - -The study of ways to answer these questions: Where will you get the long term financing for those investments? Will you bring in other owners or will you borrow the money? How will you manage your everyday financial activities such as collecting from customers and paying suppliers? What long term investments should you take on? That is, what lines of business will you be in what sorts of buildings, machinery, and equipment will you need? -Stockholders (owners) ar...

Globalization refers to the removal of barriers to free trade and the closer integration of national economies. - -True -The production of goods and services has become highly globalized due to emergence of large multinational companies. - -True -Country risk has no effect on a firm's cash flows. - -False -Stockholder wealth maximization is the accepted goal for firms in all countries around the world. - -False -The European manager's goal is to earn as much wealth as possible for ...

balance sheet --financial statement that reflects a firm's accounting value on a particular date -shareholders equity --the residual value of a corporation after all debts have been paid. consists of paid in surplus, common stock, and retained earnings -net working capital --the difference between a firm's current assets and its current liabilities. accounts payable, cash, inventory -income statement --reflects a firms performance over a period of time -earnings per share --amount ...

Chapter 1 NOTE: add chapter homework. - - -What is Finance? - -How well capital and investments are managed. -Finance stems from? - -Grew out of Economics and Accounting, requires knowledge of both Economics and Accounting. -Economist view on assets? - -argues that asset's value is based on the future cash flows the assets will provide. -Describe Accounting? - -Provides information regarding the likely size of the cash flows. -Who controls accounting department? - -Chief Financia...

An 80-year-old man was treated for ventricular arrhythmias. He presents 1 month later with joint pain. He also has an unusual mask-like rash over his face and body. Discontinuation of drug therapy causes the symptoms to abate. What drug was most likely administered to this patient? 1 Tocainide 2 Quinidine 3 Procainamide 4 Phenytoin 5 Propranolol - -Procainamide - often prescribed for long-term control of arrhythmias. May cause lupus like SE. -A 62-year-old woman with a long-standin...