Estherlinasmith

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...

Corporate finance has three main areas of concern - -a. Capital budgeting b. Capital structure c. Working capital management -Capital Budgeting - -- The process of planning and managing a firm's long-term investments. - What long-term investments should the firm take? - What long-term investments should you take on? That is, what lines of business will you be in and what sorts of buildings, machinery, and equipment will you need? - Evaluating the size, timing, and risk of future cash f...

What is the perimeter of the figure provided? - -29 cm The perimeter of the figure is 2 × (l + w) = 2 × (5.5 + 9) = 29 cm. -As shown below, a figure was cut along the dotted line to form a second figure. What statement is true about the figures? - -The area of the 2 figures is congruent, but the perimeter of the second figure is greater. The area is the same because the shapes occupy the same amount of space, but the perimeter is greater for the second figure because it has 2 new exter...

Capital Structure - -The combination of debt and equity used to finance a company's assets and operations. Debt comes in the form of bond issues or loans, while equity may come in the form of common stock, preferred stock, or retained earnings. When analysts refer to capital structure, they are most likely referring to a firm's debt-to-equity (D/E) ratio, which provides insight into how risky a company's borrowing practices are. Usually, a company that is heavily financed by debt has a...

A customer buys AC Growth Fund and enjoys a substantial paper capital gain. When he believes the market has reached its peak, he switches into AC Income Fund within the AC family of funds. He incurs a small service fee but is not charged an additional sales charge. What is the tax effect? A) Any gain or loss is deferred until he liquidates the AC Income Fund. B) Any gain in AC Growth Fund is taxable because the exchange is treated as a sale and a purchase. C) It is a tax-free exchange....

Jade wants to buy a $200,000 term life insurance policy. She is 34 years old. Using the premium table, what is her annual premium for a 10 year policy? - -B. $1,202 -Sherita, age 37, wants to pay no more than $750 a year in life insurance. If the annual life insurance premium rate (per $1000 of face value) is $3.96, what is the largest 15-year term policy she can buy without spending more than $750 annually? - -A. $189,000 -Angelo, age 40, is comparing the premium for a $125,000 whole life...

A key difference between principles and theories is that: A)principles are based on data, whereas theories are based on intuitions. B) principles can be applied to a variety of different situations, whereas theories are specific to only one phenomenon. C) principles tend to be fairly stable over time, whereas theories are expanded and modified based on new research. D)principles provide possible explanations for learning or development, whereas theories simply identify important factors. - -...

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...

1.1 How do you understand the following statement: "Corporate Finance is focused". - -Goals of the Corporation: Shareholders desired wealth maximization. -1.2 Who are the principal financial managers in a corporation? Write down their main responsibilities. - -Chief Financial Officer (CFO): Supervises all financial functions and sets overall financial strategy. Treasurer: Responsible for financing, cash management, and relationships with banks and other financial institutions Controll...