Welcome to the comprehensive Q&A package designed to assist students in mastering the concepts of financial management as covered in WGU's C214 course. This guide is meticulously crafted to provide concise yet thorough explanations, enabling you to understand and apply financial management principl...
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Ptis the sold price Pt-1is the bought price CFtis the cash flow (coupons for bonds; dividends for stocks). Dollar Returns= Pt - Pt-1 + CFt Cash Flow from Investing (CFI)= Change in Net PP&E + Depreciation Expense Net PP&E= Gross PP&E - Accumulated Depreciation With the assumption o...
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Add to cartPtis the sold price Pt-1is the bought price CFtis the cash flow (coupons for bonds; dividends for stocks). Dollar Returns= Pt - Pt-1 + CFt Cash Flow from Investing (CFI)= Change in Net PP&E + Depreciation Expense Net PP&E= Gross PP&E - Accumulated Depreciation With the assumption o...
What standards are used to help US investors understand and compare foreign financial statements to domestic financial statements? International Financial Reporting Standards When a company is optimizing its resources and maintaining or improving productivity, they are engaging in what hypothesis...
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Add to cartWhat standards are used to help US investors understand and compare foreign financial statements to domestic financial statements? International Financial Reporting Standards When a company is optimizing its resources and maintaining or improving productivity, they are engaging in what hypothesis...
Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) F (T/F) Stocks and bonds are two types of financial instruments True The matching principle in accrual accounting requires that: a. Revenues be recognized when the earnings process is complete and matches expe...
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Add to cartTrading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) F (T/F) Stocks and bonds are two types of financial instruments True The matching principle in accrual accounting requires that: a. Revenues be recognized when the earnings process is complete and matches expe...
1. A firm reported the following: Net Income 100,000 Depreciation 25,000 Change in NWC 15,000 What is the CFO (cash flow from operations)? a. 100,000 b. 110,000 c. 120,000 d. (130,000) CFO = Net Income + Depreciation - Increase NWC =100,000 + 25,000 - 15,000 2. What is the Cash Flow fr...
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Add to cart1. A firm reported the following: Net Income 100,000 Depreciation 25,000 Change in NWC 15,000 What is the CFO (cash flow from operations)? a. 100,000 b. 110,000 c. 120,000 d. (130,000) CFO = Net Income + Depreciation - Increase NWC =100,000 + 25,000 - 15,000 2. What is the Cash Flow fr...
Accrual Accounting Accounting system based on recording accounts based on historical prices and the matching principle Matching Principle Accrual accounting principle to match revenues and expenses in the same period Historical cost principle Accrual accounting principle to recorded assets, li...
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Add to cartAccrual Accounting Accounting system based on recording accounts based on historical prices and the matching principle Matching Principle Accrual accounting principle to match revenues and expenses in the same period Historical cost principle Accrual accounting principle to recorded assets, li...
Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) False Stocks and bonds are two types of financial instruments (T/F) True The matching principle in accrual accounting requires that: Revenues be recognized when the earnings process is complete and matches expens...
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Add to cartTrading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) False Stocks and bonds are two types of financial instruments (T/F) True The matching principle in accrual accounting requires that: Revenues be recognized when the earnings process is complete and matches expens...
Which will be larger: actual taxes payable or accounting income tax expense Accounting tax expense will be higher; actual taxes based on IRS rules will be lower Which cash flow measures the change in long term assets? Cash flow investing Which financial ratios measure "efficiency"? Asset tur...
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Add to cartWhich will be larger: actual taxes payable or accounting income tax expense Accounting tax expense will be higher; actual taxes based on IRS rules will be lower Which cash flow measures the change in long term assets? Cash flow investing Which financial ratios measure "efficiency"? Asset tur...
Which will be larger: accrual taxes payable or accounting income tax expense Accounting tax expense will be higher; actual taxes based on IRS rules will be lower Which financial ratios measure "efficiency"? Asset turnover and Fixed Asset turnover Which ratio is the best measure of a firm's ...
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Add to cartWhich will be larger: accrual taxes payable or accounting income tax expense Accounting tax expense will be higher; actual taxes based on IRS rules will be lower Which financial ratios measure "efficiency"? Asset turnover and Fixed Asset turnover Which ratio is the best measure of a firm's ...
Secured Loan some type of asset is being used as collateral Unsercure Loan not backed by a specific asset Bond primary means of money borrowed in the corporate world; it is a debt agreement w/investors & savers that obligates the corporation to make certain payments- a fixed income sercurity; ...
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Add to cartSecured Loan some type of asset is being used as collateral Unsercure Loan not backed by a specific asset Bond primary means of money borrowed in the corporate world; it is a debt agreement w/investors & savers that obligates the corporation to make certain payments- a fixed income sercurity; ...
Economics is a subfield of Finance (t/f) 1.1 F. Finance is a subfield of Economics. (right answer) Which of the following is not an example of firm capital? 1.1 Financial markets Which of the following are examples of firm capital? 1.1 Cash, Labor, Machinery Capital is defined as a financia...
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Add to cartEconomics is a subfield of Finance (t/f) 1.1 F. Finance is a subfield of Economics. (right answer) Which of the following is not an example of firm capital? 1.1 Financial markets Which of the following are examples of firm capital? 1.1 Cash, Labor, Machinery Capital is defined as a financia...
T1 Primary financial markets the markets in which securities (stocks and bonds) are first issued. This is where the issuers (the firms) and the buyers (the investors) will engage in an exchange. T1 Syndicate When a company wants to issue stock, bonds, or other publicly traded securities, it hires...
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Add to cartT1 Primary financial markets the markets in which securities (stocks and bonds) are first issued. This is where the issuers (the firms) and the buyers (the investors) will engage in an exchange. T1 Syndicate When a company wants to issue stock, bonds, or other publicly traded securities, it hires...
Hedging The process of eliminating risk Tariffs Taxes levied on goods imported into a country Foreign Exchange Risk (AKA FX Risk) Risks associated with the changing values of countries' concurrences Direct Quote If you are located in the United States, a direct quote is one where the forei...
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Add to cartHedging The process of eliminating risk Tariffs Taxes levied on goods imported into a country Foreign Exchange Risk (AKA FX Risk) Risks associated with the changing values of countries' concurrences Direct Quote If you are located in the United States, a direct quote is one where the forei...
Which two effects does the unbundling and offshoring of production have on employment when the global value chain is taken into consideration? Unbundling and offshoring allows firms to offer intermediate and final goods at lower prices, thus increasing employment. Unbundling and offshoring decrease...
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Add to cartWhich two effects does the unbundling and offshoring of production have on employment when the global value chain is taken into consideration? Unbundling and offshoring allows firms to offer intermediate and final goods at lower prices, thus increasing employment. Unbundling and offshoring decrease...
How can a private firm appropriately maximize shareholder value? By making decisions that keep the control of the business with the owners Why are American regulators focused on international investing in a global marketplace? Because international investing in a global marketplace is the concern...
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Add to cartHow can a private firm appropriately maximize shareholder value? By making decisions that keep the control of the business with the owners Why are American regulators focused on international investing in a global marketplace? Because international investing in a global marketplace is the concern...
If accounts receivable increases, what is the impact on CFO? CFO decreases Are actual taxes paid the same as how on the GAAP income statement? No. Actual Taxes = IRS Rules Income Statement = GAAP Which decisions require using subjective estimates? Economic life of a new asset. If there ...
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Add to cartIf accounts receivable increases, what is the impact on CFO? CFO decreases Are actual taxes paid the same as how on the GAAP income statement? No. Actual Taxes = IRS Rules Income Statement = GAAP Which decisions require using subjective estimates? Economic life of a new asset. If there ...
Corporate Finance focuses on financial decision making by a firms management Investments various types of financial instruments (stocks, bonds, etc) Banking or Financial Institutions make money by paying depositors a smaller interest rate than the interest rate charged to borrowers Treasury...
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Add to cartCorporate Finance focuses on financial decision making by a firms management Investments various types of financial instruments (stocks, bonds, etc) Banking or Financial Institutions make money by paying depositors a smaller interest rate than the interest rate charged to borrowers Treasury...
Initial Outlay The total dollar amount to begin a project. Cost of Equity How much it costs a firm (in percentage terms) to use equity financing. From the investor's perspective, it is what they require given the riskiness/opportunity cost of the company. From the companies perspective, it is th...
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Add to cartInitial Outlay The total dollar amount to begin a project. Cost of Equity How much it costs a firm (in percentage terms) to use equity financing. From the investor's perspective, it is what they require given the riskiness/opportunity cost of the company. From the companies perspective, it is th...
Why are American regulators focused on international investing in a global marketplace? Because international investing in a global marketplace is the concern of American investors. What are the likeliest outcomes if a company outsources the manufacturing of its products to a foreign country? Consu...
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Add to cartWhy are American regulators focused on international investing in a global marketplace? Because international investing in a global marketplace is the concern of American investors. What are the likeliest outcomes if a company outsources the manufacturing of its products to a foreign country? Consu...
Net Income = Revenues - Expenses Revenues - Cost of Goods Sold (COGS) Gross Profit Gross Profit - Operating Expenses EBIT EBIT = Sales - Costs - Depreciation EBIT = Operating Profit or Operating Income EBIT - Interest Expense = Earnings Before Taxes Earnings before Taxes - Tax Expe...
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Add to cartNet Income = Revenues - Expenses Revenues - Cost of Goods Sold (COGS) Gross Profit Gross Profit - Operating Expenses EBIT EBIT = Sales - Costs - Depreciation EBIT = Operating Profit or Operating Income EBIT - Interest Expense = Earnings Before Taxes Earnings before Taxes - Tax Expe...
1. The goal of the corporation is to: a. Maximize profits b. Maximize market share c. Maximize stock price d. Minimize risk c. Maximize stock price 2. Risk premium is best described as a. Return on risky securities b. Compensation for risk-taking c. Return on stocks d. Expected return on ...
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Add to cart1. The goal of the corporation is to: a. Maximize profits b. Maximize market share c. Maximize stock price d. Minimize risk c. Maximize stock price 2. Risk premium is best described as a. Return on risky securities b. Compensation for risk-taking c. Return on stocks d. Expected return on ...
Characteristics of preferred stock includes -dividends in arrears -dividends are cumulative -higher payoff claim in a BK (has first dibs in a BK) -considered "hybrid" (part stock/part bond) -no fixed maturity date -no voting rights -can skip dividend payments -dividends don't change year-a...
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Add to cartCharacteristics of preferred stock includes -dividends in arrears -dividends are cumulative -higher payoff claim in a BK (has first dibs in a BK) -considered "hybrid" (part stock/part bond) -no fixed maturity date -no voting rights -can skip dividend payments -dividends don't change year-a...
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