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2025 update |C214 Financial Management Concepts | latest |COMPREHENSIVE MOST TESTED QUESTIONS AND VERIFIED SOLUTIONS | GET IT 100% ACCURATE!! $10.32
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2025 update |C214 Financial Management Concepts | latest |COMPREHENSIVE MOST TESTED QUESTIONS AND VERIFIED SOLUTIONS | GET IT 100% ACCURATE!!

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2025 update |C214 Financial Management Concepts | latest |COMPREHENSIVE MOST TESTED QUESTIONS AND VERIFIED SOLUTIONS | GET IT 100% ACCURATE!! Cash flow from financing - answers-issuance of debt and equity, the repayment of debts or repurchase stock, and the payment of dividends. Cash flow fro...

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  • January 16, 2025
  • 38
  • 2024/2025
  • Exam (elaborations)
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2025 update |C214 Financial Management Concepts | latest |COMPREHENSIVE
MOST TESTED QUESTIONS AND VERIFIED SOLUTIONS | GET IT 100%
ACCURATE!!


Cash flow from financing - answers-issuance of debt and equity, the repayment of
debts or repurchase stock, and the payment of dividends.


Cash flow from Investing - answers-Purchase and sale of long term assets,
change in net PP&E + depreciation


Gordon Growth Model Denominator - answers-desired return - expected growth


Revenues - answers-Amount generated by sale of product or service


Expenses - answers-Amount incurred to manufacture products


Income - answers-The difference between revenues and expenses


Assets - answers-Items that are owned by the company


Liabilities - answers-Amounts owed by the company to others

,Equity - answers-Amounts invested in the company by shareholders


Items in Income Statement - answers-Revenues, Expenses, Income


Items in balance sheet - answers-Assets, liabilities, equity


Revenues - expenses = - answers-Income


What is included in the income statement and not included in the income
statement of cash flows? - answers-Depreciation Expense


Operating Assets are - answers-Current Assets


Operating liabilities are - answers-Current liabilities


Initial Outlay consists of - answers-Cost of assets, shipping costs, investment in
working capital


Net present value - answers-present value of after tax net cash flows

,Internal rate of return - answers-Discount rate that results in ZERO net present
value


What does inflation do to the value of cash flows? - answers-Lowers the value


EBIT Formula - answers-Sales Revenue - Variable Costs - Fixed Costs


Degree of operating leverage is - answers-Business risk


Degree of operating leverage affects - answers-EBIT


Working capital is - answers-Short term liquidity


What ratio is used to measure short term liquidity? - answers-Current ratio


When will ROE be greater than ROA? - answers-When a company has debt


Bonds will sell at par when? - answers-Market rate is greater than coupon rate


Bonds will sell at a premium when? - answers-Market rate is less than coupon
rate

, DFN formula - answers-assets - liabilities - equity


Proforma income is always a part of - answers-equity


APY Is also known as? - answers-EAY (Effective Annual Yield)


Sustainable growth rate represents - answers-How quickly a company can expand
using only its own sources of funding


WACC - answers-Weighted average cost of debt and equity


WACC Calculate tax for - answers-Bonds, short term debt, long term debt


Statement of cash flows takes place over - answers-a period of time


Stock single holding periods use - answers-TVM


Accrual accounting - answers-Revenue and expenses are recognized at the time
they are earned or incurred, whether or not cash changes hands

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