Business Finance

Problem 4-3 One Year Future Value (LG4-2) What is the future value of $650 deposited for one year earning an 10 percent interest rate annually? - Answer FVN = PV × (1 + i)N FV1 = $650 × (1 + 0.10)1 = $650 × 1.10 = $715 Or N = 1, I = 10, PV = −650, PMT = 0, CPT FV == 715 Problem 4-5 Multiyear Future Value (LG4-3) How much would be in your savings account in eight years after depositing $240 today if the bank pays 8 percent per year? - Answer FVN = PV × (1 + i)N...

The long-run goal of the firm is to - Answer maximize shareholder wealth Maximizing shareholder wealth means maximizing the - Answer market value of the firm's common stock Advantages of the corporation include - Answer Transferability of ownership and ability of the corporation to raise capital. Disadvantages of the partnership are - Answer lack of permanence and unlimited liability According to Principle 3, how should investors decide where to invest their money? - A...

When is the only time cash flows can be compared or combined? - Answer -when they are valued at the same point in time When you calculate a cash flow's future value, you must - Answer -compound it When you calculate a future cash flow's present value, you must - Answer -discount it When computing present or future values, what should you adjust to match the time period of the cash flows? - Answer -discount rate How is an APR period rate converted to a different numb...

Primary goal of financial management - Answer Maximize shareholder wealth Market price - Answer The stock value based on perceived but possibly incorrect information as seen by the marginal investor, current price of a stock Intrinsic value - Answer An estimate of a stock's "true" value based on accurate risk and return data. The intrinsic value can be estimated but not measured precisely, the price at which a stock would sell if investors had all knowable information abo...

(WGU D388) BUS 2250 Spreadsheets & Data Presentations Objective Assessment Guide Q & A(WGU D388) BUS 2250 Spreadsheets & Data Presentations Objective Assessment Guide Q & A(WGU D388) BUS 2250 Spreadsheets & Data Presentations Objective Assessment Guide Q & A

Profit - Answer The amount of money left over once the costs of that activity have been paid for. (cost of goods and expenses) Profit is sometimes used to measure how successful a business activity has been. Sale Revenue (Turnover) - Answer Quantity of goods sold multiplied by the selling price. Gross Profit - Answer Sales revenue minus cost of sales. Net Profit - Answer Gross profit minus expenses. Sources Of Finance - Answer Where the businesses get money from intern...

(WGU D366) FINC 3103 FINANCIAL STATEMENT ANALYSIS FINAL ASSESSMENT GUIDE Q(WGU D366) FINC 3103 FINANCIAL STATEMENT ANALYSIS FINAL ASSESSMENT GUIDE Q & A(WGU D366) FINC 3103 FINANCIAL STATEMENT ANALYSIS FINAL ASSESSMENT GUIDE Q & A& A

Business Finance Exam 1 With 100% Correct Answers A financial manager's goal of maximizing current or short-term earnings may not be appropriate because... - answer-It fails to consider the timing of the benefits -increased earnings may be accompanies by unacceptably higher levels of risk -earnings are subjective; they can be defined in various ways such as accounting or economic earnings The partnership form of organization... - answeravoids the double taxation of earnings and dividend...

Which one of the following generally pays a fixed dividend, receives first priority in dividend payment and maintain the right to a dividend payment ? - Answer Cumulative preferred compound interest: - Answer Allows for reinvestment of interest payments The time value of money concept can be defined as ? - Answer the relationship between a dollar to be received in the future and a dollar today. Discounting cash flows involves: - Answer discounting all expected future cash fl...

©SIRJOEL EXAM SOLUTIONS 10/3/2024 9:54 PM Business Finance Chapter 2 Exam Questions With Correct Answers A balance sheet reflects a firm's: - answeraccounting value on a specific date Physical assets are termed ______________ assets. - answertangible Long-term liabilities represent obligations of the firm lasting more than _____. - answer1 yr On a balance sheet, total assets must always equal total liabilities plus: - answershareholders' equity True or false: Current assets plus ...