,STUDY GUIDES,TESTBANKS AND QUALITY EXAMS IS THE KEY TO STUDENTS CAREER EXCELLENCE!!!

Firms favor straight-line depreciation over accelerated depreciation because it leads to higher NPVs for a capital budgeting project. - correct answers false We value a share of preferred stock using the present value of a perpetuity formula. - correct answers true Using the Security Market Line, if the Federal Reserve Bank reduces the risk-free rate, we should see an increase in stock prices. - correct answers true If we increase the accounts payable for the firm, we will increase the ...

Finance - correct answers -developed in WW2 -applied economics 3 traditional areas of finance - correct answers 1. Money and Banking 2. Investments 3. Financial Management Money and Banking - correct answers bring lenders and borrowers together (financial intermediary) Local money and banking - correct answers commercial lending+real estate="financial engine" Larger scale money and banking - correct answers 1. investment banking: bring firms together (paid % of deal) 2. pri...

what are the 5 guiding principles of Finance? - correct answers maximize wealth, time value of money, risk vs return, leverage, diversification leverage - correct answers the concept of how much debt a firm issues for its projects LBO - correct answers Leveraged buyout. This is when a firm is purchased with a ton of debt. Gross Profit = - correct answers sales - COGS AR turnover - correct answers Sales/AR EAR is - correct answers the annual rate to get a specific FV shareholder...

Firms favor straight-line depreciation over accelerated depreciationbecause it leads to higher NPVs for a capital budgeting project - correct answers false We value a share of preferred stock using the present value of aperpetuity formula - correct answers true Using the Security Market Line, if the Federal Reserve Bank reducesthe risk free rate, we should see an increase in stock prices - correct answers true If we increase the accounts payable for the firm, we will increasethe FCF for...

1) Macy's announced the closing of 68 stores. Its stock price responded favorably as investors appreciated the efforts at cost cutting. - correct answers False 2) Analysts believe that the Verizon-Yahoo! deal will still go through despite the number of Yahoo! users compromised in the hack. - correct answers True 3)An advantage of the corporate form of business is limited liability. - correct answers True 4) It is easier to transfer ownership in a sole proprietorship than a corporatio...

areas of finance - correct answers 1. money and banking 2. investments 3. financial management types of money and banking - correct answers 1. local: mortgager, commercial lending 2. larger scale -investment banking: -private equity investment banking - correct answers brings firms together with pitches; gets a fee if they work the deal private equity - correct answers use capital from wealthy investors to buy firms -use lots of debt in purchasing another firm how do investo...

Risk - correct answers Probability that actual future returns will deviate from expected returns. It represents the variability of returns. Chance for some unfavorable event to occur. Risk Examples - correct answers sales, COG, inventory, competition Average return - correct answers average % return on investment over a sample time period variance and volatility of returns - correct answers how far do returns fall from the mean or average Return - correct answers the interest or % th...

Risk - correct answers the probability that actual future returns will deviate from expected returns; represents the variability of returns, so ___ implies a chance for some unfavorable event to occur With a finance perspective, risk could then be any of the following examples: - correct answers sales, labor cost, material cost, inventory, exchange rates; impacts net income and dividends Historical Risk and Return - correct answers what has our investment done historically... we know what ...

Password, in case you want to contribute: - correct answers Pope Commodity Money - correct answers *Money whose value is backed by something with physical value like gold or silver Fiat Money - correct answers *Money that is backed in value by the government that issues it, like the U.S. Dollar Interest Rates (and how they affect investment and saving) - correct answers *If inflation is rising, savings interest rates might not actually result in any greater purchasing power. So saving i...

Economics - correct answers The academic discipline that deals with the allocation of scarce resources in order to meet human needs and objectives. Models - correct answers Simplified framework designed to illustrate complex processes. Useful, but not accurate. Demand function and curve - correct answers Relationship between the price of a certain commodity and the amount of it that consumers are willing and able to purchase at any given price. Factors That Determine Demand • Price of ...