Bfin 350 - Study guides, Class notes & Summaries

BFIN 350 CHP 20 TEST QUESTIONS WITH ALL CORRECT ANSWERS If the net float is , the firms disbursment float exceeds its collection float and its available balance in bank exceeds its book balance. It is as the bank thinks the firm has more cash than it really does and this of course is desirable - Answer-positive, positive If the bank balace is less than the book balance, the firm has a float - Answer-net collection float Why is a net collection float undesirable? - Answer-It is undesirabl...

BFIN 350 CHAPTER 3 AND 4 EXAM QUESTIONS WITH ALL CORRECT ANSWERS What is NOT incorporated in the calculation of Du Pont Identity - Answer-Receivables turnover The capital intensity ratio - Answer-is the reciprocal of the total assets turnover ratio The percentage of sales approach to financial planning requires - Answer-separating accounts into those that vary with sales and those that do not The two key dimentions of financial planning are - Answer-the planning horizon aggregation...

BFIN 350 CHAPTER 5-9 TEST QUESTIONS WITH COMPLETE SOLUTIONS GRADED A+ Best definition of Growing perpetuity - Answer-A constant stream of cash flows without end that is expected to rise indefinitely Best definition of a growing annuity - Answer-A finite number of growing annual cash flows Best definition of an effective annual rate - Answer-The interest rate expressed as if it were compounded once per year You are planning to save your christmas bonuses from work and are comparint savi...

BFIN 350 CHP 4 EXAM QUESTIONS WITH ALL CORRECT ANSWERS GRADED A+ What is the plug variable? - Answer-It is the cash surplus or shortfall that will be shown when the projected balance sheets are not in sync What are the economic assumptions? - Answer-the plan should expicitly describe the economic environment the firm resides in over the life of the plan What are some important economic factors to look at? - Answer-The level of interest rates and the firm's tax rate What is the divi...