Dupont identity - Study guides, Class notes & Summaries

TESTBANK FOR Corporate Finance, 3rd Edition by Jonathan Berk and Peter DeMarzo Corporate Finance, 3e (Berk/DeMarzo) Chapter 1 The Corporation 1.1 The Four Types of Firms 1) A sole proprietorship is owned by: A) one person. B) two of more persons. C) shareholders. D) bankers. Answer: A Diff: 1 Section: 1.1 The Four Types of Firms Skill: Definition 2) Which of the following organization forms for a business does NOT avoid double taxation? A) Limited partnership B) "C" corpora...

Chapter 3 Practice Quiz MBA 6130 1 ACCOUNTING 333 CHAPTER 3 PRACTICE QUIZ. 1. Financial ratios that measure a firm's ability to pay its bills over the short run without undue stress are often referred to as: o asset management ratios. o liquidity measures. o leverage ratios. o profitability ratios. o utilization ratios. 2. Which one of these measures a firm's long-run ability to meet its obligations? o Cash ratio o Total asset turnover o Quick ratio o Return on equity o Equity mul...

The sources and uses of cash over a stated period of time are reflected on the: - correct answer Statement of cash flows Which one of the following standardizes items on the income statement and balance sheet relative to their values as of a chosen point in time? - correct answer Common-base year statement Which one of the following is a source of cash for a non-tax-paying firm? - correct answer Increase in common stock Which one of the following is a use of cash? - correct answer Decre...

four basic areas of finance - correct answer 1. corporate finance 2. investments 3. financial institutions 4. international finance identify and describe types of financial management decisions - correct answer - capital budgeting = planning and managing LT investments - capital structure = mixture of debt to equity % - working capital management = ST assets and L sole proprietorship - correct answer least regulated, unlimited liability, advantage is tax treatment partnership - cor...

Principles of Corporate Finance Exam Questions With Verified Answers || Graded A+ Enterprise value multiples - ANSWER Enterprise value multiples use a measure of earnings before interest payments are made • EBIT • EBITDA • Free cash flow - Because capital expenditures can vary between years, most common is to use enterprise value to EBITDA multiples compute payout rate - ANSWER compute retention rate - ANSWER compute growth rate (if return on in...

Capital Budgeting - correct answer the process of planning and managing a firm's long-term investments Capital Structure - correct answer the mixture of debt and equity maintained by a firm Working Capital - correct answer a firm's short-term assets and liabilities; accounts included are accounts payable, accounts receivable and inventory (cash or credit) Sole Proprietorship - correct answer a business owned by a single individual partnership - correct answer a business formed by t...

Corporate Finance, 5e (Berk/DeMarzo) Chapter 2 Introduction to Financial Statement Analysis 2.1 Firms' Disclosure of Financial Information 1) U.S. public companies are required to file their annual financial statements with the U.S. Securities and Exchange Commission on which form? A) 10-A B) 10-K C) 10-Q D) 10-SEC Answer: B Diff: 1 Section: 2.1 Firms' Disclosure of Financial Information Skill: Definition 2) Which of the following is NOT a financial stat...

TCO A) In the United States, which of the following types of organization has the greatest revenue in total? TCO A) A sole proprietorship is owned by TCO B) Which of the following would cause the present value of an annuity to increase? TCO B) Which of the following is an annuity due? TCO G) If you were a manager of a company, which of the three right side components of the DuPont Identity would you want to increase and which would you want to decrease, other things being equal? Give a speci...

FINC 5310 A 3-year project is expected to produce a cash flow of $82,400 in the first year and $148,600 in the second year. The project has a present value of $303,764.34 at a discount rate of 12.75 percent. What is the expected cash flow in the third year of the project? A. $164,400 B. $163,800 C. $163,700 D. $163,100 E. $164,900 - Correct Answer-D QUESTION 2 A credit card compounds interest monthly and has an effective annual rate of 12.67 percent. What is the annual percentage r...

FIN515 MANAGERIAL FINANCE MIDTERM 1. Question : (TCO G) The firm's equity multiplier measures Student Answer: the value of assets held per dollar of shareholder equity. the return the firm has earned on its past investments. the firm's ability to sell a product for more than the cost of producing it. how efficiently the firm is utilizing its assets to generate sales. Instructor Explanation: Chapter 2 Points Received: 10 of 10 Comments: ...