1. The value of a firm equals current (present) value of expected (future) cash flows based on...

Question:

1. The value of a firm equals current (present) value of expected (future) cash flows based on the return demanded by investors which is dependent on the risk associated with the firm. Give some firm factors/considerations that impact net cash flows and some investor factors/considerations that impact rate of return.
2. The Chief Financial Officer's (CFO) key subordinates are the Treasurer and the Controller. Compare and contrast their roles.
3. Define the "agency relationship" and the "agency problem". Give some possible mechanisms used by large corporations to motivate managers to act in the shareholders' best interest.
4. Identify three major forms of business organization in the United States and give two advantages and two disadvantages of each.
5. Discuss some potential problems associated with financial statement analysis.
6. Explain the as it relates to Volume, Margin and Leverage and Shareholder Return.
7. Explain the difference between net income, or accounting profit and net cash flow. Why do these numbers generally differ?
8. Billingsworth Company had earnings per share of $4 last year and it paid a $2 dividend. Total retained earnings increased by $12 million during the year, and the book value per share at year-end was $40. Billingsworth has no preferred stock, and no new was issued during the year. If the company's year-end debt (which equals its total liabilities) was $120 million, what was its year-end debt/assets ratio?
9. Complete the and sales information in the table that follows for Iceberg Industries using the following financial data: Debt ratio: 50% Quick ratio: .80x Total assets turnover: 1.5x Days sales outstanding: 36.0 days Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 25% : 5.0x Cash ________________ _______________ Account receivable ________________ Long-term debt $60,000 Inventories ________________ ______________ Fixed Assets ________________ Retained earnings $97,500 Total Assets $300,000 Total liabilities and equity ______________ Sales ________________ Cost of goods sold ___

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... DuPont Identity
The DuPont identity is an expression that shows a company's return on equity (ROE) can be represented as a product of three other ratios: the profit margin, the total asset turnover, and the equity multiplier. The formula for the DuPont identity...