11:58 PM 04.11 38%. l y 10) A firm with a substandard pronarin an improve its rem otal A) decuasing its edastame Cincreasing totaltumes Dy decreasing ifodalas wainen 11) A firm with a substandard return in total assessm i ts return onuity, ad the same, by A) decreasing debtra inteasing its debt ratio. Di decreasing its totalment e 12) As the financial leverage multiplier in this may result in Alan increase in the net profit margin and on imesimene to the decrease in interest expandehida By decrease in the moo n and sum m ent due to the des interest pred debt dewe. C) a decrease in the net pelit margin and burn investment, due to the increase in its epse debt incases. Dy an increase in the net profit margin and return on investment, due to the increase in interest widers in 13) 137 Which of the following would be the last likely to utile proforma financial statements of a ch budget? Aj Middle management. R] Investors Top management Di Lenders 14) The information content of dividende fers to A) a stable and contis dividend By a dividend puud as a percent of currenting Cdividend changes is indicators of a firm's future Dnonpayment of dividends by corporation 25) The financial manager o v er and expenses stilizing A) the actualinows and flows of cash. B) the standardized meally a pod, accounting prinaphox C) the revenu method Dithe accrual method 16 Profit maximization as the goal of the firm rat ideal e A) profits are only accounting med B) profit maxima do not consideri cash flows are more representative official strength D) profits today are desirable than pres came in futur ye 17) The following group ce ratios primarily A) quidity, activity and po lity C) activity, debt and profitability sure risk Bi liquidity, activity and det Di liquidity, activity, and stock 15 Pirms that require funds from extemal sources can obtain them from Al private placement. ficial markets C financial institutions Dy all of the above 11:58 PM 46+ ..l 38% Financial analysis and planning move all of the following ENCEPT A d ming data into a form that can I used to monitoriminal evaluating the need for add ed detect C) determing the d ng was D) controlling the data pensing activities 20 As atim's cash flows become more predictable A) thereum u ity should 3) rn babi shold de the current rate shouldespand ) should do 21) Making investment decisions includes all of the fog ENCEPT A) inventory Bifieds accounts receivable Din puble 22) All of the following are fruncing cash flow EXCEPT A increasing dat C) sale of stock Drepurcusing stock roweroft o 23) The kry vandles in twee wwwith m Armes per share and share prin ashousand nak tion proces are caming por share and risk Dipruits and uto the firm' equity and sales to the a balance 24) According to the residual theory of divided rutained eamine the firm would A decarea dividend equal to the By pay no cash dividend noted to coder individend policy D ow to pay the ash dividend. 29 25) A financial manager mu $35,000 and expected to provide u s rahmative Asus 1. 2. 3. und 4. Bachools over the warpened as described below 315020 1500 20000 STELCO 25.000 9.00 000 ancial man would chce Mand e profit maximization goal the Al Al A2 Di A4 p 2 fing activities of u ning at i 2 Far the watended December 31, 2006 a corporation had cache m $12.000 cash flow from investment activi $10,000, and cash flow t 540 The Sum of Cash Flows waldshwa A) nel decesso S12.000 in cash and marketable w rities r e ase of 4.000 mash and marketable securities Cnet decrease of 56,000 in cash and market New s D) net increase of $2. inculand marble securities 11:58 PM 04.11 38%. 27) When u sing the fixed-payment coverage ratio, At the lower value the lower is the firm's financial leverage preferred stock didend pwynt can be disregarded. the higher value, the Nigher is the firm's liquidity Dy the lower its value the more risky is the firm. 28 28) Which of the following ratio is difficult for creditors of a firm to analyze because the data are usually not available in published financial statements? A) Average payment period 1) Average age of inventory. Checial leverage DI Quick ratio 29) With the existence of fixed operating an increase in sales will result in increase in 29 A) proportional a more than proportional B) an equal D) less than proportional 30 In order to nie the wealth of ockholders and to end positive signal to the market, corporation zenerally raise funds using the following order: A) Retained wings, equity, debt. Dj Retained min, debt, equity. C) Equity, and earning debt. Dj De retained eaming equity an 31) In planning and managing the requirements of the fin, the financial manager in came with A) the mix and type of sw, the type o linancing utilised and analysis in order to monitor the financial condition By the type of financing wild, but not the mix and type of assets them and type of assets, but not the type of financing united Dy the acquition of s ing someone che lo plan the belor currents required. 32) Managerial finance Al regni funds on an accrual basis El involves tasks such a budgeting and forecasting cash manager and funds involve the design and delivery of advice and financial products D) devotes the majority of its altion the collection and pentation of final data 3) A firm has just ended its calendar year making a kiemuo 53000 marchandise purchased during the year atat cost of St. Although the firm paid in full for the merchandise during the year, it has yet to collect a nd from the customer. The posible problem this firm may A) high leverage Binity to receive credit. lack of cash flow D low protetty 34) All of the following are functions of security exchange EXCEPT A) aiding new financing By holding demand deposits C) allocating scare capital Dreating continu e s 11:58 PO 46+ ..l 38% there that the financial manager at betale for the A) magnanalysis. 1) peloe theory supply and demand analysis Di grotmaizing studies E) all of the above 361 The depreciable life of inform to the financial manage Incal A) a shorter deprecia te is preserved, we manager can then purchas the old assets are written ett will mult dupredable life is preferred, he for rel eash flow C) aloeger depreciable lide is preferred, because management can postpone pun assets, since the old assets will have a useful life Dia shorter depreciable de preferred because it will mult in a faster receipt of callows ratio SY) A him with a total turn that w a s industry standard but with a which meats industry standard must have exame A LTY 3) uni ovate C) debt Di truda 38) 38) There importante i s on the statement of cash flows that must be obtained from the income statement include all of the following EXCEPT A) depreciation and any changes B) net profits a s C) interest expenses D) cash dividends paid on both pretered and common stocks 39) Emerging trends ing from the agency problem are all of the following EXCEPT A) prohibiting managers from mainga n merest Bj large private corporations management by active in Di restructuring thagh leveragedy By concentrating on cash flows within the fin the financial should be able to Al control expenses. B) speak authoritatively to holders D id invency prepare tax returns - an expert A Labor expense C) Rent expense that is a Ingal obligation of the form B) Salaries expense Dj Interestepense 47) The primary c cm of creditors when A) short-term liquidity profita using the strength of a firm is the firm's lewrage Dy share pics 11:58 PO 46+ ..l 38% there that the financial manager at betale for the A) magnanalysis. 1) peloe theory supply and demand analysis Di grotmaizing studies E) all of the above 361 The depreciable life of inform to the financial manage Incal A) a shorter deprecia te is preserved, we manager can then purchas the old assets are written ett will mult dupredable life is preferred, he for rel eash flow C) aloeger depreciable lide is preferred, because management can postpone pun assets, since the old assets will have a useful life Dia shorter depreciable de preferred because it will mult in a faster receipt of callows ratio SY) A him with a total turn that w a s industry standard but with a which meats industry standard must have exame A LTY 3) uni ovate C) debt Di truda 38) 38) There importante i s on the statement of cash flows that must be obtained from the income statement include all of the following EXCEPT A) depreciation and any changes B) net profits a s C) interest expenses D) cash dividends paid on both pretered and common stocks 39) Emerging trends ing from the agency problem are all of the following EXCEPT A) prohibiting managers from mainga n merest Bj large private corporations management by active in Di restructuring thagh leveragedy By concentrating on cash flows within the fin the financial should be able to Al control expenses. B) speak authoritatively to holders D id invency prepare tax returns - an expert A Labor expense C) Rent expense that is a Ingal obligation of the form B) Salaries expense Dj Interestepense 47) The primary c cm of creditors when A) short-term liquidity profita using the strength of a firm is the firm's lewrage Dy share pics 11:58 PO 46+ ..l 38% there that the financial manager at betale for the A) magnanalysis. 1) peloe theory supply and demand analysis Di grotmaizing studies E) all of the above 361 The depreciable life of inform to the financial manage Incal A) a shorter deprecia te is preserved, we manager can then purchas the old assets are written ett will mult dupredable life is preferred, he for rel eash flow C) aloeger depreciable lide is preferred, because management can postpone pun assets, since the old assets will have a useful life Dia shorter depreciable de preferred because it will mult in a faster receipt of callows ratio SY) A him with a total turn that w a s industry standard but with a which meats industry standard must have exame A LTY 3) uni ovate C) debt Di truda 38) 38) There importante i s on the statement of cash flows that must be obtained from the income statement include all of the following EXCEPT A) depreciation and any changes B) net profits a s C) interest expenses D) cash dividends paid on both pretered and common stocks 39) Emerging trends ing from the agency problem are all of the following EXCEPT A) prohibiting managers from mainga n merest Bj large private corporations management by active in Di restructuring thagh leveragedy By concentrating on cash flows within the fin the financial should be able to Al control expenses. B) speak authoritatively to holders D id invency prepare tax returns - an expert A Labor expense C) Rent expense that is a Ingal obligation of the form B) Salaries expense Dj Interestepense 47) The primary c cm of creditors when A) short-term liquidity profita using the strength of a firm is the firm's lewrage Dy share pics 11:58 PM 04.11 38%. l y 10) A firm with a substandard pronarin an improve its rem otal A) decuasing its edastame Cincreasing totaltumes Dy decreasing ifodalas wainen 11) A firm with a substandard return in total assessm i ts return onuity, ad the same, by A) decreasing debtra inteasing its debt ratio. Di decreasing its totalment e 12) As the financial leverage multiplier in this may result in Alan increase in the net profit margin and on imesimene to the decrease in interest expandehida By decrease in the moo n and sum m ent due to the des interest pred debt dewe. C) a decrease in the net pelit margin and burn investment, due to the increase in its epse debt incases. Dy an increase in the net profit margin and return on investment, due to the increase in interest widers in 13) 137 Which of the following would be the last likely to utile proforma financial statements of a ch budget? Aj Middle management. R] Investors Top management Di Lenders 14) The information content of dividende fers to A) a stable and contis dividend By a dividend puud as a percent of currenting Cdividend changes is indicators of a firm's future Dnonpayment of dividends by corporation 25) The financial manager o v er and expenses stilizing A) the actualinows and flows of cash. B) the standardized meally a pod, accounting prinaphox C) the revenu method Dithe accrual method 16 Profit maximization as the goal of the firm rat ideal e A) profits are only accounting med B) profit maxima do not consideri cash flows are more representative official strength D) profits today are desirable than pres came in futur ye 17) The following group ce ratios primarily A) quidity, activity and po lity C) activity, debt and profitability sure risk Bi liquidity, activity and det Di liquidity, activity, and stock 15 Pirms that require funds from extemal sources can obtain them from Al private placement. ficial markets C financial institutions Dy all of the above 11:58 PM 46+ ..l 38% Financial analysis and planning move all of the following ENCEPT A d ming data into a form that can I used to monitoriminal evaluating the need for add ed detect C) determing the d ng was D) controlling the data pensing activities 20 As atim's cash flows become more predictable A) thereum u ity should 3) rn babi shold de the current rate shouldespand ) should do 21) Making investment decisions includes all of the fog ENCEPT A) inventory Bifieds accounts receivable Din puble 22) All of the following are fruncing cash flow EXCEPT A increasing dat C) sale of stock Drepurcusing stock roweroft o 23) The kry vandles in twee wwwith m Armes per share and share prin ashousand nak tion proces are caming por share and risk Dipruits and uto the firm' equity and sales to the a balance 24) According to the residual theory of divided rutained eamine the firm would A decarea dividend equal to the By pay no cash dividend noted to coder individend policy D ow to pay the ash dividend. 29 25) A financial manager mu $35,000 and expected to provide u s rahmative Asus 1. 2. 3. und 4. Bachools over the warpened as described below 315020 1500 20000 STELCO 25.000 9.00 000 ancial man would chce Mand e profit maximization goal the Al Al A2 Di A4 p 2 fing activities of u ning at i 2 Far the watended December 31, 2006 a corporation had cache m $12.000 cash flow from investment activi $10,000, and cash flow t 540 The Sum of Cash Flows waldshwa A) nel decesso S12.000 in cash and marketable w rities r e ase of 4.000 mash and marketable securities Cnet decrease of 56,000 in cash and market New s D) net increase of $2. inculand marble securities 11:58 PM 04.11 38%. 27) When u sing the fixed-payment coverage ratio, At the lower value the lower is the firm's financial leverage preferred stock didend pwynt can be disregarded. the higher value, the Nigher is the firm's liquidity Dy the lower its value the more risky is the firm. 28 28) Which of the following ratio is difficult for creditors of a firm to analyze because the data are usually not available in published financial statements? A) Average payment period 1) Average age of inventory. Checial leverage DI Quick ratio 29) With the existence of fixed operating an increase in sales will result in increase in 29 A) proportional a more than proportional B) an equal D) less than proportional 30 In order to nie the wealth of ockholders and to end positive signal to the market, corporation zenerally raise funds using the following order: A) Retained wings, equity, debt. Dj Retained min, debt, equity. C) Equity, and earning debt. Dj De retained eaming equity an 31) In planning and managing the requirements of the fin, the financial manager in came with A) the mix and type of sw, the type o linancing utilised and analysis in order to monitor the financial condition By the type of financing wild, but not the mix and type of assets them and type of assets, but not the type of financing united Dy the acquition of s ing someone che lo plan the belor currents required. 32) Managerial finance Al regni funds on an accrual basis El involves tasks such a budgeting and forecasting cash manager and funds involve the design and delivery of advice and financial products D) devotes the majority of its altion the collection and pentation of final data 3) A firm has just ended its calendar year making a kiemuo 53000 marchandise purchased during the year atat cost of St. Although the firm paid in full for the merchandise during the year, it has yet to collect a nd from the customer. The posible problem this firm may A) high leverage Binity to receive credit. lack of cash flow D low protetty 34) All of the following are functions of security exchange EXCEPT A) aiding new financing By holding demand deposits C) allocating scare capital Dreating continu e s 11:58 PO 46+ ..l 38% there that the financial manager at betale for the A) magnanalysis. 1) peloe theory supply and demand analysis Di grotmaizing studies E) all of the above 361 The depreciable life of inform to the financial manage Incal A) a shorter deprecia te is preserved, we manager can then purchas the old assets are written ett will mult dupredable life is preferred, he for rel eash flow C) aloeger depreciable lide is preferred, because management can postpone pun assets, since the old assets will have a useful life Dia shorter depreciable de preferred because it will mult in a faster receipt of callows ratio SY) A him with a total turn that w a s industry standard but with a which meats industry standard must have exame A LTY 3) uni ovate C) debt Di truda 38) 38) There importante i s on the statement of cash flows that must be obtained from the income statement include all of the following EXCEPT A) depreciation and any changes B) net profits a s C) interest expenses D) cash dividends paid on both pretered and common stocks 39) Emerging trends ing from the agency problem are all of the following EXCEPT A) prohibiting managers from mainga n merest Bj large private corporations management by active in Di restructuring thagh leveragedy By concentrating on cash flows within the fin the financial should be able to Al control expenses. B) speak authoritatively to holders D id invency prepare tax returns - an expert A Labor expense C) Rent expense that is a Ingal obligation of the form B) Salaries expense Dj Interestepense 47) The primary c cm of creditors when A) short-term liquidity profita using the strength of a firm is the firm's lewrage Dy share pics 11:58 PO 46+ ..l 38% there that the financial manager at betale for the A) magnanalysis. 1) peloe theory supply and demand analysis Di grotmaizing studies E) all of the above 361 The depreciable life of inform to the financial manage Incal A) a shorter deprecia te is preserved, we manager can then purchas the old assets are written ett will mult dupredable life is preferred, he for rel eash flow C) aloeger depreciable lide is preferred, because management can postpone pun assets, since the old assets will have a useful life Dia shorter depreciable de preferred because it will mult in a faster receipt of callows ratio SY) A him with a total turn that w a s industry standard but with a which meats industry standard must have exame A LTY 3) uni ovate C) debt Di truda 38) 38) There importante i s on the statement of cash flows that must be obtained from the income statement include all of the following EXCEPT A) depreciation and any changes B) net profits a s C) interest expenses D) cash dividends paid on both pretered and common stocks 39) Emerging trends ing from the agency problem are all of the following EXCEPT A) prohibiting managers from mainga n merest Bj large private corporations management by active in Di restructuring thagh leveragedy By concentrating on cash flows within the fin the financial should be able to Al control expenses. B) speak authoritatively to holders D id invency prepare tax returns - an expert A Labor expense C) Rent expense that is a Ingal obligation of the form B) Salaries expense Dj Interestepense 47) The primary c cm of creditors when A) short-term liquidity profita using the strength of a firm is the firm's lewrage Dy share pics 11:58 PO 46+ ..l 38% there that the financial manager at betale for the A) magnanalysis. 1) peloe theory supply and demand analysis Di grotmaizing studies E) all of the above 361 The depreciable life of inform to the financial manage Incal A) a shorter deprecia te is preserved, we manager can then purchas the old assets are written ett will mult dupredable life is preferred, he for rel eash flow C) aloeger depreciable lide is preferred, because management can postpone pun assets, since the old assets will have a useful life Dia shorter depreciable de preferred because it will mult in a faster receipt of callows ratio SY) A him with a total turn that w a s industry standard but with a which meats industry standard must have exame A LTY 3) uni ovate C) debt Di truda 38) 38) There importante i s on the statement of cash flows that must be obtained from the income statement include all of the following EXCEPT A) depreciation and any changes B) net profits a s C) interest expenses D) cash dividends paid on both pretered and common stocks 39) Emerging trends ing from the agency problem are all of the following EXCEPT A) prohibiting managers from mainga n merest Bj large private corporations management by active in Di restructuring thagh leveragedy By concentrating on cash flows within the fin the financial should be able to Al control expenses. B) speak authoritatively to holders D id invency prepare tax returns - an expert A Labor expense C) Rent expense that is a Ingal obligation of the form B) Salaries expense Dj Interestepense 47) The primary c cm of creditors when A) short-term liquidity profita using the strength of a firm is the firm's lewrage Dy share pics