Most firms, when planning for growth, focus on,

-maintaining ROI over the firm's cost of capital

-maximizing Economic Value Added

-meeting asset target growth rates

-meeting sales target growth rates

A speedup in _____ will _____ a firm's financing needs; whereas, a slowdown in _____ will ______ a firm's financing needs

-collections; decrease; payments; increase

-payments; increase; collections; decrease

-collections; increase; payment; decrease

-payments; increase; collections; increase

Which of the following is NOT a cash disbursement

-rent and lease payments

-interest payments

-payments of accounts payable

-depreciation expenses

The key input required to build a cash budget is ______

-the catch disbursements plan

-the strategic plan

-the firm's sales forecast

-the sustainable growth model

Which of the following is an inflow of cash to a corporation

-paying a cash dividend

-increasing treasury stock

-decreasing inventory

-purchasing treasury bills

Earnings per share (EPS) is calculated by _____

-dividing pretax income by the number of shares of common stock outstanding

-dividing the dividend paid by the number of shares of common stock outstanding

-dividing earnings available for common stockholders by the number of shares of common stock outstanding

-dividing net profits after tax by the total number of preferred and common stock share outstanding

The one fixed asset that is not depreciated is _____

-cash

-inventories

-equipment

-land

______ flows result from debt and equity financing transactions

-financing

-operating

-investment

-cash

Which of the following is not one of the fundamental factors that affect the cost of money

-inflation

-risk

-foreign exchange rates

-time preferences for consumption

Which of the following assets is the most liquid

-stock

-treasury bills

-corporate bonds

-cash

Bond ratings of _____ and higher are considered to be investment grade bonds

-AAA

-AA

-A

-BBB

A long term-financial plan begins with

-strategy

-pro forma financial statements

-matching principals

-the sustainable growth model

Which of the following is NOT an example of a financial asset

-convertible bond

-certificate of deposit

-preferred stock

-inventory

Uncertainty regarding the domestic flows that result from converting foreign cash flows is what type of risk

-repatriation

-expropriation

-exchange rate

-political

_______ ratios would provide the best information regarding total return to common stockholders

-profitability

-activity

-liquidity

-debt

The _____ premium is compensation for the possibility that the borrower will not be able to pay the debt's interest and and principal on time

-inflation risk

-maturity risk

-liquidity risk

-default risk

The firm's managers cannot use ratios ______

-to generate an overall picture of the company's financial health

-to monitor the firm's performance from period to period

-to isolate developing problems

-to determine the market value of the firm's equity

For both managers and external financial analysts, ______ is the single most important accounting number found on the income statement

-net income (net profit after tax)

-earnings before interest and taxes (EBIT)

-gross profit

-operating profit

When evaluating financial ratios, analysts typically first examine a firm's ratio _______

-compared to firms in other industries

-compared to the firm's previous year's ratios

-compared to regional averages

-compared to firms with similar net profit margins

Pure options are instruments that are not ______

-created by investors outside the firm

-bought and sold primarily by investors and speculators

-of greater importance to investors than to financial managers

-used primarily to finance a firm's current assets