Question
PLEASE AS MANY QUESTIONS AS POSSIBLE AND IF POSSIBLE SOME EXPLANATION 2. Company A has $10 million of current assets and $1 million of long-term
PLEASE AS MANY QUESTIONS AS POSSIBLE AND IF POSSIBLE SOME EXPLANATION 2. Company A has $10 million of current assets and $1 million of long-term liabilities. Bankruptcy is not a possibility at this time. True False Insufficient data 3. Why do publicly traded stocks tend to see more price volatility than publicly traded corporate bonds? 4. Company B seeks capital to build and launch a streaming video app. It should use equity rather than debt. True False Insufficient data 5. Companies should always avoid debt financing. True False Insufficient Data 6. A share of stock: Is a slice of ownership in a company Needs to be repaid by the company Always pays a dividend Sees recovery ahead of debt in a corporate liquidation 7. A corporate bond is a slice of ownership in a company. True False Insufficient Data 8. If a bond selling at par yields 7%, at $96 the same bond yields: ~5% ~6% ~7% ~8% 9. Who is obligated to do what on a bond's maturity date? 10. A capital expenditure flows through a company's income statement as a cash expense. True False Insufficient data 11. A company with an enterprise value of $600 million would be generating how much in revenue to have a 3x P/S ratio? 12. Testing goodwill for impairment (circle all that apply): is done semi-annually requires analysis of the financial performance of assets acquired that created the goodwill creates a non-cash expense that flows through the income statement if the impairment charge is taken creates a rise in the value of the goodwill on the balance sheet if the impairment charge is taken 13. If a company's stock price is near an all-time high, it should consider using it as acquisition currency. True False Insufficient data 14. Which company offers a better investment value, theoretically, one trading at a 6x EV/EBITDA ratio or one at a 7x EV/EBITDA ratio?
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