QUESTION 26

Firms often set hurdles rates for minimum ROI based on the firm s cost of capital.

True

False

3 points

QUESTION 27

The Credit forecast maybe derived through either a top-down or bottom-up approach.

True

False

3 points

QUESTION 28

The items that commonly appears in a contract loan agreement are all of these, EXCEPT.

Maturity of the loan

Payment dates

Market premium

Interest rate

3 points

QUESTION 29

The role of finance in long-term planning are all of these, EXCEPT.

Access achievement of strategic objective

Access feasibility of a strategic action plan

Avoid making new investments

Control implementation of strategic plans

3 points

QUESTION 30

In constructing pro-forma financial statements, analyst usually leave one line item on the balance sheet as a as an adjustment after making all other projections, this is called _______

Adjusted profit

Gross loan

Plug figure

Adjusted earning