Which of the following is not a primary source of raising money or capital for the firm?

AssetsCommon stockPreferred stockBonds

Given the following, what is free cash flow?

Cash flow from operating activities $200,000

Cash flow from investing activities $140,000

Cash flow from financing activities $56,000

Building purchases$50,000

DividendsPaid $20,000

$396,000$270,000$326,000$130,000

Which of the following is not a primary source of raising money or capital for the firm?

AssetsCommon stockPreferred stockBonds

How would the salvage value be treated in a net present value calculation?

Disregard the salvage

As a positive cash flow in the final year that the asset is used

As a negative cash flow in the final year that the asset is used

As a negative cash flow in the first year that the asset is used

You will deposit $2,000 today. It will grow for five years at 12% interest, but compounded semi-annually. You will then withdraw the funds annually over the next four years at the end of each year, with an annual interest rate of 8%. Your annual withdrawal will be approximately ______.

$2,340$4,332$797$1,082

When a company is looking to raise money through issuing more shares of stock, that is considered in the secondary market.

True

False

How many of the following items are found on the income statement, rather than the balance sheet?

Sales

Notes payable (due in six months)

Bonds payable (mature in 10 years)

Common stock

Depreciation expense

Inventories

Capital in excess of par value

Net income (earnings after taxes)

Income tax payable

Two of these items are found on the income statement.Three of these items are found on the income statement.Four of these items are found on the income statement.Five of these items are found on the income statement.

Maintaining a safety stock will always guard against an "EOQ point" from occurring.

True

False