finance review

What would be the anticipated effect of a corporate dividend poliies if dividends were taxed as ordinary income? Cash dividends would likely decrease and stock repurchases would likely increase
WOTF would tend to lower a firms use of debt a decrease in corporate tax rates
The reason maximizing expected profits should not be your financial objective is that it ignores the amount of risk taken
WOTF terms of credit has the highest effective interest cost 2/10 net 30
Firms generally choose to finance temporary assets with short term debt because matching the maturities of assets and liabilities reduces risk
Ranking conflicts between the NPV and IRR methods are caused by differing all of the above
WOTF sources of funds is generally considered to be most expensive to the firm new common stock
Character refers to the willingness of the applicant to meet its financial obligations
The importance of a letter of credit in international trade is that the bank issuing the credit all of the above
The primary goal of accounts receivable management should be maximizing shareholder wealth
WOTF is false Changes in firms collection policy can affect sales and working capital
WOTF statements concerning commercial paper is false commercial paper can be issued by any firm so long as it is willing to pay rate of interest
According to residual theory of dividends dividends are a residual after financing needs have been met
Most investment banking firms do business in the all of the above
WOTF would not be expected to result in a dilution of stock price stock repurchase
WOTF is not a typical attribute of an operating lease lease period equals the economic life of an asset
The objective of offering a cash discount is to reduce the firms level of receivables investment
The transactions that george has just participated in is a margin purchase
WOTF factors does not influence a firms financial structure lifo versus fifo
WOTF would not be acceptable as collateral for a loan by most lenders all of the above are accepted as collateral
The largest single category of short term credit is trade credit
The stock of most companies is traded in the over the counter market
A portion of a firms current assets fluctuate over time the cyclical and seasonal nature of the firms business
If the inflation rate in england is higher than US, the british pound should depreciate against the US dollar
WOTF is not a function served by investment bankers assume the risk of dividend payments by guaranteeing them to investors
Leases can be operating leases or financial leases lessee is allowed to deduct depreciation of the asset
WOTF statements about the valuation of the company as a whole uses WACC is not true all of the above are true
A firm needs to generate cash establish a lockbox system
If the inflation rate in switzerland is higher than US, the swiss franc would depreciate against the dollar
WOTF terms of credit has the lowest effective interest cost 2/10 net 30
WOTF does not influence the average size of the inventory that a firm holds all of the above influence the average size of a firms inventory
WOTF is not true about a stock split it causes a dilution of control
As a consequence of using debt financing the percentage change in net income is greater than the percentage in sales
WOTF is true An increase in the corporate tax rate would lower the weighted average cost
WOTF is not true about NPV of a project It assumes cash flows are reinvested at the IRR
If a large corporation wants to issue new common stock investment banker
Modigliani and miller all of the above
a portion of a firms current assets fluctuate over time. the volatilit is attributable to the cyclical and seasonal nature of the business

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