Stuvia.com - The Marketplace to Buy and Sell your Study Material
Sophia
Principles of Finance
Milestone Final
1
Ratios that measure a company's ability to manage its long-term debt are _________.
efficiency ratios
leverage ratios
profitability ratios
liquidity ratios
CONCEPT
Overview of Ratio Analysis
2
Georgia is interested in selling her company. Before seeking a buyer, she wants her income
statements to show a trend of increasing gross profits.
How can she achieve her goal?
Reduce taxes paid
Downloaded by: Ariah |
Distribution of this document is illegal
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
Reduce cost of goods sold
Reduce net sales
Reduce operating expense
CONCEPT
The Income Statement
3
A stock's beta, which can be affected by surprise news or announcements, is a measure of its
__________ in relation to a benchmark like an index fund.
yield
price
credit rating
volatility
Downloaded by: Ariah |
Distribution of this document is illegal
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
CONCEPT
The Impact of News of Expected Returns
4
Place the following steps for developing a credit policy in the correct order of process:
A: The company decides that it wants to minimize opportunity costs by having as much cash on
hand as possible.
B: The company decides that it will send out two notices of late payments to customers before
pursuing other collection methods.
C: The company decides that its payment terms will be Net 15.
C, B, A
A, C, B
C, A, B
A, B, C
CONCEPT
Accounts Receivable
5
Determine the value of a stock with the following variables using the constant growth model:
Current annual dividend: $2.75 per share
Downloaded by: Ariah |
Distribution of this document is illegal
Sophia
Principles of Finance
Milestone Final
1
Ratios that measure a company's ability to manage its long-term debt are _________.
efficiency ratios
leverage ratios
profitability ratios
liquidity ratios
CONCEPT
Overview of Ratio Analysis
2
Georgia is interested in selling her company. Before seeking a buyer, she wants her income
statements to show a trend of increasing gross profits.
How can she achieve her goal?
Reduce taxes paid
Downloaded by: Ariah |
Distribution of this document is illegal
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
Reduce cost of goods sold
Reduce net sales
Reduce operating expense
CONCEPT
The Income Statement
3
A stock's beta, which can be affected by surprise news or announcements, is a measure of its
__________ in relation to a benchmark like an index fund.
yield
price
credit rating
volatility
Downloaded by: Ariah |
Distribution of this document is illegal
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
CONCEPT
The Impact of News of Expected Returns
4
Place the following steps for developing a credit policy in the correct order of process:
A: The company decides that it wants to minimize opportunity costs by having as much cash on
hand as possible.
B: The company decides that it will send out two notices of late payments to customers before
pursuing other collection methods.
C: The company decides that its payment terms will be Net 15.
C, B, A
A, C, B
C, A, B
A, B, C
CONCEPT
Accounts Receivable
5
Determine the value of a stock with the following variables using the constant growth model:
Current annual dividend: $2.75 per share
Downloaded by: Ariah |
Distribution of this document is illegal
