C214 Final Exam 2023 LATEST QUESTIONS AND ANSWERS GRADED A+ VERIFIED
Coupon Rate - ANSWER The interest rate that a company promises to pay on bonds Market Rate - ANSWER The interest rate on other comparable bonds Par Value - ANSWER The amount payable on maturity of the bond Market rate - ANSWER Same as YTM - Yield to Maturity Gordon Growth Model - ANSWER Assumes stable growth rates and does not incorporate risk CAPM Model - ANSWER Allows to determine expected return on stocks and incorporates risk How do public companies maximize shareholder value? - ANSWER By maximizing Earnings Per Share How do private companies maximize shareholder value? - ANSWER By keeping control within the company Positive credit rating has what effect on capital? - ANSWER Lowers cost of capital What is cash flow from operating activities? - ANSWER It is cash flow generated for sale of products and services What is the formula for retained earnings? - ANSWER Ending retained earnings=Beginning retained earnings + Net Income = Dividends Is depreciation and salvage value on an asset precise or is it an estimate? - ANSWER It is an estimate What is an example of accounting difference - ANSWER Companies using different accounting methods
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