C214 financial management Actual Exam Questions And Answers

C214 financial management Actual Exam Questions And Answers intrinsic value - ANSWER- the value of an asset computed with an economic model. Based on the cash flows generated from the security, intrinsically it is work XX amount Terminal Cash Flow (TCF) - ANSWER- cash flows that result from winding down a project at the end of its life; does no include final year's differnetial cash flow. EFN - ANSWER- external financing or funds needed. Another name for DFN bond rating - ANSWER- a rating assigned to a firm to measure the probablity of default by a company like S&P or Moody's bulldog bonds - ANSWER- bonds issued in the UK and dominated in British pounds AR turnover - ANSWER- credit sales/ AR, a liquidity ratio American Depository Receipts ADR's - ANSWER- certificates issued by us banks and traded on us markets but represent shares of foreign stock long - ANSWER- to buy something operating balance - ANSWER- the amount of case the firm needs to pay its immediate bills float - ANSWER- delay between the payment form customers and the actual receipt of payments financing ratios - ANSWER- one of the four classifications of ratios designed to measure how the firm finances its operations. present value - ANSWER- how much spending power money has today Volcker Rule - ANSWER- the Vlockler rule limits bank investments in hedge funds and proprietary trading. leveraged recapitalizations - ANSWER- a strategy used by firms to increase their debt to equity ration opportunity costs - ANSWER- the costs associated with foregone opportunities to use cash or credit in an alternative way Free Cash Flow to Firm FCF - ANSWER- Cash left over after operations and taxes available to creditors and shareholders external equity - ANSWER- New equity capital that must be raised through the process of security issuance or provided through other lending mechanisms. discretionary accounts - ANSWER- Another name for non-spontaneous accounts. financial accounts that do not vary with sales fixed exchange rate system - ANSWER- a country's currency value is fixed to a second country's currency fixed-return securities - ANSWER- bonds- slow but returns Securities Act of 1933 - ANSWER- Resulted from Great Depression. Requires firms to register with the SEC to sell public securities. hybrid security - ANSWER- A security that has characteristics like stock and bonds - an example could be a preferred stock. ROE - ANSWER- Return on Equity=_NI/E a profitability ratio naked position - ANSWER- an ownership position without any hedges IBDTC - ANSWER- Interest bearing debt divided by total capital disbursement float - ANSWER- the length of time it takes for a company's payment to become an actual outflow Historical Cost Principle - ANSWER- Accrual accounting principle to recorded assets, liabilities, and equity at historical levels.