Exam (elaborations)
FIN 320 Exam 1 With Complete Solutions (2025)!!
- Course
- FIN 320
- Institution
- Emory University
FIN 320 Exam 1 With Complete Solutions (2025)!!
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FIN 320 Exam 1 With CompleteSolutions (2025)!!
Capital structure - Answer mixture of long-term debt and equity the firm
uses to finance its operations.
Forms of businesses - Answer ...
Agency conflicts - Answer Potential conflict between owner and its
managers.
Primary goal of financial management - Answer maximize the market
value of existing stock for a corporation.
Sarbanes-Oxley Act (2002) - Answer Corporate accounting and
financial fraud.
Net working capital - Answer current assets - current liabilities
Average tax rate - Answer total tax paid divided by the total taxable
income.
, Marginal tax rate - Answer Extra tax you would pay if you earned one
more dollar.
Cash flow from assets - Answer Operating cash flow - change in NWC
- net capital spending
Liquidity - Answer Speed and ease with which an asset can be
converted to cash.
Decrease liquidity?:
1) Cash purchase of inv.
2) Credit sale of inv.
3) Cash sale of inv.
4) Collection of an A/R
5) Proceeds from a long-term loan - Answer 1) Cash purchase of
inventory
Financial leverage - Answer increases the potential return to the
shareholders.
Income statement prepared according to GAAP - Answer records
expenses based on matching principle.
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