with verified answers
A mutual fund Ans✓✓✓-is an investment company that continually offers
investments and buys financial products on behalf of investors.
Activity Ratios Ans✓✓✓-measures of how effectively the company uses its assets
Advantages of NPV Method Ans✓✓✓--considers the time value of money
-considers all cash flows
-calculates value add to the firm
Affirmative Covenant Ans✓✓✓-A bond covenant that requires the firm to do
something.
An investment bank Ans✓✓✓-a financial intermediary that specializes in helping
firms raise financial capital by issuing securities in primary markets
Annuity Ans✓✓✓-a series of equal regular deposits
Asset Pricing Ans✓✓✓-The process of valuing assets.
auction market Ans✓✓✓-Stock makret
Balance sheet forecasting's Ans✓✓✓-Using sales growth and profit forecast to
construct a pro forma balance sheet to understand the future implications of the
sources and uses of finances.
, Banks and Credit Unions Ans✓✓✓-Where consumers can go to get both savings
accounts and investment services in one location.
bid-ask spread Ans✓✓✓-the difference between the bid price and the asked
prices that compensate the specialist for the risk that he or she bears for
willingness to provide liquidity.
Business Finance Ans✓✓✓-An area of finance that deals with sources of funding,
the capital structure of corporations, the actions that managers take to increase
the value of the firm to its owners, and the tools and analysis used to allocate
financial resources.
Capital Budget Criteria Ans✓✓✓-metrics and calculations used to determine
whether a project or asset will add value and be a worthwhile investment.
capital market Ans✓✓✓-market in which money is lent for periods longer than a
year
Cash Management Ans✓✓✓-Managing the day-to-day finance operations of a
firm.
Central banks Ans✓✓✓-government banks that manage, regulate, and protect
both the money supply and the banks
coincident indicators Ans✓✓✓-economic indicators that usually change at the
same time as changes in overall business activity