Lote
D076 Finance Skills for Managers EXAMS 100%
D076 Finance Skills for Managers ASSESSMENT ALREADY passed THIS PACKAGE CONTAINS 51 DIFFERENT EXAMS RATED A+
[Mostrar más]D076 Finance Skills for Managers ASSESSMENT ALREADY passed THIS PACKAGE CONTAINS 51 DIFFERENT EXAMS RATED A+
[Mostrar más]A company is considering five projects that are not mutually exclusive. However, the company does not 
have enough money to do all of them. In order to prioritize projects that fit within the company's 
budget, which capital budgeting method should be used? - Profitability index (PI) 
A financial a...
Vista previa 2 fuera de 5 páginas
Añadir al carritoA company is considering five projects that are not mutually exclusive. However, the company does not 
have enough money to do all of them. In order to prioritize projects that fit within the company's 
budget, which capital budgeting method should be used? - Profitability index (PI) 
A financial a...
Why is it important to consider all relevant cash flows in an ideal evaluation method for capital 
investment? - Without considering every cash flow of a potential project, you do not know how the 
project will enhance the value of a firm. 
Talia is comparing four mutually exclusive projects. In ord...
Vista previa 1 fuera de 3 páginas
Añadir al carritoWhy is it important to consider all relevant cash flows in an ideal evaluation method for capital 
investment? - Without considering every cash flow of a potential project, you do not know how the 
project will enhance the value of a firm. 
Talia is comparing four mutually exclusive projects. In ord...
A company called Bobby's Books is considering purchasing a new bookbinding machine. The company 
calculates the hurdle rate of the project to be 9% and the IRR to be 11%. Should the company purchase 
the bookbinding machine? - Yes, because the IRR exceeds the cost of capital. 
A company is trying t...
Vista previa 1 fuera de 4 páginas
Añadir al carritoA company called Bobby's Books is considering purchasing a new bookbinding machine. The company 
calculates the hurdle rate of the project to be 9% and the IRR to be 11%. Should the company purchase 
the bookbinding machine? - Yes, because the IRR exceeds the cost of capital. 
A company is trying t...
Company ABC would like to continue to grow, but in order to maintain control of all decisions and 
ownership, it wants to avoid issuing new stock. Which calculation will show the company's leadership 
the fastest that ABC can grow? - Sustainable growth rate 
How can a company reduce its discretiona...
Vista previa 1 fuera de 3 páginas
Añadir al carritoCompany ABC would like to continue to grow, but in order to maintain control of all decisions and 
ownership, it wants to avoid issuing new stock. Which calculation will show the company's leadership 
the fastest that ABC can grow? - Sustainable growth rate 
How can a company reduce its discretiona...
After W&H Inc. has developed a cash budget, what should the company do in the following months? - 
It should monitor its actual cash flows and then revise the cash budget if needed. 
W&H Inc.'s labor costs each month are an example of which item in a cash budget? - Cash 
disbursement 
Why would cre...
Vista previa 1 fuera de 3 páginas
Añadir al carritoAfter W&H Inc. has developed a cash budget, what should the company do in the following months? - 
It should monitor its actual cash flows and then revise the cash budget if needed. 
W&H Inc.'s labor costs each month are an example of which item in a cash budget? - Cash 
disbursement 
Why would cre...
cash budgeting - a plan for controlling cash inflows and outflows business to balance income with 
expenditures 
fixed expenditures - an expense that you do not have direct control over and that remains 
constant from period to period 
How do the benefits of knowing the cash position for each period...
Vista previa 1 fuera de 4 páginas
Añadir al carritocash budgeting - a plan for controlling cash inflows and outflows business to balance income with 
expenditures 
fixed expenditures - an expense that you do not have direct control over and that remains 
constant from period to period 
How do the benefits of knowing the cash position for each period...
A company currently has a ratio of 1.5 but hopes to improve the ratio to 2 to align more with the 
industry benchmark. To achieve this goal, costs were cut in production through an investment in 
efficient equipment, and the company achieved a higher profit margin. If this continues, you are certain...
Vista previa 2 fuera de 8 páginas
Añadir al carritoA company currently has a ratio of 1.5 but hopes to improve the ratio to 2 to align more with the 
industry benchmark. To achieve this goal, costs were cut in production through an investment in 
efficient equipment, and the company achieved a higher profit margin. If this continues, you are certain...
5 major types of financial ratios - liquidity, activity, leverage, profitability, and market 
A firm has paid off its short-term loans more quickly in the past couple of years. What might this trend 
indicate about the firm's financial ratios? - Its liquidity ratio is increasing. 
Accounts Receivab...
Vista previa 1 fuera de 3 páginas
Añadir al carrito5 major types of financial ratios - liquidity, activity, leverage, profitability, and market 
A firm has paid off its short-term loans more quickly in the past couple of years. What might this trend 
indicate about the firm's financial ratios? - Its liquidity ratio is increasing. 
Accounts Receivab...
A company that produces soap, shampoo, lotion, and other personal care products has recently taken a 
hit due to a competitor's new product line. The company decides to reduce wages for its labor force to 
save money while the company focuses on building up its reputation again, but the company's ...
Vista previa 1 fuera de 3 páginas
Añadir al carritoA company that produces soap, shampoo, lotion, and other personal care products has recently taken a 
hit due to a competitor's new product line. The company decides to reduce wages for its labor force to 
save money while the company focuses on building up its reputation again, but the company's ...
return 
the money gained or lost on an investment over a certain period of time. 
holding period return 
the return over the entire period that an investor owns a financial security. 
expected return 
a hypothesized estimate of future prices or returns under different scenarios based on expectationa...
Vista previa 1 fuera de 4 páginas
Añadir al carritoreturn 
the money gained or lost on an investment over a certain period of time. 
holding period return 
the return over the entire period that an investor owns a financial security. 
expected return 
a hypothesized estimate of future prices or returns under different scenarios based on expectationa...
=FV(rate,nper,pmt,[pv],[type]) - Future Value Function, or the cash balance you want toattain after 
the last payment is made 
=IRR(values,[guess]) - internal rate of return of a series of future payments 
=NPER(RATE, PMT, PV, [FV], [type]) - Returns the number of payment periods in an annuity 
=NPV...
Vista previa 1 fuera de 2 páginas
Añadir al carrito=FV(rate,nper,pmt,[pv],[type]) - Future Value Function, or the cash balance you want toattain after 
the last payment is made 
=IRR(values,[guess]) - internal rate of return of a series of future payments 
=NPER(RATE, PMT, PV, [FV], [type]) - Returns the number of payment periods in an annuity 
=NPV...
=FV(rate,nper,pmt,[pv],[type]) - Returns the future value, or the cash balance you want to attain 
after the last payment is made 
=IRR(values,[guess]) - Returns the internal rate of return of a series of future payments 
=NPER(rate,pmt,pv,[fv],[type]) - Returns the number of payment periods in an a...
Vista previa 1 fuera de 3 páginas
Añadir al carrito=FV(rate,nper,pmt,[pv],[type]) - Returns the future value, or the cash balance you want to attain 
after the last payment is made 
=IRR(values,[guess]) - Returns the internal rate of return of a series of future payments 
=NPER(rate,pmt,pv,[fv],[type]) - Returns the number of payment periods in an a...
3 components of interest rate, or required rate - opportunity cost, risk, and inflation 
3 different names used for interest rate - discount rate, required rate, cost 9f capital 
compound interest - interest earned on both the principal amount and any interest already earned 
Inflation - is the rate...
Vista previa 1 fuera de 2 páginas
Añadir al carrito3 components of interest rate, or required rate - opportunity cost, risk, and inflation 
3 different names used for interest rate - discount rate, required rate, cost 9f capital 
compound interest - interest earned on both the principal amount and any interest already earned 
Inflation - is the rate...
Ethics - Accepted standards of conduct that guide a person's behavior 
Morals - Reflect one's beliefs about right and wrong 
Legal - Following laws/rules set by and authority 
Which term reflects a person's beliefs about right and wrong, good and bad, or just and unjust? - 
Moral 
What character...
Vista previa 2 fuera de 6 páginas
Añadir al carritoEthics - Accepted standards of conduct that guide a person's behavior 
Morals - Reflect one's beliefs about right and wrong 
Legal - Following laws/rules set by and authority 
Which term reflects a person's beliefs about right and wrong, good and bad, or just and unjust? - 
Moral 
What character...
A company is trying to finance a project with a mortgage loan from a bank. The company's assessment 
of the project indicates that the company may experience several years of loss until the project becomes 
profitable. This means that the company might lose its ability to pay back the loan and the ...
Vista previa 1 fuera de 2 páginas
Añadir al carritoA company is trying to finance a project with a mortgage loan from a bank. The company's assessment 
of the project indicates that the company may experience several years of loss until the project becomes 
profitable. This means that the company might lose its ability to pay back the loan and the ...
A large corporation is looking to merge with another large corporation. Which financial institution can 
help them do this? - Investment bank 
A specialist - provides liquidity and lowers the cost of trading stocks between sellers and buyers 
About a year ago, the short-term Treasury bill had 1.54% ...
Vista previa 1 fuera de 4 páginas
Añadir al carritoA large corporation is looking to merge with another large corporation. Which financial institution can 
help them do this? - Investment bank 
A specialist - provides liquidity and lowers the cost of trading stocks between sellers and buyers 
About a year ago, the short-term Treasury bill had 1.54% ...
coincident indicators - are collected and analyzed as economic shifts happen and include GDP and 
personal income. 
flat yield curve: - results when both short-term and long-term bonds have the same interest rate, 
indicating that the economy is in a transitional state. 
In what way are coincident i...
Vista previa 1 fuera de 2 páginas
Añadir al carritocoincident indicators - are collected and analyzed as economic shifts happen and include GDP and 
personal income. 
flat yield curve: - results when both short-term and long-term bonds have the same interest rate, 
indicating that the economy is in a transitional state. 
In what way are coincident i...
3 main tasks a financial manager of a firm does - makes investment decisions 
makes financing decisions 
manages working capital 
Business Finance - 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 ...
Vista previa 1 fuera de 3 páginas
Añadir al carrito3 main tasks a financial manager of a firm does - makes investment decisions 
makes financing decisions 
manages working capital 
Business Finance - 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 ...
=FV(rate, nper, pmt, [pv], [type]) - Returns future value, or cash balance you want after last 
payment is made. 
=IRR(values,[guess]) - Returns internal rate of return of series of future payments. 
=NPER(RATE, PMT, PV, [FV], [type]) - Returns number of payments that will be made to pay an 
annuity...
Vista previa 1 fuera de 1 páginas
Añadir al carrito=FV(rate, nper, pmt, [pv], [type]) - Returns future value, or cash balance you want after last 
payment is made. 
=IRR(values,[guess]) - Returns internal rate of return of series of future payments. 
=NPER(RATE, PMT, PV, [FV], [type]) - Returns number of payments that will be made to pay an 
annuity...
When can the discretionary financing needed (DFN) be determined? - After pro-forma financial 
statements are forecasted using the percent of sales method 
When evaluating a company's performance, what can variances on a company's cash budget indicate? - 
Variances show that certain managers or div...
Vista previa 2 fuera de 9 páginas
Añadir al carritoWhen can the discretionary financing needed (DFN) be determined? - After pro-forma financial 
statements are forecasted using the percent of sales method 
When evaluating a company's performance, what can variances on a company's cash budget indicate? - 
Variances show that certain managers or div...
Which area of finance deals with sources of funding and the capital structure of corporations and seeks 
to increase the value of a firm to its owners? 
a) Financial institutions 
b) Real estate 
c) Investments 
d) Business finance - d) Business finance 
Business finance is the area of finance that ...
Vista previa 4 fuera de 65 páginas
Añadir al carritoWhich area of finance deals with sources of funding and the capital structure of corporations and seeks 
to increase the value of a firm to its owners? 
a) Financial institutions 
b) Real estate 
c) Investments 
d) Business finance - d) Business finance 
Business finance is the area of finance that ...
A company called Bobby's Books is considering purchasing a new bookbinding machine. The company 
calculates the hurdle rate of the project to be 9% and the IRR to be 11%. Should the company purchase 
the bookbinding machine? 
a) No, because the old bookbinding machine still works. 
b) Yes, because ...
Vista previa 4 fuera de 65 páginas
Añadir al carritoA company called Bobby's Books is considering purchasing a new bookbinding machine. The company 
calculates the hurdle rate of the project to be 9% and the IRR to be 11%. Should the company purchase 
the bookbinding machine? 
a) No, because the old bookbinding machine still works. 
b) Yes, because ...
Accounting - The system of recording, reporting, and summarizing past financial information and 
transactions. 
Accounts Receivable Turnover (AR Turnover) - An activity ratio found by credit sales divided by 
accounts receivable. 
Activity Ratios - A category of ratios that measure how well a compan...
Vista previa 3 fuera de 20 páginas
Añadir al carritoAccounting - The system of recording, reporting, and summarizing past financial information and 
transactions. 
Accounts Receivable Turnover (AR Turnover) - An activity ratio found by credit sales divided by 
accounts receivable. 
Activity Ratios - A category of ratios that measure how well a compan...
Finance vs. Accounting - Finance ~ Forward thinking 
Accounting ~ Looking at the past 
Finance defintion - Management and allocation of capital with the objective of investing, 
forecasting, budgeting, saving, borrowing, lending, and so on. 
Business finance - area of finance that deals with sources...
Vista previa 1 fuera de 3 páginas
Añadir al carritoFinance vs. Accounting - Finance ~ Forward thinking 
Accounting ~ Looking at the past 
Finance defintion - Management and allocation of capital with the objective of investing, 
forecasting, budgeting, saving, borrowing, lending, and so on. 
Business finance - area of finance that deals with sources...
what is the difference between finance and accounting - The easiest way to describe these 
differences is that finance is forward-looking, or focuses primarily on the future, while accounting is 
generally backward-looking and focuses on the past. 
There are three primary areas in the world of finan...
Vista previa 3 fuera de 24 páginas
Añadir al carritowhat is the difference between finance and accounting - The easiest way to describe these 
differences is that finance is forward-looking, or focuses primarily on the future, while accounting is 
generally backward-looking and focuses on the past. 
There are three primary areas in the world of finan...
20 years ago Mateo started an investment account with $2000. He then invested $100 into the account 
every month at the end of each month. Today, he has $46,528 I. The same account. What is the term for 
the $100 monthly cash flows? - Annuity 
A company calculated variances of a budget and actual ca...
Vista previa 3 fuera de 19 páginas
Añadir al carrito20 years ago Mateo started an investment account with $2000. He then invested $100 into the account 
every month at the end of each month. Today, he has $46,528 I. The same account. What is the term for 
the $100 monthly cash flows? - Annuity 
A company calculated variances of a budget and actual ca...
Finance - the study of managing and allocating funds at the personal or business level; forward 
looking 
What are the subspecialties of finance? - business finance, investments, and financial institutions 
Corporate finance - an area of finance that involves activities used to increase shareholder ...
Vista previa 2 fuera de 13 páginas
Añadir al carritoFinance - the study of managing and allocating funds at the personal or business level; forward 
looking 
What are the subspecialties of finance? - business finance, investments, and financial institutions 
Corporate finance - an area of finance that involves activities used to increase shareholder ...
A local start-up company just hit its five-year anniversary and is planning an initial public offering 
sometime this year. In order to issue public stock, which market will the company use? - Primary 
market 
When a company issues stock for the first time to raise capital, shares must initially be ...
Vista previa 2 fuera de 5 páginas
Añadir al carritoA local start-up company just hit its five-year anniversary and is planning an initial public offering 
sometime this year. In order to issue public stock, which market will the company use? - Primary 
market 
When a company issues stock for the first time to raise capital, shares must initially be ...
Real Return - Rate of growth in purchasing power of goods and services 
Holding Period Return - Return over the entire period that an investor owns a financial security 
Beta - A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to 
the market as a whole. 
sta...
Vista previa 2 fuera de 9 páginas
Añadir al carritoReal Return - Rate of growth in purchasing power of goods and services 
Holding Period Return - Return over the entire period that an investor owns a financial security 
Beta - A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to 
the market as a whole. 
sta...
Ordinary annuities - a series of equal payments made at the end of consecutive periods over a 
fixed length of time 
Annuities due - a series of equal payments made at the beginning of consecutive periods 
Perpetuities - a constant stream of identical cash flows that continues forever 
Compounding -...
Vista previa 1 fuera de 2 páginas
Añadir al carritoOrdinary annuities - a series of equal payments made at the end of consecutive periods over a 
fixed length of time 
Annuities due - a series of equal payments made at the beginning of consecutive periods 
Perpetuities - a constant stream of identical cash flows that continues forever 
Compounding -...
"A company is trying to decide which of four projects to invest in. - 
"W&H Company wants to create a cash budget to better manage its cash flows. The financial manager 
knows that the firm's labor costs and materials costs are too high for the level of sales each month. The 
firm also needs to ...
Vista previa 4 fuera de 32 páginas
Añadir al carrito"A company is trying to decide which of four projects to invest in. - 
"W&H Company wants to create a cash budget to better manage its cash flows. The financial manager 
knows that the firm's labor costs and materials costs are too high for the level of sales each month. The 
firm also needs to ...
Accounting - The system of recording, reporting, and summarizing past financial information and 
transactions. 
Accounts Receivable Turnover (AR Turnover) - An activity ratio found by credit sales divided by 
accounts receivable. 
Activity Ratios - A category of ratios that measure how well a compan...
Vista previa 3 fuera de 19 páginas
Añadir al carritoAccounting - The system of recording, reporting, and summarizing past financial information and 
transactions. 
Accounts Receivable Turnover (AR Turnover) - An activity ratio found by credit sales divided by 
accounts receivable. 
Activity Ratios - A category of ratios that measure how well a compan...
Which area of finance deals with sources of funding and the capital structure of corporations and seeks 
to increase the value of a firm to its owners? - Business finance 
What is the primary difference between finance and accounting? - Finance focuses on the future, 
while accounting is generally b...
Vista previa 4 fuera de 49 páginas
Añadir al carritoWhich area of finance deals with sources of funding and the capital structure of corporations and seeks 
to increase the value of a firm to its owners? - Business finance 
What is the primary difference between finance and accounting? - Finance focuses on the future, 
while accounting is generally b...
A company calculated variances of a budget and actual cash flows that indicate the firm's strengths and 
weaknesses in cash flows and its budgeting process. 
Which major use of cash budgeting is this an example of? 
Standardization 
Performance evaluation 
Assessment of future needs 
Corrective act...
Vista previa 4 fuera de 59 páginas
Añadir al carritoA company calculated variances of a budget and actual cash flows that indicate the firm's strengths and 
weaknesses in cash flows and its budgeting process. 
Which major use of cash budgeting is this an example of? 
Standardization 
Performance evaluation 
Assessment of future needs 
Corrective act...
Balance Sheet Forecasting - is typically done in conjunction with projecting in come statement. 
Helps understand future asset earning and potential of the company 
Sources and uses of funds 
Budgeting - is a detailed representation of the future results, financial position, and cash flows 
that man...
Vista previa 1 fuera de 4 páginas
Añadir al carritoBalance Sheet Forecasting - is typically done in conjunction with projecting in come statement. 
Helps understand future asset earning and potential of the company 
Sources and uses of funds 
Budgeting - is a detailed representation of the future results, financial position, and cash flows 
that man...
Interest Rate - the percentage of the principal that a lender charges a borrower for the use of 
assets. 
Annual precentage rate (APR) - The annual interest rate that is charged for borrowing money or 
that is earned through investment. 
Discount Rate - The name for interest rate when used in time v...
Vista previa 2 fuera de 13 páginas
Añadir al carritoInterest Rate - the percentage of the principal that a lender charges a borrower for the use of 
assets. 
Annual precentage rate (APR) - The annual interest rate that is charged for borrowing money or 
that is earned through investment. 
Discount Rate - The name for interest rate when used in time v...
A company's officers and board of directors are selling their stocks in the firm at higher prices due to 
false accounting reports that made the stock seem more valuable than it truly was. Which ethical issue is 
occurring in this situation? - Agency problem due to conflicting interests 
(Correct! ...
Vista previa 2 fuera de 12 páginas
Añadir al carritoA company's officers and board of directors are selling their stocks in the firm at higher prices due to 
false accounting reports that made the stock seem more valuable than it truly was. Which ethical issue is 
occurring in this situation? - Agency problem due to conflicting interests 
(Correct! ...
Unit 2 (Module 1) 
What area of finance involves deciding which assets to invest in to create wealth in the future? - 
Unit 2 
Investments 
(Investments are an area of finance that involves deciding which assets to invest in to create wealth in 
the future.) 
Hannah is the financial manager of a fi...
Vista previa 2 fuera de 15 páginas
Añadir al carritoUnit 2 (Module 1) 
What area of finance involves deciding which assets to invest in to create wealth in the future? - 
Unit 2 
Investments 
(Investments are an area of finance that involves deciding which assets to invest in to create wealth in 
the future.) 
Hannah is the financial manager of a fi...
In which way is accounting different from finance? - Accounting is backward looking, while 
finance is focused on the future. 
What is the main question that both individuals and companies must consider when making financial 
decisions to reach a goal? - Will the benefits of the action outweigh the ...
Vista previa 2 fuera de 8 páginas
Añadir al carritoIn which way is accounting different from finance? - Accounting is backward looking, while 
finance is focused on the future. 
What is the main question that both individuals and companies must consider when making financial 
decisions to reach a goal? - Will the benefits of the action outweigh the ...
A local start-up company just hit its five-year anniversary and is planning an initial public offering 
sometime this year. In order to issue public stock, which market will the company use? - Primary 
market 
About a year ago, the short-term Treasury bill had 1.54% interest and the long-term Treasu...
Vista previa 2 fuera de 6 páginas
Añadir al carritoA local start-up company just hit its five-year anniversary and is planning an initial public offering 
sometime this year. In order to issue public stock, which market will the company use? - Primary 
market 
About a year ago, the short-term Treasury bill had 1.54% interest and the long-term Treasu...
A company currently has a ratio of 1.5 but hopes to improve the ratio to 2 to align more with the 
industry benchmark. To achieve this goal, costs were cut in production through an investment in 
efficient equipment, and the company achieved a higher profit margin. If this continues, you are certain...
Vista previa 3 fuera de 17 páginas
Añadir al carritoA company currently has a ratio of 1.5 but hopes to improve the ratio to 2 to align more with the 
industry benchmark. To achieve this goal, costs were cut in production through an investment in 
efficient equipment, and the company achieved a higher profit margin. If this continues, you are certain...
A potential project to expand the size of an apartment complex will cost $100,000. Its calculated net 
present value is $5,000. Given this information, which statement is correct? - The project should be 
accepted because it has a positive NPV. 
The YTM of a bond went from 8% to 7%. What can be pred...
Vista previa 3 fuera de 20 páginas
Añadir al carritoA potential project to expand the size of an apartment complex will cost $100,000. Its calculated net 
present value is $5,000. Given this information, which statement is correct? - The project should be 
accepted because it has a positive NPV. 
The YTM of a bond went from 8% to 7%. What can be pred...
1What are the purposes of financial markets? - To provide liquidity and determine prices 
A company is trying to finance a project with a mortgage loan from a bank. The company's assessment 
of the project indicates that the company may experience several years of loss until the project becomes 
pr...
Vista previa 2 fuera de 7 páginas
Añadir al carrito1What are the purposes of financial markets? - To provide liquidity and determine prices 
A company is trying to finance a project with a mortgage loan from a bank. The company's assessment 
of the project indicates that the company may experience several years of loss until the project becomes 
pr...
1 - PI's break-even point. 
If the PI is 1.15, then the project generates 15% more in the present value of cash inflow than the initial 
investment. One the other hand, if PI is .90, the project generates cash inflows that are 10% short of the 
initial investment. You should accept a project with a...
Vista previa 3 fuera de 16 páginas
Añadir al carrito1 - PI's break-even point. 
If the PI is 1.15, then the project generates 15% more in the present value of cash inflow than the initial 
investment. One the other hand, if PI is .90, the project generates cash inflows that are 10% short of the 
initial investment. You should accept a project with a...
What is the difference between the current ratio and the quick ratio? - Inventory is excluded in the 
calculation of the quick ratio. 
What is the term for the risk that changes in interest rates will impact the value of a bond? - 
Interest rate risk 
What is used to measure total risk? - Standard ...
Vista previa 1 fuera de 4 páginas
Añadir al carritoWhat is the difference between the current ratio and the quick ratio? - Inventory is excluded in the 
calculation of the quick ratio. 
What is the term for the risk that changes in interest rates will impact the value of a bond? - 
Interest rate risk 
What is used to measure total risk? - Standard ...
Time Value of Money - * Idea that money is worth more today than same amount in future 
* Considers amount of cash flows at different times with certain interest rate 
* Language of finance 
TVM Variables - * Amount of cash flows 
* Timing of cash flows 
* Rate at which cash flow value changes due t...
Vista previa 1 fuera de 4 páginas
Añadir al carritoTime Value of Money - * Idea that money is worth more today than same amount in future 
* Considers amount of cash flows at different times with certain interest rate 
* Language of finance 
TVM Variables - * Amount of cash flows 
* Timing of cash flows 
* Rate at which cash flow value changes due t...
A company calculated variances of a budget and actual cash flows that indicate the firm's strengths and 
weaknesses in cash flows and its budgeting process. Which major use of cash budgeting is this an 
example of? - Performance evaluation 
A company currently has a ratio of 1.5 but hopes to improv...
Vista previa 3 fuera de 22 páginas
Añadir al carritoA company calculated variances of a budget and actual cash flows that indicate the firm's strengths and 
weaknesses in cash flows and its budgeting process. Which major use of cash budgeting is this an 
example of? - Performance evaluation 
A company currently has a ratio of 1.5 but hopes to improv...
A company is trying to finance a project with a mortgage loan from a bank. The company's assessment 
of the project indicates that the company may experience several years of loss until the project becomes 
profitable. This means that the company might lose its ability to pay back the loan and the ...
Vista previa 3 fuera de 20 páginas
Añadir al carritoA company is trying to finance a project with a mortgage loan from a bank. The company's assessment 
of the project indicates that the company may experience several years of loss until the project becomes 
profitable. This means that the company might lose its ability to pay back the loan and the ...
DuPont Dairy Farm - * ROA > Loan interest rates is competitive 
* ROA = Net Income / Total Assets 
* Leverage Multiplier = Total Assets / Owner Equity 
* Taking on additional loans would change Total Assets but keep Owner Equity same 
-- Allows expansion 
DuPont Decomposition Components - * Net P...
Vista previa 1 fuera de 3 páginas
Añadir al carritoDuPont Dairy Farm - * ROA > Loan interest rates is competitive 
* ROA = Net Income / Total Assets 
* Leverage Multiplier = Total Assets / Owner Equity 
* Taking on additional loans would change Total Assets but keep Owner Equity same 
-- Allows expansion 
DuPont Decomposition Components - * Net P...
A company currently has a ratio of 1.5 but hopes to improve the ratio to 2 to align more with the 
industry benchmark. To achieve this goal, costs were cut in production through an investment in 
efficient equipment, and the company achieved a higher profit margin. If this continues, you are certain...
Vista previa 2 fuera de 11 páginas
Añadir al carritoA company currently has a ratio of 1.5 but hopes to improve the ratio to 2 to align more with the 
industry benchmark. To achieve this goal, costs were cut in production through an investment in 
efficient equipment, and the company achieved a higher profit margin. If this continues, you are certain...
4 Reasons Ratios are Useful - 1 - Standardization 
2 - Flexibility 
3 - Focus 
4 - Evaluation 
Benchmarking - The process of completing a financial analysis and comparing a firm's performance 
to that of other similar firms. 
Trend Analysis - Comparing a firm's ratios across time 
Cross-Sectional ...
Vista previa 2 fuera de 8 páginas
Añadir al carrito4 Reasons Ratios are Useful - 1 - Standardization 
2 - Flexibility 
3 - Focus 
4 - Evaluation 
Benchmarking - The process of completing a financial analysis and comparing a firm's performance 
to that of other similar firms. 
Trend Analysis - Comparing a firm's ratios across time 
Cross-Sectional ...
Compradores de Stuvia evaluaron más de 700.000 resúmenes. Así estas seguro que compras los mejores documentos!
Puedes pagar rápidamente y en una vez con iDeal, tarjeta de crédito o con tu crédito de Stuvia. Sin tener que hacerte miembro.
Tus compañeros escriben los resúmenes. Por eso tienes la seguridad que tienes un resumen actual y confiable. Así llegas a la conclusión rapidamente!
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Nuestra garantía de satisfacción le asegura que siempre encontrará un documento de estudio a tu medida. Tu rellenas un formulario y nuestro equipo de atención al cliente se encarga del resto.
Stuvia is a marketplace, so you are not buying this document from us, but from seller jessybrown. Stuvia facilitates payment to the seller.
No, you only buy this summary for $69.49. You're not tied to anything after your purchase.
4.6 stars on Google & Trustpilot (+1000 reviews)
45,681 summaries were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now