Financial Management Exam |
Questions and Correct answers
Net working capital is defined as: - Ans current assets minus current liabilities
Which of the following are advantages of the corporate form of business
ownership? - Ans 1) limited liability for firm debt
2) ability to raise capital
3) unlimited firm life
Which form of business structure is most associated with agency problems? - Ans
corporation
Decisions made by financial managers should primarily focus on increasing which
one of the following? - Ans market value per share of outstanding stock
Why should financial managers strive to maximize the current value per share of
the existing stock? - Ans
El dorado Resorts reported annual net income of -$9 million. Approximately 21
million shares of this company's stock are outstanding. Given this info, what is the
company's earnings per share? - Ans EPS= net income/#of shares outstanding
-9 million/21 million = about -0.45
What are some money market assets? - Ans T-Bills
Questions and Correct answers
Net working capital is defined as: - Ans current assets minus current liabilities
Which of the following are advantages of the corporate form of business
ownership? - Ans 1) limited liability for firm debt
2) ability to raise capital
3) unlimited firm life
Which form of business structure is most associated with agency problems? - Ans
corporation
Decisions made by financial managers should primarily focus on increasing which
one of the following? - Ans market value per share of outstanding stock
Why should financial managers strive to maximize the current value per share of
the existing stock? - Ans
El dorado Resorts reported annual net income of -$9 million. Approximately 21
million shares of this company's stock are outstanding. Given this info, what is the
company's earnings per share? - Ans EPS= net income/#of shares outstanding
-9 million/21 million = about -0.45
What are some money market assets? - Ans T-Bills
