Fin 350 Study guides, Class notes & Summaries

BFIN 350 Chapter 1 and 2 Exam Questions with Correct Answers The balance sheet is made up of these five key components - Answer-Fixed assets Long term Debt Current Assets Current Liabilities Shareholders Equity Using the balance sheet model of the firm, finance may be thought of as analysis of three primary subject areas: - Answer-Capital Budgeting Capital Structure Net Working Capital The need to manage net working capital arises because - Answer-There is a mismatch...

BFIN 350 Chapter 5-9 Test Questions with Complete Solutions The rate of return used when computing the present value is - Answer-referred to as the discount rate while the rate used when computing a future value is referred to as the compound rate As long as the interest rate is greater than zero, the present value of a single sum will always - Answer-be less than the future value to create the same future value given a stated discount rate, you can - Answer-increase the present value a...

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BFIN 350 CHP 20 Exam Questions and Answers All Correct What is the basic objective of cash management? - Answer-It is to keep the investment in cash as low as possbile while still keeping the firm operating efficiently and as effectively as possible. What is the goal of cash management? (hint: think AR and AP) - Answer-The goal of cash management is to collect early and pay late What are the 3 reasons John Maynard Keynes identified as being reasons why liquidity is important? - Answer-1...

FIN-350 GCU Exam 4 Questions & Answers 2024/2025 What is Beta - ANSWERSMeasures of systematic risk Based on income statement and balanced sheet. They are found on their annual report - ANSWERSLiquidity ratio. Asset management. Leverage ratio. Profitability ratios Mission or vision statement - ANSWERSIndicates firm's target market(s). Will guide major decisions. Periodically reviewed and revised. Support by business and financial plans to implement. Identifies good/ services the firm ...

FIN-350 GCU Exam 4 Questions & Answers 2024/2025 What is Beta - ANSWERSMeasures of systematic risk Based on income statement and balanced sheet. They are found on their annual report - ANSWERSLiquidity ratio. Asset management. Leverage ratio. Profitability ratios Mission or vision statement - ANSWERSIndicates firm's target market(s). Will guide major decisions. Periodically reviewed and revised. Support by business and financial plans to implement. Identifies good/ services the firm ...

t/f the dividend irrelevance theory proposed by miller and Modigliani says that provided a firm pays at least some dividends, how much it pays does not affect either its cost of capital or its stock price ANSWER: f t/f if investors prefer firms that retain most of their earnings then a firm that wants to maximize its stock price should set a low payout ratio ANSWER: t t/f if a firm adopts a residual distribution policy, distributions are determined as a residual after funding the cap...

A surplus spending unit's A) income and expenditures for the period are equal. B) income for the period exceeds expenditures. C) expenditures for the period exceed receipts. D) spending is entirely financed by credit cards ANSWER: B) income for the period exceeds expenditures. Which sector has been most consistently in a surplus budget position? A) Business B) Government C) Foreign D) Household ANSWER: D) Household Money market mutual funds are a strong competitor for Deeagles - St...

BFIN 350 Chapter 3 and 4 Exam Questions with Answers The financial ratio measured as EBIT plus depreciation divided by interest expense - Answer-Cash Coverage Ratio The financial ratio measured as the firm's long-term debt divided by its total capitalization - Answer-the long-term debt ratio The long-term debt ratio is probably of most interest to a firm's - Answer-debt holders The function described as the profit margin times the total asset turnover times the equity multiplier is k...

BFIN 350 Chapter 5-9 Test Questions with Complete Solutions The rate of return used when computing the present value is - Answer-referred to as the discount rate while the rate used when computing a future value is referred to as the compound rate As long as the interest rate is greater than zero, the present value of a single sum will always - Answer-be less than the future value to create the same future value given a stated discount rate, you can - Answer-increase the present value a...