Brainarium

) The plan is in writing, and copies of the health insurance plan are made available to employees. B.) The plan is referred to in an employment contract. C.) The plan allocates all contributions to a trust account D.) The employer can document that employees contribute to the plan. E.) Employer contributions are kept in a separate account from the employer's salary account. - CORRECT ANSWER-C.) The plan allocates all contributions to a trust account All the following statements regard...

Which of the following measures of cost is generally used by analysts when they are examining the impact of insurance premiums on employees' choice of health insurance plans? A.) The loading percentage B.) The total gross premium C.) The insurer's profit D.) The employee's out-of-pocket price E.) The expected future gross premium - CORRECT ANSWER-D.) The employee's out-of-pocket price Which of the following statements regarding recognition as a patient-centered medical home...

Plan management responsibilities listed in an audit engagement letter: - CORRECT ANSWER-- understanding the objective of the audit - the plan's financial statements and the selection and application of the accounting policies - establishing and maintaining effective internal control over financial reporting - designing and implementing programs and controls to prevent and detect fraud - identifying and ensuring that the plan complies with the laws and regulations applicable to its acti...

A global trend taking place in defined contribution retirement plans is: o CORRECT ANSWER-A. Greater reliance on plans with default investments 2. A pension plan investment carries an expense of 2%. If the expenses are decreased by 50 basis points, what will be the new level of expenses? o CORRECT ANSWER-D. 1.50% 3. A person's Social Security primary insurance amount (PIA) is which of the following? o CORRECT ANSWER-E. The worker's monthly retirement benefit at full retirement age ...

FINC 341 EXAM PACKAGE DEAL SCORED A+

Interest - the cost of debt Dividends - cost of stock WACC - weighted average cost of capital WdKd(1-t)+Wps(Kps)+Wce(Kce) Why do you use after tax cost of debt to calculate WACC rather than before tax cost? - Because the cost of debt is reduced by its tax deductibility Which cost of debt is relevant? - The interest rate on new debt, because WACC is for capital budgeting decisions... What is often a reasonable estimate of new interest? - The Yield-To-Maturity (YTM) because the YTM gives ...

Current Ratio - CORRECT ANSWER-(CA/CL) Quick (acid test) Ratio - CORRECT ANSWER-(CA - Invt)/(CL) Biggest reason companies go under: - CORRECT ANSWER-not managing inventory Inventory Turnover= - CORRECT ANSWER-(sales)/(inventory) FA Turnover= - CORRECT ANSWER-(sales)/(net FA) Total assets turnover= - CORRECT ANSWER-(sales)/(total assets) DSO ("ACP")= - CORRECT ANSWER-(A/R)/(avg sales per day) Debt Ratio= - CORRECT ANSWER-(debt)/(assets) or [1 - (1/EM)] Times-interest-earned (TIE)= -...

T/F: EVA considers the cost of debt AND the cost of equity - CORRECT ANSWER- T T/F: EVA is highly correlated with stock price - CORRECT ANSWER- T T/F: EVA is good for measuring management performance in specific divisions - CORRECT ANSWER- T T/F: MVA is good for measuring management performance in specific divisions - CORRECT ANSWER- F Old Dividend Exclusion Rules - CORRECT ANSWER- 70/80/100 New Dividend Exclusion Rules - CORRECT ANSWER- 50/65/100 T/F: The higher the tax brac...

Sources of Cash? - CORRECT ANSWER-Selling Assets, Increasing Debts, or Increasing Equity Uses of Cash? - CORRECT ANSWER-Buying Assets, Paying off Debts, Buying back Equity IF [ # of shares] falls, THEN [ EPS ] ..... - CORRECT ANSWER-[ EPS ] will increase, as will stock price EPS Calculation - CORRECT ANSWER-[Net Income] / [# of Shares Outstanding] Accounting Profit (Finance term) - CORRECT ANSWER-Net Income Net Cash Flow Calculation - CORRECT ANSWER-[Net Income] + [Depreciation] Operati...

Common stockholders often have the preemptive right to purchase on a pro rata basis any additional shares sold by the firm. This enables current stockholders to maintain control and protects current stockholders from dilution of stock value. - CORRECT ANSWER-True When investing overseas, you are betting that foreign stock prices will increase in their local markets, and that the currencies in which you will be paid will fall relative to the dollar. - CORRECT ANSWER-False - everything is co...

1. What is intrinsic value? o An estimate of a stock's "true" value based on accurate risk and return data; can't be measured precisely. 2. When is equilibrium achieved in stock pricing? o When intrinsic value equals market price; no pressure for a change in the stock's price. 3. What are the main areas of finance? o Financial management, capital markets, and investments.

NPV, IRR, and MIRR will always agree as to whether a project with normal cash flows is profitable or not. - CORRECT ANSWER- True If a project has nonnormal cash flows, the IRR can be less than the cost of capital while the NPV is positive. - CORRECT ANSWER- True A nonnormal project's NPV will approach the value of the project's last cash flow at t=n as the cost of capital approaches infinity. - CORRECT ANSWER- False A nonnormal project's NPV will approach the value of the project...

The yield spread between corporate bonds and treasury bonds increases as the bonds have longer lengths to maturity. This is because the DRP and LP on corporate bonds increase with longer length to maturity, but they don't exist on a Treasury bond regardless of length to maturity – CORRECT ANSWER–True The price of a 10% coupon bond trading at par of $1,000 will remain at $1,000 if the market interest rate remains at 10%. Therefore, its current yield will remain at 10% and its capital ...

Stock prices have increased significantly since President Trump was elected due to expectations that the U.S. economy will gain strength in the future from lower corporate tax rates, repatriation of corporate cash from abroad, and some deregulation of business - CORRECT ANSWER-True From World War I to 2000, the economy grew at a an average growth rate of 3.5 % per year. From 2000 until today, it has grown at about 1.5% on average per year - CORRECT ANSWER-False When interest rates are hig...

MGT 8803 PACKAGE DEAL WITH COMPLETE SOLUTIONS!!

Marketing - CORRECT ANSWER - the creation and satisfaction of demand for a product or service Strategy - CORRECT ANSWER - a set of ideas that outline how a product line or brand will achieve its objectives Tactic - CORRECT ANSWER - a specific action or method that contributes to achieving a goal Things a firm should do in marketing - CORRECT ANSWER - analyze needs predict wants estimate demand determine where estimate price decide promotion estimate competition provide service Uni...

Cash - CORRECT ANSWER-Type: Asset Statement: Balance Sheet Current Account Deferred Revenue - CORRECT ANSWER-cash received in advance from a customer for products or services to be provided in the future. Type: Liability Statement: Balance Sheet Current Account Treasury Stock - CORRECT ANSWER-A corporation's own stock that it has reacquired Type: Contra-Equity Statement: Balance Sheet Cost of Goods Sold - CORRECT ANSWER-the total cost of merchandise sold during the period Type: E...

Flat (Networked) Organizational Structure - CORRECT ANSWER-*front-line employees empowered to make decisions *information flows top-down AND bottom-up *few levels of middle mgt *decentralized decision making *dynamic environment Strategic Plans - CORRECT ANSWER-1. broadly impacts firm 2. new markets to enter or existing to leave 3. concerns overall scope of firm 4. identifies initiative to create & sustain competitive advantage 5. driven by mgt's vision, mission, values Functional ...

Equity Multiplier - CORRECT ANSWER-(liabilities + owners' equity)/owners' equity Working Capital - CORRECT ANSWER-current assets - current liabilities Current Ratio - CORRECT ANSWER-current assets/current liabilities Quick Ratio - CORRECT ANSWER-(cash + marketable securities + receivables) / current liabilities Debt-To-Equity - CORRECT ANSWER-total liabilities/total equity

Responsive Supply Chains -Speed Focused. -Innovative Products Efficient Supply Chain -Cost Focused -Good for Functional Products Functional Products • Predictable demand • Low inventory cost • Long product life • Low product variety • Low stockout and obsolescence cost Stockout • An event that occurs when no inventory is available Innovative Products • High demand uncertainty • Short product life • High inventory cost • High profit margins • High product ...