Realgrades

What is the relationship between PV and interest rate? - correct answer inverse what is the relationship between FV and interest rate? - correct answer positive What would make you consider taking a lesser $ amount today compared to the future? - correct answer the interest rate How do you compare CF at different times? - correct answer lump...

What are some risks banks take? - correct answer Market - Interest rates - Changes in values from changes in interest rates - Macroeconomic - outside of bank control Credit - Can the company afford to repay the loans (or interest) Operational - Tech breakdowns Regulatory - Not adhering to rules (how they have to behave) Reputational - Bank taking on a company that benefits shareholders but upheaves stockholders A bank closing a public item...

realistic and attainable financial plans - correct answer short term, long term, intermediate. rather than just save money state the purpose of your efforts like buy a car. your goals should reflect your financial and life situations. you dont plan for a 100,000 car when you year salary is 15,000 basic steps in personal financial planning. - correct answer 1. evaluate your financial health 2. define your financial goal...

A 2 for 1 stock split gives the stockholder __________. A. twice as many shares at double the previous price B. twice as many shares at half the previous price C. half as many shares at twice the previous price D. half as many shares at double the previous price - correct answer B What concept involves earning earning interest on interest in addition to interest on the principal or initial investment? A. discounting B. the principal value C. inf...

The market risk premium is - correct answer the difference between the return on the market and the risk-free rate of return. Which one of the flowing risks of a stock is not likely to be an unsystematic, diversifiable risk? A. The risk that the founder and CEO retires B. The risk that a product design is faulty, and the product must be recalled C. The risk that your best employees will be hired away D. The risk that the new product you expect your R&D...

Formula for Financial Success - correct answer savings + aggressive tax- deferred growth (invest)+time = wealth American Dream - correct answer Financial stability Happiness Home Family Good Job 3 biggest regrets retired people have - correct answer 1. Not saving money sooner 2. Wish they traveled more 3. Wish they chose a different career Financial Lifecycle (3 component...

Classify each of the following in terms of their effect on interest rates: 1. Covenants on borrowing become more restrictive 2. Fed increases money supply 3. Total household wealth increases - correct answer 1,2,3 decreases an investor wants to buy 4% more goods and services in the future in order to induce her to invest today. During the investment period prices are expected to rise by 2%. Which statements are true? 1. 4% is desired rfr 2. 6% is nomi...

2 basic questions of corporate finance - correct answer 1) What long term investments should the firm choose? 2) How should the firm raise funds for the selected investments? Primary goal of financial management of a corporation - correct answer maximize shareholder wealth; shareholders are the residual owners, so they are only entitled to leftovers. If shareholders are winning (getting more in dividends) then that mea...

Net Operating After Taxes (NOPAT) - correct answer =EBIT(1-T) Net Cash Flow - correct answer =NI+Depreciation Liquidity ratio: Current Ratio - correct answer =Current Assets/Current Liabilities Liquidity Ratio: Quick Ratio - correct answer =(Current Assets-Inventory)/Current Liabilities Asset Management Ratio: Inventory Turnover - corr...

What does Corporate Finance address? a. How a firm should manage and fund its short-term assets b. The long-term investments the firm should choose c. How to fund a firm's investments d. All of the Above - correct answer d What is the primary goal of Financial Management? a. To maximize profits b. To minimize costs c. To maximize market share d. To maximize shareholder wealth - correct answer d In a corp...

Profit maximization as a goal of the firm: a. is an economic principle and not an accounting one b. is superior to other goals that could be pursued c. maximizes the wealth of the owners d. does not consider cash flow or risk - correct answer d. does not consider cash flow or risk Wealth maximization as a goal of the firm: a. is usually discounted by bondholders b. takes a long-run perspective and focuses on the owners of the firm c. is a long-run p...

Capital structure - correct answer mixture of long-term debt and equity the firm uses to finance its operations. Forms of businesses - correct answer ... Agency conflicts - correct answer Potential conflict between owner and its managers. Primary goal of financial management - correct answer maximize the market value of existing stock for a ...

What are the 3 sub-specialties within finance? - correct answer - Corporate finance - Investments - Institutions Corporate finance - correct answer - Goal is to maximize shareholder wealth for publicly traded forms or to maximize owner wealth for privately held companies - A financial manager works towards this goal by managing the investing and financing functions of a firm Investments - correct answer ...

Human beings can be characterized by 3 elements, which are... - correct answer incentives (evaluative), maximization (imperfectly), resourcefulness What is often the most important incentive for people? - correct answer money What is dismal science? - correct answer The natural constraint of resources (all resources, such as water, electricity, roads, food) makes economics What...

Short-term tends to be more... - correct answer volatile Economy is strong when... - correct answer interest rates go up real risk free rate - correct answer r* , rate for short term risk less security when inflation is expected to be 0, rate on short-term U.S. treasure securities assuming there is no inflation default risk premium - correct answer ...

Wealth - correct answer the economic value of the assets someone possess Stakeholder - correct answer anyone other than an owner (shareholder) with a claim on the cash flows of a company, including employees, suppliers, creditors, and the government Productive assets - correct answer the tangible and intangible assets a company uses to generate cash flows Residual cash flows - ...

What is financial management - correct answer the allocation of resources under uncertainty through time What is the objective of financial managers? - correct answer a. Maximization of shareholders' wealth b. With an efficient financial market, shareholders can modify their pattern of consumption through borrowing and lending and match their risk preferences. What problems do we have in financial management? - cor...

CHPT 1 - correct answer Manager - correct answer an individual who achieves goals through other people organization - correct answer A consciously coordinated socai unit, composed of two or more people. That functions on a relatively continuous basis to achieve a common goal Organizing - correct answer De...

High-performance employees are most attracted to organizations that have managers who excel in which of the following skill areas? - correct answer Interpersonal skills Jenna is a store manager currently engaging in her leadership role by creating conditions within which productive work can be achieved. In which of the following activities is Jenna most likely to be engaging? - correct answer Jenna is ...

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