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Finance related MCQs




Question;Which of the following is not a method of ?benchmarking??Conduct an industry group analysis.Evaluating a single firm?s performance over time.Identify a group of firms that compete with the company being analyzed.Utilize the DuPont system to analyze a firm?s performanceWhat decision criteria should managers use in selecting projects when there is not enough capital to invest in all available positive NPV projects?The discounted payback.The modified internal rate of return.The internal rate of return.The profitability indexIf a company's weighted average cost of capital is less than the required return on equity, then the firm:Has debt in its capital structureMust have preferred stock in its capital structureIs financed with more than 50% debt Is perceived to be safeA firm's capital structure is the mix of financial securities used to finance its activities and can include all of the following exceptstock.bonds.equity options.preferred stockWhich of the following cannot be engaged in managing the business?a sole proprietora general partnera limited partnernone of theseWhich of the following does maximizing shareholder wealth not usually account for?Government regulation.The timing of cash flows.Amount of Cash flows.Risk.The strategic plan does NOT identifyfuture mergers, alliances, and divestitures.major areas of investment in real assets.the lines of business a firm will compete in.working capital strategies.Firms that achieve higher growth rates without seeking external financingnone of these.have less equity and/or are able to generate high net income leading to a high ROE.have a low plowback ratio.are highly leveraged.The cash conversion cyclebegins when the firm uses its cash to purchase raw materials and ends when the firm collects cash payments on its credit sales.estimates how long it takes on average for the firm to collect its outstanding accounts receivable balance.shows how long the firm keeps its inventory before selling it.begins when the firm invests cash to purchase the raw materials that would be used to produce the goods that the firm manufactures.


Paper#49677 | Written in 18-Jul-2015

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