Fin 340 - Study guides, Class notes & Summaries

List 4 reasons for a firm would hold cash and marketable securities - ️️1 Transaction balances 2 Compensating balances 3 Pre-cautionary balance 4 Speculative purposes Complete the following statements with "increase" or "decrease": An increase in Inventory conversion period will _________ the CCC - ️️increase True/False:Working capital management is more important for larger firms than smaller businesses - ️️False True/False:There is a close relationship between ...

CHAPTER 14--TAXES ON THE FINANCIAL STATEMENTSCHAPTER 14--TAXES ON THE FINANCIAL STATEMENTS Student: ___________________________________________________________________________ 1. If a corporation has no subsidiaries outside the U.S., its book and taxable income are identical. True False 2. Only U.S. corporations are included in a combined GAAP financial statement. True False 3. Foreign entities owned at least 80% by the parent are included in a consolidated group’s U.S. tax return. Tru...

What are the three forms of business organization? Which one is unique as described in lectures? Describe differences between them and good and bad points related to each. - Sole Proprietorship. -Pro: easy startup, single taxation -Con: limited life, hard to raise capital, unlimited liability Partnership. -same as sole proprietorship Corporation. -Pro: limited liability, transfer ownership, easy to raise capital -Con: double taxation, separation of ownership and management A Corporati...

Mary just purchased a bond which pays $60 a year in interest. What is this $60 called? - coupon Bert owns a bond that will pay him $75 each year in interest plus a $1,000 principal payment at maturity. What is the $1,000 called? - face value A bonds coupon rate is equal to the annual interest divided by which one of the following? - face value The specified date on which the principal amount of a bond is payable is referred to as which one of the following? - maturity Currently, the bond ...

Accounting book value - The value of an asset as shown on a firm's balance sheet. It represents the depreciated historical cost of the assest rather than its current market value or replacement cost Asset Management - How efficienty management is using the firm's assets to generate sales Balance sheet - A statement that shows a firm's assets, liabilities, and shareholder equity at a given point in time. Its a snapshot of the firm's financial position on a particular date. Best Effort Ba...

FIN 3403 Exam 1 | 100% Correct Answers | Verified | Latest 2024 Version

FIN 3403 Exam 2 Test Bank | 100% Correct Answers | Verified | Latest 2024 Version Mary just purchased a bond which pays $60 a year in interest. What is this $60 called? - coupon Bert owns a bond that will pay him $75 each year in interest plus a $1,000 principal payment at maturity. What is the $1,000 called? - face value A bonds coupon rate is equal to the annual interest divided by which one of the following? - face value The specified date on which the principal amount of a bond ...

Fin 340 NAU Exam 2- Questions and Answers

1. Suppose you're thinking of buying a stock. You expect it to pay a $2 dividend in one year, and you believe you can sell the stock for $14 at that time. If you require a return of 20% on this investment, what's the maximum you would be willing to pay? a. What if you decide to hold the stock for two years? In addition to the dividend in year 1, you expect a dividend of $2.1 in two years and a stock price of $14.7 at the end of year 2. How much would you be willing to pay? b. How abo...

The four basic financial statements contained in the annual report - Answers-balance sheet, income statement , stockholders equity , statement of cash flows 3 aspects of cash flows that affect investment value - Answers-Financial asset derived from the amount of cash flows (bigger is better) Timing of cash flows stream (sooner better) Investors are risk adverse ( pay more for less risk) Net cash flow differs from accounting profit because - Answers-some of the revenues and expenses show...