Bfin 350 - Study guides, Class notes & Summaries

BFIN 350 CHAPTER 3 AND 4 EXAM QUESTIONS WITH ALL CORRECT ANSWERS What is NOT incorporated in the calculation of Du Pont Identity - Answer-Receivables turnover The capital intensity ratio - Answer-is the reciprocal of the total assets turnover ratio The percentage of sales approach to financial planning requires - Answer-separating accounts into those that vary with sales and those that do not The two key dimentions of financial planning are - Answer-the planning horizon aggregation...

BFIN 350 CHAPTER 5-9 TEST QUESTIONS WITH COMPLETE SOLUTIONS GRADED A+ Best definition of Growing perpetuity - Answer-A constant stream of cash flows without end that is expected to rise indefinitely Best definition of a growing annuity - Answer-A finite number of growing annual cash flows Best definition of an effective annual rate - Answer-The interest rate expressed as if it were compounded once per year You are planning to save your christmas bonuses from work and are comparint savi...

BFIN 350 CHP 4 EXAM QUESTIONS WITH ALL CORRECT ANSWERS GRADED A+ What is the plug variable? - Answer-It is the cash surplus or shortfall that will be shown when the projected balance sheets are not in sync What are the economic assumptions? - Answer-the plan should expicitly describe the economic environment the firm resides in over the life of the plan What are some important economic factors to look at? - Answer-The level of interest rates and the firm's tax rate What is the divi...