Project #121272 - Corporate Finance

QUESTION 1

Since stock price can be manipulated by the financial manager through stock buybacks and other informational signaling, maximizing shareholder wealth is a simple task.

 True

 False

 

 

QUESTION 2

Institutional ownership is sought after by new, fast moving organizations because it provides a stable and respected ownership base.

 True

 False

 

 

QUESTION 3

A company can sell their shares in the secondary market by using a syndicate.

 True

 False

 

 

QUESTION 4

Liquidity is nearer to a cash position, and more of it is always desired by the company, bondholders and shareholders alike.

 True

 False

 

 

QUESTION 5

A pro-forma statement is a financial prediction of the future.

 True

 False

 

 

QUESTION 6

Changes in the stock price and the number of shares available will evoke changes in the market cap.

 True

 False

 

 

QUESTION 7

With the exception of an IPO, the firms value is set by the market through the laws of supply and demand.

 True

 False

 

 

QUESTION 8

Uncertain financial or interest rate environments create event risk for the firm.

 True

 False

 

 

QUESTION 9

In the NETSCAPE video, the issue of “currency for acquisition” referred to the shares of the firm being used to buy other companies.

 True

 False

 

 

QUESTION 10

Business risk is non-diversifiable and all firms are exposed to it.

 True

 False

 

 

QUESTION 11

Shrouded in controversy over it’s value, the firms price/earnings ratio is still one of the most commonly used and quoted valuation ratios.

 True

 False

 

 

QUESTION 12

One of the reasons for the financial meltdown recently was the collapse of the real estate market.

 True

 False

 

 

QUESTION 13

Stock buybacks raise your stock price while lowering the number of shares available in the open market.

 True

 False

 

 

QUESTION 14

One valuation technique should be used universally and consistently for all valuation decisions.

 True

 False

 

 

QUESTION 15

In capital rationing involving NPV, an investment can never be split, as the decision must be to accept or reject in total.

 True

 False

 

 

QUESTION 16

The payback method is still the most frequently used system of evaluating investment alternatives probably due to ease of understanding.

 True

 False

 

QUESTION 17

Diagram the business cycle and the effects on individual industries. Why is an index measuring Christmas sales so important? Is the business cycle controllable? What role does a counter-cyclical play? HINT: To diagram the business cycle, be sure to select the rich text/HTML format option for text editing.

 

 

QUESTION 18

 

What role does each of the three main financial statements play in the decision-making process of the financial manager? Which one requires daily inspection? How long before trends are seen?

Subject Business
Due By (Pacific Time) 04/17/2016 07:00 pm
Report DMCA
TutorRating
pallavi

Chat Now!

out of 1971 reviews
More..
amosmm

Chat Now!

out of 766 reviews
More..
PhyzKyd

Chat Now!

out of 1164 reviews
More..
rajdeep77

Chat Now!

out of 721 reviews
More..
sctys

Chat Now!

out of 1600 reviews
More..
sharadgreen

Chat Now!

out of 770 reviews
More..
topnotcher

Chat Now!

out of 766 reviews
More..
XXXIAO

Chat Now!

out of 680 reviews
More..
All Rights Reserved. Copyright by AceMyHW.com - Copyright Policy