Corporate Finance Study guides, Class notes & Summaries

Corporate Finance Practice Test Questions + Answers |Updated| LATEST!! Which of the following items are not included when determining income from operations? *Ans* Taxes Which ratio would you use to determine the profitability of the goods sold by a company? *Ans* Gross profit margin When performing a vertical analysis which income statement item do you use to determine the cost contribution for each expense category? (What is the denominator?) *Ans* Sales Horizontal analysis allows...

Corporate Finance 2024 Exam |Question and Answer| Graded A+ Dividend Reinvestment Plans have the option of: *Ans* Automatically reinvesting some or all of their cash dividends in shares of stock. A stock split is characterized by all of the following, except: *Ans* Paid in cash to outstanding shareholders. Benson Company has 150,000 outstanding shares @ $20/share. The company has declared a two-for-one stock split. How many shares will be outstanding and at what value after the spli...

Corporate Finance Complete Exam Study Set |100% Correct| Question and Answers Financial break-even *Ans* Financial break even NPV solved=0, OCF* for NPV=0 Q=(FC+OCF*)/ (P-v) v=variable cost per unit General Break-Even *Ans* Q=(FC+OCF) /(P-v) Constant Growth Model (infinite) *Ans* a widely cited dividend valuation approach that assumes that dividends will grow at a constant rate, but a rate that is less than the required return Constant Growth Model (finite) *Ans* Should include ter...

Corporate Finance Latest Exam Set [100% Correct] Question and Answer A sole proprietorship: A. is taxed the same as a C corporation. B . can generally raise large sums of capital quite easily. C. has a limited life. D. can transfer ownership of the firm more easily than a corporation can. E. is the most regulated form of organization. *Ans* C. has a limited life. Cash flow from assets is also known as the firm's: A. capital structure. B. free cash flow. C. historical cash flow. D. ...

5. Corporate Finance Exam Study Set |Question and Answer| 100% Correct it's money for old rope *Ans* you are emphasizing that it is earned very easily, for very little effort. [British, informal, emphasis] loan *Ans* amount of money borrowed for a certain time period over budget *Ans* (phrase) costing more than the money that is available or was planned to spend cutback *Ans* a reduction in quantity or rate auction *Ans* the public sale of something to the highest bidder muck *Ans* ...

Solved Corporate Finance -Revised Exam |100% Correct| Jenna has been promoted and is now in charge of all external financing. In other words, she is in charge of: *Ans* Capital Structure Management Matt and Alicia created a firm that is a separate legal entity and will share ownership of that firm on a 75/25 basis. Which type of entity did they create if they have no personal liability for the firm's debts? *Ans* Corporation Which one of the following statements about a limited partne...

Corporate Finance Exam Prep Guide |Graded A+| LATEST!! Valuation principle *Ans* State that we can use current market prices to determine the value today of the costs and benefits associated with a decision Net present value rule *Ans* The main tool of project evaluation where we weigh the costs and benefits at different points in time and apply this information to decisions Time value of money *Ans* The difference in value between money today and money in the future i.e. investment ...

Corporate Finance ECON 101 Exam 2 |Question and Answers| sole proprietorship *Ans* 1 owner, owner receives all the profits, unlimited liab., 2 parts: 1. initial investment and 2. personal wealth. Taxed based on personal income. Transfer of ownership is hard. Must be willing to buy all assets. partnership *Ans* 2 or more owners. profit is based on % invested shared. Unlimited liab. between owners. Tax based on personal income. hard to transfer ownership. limited partnership *Ans* same ...

Corporate Finance Chapter 4 Study Guide |Question and Answer| The long-range time period, usually the next two to five years, over which the financial planning process focuses is known as the: a. planning horizon. b. planning strategy. c. planning agenda. d. short-run. e. current financing period *Ans* Planning Horizon The process by which smaller investment proposals of each of a firm's operational units are added up and treated as one big project is known as: a. separation. B. ag...

|2024 Release| Corporate Finance Final Exam [Question and Answer] LATEST!! Indenture agreement contains bond terms *Ans* Maturity date Par value Time to maturity Call feature Coupon Rate Bond Issuers *Ans* US Treasury $1,000 Corporations $1,000 Municipalities $5,000 Zero-coupon bond *Ans* No interest payments Pays par value at maturity Yield to Maturity (YTM) *Ans* Discount rate that equates the present value of future cash flows with current bond price Stock Companies *Ans* 3M, ...