Exam 9: Finance: Acquiring Using Funds to Maximize Value

Benny-Duke Inc. reported a net income of $7 million but paid no dividends to its shareholders. The shareholders should sue the company for failure to provide a return on their equity investment.

For a corporation, direct investment from owners occurs when:

In the context of short-term financing, which of the following statements is true of a factor?

Which of the following is the most commonly used liquidity ratio?

Which of the following is a source of long-term funds for firms?

Projects with potential for high returns generally have a low degree of uncertainty and risk.

Accounts receivable represents what customers who buy on credit owe the firm.

Garry, a financial manager at AtoZ technologies, wants to know when his firm will need to arrange for short-term financing and when the firm is likely to have surplus cash available to pay off loans or to invest in short-term liquid assets. These concerns suggest that Garry would want to develop a _____.

Tinix is a well-established petrochemical company that holds excellent credit ratings in the market. It provides short-term financial capital to other big firms by issuing promissory notes that are HYPERLINK "https://en.wikipedia.org/wiki/Collateral_(finance)" collateralized by HYPERLINK "http://www.investopedia.com/terms/p/physicalasset.asp" physical assets. Which of the following short-term financing options is being offered by Tinix in the given scenario?

_____ are also sometimes called activity ratios.

Return-on-equity indicates how much net income a firm earned per share of common stock outstanding.

One of the major sources of equity financing for corporations is _____.

Reesa Mork is a multinational corporation that has good credit ratings. It issues promissory notes to other companies. Based on the given information in the scenario, it appears that Reesa Mork uses _____ as a short-term financing option to other companies.

Which of the following statements is true of current ratio?

Rel Eston, a network service provider, sells off its accounts receivable to a financing company in order to gain early access to funds that would help accelerate company's growth trajectory in the market in the following year. Which of the following short-term financing options is being used by Rel Eston in the given scenario?

In comparison with other assets, which of the following is a shortcoming of cash?

Dora works for PowTran Corp. Her primary responsibilities include managing the firm's working capital and analyzing long-term investment opportunities for the firm. Dora is most likely a part of the firm's _____ team.

The term _____ refers to the use of debt to meet a firm's funding needs.

A firm's _____ include cash and other assets expected to be converted into cash in the following year.

Nestrum, a real estate management company, employs qualified analysts to predict customers' buying habits and budgets. Hence, the company has been able to acquire at least one customer per month. In the given scenario, the analysts most likely need to analyze the company's _____ to measure how effectively it has been using its assets to generate revenues.