FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT, Exams of Nursing

Download FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT and more Exams Nursing in PDF only on Docsity! FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT higher financing costs • liquidity • Only Company B • Both Company A and Company B • Only Company A • Neither Company A nor Company B • opportunity costs • FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT • FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT You passed this Milestone 17 questions were answered correctly. 8 questions were answered incorrectly. 1 Based solely on their current weighted average cost of capital, which company should pursue an investment opportunity with an expected return of 7%? CONCEPT The WACC 2 Preparing a cash flow forecast helps a company to avoid . Company A Comp an Market Value of Equity $700,000 $900,000 Market Value of Debt $300,000 $200,000 Cost of Equity 8% 10% Cost of Debt 1.5% 3% Tax Rate 30% 25% • $9,464 • $8,207 • $8,333 • $9,765 FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT Calculate a company's total leverage given the following information: • Net income = $80,000 • Revenue = $120,000 • Variable costs = $25,000 • 1.19 • Cannot calculate without knowing degree of financial leverage • 1.14 • Cannot calculate without EPS data CONCEPT Thinking About Financial Leverage 6 You would like to have $10,000 in an account after eight years’ time. If the account earns 2.5% compounded interest yearly, how much would you have to deposit today? CONCEPT Present Value, Single Cash Flows 7 What is the recent trend of algorithmic trading criticized for? FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT • Being too transparent FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT 2 • 0.5% • -2.0% • -0.5% • 2.0% FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT • 85 • 105 • FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT • Over-extending credit • Increasing market volatility • Improving market liquidity CONCEPT Trends and Issues in Finance 8 If a portfolio regularly falls twice as much as a benchmark index rises, the portfolio's beta coefficient is . CONCEPT Implications Across Portfolios 9 A company with a 120-day operating cycle determines its cash conversion cycle using the following data: • Receivable days: 35 • Inventory days: 95 • Payable days: 45 What is the company's cash conversion cycle? • $28.33 • $30.32 • $22.74 • $29.47 • Preferred stock: may be purchased by converting common stock shares into preferred ones • Common stock: holders can mail in their votes if they can't attend a company's annual general meeting • Common stock: may come with an additional dividend provision attached to company financial goals • Preferred stock: is a less stable investment than common stock with fewer rights of ownership FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT CONCEPT The Payback Method 12 Determine the value of a stock with the following variables using the constant growth model: • Current annual dividend: $0.85 per share • Required return rate: 7% • Constant growth rate: 4% CONCEPT Stock Valuation 13 Select the pairing that is correctly matched. FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT CONCEPT Rules and Rights of Common and Preferred Stock FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT • How much money do we have? • How many people do we need? • Where are we going? • Who are we competing with? • $12.66% • 15% • 24% • 15.33% FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT 14 Strategic planning answers the question " " CONCEPT Financial Forecasting 15 Using the following variables, calculate an organization's cost of preferred stock. • Dpref: $4 • Ppref: $30 • g: 2% CONCEPT Valuing Different Costs 16 Over the last six years, prices and investing activity in the bond market rose for two years and then fell consistently for the next four years. FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT CONCEPT FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT • When its total assets are equal to its total liabilities • When its working capital is positive • When it can meet all of its short-term expenses and debts with current assets • When it has cash reserves • Statement of changes in equity • Balance sheet • Cash flow statement • Income statement FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT Securities Management 19 When does a company know that it has sufficient working capital? CONCEPT Working Capital 20 Betina is trying to convince a buyer to purchase her company. The buyer wants to know what the company's overall financial condition was on December 31, 2018. What type of financial statement should Betina provide? CONCEPT Introducing Financial Statements 21 FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT • FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT When managing its cash, a company should make use of float to . FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT