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! • Only Company B • Both Company A and Company B • Only Company A • Neither Company A nor Company B • opportunity costs • higher financing costs • liquidity • 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 . FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT Company A Compan y 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% FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT CONCEPT Building a Cash Budget 3 What must be forecasted first in order to prepare the pro forma income statement? • Cost of goods sold • Sales • Expenses • Net income CONCEPT Forecasting the Income Statement 4 Select the statement that correctly explains the relationship between interest rates and present or future value. • Assuming other variables stay the same, if the interest rate decreases, the future value of an investment increases. • Assuming other variables stay the same, if the interest rate decreases, the present value of an investment decreases. • The interest rate and the future value of an investment are inversely related. • Assuming other variables stay the same, if the interest rate increases, the future value of an investment increases. FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT net losses 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 0.5% • -2.0% • -0.5% • 2.0% • 85 • 105 • 25 • 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? FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT 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 FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT • FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT years. How is this market classified? 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 To make long-term capital investment decisions • To balance the cash conversion cycle against maximum revenue • To eliminate the risk of customers defaulting on credit • To minimize liquidity and maximize profitability • 56.25% • 62.50% • 36.00% • 40.00% • FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT make payments before they come due • decrease the length of time for a payment to clear the bank • set aside cash for future payments • increase the length of the disbursement cycle CONCEPT Cash Management 22 Which of the following is a goal of working capital management? CONCEPT Working Capital Financing 23 Lee purchased stock with an initial share price of $32, and sold it when the share price was $50. While he owned the stock, he earned $2 in dividends. What was his total percentage return on the investment? FIN 100 Sophia Final Milestone,LATEST UPDATE UPGRADED/RATED 100% CORRECT