Capital budgeting area deal with how firm should be financed

Assignment Help Financial Management

Reference no: EM131566019

True-False Practice Questions:EXPALIN EACH ONE WHY

1. According to the Order of Operations, exponents are applied before the expression in parentheses, division is to be completed before multiplication, and addition and subtraction are to be completed before multiplication and division.

2. A simple percent change represents a change as part of the new or later value.

3. To change a decimal value to a percent, divide by 10.

4. In a Normal Distribution, there is a 68% chance that an actual return will exceed the average return minus one standard deviation.

5. For a given mean, a larger standard deviation reflects less uncertainty.

6. If both the top and bottom of a fraction increase, there is no way to tell in which direction the value of the whole fraction would change.

7. The capital budgeting area deals with how the firm should be financed.

8. The capital structure area deals with how much of a firm’s assets should be held in cash, inventory and accounts receivable.

9. The goal of the corporate financial manager is to maximize the firm’s profits.

10. In order to maximize stock prices, financial managers should try to keep costs down, maximize risk, and generate as little cash as possible.

Reference no: EM131566019

Questions Cloud

How much money will analog need to borrow : How much money will Analog need to borrow in order to end up with $880,000 spendable cash?

Savings account every year quarter for your retirement : You deposit $100 in your savings account every year quarter for your retirement. how much will you have after 25 years?

Explain how using financial ratios can help spot tricks : Name and explain three tricks that management can play to manage earnings. Explain how using financial ratios can help spot these tricks.

What is the optimum order size : The firm estimates an ordering cost of $9.96 per order, with an inventory cost of $.84 per unit. What is the optimum order size?

Capital budgeting area deal with how firm should be financed : The capital budgeting area deals with how the firm should be financed. The goal of the corporate financial manager is to maximize the firm’s profits.

What will be coupon rate for these bonds : he bonds make semiannual payments. What will be the coupon rate for these bonds?

The market portfolio return : Suppose the market portfolio’s return is 30% when the economy is strong and -20% when the economy is weak. A

What is the expected return for an individual firm : The standard deviation for the return on an individual firm is closest to. What is the expected return for an individual firm?

Opportunity cost of capital is rate you expect to make : Would you pay someone $500 today to get $600 in five years if your opportunity cost of capital is 7% (opportunity cost of capital is rate you expect to make)

User Account

All Pages