Reference no: EM132467030
1. Pseudo dividends are:
(a) excess cash not currently needed for investment in assets or operation
(b) solely expressed by the net sales of the firm
(c) dividends that only appears on the accounting of the firm but the equity holders never receive
(d) fixed capital distributed to investors if the firm goes bankrupt
(e) rewards given to investors but which are not of a financial character
2. A firm with $20.000 in average current assets, $10.000 in average current liabilities and $5.000 in average inventory has a quick ratio at 1.5.
(a) True
(b) False
3. This is the share of start-ups that get VC funding in the US
(a) more than 20 percent
(b) approximately 0.5 percent
(c) approximately 5 percent
(d) approximately 15 percent
(e) approximately 10 percent
4. Given that Eb is the equity at the beginning of the year, ?E is the change in equity during the year, RR is the retention rate, and NI denotes the net income. Then the sustainable growth rate can be expressed by:
(a) (NI/Eb) × RR
(b) NI × RR/Eb
(c) ?Equity/Eb
(d) (NI RR)/Eb
(e) All of×the above
5. Net profits are expressed by:
(a) EBIDAT divided by net income
(b) Sales divided net income
(c) EBDAT divided by sales
(d) Net income divided by sales
(e) None of the above
6. A firm exhibits $230.000 in required increase in assets, an increase in retained earnings ($30.000), $50.000 in spontaneously generated funds, and interest cost at $10.000. Its additional funds needed amounts to
(a) $200.000
(b) $150.000
(c) $240.000
(d) $230.000
(e) $320.000
7. An individual's work-related, non-financially compensated, contri-bution to the enhancement of a venture's value is referred to as:
(a) current assets
(b) money equity
(c) intangible work
(d) sweat equity
(e) goodwill
8. Which of the following is not a source of debt funding for a start-up firm?
(a) vendor financing
(b) factoring
(c) trade notes
(d) leasing
(e) accounts payable
9. Convertible note is a debt allowing for conversion into stock at a price set at the time of issuing the debt
(a) True
(b) False
10. Payables are credit sales made to customers
(a) True
(b) False
With explanation if possible. Please!