Finance Multiple Choice (Six Questions)
Not what you're looking for?
Please answer the 6 six questions in the attachment.
Multiple Choice
1. Which of the following ratios would tell an investor about the profitability of the organization?
a. Acid test ratio
b. Debt ratio
c. Return on equity
d. Times interest earned
e. Current ratio
2. If your revenue is $10 million, your variable cost is $6 million, your fixed cost is $3 million, what is your contribution margin?
a. $4 million
b. $1 million
c. $3 million
d. $9 million
e. $7 million
3. Net present value is the preferred method to evaluate capital budgeting projects because:
a. It requires detailed long term forecasts of cash flows
b. It is sensitive to the choice of discount rate
c. It ignores the time value of money
d. It is consistent with the goal of shareholder wealth maximization
e. It is difficult to explain
4. What is a "good" reason for a firm to go public?
a. Private equity investors get to share new wealth with public investors
b. Founders share, on an equal footing, the good (and bad) fortune of the firm with new
Shareholders
c. The firm gains future access to the public capital market (it is easier to go back a
Second and/or third time)
d. Everyone involved faces legal liability
e. Private investors lose a degree of control of the organization
Short Answer section of exam -
Please limit your response to each question to 350 words.
1. In the discipline of Finance, discuss the difference between forecasting and budgeting.
2. Choose one of the below listed financial professions and discuss the role it plays as it relates to corporate finance.
A Banking
B Financial managers
1) Chief Financial Officer (CFO)
2) Treasurer
3) Controller
C Financial planners
D Securities analysts
E Investment bankers
F Stock brokers
Purchase this Solution
Solution Summary
This solution provides answers and discussion based on the finance questions in an attached Word document.
Education
- MBA, Indian Institute of Finance
- Bsc, Madras University
Recent Feedback
- "I've posted a similar question for another course. It's post 657940, and it's a practice problem that I'd like to use for the final exam. Your help will be greatly appreciated. "
- "thank you!"
- "Thank you again Jayant. You are super fast. "
- "Thank you Jayant. You are appreciated. "
- "Again, thank you Jayant. You are wonderful. "
Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce