Cash flow question | Business & Finance homework help


Selection 1 of 3
Question 1 of 20
Cash run can be said to correspondent unobstructed allowance:
A. hither taxes plus deterioration.
B. hither taxes.
C. anteriorly deterioration and taxes plus deterioration.
D. aftercited taxes minus deterioration.
Question 2 of 20
There are divers disadvantages to the payend manner; inchoate them is that payback:
A. ignores the occasion treasure of coin.
B. emphasizes receiving coin end as rapid as feasible for reinvestment.
C. is indulgent to use and to perceive.
D. can be used in adduction delay occasion adjusted manners of evaluation.
Question 3 of 20
The Dammon Corp. has the aftercited bombardment opportunities. Year Resources A Inflows ($15,000 bombardment) Resources B Inflows ($22,500 bombardment) Resources C Inflows ($37,500 bombardment) 1 $6,000 $12,000 $-0- 2 9,000 12,000 30,000 3 3,000 10,500 30,000 4 -0- 10,500 15,000 5 -0- -0- 15,000 Under the payend manner and turgid these meansss are mutually scientific, which meanss(s) would Dammon Corp. elect?
A. Resources A
B. Resources B
C. Resources C
D. Resources A and B
Question 4 of 20
You buy a new lot of equipment for $5,535, and you admit a publicity inrun of $1,000 per year for 8 years. What is the inner reprimand of yield?
A. Hither than 10%
B. Betwixt 10% and 11%
C. Betwixt 11% and 12%
D. Further than 12%
Question 5 of 20
Assuming that a secure has no chief rationing employment and that a secure's bombardment alternatives are not mutually scientific, the secure should recognize all bombardment proposals:
A. for which it can get financing.
B. that possess a enacted net exhibit treasure.
C. that possess enacted publicity runs.
D. that supply yields elder than the aftercited-tax require of something-due.
Question 6 of 20
The inner reprimand of yield and net exhibit treasure manners:
A. regularly communicate the similar bombardment fixedness counter-argument.
B. never communicate the similar bombardment fixedness counter-argument.
C. usually communicate the similar bombardment fixedness counter-argument.
D. regularly communicate counter-arguments incongruous from the payend manner.
Question 7 of 20
The Net Exhibit Treasure Manner is a further undestroyed technique for selecting bombardment plans than the Inner Reprimand of Yield manner owing the NPV manner:
A. assumes that publicity runs are reinvested at the plan's inner reprimand of yield.
B. concentrates on the liquidity aspects of bombardment plans.
C. assumes that publicity runs are reinvested at the secure's weighted mean require of chief.
D. None of the aggravatehead
Question 8 of 20
Capital rationing:
A. is a way of conserving the goods of the secure aggravate the covet engagement.
B. is a hither than optimal way to land at chief budgeting fixednesss.
C. assures stockholder affluence maximization.
D. assures climax immanent profitability.
Question 9 of 20
An asset true into the 5-year MACRS mode was purchased 2 years ago for $60,000. The capacity treasure of this asset is now:
A. $28,800.
B. $31,200.
C. $48,000.
D. $60,000.
Question 10 of 20
In a retrieval fixedness, if an old asset sells underneath capacity treasure, from a tax centre there is:
A. a diminish in publicity run.
B. an sanctionion in publicity run.
C. no consequence on publicity run.
D. a diminish in net exhibit treasure.
Question 11 of 20
The engagement "surrender averse" meanss that:
A. an separebuke refuses to conduct surrenders.
B. most investors and occupationmen pursue surrender.
C. an separebuke conciliate pursue to shun surrender or be possessed delay a excellent yield.
D. singly bombardment proposals delay no surrender should be recognizeed.
Question 12 of 20
If one plan has a excellent sign failure than another it:
A. has a elder surrender.
B. has a excellent expected treasure.
C. has further feasible outcomes.
D. may be surrenderier, but this can singly be immovable by the coefficient of exception.
Question 13 of 20
A plan has the aftercited planed outcomes in dollars: $250, $350, and $500. The probabilities of their outcomes are 25%, 50%, and 25% respectively. What is the expected treasure of these outcomes?
A. $362.50
B. $89.40
C. $94.50
D. $178.30
Question 14 of 20
Risk may be integrated into chief budgeting fixednesss by:
A. adjusting the sign failure of feasible outcomes.
B. determining the expected treasure.
C. adjusting the allowance reprimand.
D. adjusting the occasion horizon.
Question 15 of 20
Using the surrender-adjusted allowance reprimand avenue, the require of chief is applied to plans delay __________ surrender.
A. usual
B. eminent
C. no
D. low
Question 16 of 20
A Monte Carlo airs design uses:
A. wild variables as inputs.
B. a object judge.
C. the require of chief.
D. portfolio surrender.
Question 17 of 20
In manage to subjugate surrender in a secure, the secure would pursue to penetobjurgate a occupation that has:
A. eminent enacted apposition delay its exhibit occupation.
B. naught apposition delay its exhibit occupation.
C. eminent denying apposition delay its exhibit occupation.
D. eminent denying exception delay its exhibit occupation.
Question 18 of 20
A apposition coefficient of __________ supplys the foremost surrender diminution.
A. 0
B. 1
C. +1
D. +.5

Question 19 of 20
A plan that carries a usual aggregate of surrender and does not feign the surrender charybdis of the secure should be allowanceed end at the:
A. coefficient of exception.
B. beta.
C. surrender-free reprimand.
D. weighted mean require of chief.

Question 20 of 20
The "efficient frontier" indicates alternatives delay:
A. unavowed alliances of surrender and yield.
B. the eminentest yields.
C. the best alliance of surrender and yield.
D. no surrender.
Selection 2 of 3
Question 1 of 20
Working chief treatment is largely disturbed delay the treatment and financing of:
A. publicity and register.
B. vulgar goods and vulgar liabilities.
C. vulgar goods.
D. receivables and payables.
Question 2 of 20
Frisch Fish Corp expects net allowance contiguous year to be $600,000. Register and recitals receivable conciliate possess to be sanctioniond by $300,000 to decide this sales smooth. Frisch conciliate pay dividends of $400,000. How abundantly superficial financing conciliate Frisch Fish demand turgid no organically generated sanctionion in liabilities?
A. No superficial financing is required.
B. $100,000
C. $200,000
D. $300,000
Question 3 of 20
Retail companies affect Target and Limited Brands are further affectly to possess:
A. secure sales and hues per portion-out.
B. cyclical sales but hither vaporizable hues per portion-out.
C. cyclical sales and further vaporizable hues per portion-out.
D. cyclical sales but secure recitals receivable and register.
Question 4 of 20
The engagement organization of attention reprimands:
A. changes daily to cogitate vulgar competitive stipulations in the coin and chief communicates.
B. plots yields for securities of incongruous surrender.
C. shows the not-absolute attention disperse betwixt bonds delay incongruous surrender ratings such as AAA, AA, A, BBB, etc.
D. depicts attention reprimands for T-bills aggravate the latest year.
Question 5 of 20
A "normal" engagement organization of attention reprimands would depict:
A. short-engagement reprimands excellent than covet-engagement reprimands.
B. covet-engagement reprimands excellent than short-engagement reprimands.
C. no public harmony betwixt short- and covet-engagement reprimands.
D. mean reprimands (1-5 years) inferior than twain short-engagement and covet-engagement reprimands.
Question 6 of 20
Which of the aftercited alliances of asset organizations and financing patterns is affectly to beget the most vaporizable hues?
A. Illiquid goods and burdensome short-engagement hypothecateing
B. Illiquid goods and burdensome covet-engagement hypothecateing
C. Liquid goods and burdensome covet-engagement hypothecateing
D. Liquid goods and burdensome short-engagement hypothecateing
Question 7 of 20
Genetech has $2,000,000 in goods, possess resolute to finance 30% delay covet-engagement financing (13% reprimand) and 70% delay short-engagement financing (9%) reprimand. What conciliate be their annual attention requires?

A. $78,000
B. $126,000
C. $440,000
D. $204,000

Question 8 of 20
What is publicly the largest origin of short-engagement praise diminutive secures?
A. Bank hypothecations
B. Interchangeable brochure
C. Installment hypothecations
D. Traffic praise
Question 9 of 20
The require of not importation the allowance on traffic praise of 2/20, net 60 is correspondent to:

A. 18.36%.
B. 16.32%.
C. 18.00%.
D. 17.41%
Question 10 of 20
LIBOR is:
A. a reorigin used in origination.
B. an attention reprimand compensated on Eurodollar hypothecations in the London communicate.
C. an attention reprimand compensated by European secures when they hypothecate Eurodollar deposits from U.S. banks.
D. the attention reprimand compensated by the British council on its covet-engagement bonds.
Question 11 of 20
In determining the require of bank financing, which is the material ingredient?
A. Prime reprimand
B. Nominal reprimand
C. Effectual reprimand
D. Allowance reprimand
Question 12 of 20
Holland Construction Co. has an ungathered 180-day bank hypothecation of $400,000 at an annual attention reprimand of 9.5%. The union is required to frequent a 15% protecting redress in its checking recital. What is the consequenceive attention reprimand on the hypothecation? Assume the union would not usually frequent this mean aggregate.
A. 11.18%
B. 19.00%
C. 22.35%
D. 8.08%
Question 13 of 20
Which of the aftercited is the largest mode of asset-backed securities?
A. Student Loans
B. Automobile Loans
C. Home Equity Loans
D. Manufactured Housing Loans
Question 14 of 20
What is the consequenceive reprimand on an $10,000 installment hypothecation delay bi-monthly payments, $1,600 in attention, for 2 years?
A. 16%
B. 7.4%
C. 29.5%
D. 14.8%
Question 15 of 20
During the contiguous ten years, the greater menace to the preponderance of the U.S. coin and chief communicates conciliate end from:
A. Russia's awkwardness in transforming its dispensation into a chiefistic one.
B. Japan's prolonged recession and banking contingency.
C. the Euro-zone countries comprising the European Monetary Union and a uncombined publicity.
D. the immense Chinese dispensation and its billion plus community.
Question 16 of 20
In public when attention reprimands are expected to stir, financial managers:
A. try to lock in covet-engagement financing at low require.
B. redress the union's something-due organization delay further short-engagement something-due and hither covet-engagement something-due.
C. recognize further surrender.
D. lean further on inner origins of funds rather than superficial origins.
Question 17 of 20
The greater supplier of funds for bombardment in the sound dispensation is:
A. occupationes.
B. households.
C. council.
D. financial institutions.
Question 18 of 20
What sign of trading recitals for aggravate 90% of stocks trafficd on the Chicago and Pacific regional exchanges?
A. Dealer Trading
B. Dual Trading
C. Options Trading
D. None of the aggravatehead
Question 19 of 20
The Securities Act of 1933 is largely disturbed delay:
A. former issues of securities.
B. inferior trading of securities.
C. common securities communicate.
D. indemnifying customers of insolvent securities secures.
Question 20 of 20
Financial intermediaries enclose all of the aftercited EXCEPT:
A. interchangeable banks.
B. personality prophylactic companies.
C. corporations.
D. pension plans.
Selection 3 of 3
Question 1 of 20
Working chief treatment is largely disturbed delay the treatment and financing of:
A. publicity and register.
B. vulgar goods and vulgar liabilities.
C. vulgar goods.
D. receivables and payables.
Question 2 of 20
Frisch Fish Corp expects net allowance contiguous year to be $600,000. Register and recitals receivable conciliate possess to be sanctioniond by $300,000 to decide this sales smooth. Frisch conciliate pay dividends of $400,000. How abundantly superficial financing conciliate Frisch Fish demand turgid no organically generated sanctionion in liabilities?
A. No superficial financing is required.
B. $100,000
C. $200,000
D. $300,000
Question 3 of 20
Retail companies affect Target and Limited Brands are further affectly to possess:
A. secure sales and hues per portion-out.
B. cyclical sales but hither vaporizable hues per portion-out.
C. cyclical sales and further vaporizable hues per portion-out.
D. cyclical sales but secure recitals receivable and register.
Question 4 of 20
The engagement organization of attention reprimands:
A. changes daily to cogitate vulgar competitive stipulations in the coin and chief communicates.
B. plots yields for securities of incongruous surrender.
C. shows the not-absolute attention disperse betwixt bonds delay incongruous surrender ratings such as AAA, AA, A, BBB, etc.
D. depicts attention reprimands for T-bills aggravate the latest year.
Question 5 of 20
A "normal" engagement organization of attention reprimands would depict:
A. short-engagement reprimands excellent than covet-engagement reprimands.
B. covet-engagement reprimands excellent than short-engagement reprimands.
C. no public harmony betwixt short- and covet-engagement reprimands.
D. mean reprimands (1-5 years) inferior than twain short-engagement and covet-engagement reprimands.
Question 6 of 20
Which of the aftercited alliances of asset organizations and financing patterns is affectly to beget the most vaporizable hues?
A. Illiquid goods and burdensome short-engagement hypothecateing
B. Illiquid goods and burdensome covet-engagement hypothecateing
C. Liquid goods and burdensome covet-engagement hypothecateing
D. Liquid goods and burdensome short-engagement hypothecateing
Question 7 of 20
Genetech has $2,000,000 in goods, possess resolute to finance 30% delay covet-engagement financing (13% reprimand) and 70% delay short-engagement financing (9%) reprimand. What conciliate be their annual attention requires?
A. $78,000
B. $126,000
C. $440,000
D. $204,000
Question 8 of 20
What is publicly the largest origin of short-engagement praise diminutive secures?
A. Bank hypothecations
B. Interchangeable brochure
C. Installment hypothecations
D. Traffic praise
Question 9 of 20
The require of not importation the allowance on traffic praise of 2/20, net 60 is correspondent to:
A. 18.36%.
B. 16.32%.
C. 18.00%.
D. 17.41%
Question 10 of 20
LIBOR is:
A. a reorigin used in origination.
B. an attention reprimand compensated on Eurodollar hypothecations in the London communicate.
C. an attention reprimand compensated by European secures when they hypothecate Eurodollar deposits from U.S. banks.
D. the attention reprimand compensated by the British council on its covet-engagement bonds.
Question 11 of 20
In determining the require of bank financing, which is the material ingredient?
A. Prime reprimand
B. Nominal reprimand
C. Effectual reprimand
D. Allowance reprimand
Question 12 of 20
Holland Construction Co. has an ungathered 180-day bank hypothecation of $400,000 at an annual attention reprimand of 9.5%. The union is required to frequent a 15% protecting redress in its checking recital. What is the consequenceive attention reprimand on the hypothecation? Assume the union would not usually frequent this mean aggregate.
A. 11.18%
B. 19.00%
C. 22.35%
D. 8.08%
Question 13 of 20
Which of the aftercited is the largest mode of asset-backed securities?
A. Student Loans
B. Automobile Loans
C. Home Equity Loans
D. Manufactured Housing Loans
Question 14 of 20
What is the consequenceive reprimand on an $10,000 installment hypothecation delay bi-monthly payments, $1,600 in attention, for 2 years?
A. 16%
B. 7.4%
C. 29.5%
D. 14.8%
Question 15 of 20
During the contiguous ten years, the greater menace to the preponderance of the U.S. coin and chief communicates conciliate end from:
A. Russia's awkwardness in transforming its dispensation into a chiefistic one.
B. Japan's prolonged recession and banking contingency.
C. the Euro-zone countries comprising the European Monetary Union and a uncombined publicity.
D. the immense Chinese dispensation and its billion plus community.
Question 16 of 20
In public when attention reprimands are expected to stir, financial managers:
A. try to lock in covet-engagement financing at low require.
B. redress the union's something-due organization delay further short-engagement something-due and hither covet-engagement something-due.
C. recognize further surrender.
D. lean further on inner origins of funds rather than superficial origins.
Question 17 of 20
The greater supplier of funds for bombardment in the sound dispensation is:
A. occupationes.
B. households.
C. council.
D. financial institutions.
Question 18 of 20
What sign of trading recitals for aggravate 90% of stocks trafficd on the Chicago and Pacific regional exchanges?
A. Dealer Trading
B. Dual Trading
C. Options Trading
D. None of the aggravatehead
Question 19 of 20
The Securities Act of 1933 is largely disturbed delay:
A. former issues of securities.
B. inferior trading of securities.
C. common securities communicate.
D. indemnifying customers of insolvent securities secures.
Question 20 of 20
Financial intermediaries enclose all of the aftercited EXCEPT:
A. interchangeable banks.
B. personality prophylactic companies.
C. corporations.
D. pension plans.