Hello, I am having trouble with my Finance homework, and I was wondering if anyone could check my answers for me. (explaining the answers would be much appreciated, but not necessary)
1) Economic value is the same as....
A) Book value / Net asset value
B) Owners equity
C) None of the Above
2) A discount factor....
A) is the same as compounding future cash flows
B) Performs the reverse function of a compounding interest rate
C) Allows investors to quantify a figure which will assist them in comparing alternative investments
D) B & C
E) A, B, & C
23) Eric Cantley sets aside $100. If this money compounds at a 5% annual rate, how much will Eric have six years from now?
A) $110
B) $121
C) $134
D) $138
E) None of the Above
4) Typically, the minimum value the target firm is willing to accept is the....
A) Liquidation Value
B) Book Value
C) Earning valuation
D) None of the Above
5) In a new issue, the _______ are those funds that remain after the necessary fees have been deducted
A) Working capital
B) Free cash flow
C) Net Proceeds
D) None of the Above
6) Sources of equity are.....
A) Retained earnings
B) Stock Issue
C) Convertible securities
D) All of the above
7) Which of the following statements record a firm's financial situation on a single day?
A) Statement of financial position
B) Income statement
C) Statement of cash flows
D) All of the above
E) A & B
8) Which of the following methods helps to "size" the investment?
A) Payback
B) Present value payback
C) Present value index
D) IRR
E) None of the above
9) The cost of debt is based on.....
A) Before tax cost
B) After - Tax cost
C) After - tax cost plus premium
D) After - tax cost less premium
E) None of the above
10) Most bonds pay interest....
A) Monthly
B) Quartely
C) Semiannually
D) Annually
E) None of the above
Hello, I am having trouble with my Finance homework, and I was wondering if anyone could check my answers for me. (explaining the answers would be much appreciated, but not necessary)
1) Economic value is the same as....
A) Book value / Net asset value
B) Owners equity
C) None of the Above
2) A discount factor....
A) is the same as compounding future cash flows
B) Performs the reverse function of a compounding interest rate
C) Allows investors to quantify a figure which will assist them in comparing alternative investments
D) B & C
E) A, B, & C
23) Eric Cantley sets aside $100. If this money compounds at a 5% annual rate, how much will Eric have six years from now?
A) $110
B) $121
C) $134
D) $138
E) None of the Above
4) Typically, the minimum value the target firm is willing to accept is the....
A) Liquidation Value
B) Book Value
C) Earning valuation
D) None of the Above
5) In a new issue, the _______ are those funds that remain after the necessary fees have been deducted
A) Working capital
B) Free cash flow
C) Net Proceeds
D) None of the Above
6) Sources of equity are.....
A) Retained earnings
B) Stock Issue
C) Convertible securities
D) All of the above
7) Which of the following statements record a firm's financial situation on a single day?
A) Statement of financial position
B) Income statement
C) Statement of cash flows
D) All of the above
E) A & B
8) Which of the following methods helps to "size" the investment?
A) Payback
B) Present value payback
C) Present value index
D) IRR
E) None of the above
9) The cost of debt is based on.....
A) Before tax cost
B) After - Tax cost
C) After - tax cost plus premium
D) After - tax cost less premium
E) None of the above
10) Most bonds pay interest....
A) Monthly
B) Quartely
C) Semiannually
D) Annually
E) None of the above
