Finance

A business created as a distinct legal entity and treated as a legal "person" is called a

corporation

The plowback ratio is

the percentage of net income available to the firm to fund future growth

Russell's Deli has cash of $136, accounts receivable of $95, accounts payable of $210, and inventory of $409. What is the value of the quick ratio?

1.10

A firm has net working capital of $640. Long-term debt is $4,180, total assets are $6,230, and fixed assets are $3,910. What is the amount of the total liabilities?

$5,860

A firm which opts to "go dark" in response to the Sabanes-Oxley Act

Can provide less information to its shareholders than it did prior to "going dark"

Which one of the following terms is defined as the mixture of a firm's debt and equity financing?

Capital Structure

According to the statement of Cash Flows, a decrease in accounts receivable will ________ the cash flow from _______ activities.

Increase, operating

Which of the following are current assets?

Inventory and cash

Which one of the following best states the primary goal of financial management?

Maximize the current value per share

Phil is working on a financial plan for the next three years. This time period is referred to as which of the following?

Planning Horizon

You are getting ready to prepare pro forma statements for your business. Which one of the following are you most opt to estimate first as you begin this process?

Sales Forecast

Net working capital is defined as

current assets minus current liabilities

Which of the following will increase the maximum rate of growth a corporation can achieve?

decrease in the dividend payout ratio

What is the return on equity for 2012?

18.02%

`Relationships determined from a firm's financial information and used for comparison purposes are known as

Financial ratios

The sustainable growth rate

assumes the debt-equity ratio is constant

Which one of the following is the financial statement that shows the accounting value of a firm's equity as of a particular date?

balance sheet

If a firm produces a twelve percent return on assets and also a twelve percent return on equity, then the firm:

has an equity multiplier of 1.0

Which of the following are expenses for accounting purposes but are not operating cash flows for financial purposes?

interest expense and depreciation

Which one of the following is a means by which shareholders can replace company management?

proxy fight