What is the primary goal of financial management?
A) Increased earningsB) Maximizing cash flow
C) Maximizing shareholder wealth
D) Minimizing risk of the firm
MBA
- Given the financial information for the A.E. Neuman Corporation,
- The following is the December 31, 2013 balance sheet for the Epics Corporation.
- Dr. J. wants to buy an IBM personal computer which will cost $2,788 four years from today. He would like to set aside an equal amount at the end of each year in order to accumulate the amount needed. He can earn 7% annual return. How much should he set aside?
- When comparing common stock of the same company it is fair to say that
- Kuhns Corp. has 200,000 shares of preferred stock outstanding that is cumulative. The dividend is $6.50 per share and has not been paid for 3 years. If Kuhns earned $3 million this year, what could be the maximum payment to the preferred stockholders on a per share basis?
- Which of the following is not a true statement?
- Which one of these conditions must be met for a lease to qualify as a capital lease?
- With regard to interest rates and bond prices it can be said that
- Financial instruments in the capital markets generally fall under what category in the Balance Sheet?
- With respect to the United States and its relationship with the rest of the world, it can be said that
- During the next ten years, the major threat to the dominance of the U.S. money and capital markets will come from
- The pre-tax cost of debt for a new issue of debt is determined by
- The cost of debt is determined by taking the
- Each project should be judged against
- Although debt financing is usually the cheapest component of capital, it cannot be used to excess because
- The dividend valuation model stresses the
- The cost of common stock is usually greater than the simple dividend yield because
- Which of the following does not influence the yield to maturity for a security?
- An issue of preferred stock is paying an annual dividend of $5. The growth rate for the firm’s common stock is 14%. What is the preferred stock price if the required rate of return is 11%?
- A 20-year bond pays 12% on a face value of $1,000. If similar bonds are currently yielding 9%, What is the market value of the bond? Use annual analysis.
- Mr. Fish wants to build a house in 10 years. He estimates that the total cost will be $170,000. If he can put aside $10,000 at the end of each year, what rate of return must he earn in order to have the amount needed?
- Mr. Nailor invests $5,000 in a certificate of deposit at his local bank. He receives annual interest of 8% for 7 years. How much interest will his investment earn during this time period?
- The concept of time value of money is important to financial decision making because
- The required compensating balance is usually computed as a
- Accounts receivable may be used as a source of financing by