Fin 3716 Midterm Exam

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FIN 3716 Midterm Exam

Click Link Below To Buy: Q 1 : Activities of a firm which require the spending of cash Q 2 : The sources and uses of cash over a stated period of time are reflected on the 3: Common-size income statement is an accounting statement that expresses all of a firm's expenses as a percentage of 4: Standardizes items on the income statement and balance sheet relative to their values as of a common point in time 5: Relationships determined from a firm's financial information and used for comparison purposes 6: Formula which breaks down the return on equity into three component parts 7: U.S. gov't coding system that classifies a firm by the
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The firms may use different accounting methods. The two firms may be seasonal in nature and have different fiscal year ends. the difference between an investment's market value and its cost the process of valuing an investment by discounting its future cash flows the amount of time required for an investment to generate cash flows sufficient to recover its initial cost the length of time required for an investment's discounted cash flows to equal to its initial cost an investment's average net income divided by its average book value the discount rate that makes the NPV of an investment zero a graphical representation of the relationship between an investment's NPV and various discount rates the possibility that more than one discount rate will make the NPV of an investment zero a situation in which taking one investment prevents the taking of another the present value of an investment's future cash flows divided by its initial cost benefit-cost ratio The NPV rule is to take a project if its NPV is ____ frequently estimated by calculating the present value of future cash flows (to estimate market value) and then subtracting the cost has no serious flaws; preferred decision criterion discounted cash flow return the IRR rule is to take a project when its IRR exceeds the ____ IRR leads to exactly the same decisions as NPV for ___

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