Essay Mid-Term Exam Busn 379

1364 WordsAug 25, 20136 Pages
Question Type: # Of Questions: # Correct: Multiple Choice 31 29 Many Multiple Choice 1 0 Short 4 N/A Grade Details - All Questions Page: 1 2 3 1. Question : (TCO 1) What is the goal of financial management for a sole proprietorship? Student Answer: Decrease long-term debt to reduce the risk to the owner maximize net income given the resources of the firm CORRECT maximize the market value of the equity minimize the tax impact on the proprietor minimize costs and increase production Instructor Explanation: Chapter 1, Page 11 Points Received: 3 of 3 Comments: 2. Question : (TCO 1) Which of the these activities is not a capital budgeting task? Student Answer: CORRECT determining…show more content…
Instructor Explanation: Chapter 2, Pages 27-28 Points Received: 3 of 3 Comments: 9. Question : (TCO 1) Print Imaging has EBIT of $150,000, interest of $30,000, taxes of $50,000, and depreciation of $50,000. What is the company’s operating cash flow? Student Answer: $120,000 $180,000 $170,000 CORRECT $150,000 $120,000 Instructor Explanation: Chapter 2 Pages 34-35 Operating cash flow = EBIT + Depreciation – Current Taxes Operating cash flow = $150,000 + $50,000 - $50,000 = $150,000 Points Received: 3 of 3 Comments: 10. Question : (TCO 3) Linda invested $15,000 today, in an investment that pays 6.50 percent interest, compounded semi-annually. Which one of the following statements is correct concerning this investment? Student Answer: Linda will receive equal interest payments every six months over the life of the investment. Linda would have earned more interest if she had invested in an account paying 6.50 percent simple interest. CORRECT Linda will earn more interest in year 5 than she will in year 4. Linda would have earned more interest if she had invested in an account paying annual interest. Linda will earn less and less interest each year over the life of the investment. Instructor Explanation: Chapter 4 Pages 96-97 Points Received: 3 of 3 Comments: 11. Question : (TCO 3) Mr. Smith will receive $6,500 a year for the next 14 years

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