corporate finance

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Exam Resit Corporate Finance 1 Januari 25th, 2009 1. The secondary market is the market in which: A. the sale proceeds of a trade flow to the issuer of the security. B. one shareholder sells securities to another shareholder. C. publicly held firms issue new shares of stock. D. only bonds or other debt securities are sold. E. trades occur on exchanges other than the New York Stock Exchange. 2. Which of the following questions are addressed by financial managers? I. How long will it take to produce a product? II. Should customers be given 30 or 45 days to pay for their credit purchases? III. Should the firm borrow more money? IV. Should the firm acquire new equipment? A. I and IV only B. II and III…show more content…
The inventory is valued on the balance sheet at $289,000 and has a retail market value equal to 1.4 times its cost. Peter expects the store to collect 97 percent of the $48,041 in accounts receivable. The firm has $11,200 in cash and has total debt of $167,400. What is the market value of this firm? A. $771,000 B. $907,800 C. $919,000 D. $945,800 E. $957,000 14. The equity multiplier ratio is measured as: A. total equity divided by total assets. B. (total equity plus total debt) divided by total assets. C. (total assets minus total equity) divided by total assets. D. (total assets minus total equity) divided by total equity. E. total assets divided by total equity. 15. The financial ratio measured as net income divided by total equity is known as the firm 's: A. profit margin. B. return on assets. C. return on equity. D. asset turnover. E. earnings before interest and taxes. 16. Margo 's Dress Shoppe had the following values as of the end of last year and the end of this year. Which of the following are sources of cash for the year? A. cash and accounts receivable B. cash and accounts payable C. accounts receivable and inventory D. cash, accounts payable, and inventory E. accounts payable, accounts receivable, and inventory 17. Your firm currently has $1,800 in sales and is operating at 60 percent of the firm 's capacity. What is the full capacity level of

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