Financial Management Essay

The inevitable stray of return is rs = 10. 1%, and the never-ending growth rate is g = 4. 0%. What is the current seam price? a. $23. 11b. $23. 70c. $24. 31d. $24. 93e. $25. 57e 8- proportion analysis involves analyzing financial statements in station to appraise a firms financial position and strength. a. uncoiled b. erroneousA 9- gainfulness ratios show the combined effects of liquidity, summation management, and debt management on operating results. a. align b. False A 10 wholeness problem with ratio analysis is that relationships stack be manipulated. For example, if our current ratio is greater than 1. , and so borrowing on a short-term basis and using the bullion to build up our cash explanation would cause the current ratio to increase. a. True b. False B 11 Arshadi Corp. s sales inhabit year were $52,000, and its centre assets were $22,000. What was its total assets turnover ratio? a. 2. 03 b. 2. 13 c. 2. 25 d. 2. 36 e. 2. 48 D 12 Rappaport Corp. s sales last year were $320,000, and its net income after taxes was $23,000. What was its wage margin on sales? c a. 6. 49% b. 6. 83% c. 7. 19% d. 7. 55% e. 7. 92% 3 The first, and most critical, dance step in constructing a set of forecasted financial statements is the sales forecast. a.Trueb. Falsea 14- According to the Capital plus Pricing Model, investors are primarily relate with portfolio risk, not the risks of individual stocks held in isolation. Thus, the pertinent risk of a stock is the stocks contri yetion to the riskiness of a well-diversified portfolio. a. True b. False a 18 Diversification lead normally take the riskiness of a portfolio of stocks. a. True b. False 19- If the returns of two firms are negatively correlated, then one of them must wipe out a negative beta. . True b. False a 20 Which of the following statements best describes what you should deport if you randomly select stocks and add them to your portfolio? a. Adding muc h such stocks will come down the portfolios un systematic, or diversifiable, risk. b. Adding more such stocks will increase the portfolios expected rate of return. c. Adding more such stocks will take down the portfolios beta coefficient and thus its systematic risk. d. Adding more such stocks will have no effect on the portfolios risk. e. Adding more such stocks will reduce the portfolios market risk but not its unsystematic risk. A