FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 16: Mastering Financial Management

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 81

Multiple Choice

Review LaterAdd Note

Review Later

A tool that managers use to estimate major expenditures for assets, expansion of facilities, and mergers and acquisitions is called a(n)

A) capital budget.
B) cash budget.
C) revenue forecast.
D) zero budget.
E) equity budget.

F) A) and E)
G) C) and E)

Correct Answer

verified

Show Answer

Question 82

Multiple Choice

Review LaterAdd Note

Review Later

Beard Auction receives an invoice from one of its European suppliers for antiques. The amount of the invoice is $40,000 with terms of 3/10, net/60. If the invoice is paid on day 20, Beard is entitled to a ____ cash discount and will write the check for ____.

A) $1,200; $1,200
B) $1,200; $38,800
C) $0; $40,000
D) $0; $41,200
E) $0; $1,200

F) A) and D)
G) C) and E)

Correct Answer

verified

Show Answer

Question 83

Multiple Choice

Review LaterAdd Note

The greatest part of a firm's financing is provided by

Inventory requires considerable investment for most manufacturers, wholesalers, and retailers. This problem is complicated by the fact that most goods are manufactured four to nine months before they are actually sold to consumers. Manufacturers that engage in this type of speculative production often need short-term financing to do all of the following except

The movement of money into and out of an organization is called

Burberry Mills sold stock to an insurance company to raise needed financing for expansion and new product development. This type of transaction is referred to as a(n)

What is the typical denomination for most corporate bonds?

Retained earnings are

A factor is a financial firm that specializes in buying other firms' accounts receivables.

The cost of borrowing money that is reserved for large corporations with excellent credit ratings is called the

Marietta Hotels used a twenty-five-year, $50 million bond issue to finance its expansion. In its plan to ensure that funds would be available to redeem the bonds at maturity, it arranged that none of the bonds would mature during the first fifteen years. Therefore, 10 percent of the bonds mature each year until all the bonds are retired at the end of the twenty-fifth year. This is an example of the ____ method of repayment.

The most basic form of corporate ownership is common stock.

If Sunbelt Computers were to take out a short-term loan from Chase for $5 million and were required to keep $500,000 of that in its Chase account, this would be called a(n)

The distribution of a corporation's earnings to the stockholders is called paying a dividend.

Money received from the sale of shares of ownership in a business is called

Sally Overall is thinking about two different decisions. One decision is quite risky, while the other decision is more conservative. To help her make the right decision, she decides to calculate the

When compared with selling stocks to the public, a private placement has

Selling a firm's unneeded assets is a reasonable last resort when neither equity capital nor debt capital can be found to meet a firm's need for capital.

The lowest interest rate charged by a bank for a short-term loan is called the discount rate.

Trade credit is the most popular form of short-term financing available for most businesses.