Bond and Student Answer Essay Example
1. Question : (TCO 1) The goal of financial management is to increase the:
Student Answer: future value of the firm's total equity.
book value of equity
dividends paid per share
current market value per share
number of shares outstanding, thereby increasing the market value of equity Instructor Explanation: Chapter 1, Page 10
Points Received: 0 of 3 Comments:
2. Question : (TCO 1) When analyzing alternative capital structures for a firm, a financial manager must consider which of the following?
Student Answer: type of loan
amount of funds needed
cost of funds
mix of debt and equity
all of the above
Instructor Explanation: Chapter 1, Page 5, Week 1 Lecture
Points Received: 3 of 3 Comments:
3. Question : (TCO 1) Market value is important to the financial manager because:
Student Answer: It reflects the value of the asset, based on generally-accepted accounting principles. Is a crucial component of the balance sheet, and can impact the financial statements. Market value reflects the amount someone is willing to pay today for an asset. The market value of an asset reflects its historical cost.
None of the above
Instructor Explanation: Chapter 2, Page 26
Points Received: 3 of 3 Comments:
4. Question : (TCO 1) Which of the following is true regarding income statements?
Student Answer: It reveals the net cash flows of a firm over a stated period of time. It reflects the financial position of a firm as of a particular date. It records revenue only when cash is received for the product or service provided. It records expenses based on the recognition principle.
None of the above is a true statement.
Instructor Explanation: Chapter 2, Page 27-29
Points Received: 3 of 3 Comments:
5. Question : (TCO1) Telemarket
Student Answer: future value of the firm's total equity.
book value of equity
dividends paid per share
current market value per share
number of shares outstanding, thereby increasing the market value of equity Instructor Explanation: Chapter 1, Page 10
Points Received: 0 of 3 Comments:
2. Question : (TCO 1) When analyzing alternative capital structures for a firm, a financial manager must consider which of the following?
Student Answer: type of loan
amount of funds needed
cost of funds
mix of debt and equity
all of the above
Instructor Explanation: Chapter 1, Page 5, Week 1 Lecture
Points Received: 3 of 3 Comments:
3. Question : (TCO 1) Market value is important to the financial manager because:
Student Answer: It reflects the value of the asset, based on generally-accepted accounting principles. Is a crucial component of the balance sheet, and can impact the financial statements. Market value reflects the amount someone is willing to pay today for an asset. The market value of an asset reflects its historical cost.
None of the above
Instructor Explanation: Chapter 2, Page 26
Points Received: 3 of 3 Comments:
4. Question : (TCO 1) Which of the following is true regarding income statements?
Student Answer: It reveals the net cash flows of a firm over a stated period of time. It reflects the financial position of a firm as of a particular date. It records revenue only when cash is received for the product or service provided. It records expenses based on the recognition principle.
None of the above is a true statement.
Instructor Explanation: Chapter 2, Page 27-29
Points Received: 3 of 3 Comments:
5. Question : (TCO1) Telemarket