Corporate Finance Exam Mba

User | Long Yang | Submitted | 9/8/11 6:45 PM | Name | Midterm Exam I | Status | Completed | Score | 69 out of 75 points | Time Elapsed | 3 hours, 28 minutes, and 53 seconds out of 3 hours and 30 minutes allowed. | Instructions | Good luck! | | * Question 1
1 out of 1 points | | | Both New York Stock Exchange and NASDAQ are examples of secondary markets.Answer | | | | | Selected Answer: | True | Correct Answer: | True | | | | | * Question 2
1 out of 1 points | | | Financial manger can create value for a firm by creating more cash flow for it than it uses. To do so, they should make investment decisions so that the firm may buy assets that generate more cash than they cost.Answer | | | | | Selected Answer: | True | Correct Answer: | True | | | | | * Question 3
1 out of 1 points | | | The separation of ownership from management gives the corporation several advantages over other types of firms. One of them is the unlimited liability.Answer | | | | | Selected Answer: | False | Correct Answer: | False | | | | | * Question 4
1 out of 1 points | | | Two important financing decisions for a corporate financial manager are debt policy decision and dividend policy decision. Debt policy asks what level of debt is best for the firm. The dividend policy asks what dividend payout ratio is best for the firm.Answer | | | | | Selected Answer: | True | Correct Answer: | True | | | | | * Question 5
1 out of 1 points | | | In the statement of cash flows, a decrease in accounts receivable is classified as a source of cash from operations.Answer | | | | | Selected Answer: | True | Correct Answer: | True | | | | | * Question 6
1 out of 1 points | | | If a firm total asset turnover is lower than the industry average, it indicates that the company is not generating a sufficient volume of business given its total asset