1. Question: If two companies have equal risk, which one will have the higher stock price?

    A
    The one with the expectations of higher returns

    B
    The one that pays dividends

    C
    The one that splits its stock

    D
    The one whose stock is traded most frequently

    E
    All of these

    Note: Not available
    1. Report
  2. Question: Which of the following is not an area which is assessed by financial analysis?

    A
    Profitability

    B
    Solvency

    C
    Stability

    D
    Adequate Cash balances

    Note: Not available
    1. Report
  3. Question: What is the formula for Return on Investor Capital?

    A
    ROIC = (NetOperatingProfitLessAdjustedTaxes) / (Fixed Assets)

    B
    ROIC = (NetOperatingProfit) / (InvestedCapital)

    C
    ROIC = (NetOperatingProfitLessAdjustedTaxes) / (InvestedCapital)

    D
    ROIC = (NetOperatingProfitLess) / (Fixed Assets)

    Note: Not available
    1. Report
  4. Question: Which financial statement best allows a firm to assess its ability to pay dividends?

    A
    Statement of Cash Flows

    B
    Income Statement

    C
    Balance Sheet

    D
    Statement of Retained Earnings

    E
    Statement of Operations

    Note: Not available
    1. Report
  5. Question: How often can a company change its inventory valuation methodology and still be compliant with GAAP?

    A
    Once per month

    B
    Anytime, there are no rules

    C
    Once per year, but not every year

    D
    Never, you decide once and only once

    Note: Not available
    1. Report
  6. Question: Which security makes up the majority of external financing for corporations?

    A
    Common stock

    B
    Preferred stock

    C
    Bank loans

    D
    Bonds

    E
    Venture capital funds

    Note: Not available
    1. Report
  7. Question: What type of analysis will describe how changes in volume affect costs and profits?

    A
    Trend analysis

    B
    Break even analysis

    C
    Common size analysis

    D
    Ratio analysis

    E
    DuPont analysis

    Note: Not available
    1. Report
  8. Question: The three sections of a Statement of Cash Flows are _____.

    A
    Leverage, liquidity, financing

    B
    Operating, investing, profit

    C
    Operating, investing, financing

    D
    Sales, investing, financing

    E
    Operating, investing, borrowing

    Note: Not available
    1. Report
  9. Question: What is the DuPont analysis?

    A
    Breaks Return on Equity into 3 pieces: Operating Efficiency, Asset Use Efficiency, Financial Leverage

    B
    An analysis created by the DuPont paint company

    C
    A ratio analysis style based on factors beyond the financial numbers

    D
    A modified cash flow analysis

    Note: Not available
    1. Report
  10. Question: How does Cash Flow Return on Investment differ from most financial ratios?

    A
    It is the only ratio involving cash flow

    B
    It can be calculated from the income statement

    C
    It assumes the stock market sets prices based on cash flow, not profitability

    D
    It is the only ratio where a negative number is a good result

    Note: Not available
    1. Report
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