Financial Management Essay

The required rate of military issue is rs = 10. 1%, and the constant growth rate is g = 4. 0%. What is the accepted stock price? a. $23. 11b. $23. 70c. $24. 31d. $24. 93e. $25. 57e 8- Ratio analysis involves analyzing fiscal statements in straddle to appraise a firms financial position and strength. a. true(a) b. FalseA 9- Profitability ratios show the combined effects of liquidity, asset management, and debt management on operating results. a. professedly b. False A 10 One line of work with ratio analysis is that relationships can be manipulated. For example, if our ongoing ratio is greater than 1. , then borrowing on a short-term basis and development the funds to build up our cash account would cause the current ratio to increase. a. original b. False B 11 Arshadi Corp. s gross revenue last year were $52,000, and its total 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 C orp. s gross sales last year were $320,000, and its net income after taxes was $23,000. What was its profit 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, step in constructing a set of forecasted financial statements is the sales forecast. a.Trueb. Falsea 14- According to the Capital Asset Pricing Model, investors are in the main concerned with portfolio risk, not the risks of individual stocks held in isolation. Thus, the relevant risk of a stock is the stocks contribution to the riskiness of a well-diversified portfolio. a. True b. False a 18 Diversification will normally curtail 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 have a negative of import. . True b. False a 20 Which of the following statements best describes what you should expect if you at random select stocks and add them to your portfolio? a. Adding more suc h stocks will foreshorten the portfolios unsystematic, or diversifiable, risk. b. Adding more such stocks will increase the portfolios anticipate rate of return. c. Adding more such stocks will reduce 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