Busn 379 Hw Week 1 Essay Example
Question :
(TCO 1) Which of the following statements is true regarding the goal of financial management?
Student Answer: A US company considering international operations will have a different goal than a company that only conducts operations in the US. The firm’s structure (i.e. corporation, sole proprietorship, partnership) is not relevant to the goal of financial management. CORRECT A way of aligning management goals to shareholder’s interest is to tie managerial compensation to the market value of the firm’s stock. None of the above are true.
Points Received: 3 of 3 Comments:
2. Question :
(TCO 1) Book values are different to market values because:
Student Answer: INCORRECT Book values reflect the value of the asset based on generally-accepted accounting principles. Book values are used in the company's balance sheet. Book values do not reflect the amount someone is willing to pay today for an asset. CORRECT All of the above
Points Received: 0 of 3 Comments:
3. Question :
For this question, use the information for Sports Baseballs, Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the last year. Expenses were as follows:
Cost of goods sold............................... $1.2 million
Administrative expenses........................ $250,000
Marketing and selling expenses............... $175,000
Depreciation........................................ $500,000
Interest expense.................................. $200,000
Dividends paid..................................... $150,000
(TCO 1) Suppose that Sports Baseball has 30,000 shares of stock. What is the dividends per share figure?
Student Answer:
(TCO 1) Which of the following statements is true regarding the goal of financial management?
Student Answer: A US company considering international operations will have a different goal than a company that only conducts operations in the US. The firm’s structure (i.e. corporation, sole proprietorship, partnership) is not relevant to the goal of financial management. CORRECT A way of aligning management goals to shareholder’s interest is to tie managerial compensation to the market value of the firm’s stock. None of the above are true.
Points Received: 3 of 3 Comments:
2. Question :
(TCO 1) Book values are different to market values because:
Student Answer: INCORRECT Book values reflect the value of the asset based on generally-accepted accounting principles. Book values are used in the company's balance sheet. Book values do not reflect the amount someone is willing to pay today for an asset. CORRECT All of the above
Points Received: 0 of 3 Comments:
3. Question :
For this question, use the information for Sports Baseballs, Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the last year. Expenses were as follows:
Cost of goods sold............................... $1.2 million
Administrative expenses........................ $250,000
Marketing and selling expenses............... $175,000
Depreciation........................................ $500,000
Interest expense.................................. $200,000
Dividends paid..................................... $150,000
(TCO 1) Suppose that Sports Baseball has 30,000 shares of stock. What is the dividends per share figure?
Student Answer: