CGA-CANADA ADVANCED CORPORATE FINANCE [FN2] EXAMINATION June 2011 Marks Notes: 1. Questions 1 and 2 are multiple choice. For these questions‚ select the best answer for each of the unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example‚ if the best answer for item (a) is (1)‚ write (a)(1) in your examination booklet. If more than one answer is given for an item‚ that item will not be marked. Incorrect answers will be marked as zero
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Problems: 8.1: Data for Newark General Hospital (In Millions of Dollar): | |Static Budget |Flexible Budget |Actual Result | |Revenues |4.7 |4.8 |4.5 | |Costs |4.1 |4.1 |4.2 | |Profits
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List and briefly describe the three basic questions addressed by a financial manager. What should be the goal of the financial manager of a corporation? Why? What advantages does the corporate form of organization have over sole proprietorships or partnerships? If the corporate form of business organization has so many advantages over the sole proprietorship‚ why is it so common for small businesses to initially be formed as sole proprietorships? The three areas are: 1. Capital budgeting: The
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Sunny Beach Hotel Evaluation Report Regarding Various Scenarios for Adding a Karaoke Pub in the Sunny Beach Hotel . Dear Sir‚ I have considered the scenarios you suggested to be evaluated from economic point of view regarding the opportunity of accepting the offer of Planet Karaoke Pub to install one of its facilities inside the free space from 2nd floor of Sunny Beach Hotel or to extend the activities of our company with a Karaoke pub located on the beach area administrated by our
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T he Sisyphean Corporation The Sisyphean Corporation is considering investing in a new cane manufacturing machine that has an estimated life of three years. The cost of the machine is $30‚000 and the machine will be depreciated straight line over its three-year life to a residual value of $0. The cane manufacturing machine will result in sales of 2‚000 canes in year 1. Sales are estimated to grow by 10% per year each year through year three. The price per cane that Sisyphean will charge
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Question 1 1.1 out of 1.1 points Everything else equal‚ significant trade deficits‚ imports exceeding exports‚ should have what effect on a country’s exchange rate? Selected Answer: C. The country’s currency should depreciate in value relative to their major trading countries. Question 2 1.1 out of 1.1 points Which instrument is issued by a bank? Selected Answer: Letter of credit Question 3 0 out of 1.1 points Common causes of
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Easy Learning Objective: 1-1 8. BP’s committing of $500 million to partnership with University of California–Berkeley to develop new sources of energy is a capital budgeting decision. TRUE AACSB: Reflective Thinking Skills Bloom’s: Application Difficulty: Easy Learning Objective: 1-1 9. Boards of directors are often portrayed as active supporters of top management. FALSE AACSB: Reflective Thinking Skills Bloom’s: Understanding Difficulty: Medium Learning Objective:
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CASE 12 HOME DEPOT Analysis What do the financial ratios in case Exhibit 7 tell you about the operating performance of Home Depot? What additional information do the different ratios provide? Complete and compare a similar analysis for Lowe’s. a. Growth ratios are going down‚ loosing sales. Profitability ratios are declining after 1999 so that is not a good sign. Turnover rates seem to stay constant which means that they are selling the products at a constant rate. b. If their
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1998 is when Daimler-Benz acquired Chrysler. Many people thought that Chrysler would break away from Ford and GM and join Japanese automobile makers. The planned strategy at Daimler-Benz for Chrysler in 1998 was to emphasize bold design‚ better product quality‚ and higher productivity by sharing designs and parts between the two companies. This strategic plan however‚ proved to be disastrous for Chrysler. Looking back‚ I’m sure the company’s CEO’s can see the poor decisions they made. They
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Closing the Schools Module 3- Essay Mr. Poineau April 22‚ 2014 There are a lot of issues in the community that I live in. There are senseless killings among the youth‚ teen pregnancy‚ damaged streets‚ and most importantly the closing of many schools in the area. All of these issues‚ whether big or small‚ are very important and they affect my community tremendously. The community issue that is most important to me is the closing of the schools. The closing of schools is
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