Business 9203 Section 2 MANAGING FINANCIAL RESOURCES QUIZ June 2011 STUDENT NUMBER _____________________________ You have a maximum of 80 minutes for the quiz. Please provide your answers on this paper in the spaces provided and hand in your paper at the end of the quiz. Only short precise answers are required and you can use point form. The weight given to each question is indicated at the end of the question. The total possible marks are 70. The quiz is open book and you may feel
Premium Debt Bond
1. CORPORATE GOVERNANCE Objective of corp finance: maximize firm value. Narrower objective of maximizing stockholder wealth; when stock is traded and markets are viewed to be efficient‚ objective is to maximize stock price. A. Stockholder interests vs management interests In theory: stockholders have significant control over management. Mechanisms for discipline: Annual meeting and BOD In Practice: Most stockholders do not go to meetings since cost of going exceeds the value of their holdings; incumbernt
Premium Finance Corporate finance Generally Accepted Accounting Principles
assets into the calculation. Additional profitability ratios include the price earnings ratio (P/E)‚ the dividend payout and the dividend yield. The price earnings ratio helps to indicate to investor how expensive the shares of common stock of a firm are. Dividend yield is part of the stockholders ROI and is represented by the annual cash dividend. Dividend yields have historically been between 3% to 6% for common stock and 5% to 8% for preferred stock. Dividend payout ratio shows the proportion of
Premium Financial ratios Financial ratio Balance sheet
61 Questions for Extra Credit Points. Due 12/16 (Wednesday) (Please show your work and provide your explanation) You need to show your work and explanations. Jotting down only the answers is not acceptable. If you do all 100 questions‚ you will get up to 3 extra points added to your final total score (after I determine your total score based on mid-terms‚ HWs‚ and the final). Chapter 5 1. You plan to analyze the value of a potential investment by calculating the sum of the present values
Premium Net present value Bond Preferred stock
for future growth through internal financing A. High ‚ High B. Low‚ Low‚ C. High‚ Low D. Low‚ High 8. Dividend per share (÷. Market price per share = A. Dividend yield B. Dividend per share C. Dividend Payout Ratio D. None of the rest 9. 63. Dividend pear share (÷. Earning per share = A. Dividend yield B. Dividend per share C. Dividend Payout Ratio D. None of the rest The Role of Financial Management 1. "Shareholder wealth" in a firm is represented by: the number
Premium Finance Dividend yield Stock
based on market cap.‚ not balance sheet ▪ Her debt cost is wrong ▪ She should use the current or projected cost rather than a historic one ▪ i.e. use a Bloomberg terminal (other terminals are available) to research yields on debt of the same credit rating as Nike ▪ It is unlikely Nike has a cost of debt lower than T bills ▪ Raising debt in a foreign currency (Jap Yen) either carries an associated hedging cost or exposes the borrower to FX
Premium Weighted average cost of capital Dividend yield Time value of money
Examination of a Corporate Annual Report 1. Fill in some basic information about your company Name of company The Coca Cola Company[1] Principal exchange where the company trades New York Stock Exchange[2] Market price of the stock $56.96 as of 12/07/09[3] Annual dividend $1.52 per share[4] Last dividend paid on April 1‚ 2008[5] 2. Read the business summaries and management’s discussion and analysis (MD&A). Summarize the remarks. Coca Cola prides itself on being
Premium Balance sheet Dividend yield Generally Accepted Accounting Principles
current period or in previous periods. It is a portion of the corporate profit. The dividend is most often quoted in terms of the dollar amount each share receives (dividends per share). It can also be quoted in terms of a percent of the current market price‚ referred to as dividend yield. Dividends may affect capital structure. • Retaining earnings increases common equity relative to debt. • Financing with retained earnings is cheaper than issuing new common equity. There are various theories
Premium Dividend Dividend yield Stock
meaning investors care little about a company’s dividend policy since they can simulate their own. Bird-in-the-Hand Theory The bird-in-the-hand theory‚ however‚ states that dividends are relevant. Remember that total return (k) is equal to dividend yield plus capital gains. Myron Gordon and John Lintner took this equation and assumed that k would decrease as a company’s payout increased. As such‚ as a company increases its payout ratio‚ investors become concerned that the company’s future capital gains
Premium Dividend Finance Dividend yield
THE BASICS OF REVENUE MANAGEMENT IDeaS © 2005 Integrated Decisions and Systems‚ Inc. ID-MK-100102-v1-YMBasic The Basics of Revenue Management by IDeaS TABLE OF CONTENTS TABLE OF CONTENTS ..................................................................................................................2 WHAT IS REVENUE MANAGEMENT? ........................................................................................4 When Is Its Use Appropriate? ......................................
Premium Microeconomics Marketing Revenue