Finance > EXAM > FINANCE 215 Sophia Finance Milestone Final GRADED A (All)

FINANCE 215 Sophia Finance Milestone Final GRADED A

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Sophia Principles of Finance Milestone Final 1 Ratios that measure a company's ability to manage its long-term debt are _________. efficiency ratios leverage ratios profitability ratios liquidity ratios CONCEPT Overview of Ratio Analysis 2 Georgia is interested in selling her company. Before seeking a buyer, she wants her income statements to show a trend of increasing gross profits. How can she achieve her goal? Reduce taxes paid Reduce cost of goods sold Reduce net sales Reduce operating expense CONCEPT The Income Statement 3 A stock's beta, which can be affected by surprise news or announcements, is a measure of its __________ in relation to a benchmark like an index fund. yield price credit rating volatility CONCEPT The Impact of News of Expected Returns 4 Place the following steps for developing a credit policy in the correct order of process: A: The company decides that it wants to minimize opportunity costs by having as much cash on hand as possible. B: The company decides that it will send out two notices of late payments to customers before pursuing other collection methods. C: The company decides that its payment terms will be Net 15. C, B, A A, C, B C, A, B A, B, C CONCEPT Accounts Receivable 5 Determine the value of a stock with the following variables using the constant growth model: Current annual dividend: $2.75 per share Required return rate: 8.5% Constant growth rate: 6% $110.00 $114.70 $116.60 $119.35 CONCEPT Stock Valuation 6 Tom and Wendy are launching a life coaching business. They plan to have an equal say in any managerial business decisions and they plan to share any profits or losses. They are concerned about their exposure to liability, so they have purchased some professional insurance policies. However, they are pleased with how simple it has been to organize their business. Which form of business structure have Tom and Wendy likely adopted? Corporation Sole proprietorship Partnership S corporation CONCEPT Types of Business Organizations 7 A fund that is designed to follow a major stock index and represents an attractive, inexpensive option for investors is a(n) __________. mutual fund hedge fund exchange-traded fund pension fund CONCEPT Stock Markets 8 Consider the following information: Total current assets $42,123 Deferred income taxes $2,638 Inventories $4,873 Prepaid expe

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