A) Strategies succeed only if finances are managed well B) Strategies can be implemented without them C) They reduce competition D) They are only needed for reporting
A) Central B) Irrelevant C) Optional D) Secondary
A) Competitive advantage B) Cultural advantage C) Political advantage D) Legal advantage
A) Amount of cash on hand B) Level of profits C) Mix of debt and equity D) Market value of stock
A) Evaluate competitors B) Measure employee productivity C) Forecast sales D) Decide the best capital structure
A) Earnings Per Stock B) Equity Per Share C) Earnings Per Share D) Estimated Profit Share
A) Earnings Before Interest and Taxes B) Earnings After Taxes C) Equity Before Interest and Taxes D) Earnings Before Income Taxes
A) Earnings At Time B) Earnings After Taxes C) Equity After Taxes D) Earnings And Taxes
A) Compute EPS B) Graph EPS and EBIT C) Calculate taxes D) Gather input data
A) Horizontal bar B) Z-axis C) Y-axis D) X-axis
A) X-axis B) Z-axis C) Y-axis D) Horizontal bar
A) Avoids taxes B) Has the lowest debt C) Uses only equity D) Has the highest EPS for a given EBIT level
A) Net income B) Interest expense C) Tax rates D) Control and flexibility
A) 3 years B) 5 years C) 2 years D) 4 years
A) Statement of Retained Earnings B) Cash Flow Statement C) Balance Sheet D) Income Statement
A) COGS and operating expenses B) Taxes only C) Assets only D) Dividends only
A) Net income + dividends B) Net income − dividends C) EBIT − taxes D) Sales − expenses
A) Liability B) Fixed value C) Plug figure D) Dividend
A) To increase length B) To explain assumptions and major changes C) To hide losses D) To calculate EPS
A) Mergers B) Daily operations C) Divestitures D) Acquisitions
A) Outstanding Shares Method B) Net Worth Method C) Net Income Method D) P/E Ratio Method
A) Net income × stock price B) Net income ÷ EPS C) Net income × 10 D) Net income × 5
A) EPS × P/E ratio B) Number of shares × stock price C) Net income × 5 D) Assets − liabilities
A) Replaces financial statements B) Predicts stock prices C) Tracks performance and identifies strengths and weaknesses D) Eliminates risk
A) Declares dividends B) Sells stock to the public for the first time C) Buys another firm D) Issues bonds |