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