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