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) Secondary C) Optional D) Irrelevant
A) Political advantage B) Competitive advantage C) Legal advantage D) Cultural advantage
A) Level of profits B) Amount of cash on hand C) Mix of debt and equity D) Market value of stock
A) Evaluate competitors B) Decide the best capital structure C) Forecast sales D) Measure employee productivity
A) Earnings Per Stock B) Earnings Per Share C) Estimated Profit Share D) Equity Per Share
A) Earnings Before Income Taxes B) Earnings After Taxes C) Equity Before Interest and Taxes D) Earnings Before Interest and Taxes
A) Earnings After Taxes B) Equity After Taxes C) Earnings And Taxes D) Earnings At Time
A) Calculate taxes B) Graph EPS and EBIT C) Gather input data D) Compute EPS
A) Z-axis B) X-axis C) Horizontal bar D) Y-axis
A) X-axis B) Y-axis C) Horizontal bar D) Z-axis
A) Has the highest EPS for a given EBIT level B) Has the lowest debt C) Uses only equity D) Avoids taxes
A) Net income B) Tax rates C) Interest expense D) Control and flexibility
A) 5 years B) 4 years C) 3 years D) 2 years
A) Cash Flow Statement B) Statement of Retained Earnings C) Balance Sheet D) Income Statement
A) Assets only B) COGS and operating expenses C) Dividends only D) Taxes only
A) Sales − expenses B) Net income + dividends C) Net income − dividends D) EBIT − taxes
A) Liability B) Plug figure C) Fixed value D) Dividend
A) To explain assumptions and major changes B) To increase length C) To hide losses D) To calculate EPS
A) Daily operations B) Mergers C) Divestitures D) Acquisitions
A) P/E Ratio Method B) Net Worth Method C) Net Income Method D) Outstanding Shares Method
A) Net income × stock price B) Net income × 10 C) Net income ÷ EPS D) Net income × 5
A) Number of shares × stock price B) Net income × 5 C) EPS × P/E ratio D) Assets − liabilities
A) Replaces financial statements B) Eliminates risk C) Predicts stock prices D) Tracks performance and identifies strengths and weaknesses
A) Sells stock to the public for the first time B) Issues bonds C) Buys another firm D) Declares dividends |