QUESTIONS for QUIZ 1.

1.
2.
3.
4.

What are the main current assets and why we call them current?
What are the benefits of the Debt Financing?
What are the three basic areas of finance?
What are the three decisions in corporate financial management?
Explain them
5. What is an expected return, how is that calculated? Give example
6. What are the main profitability ratios and from which financial
statement we took relative numbers? Show for each profitability
ratio you know.
7. What is the P/E ratio and how we use it when we chose stocks?
8. What is the difference between ordinary annuity and annuity due?
9. What items of balance sheet does investment decision affect and
how?
10.
What items of balance sheet does financing decision affect and
how?
11.
Why does market value of an asset can differ from its book
value?
12.
How does the market value of liabilities differ from its book
value?
13.
Explain the financing decision of the firm?
14.
What are the costs of the debt financing?
15.
What are the main liquidity ratios and where do we take it
from? Show ratios
16.
What are the main solvency ratios and where do we take it
from? Show ratios
17.
What are the main activity ratios and where do we take it
from? Show ratios
18.
What are the main market ratios and where do we take it
from? Show ratios
19.
What is the required return, what is reflects and how is it
determined?
20.
What is an annuity, what are the examples of annuity?
21.
Explain APR and how it differs from real rate?
22.
Explain Perpetuity? Give an example
23.
Who issue bond, what do they represent and What is the
maturity?
24.
What is the call provision of the bond?
25.
Explain the sinking fund and convertible bonds.