The term "capital structure" refers to:

long-term debt, preferred stock, and common stock equity.

Quick assets do not include such current assets as inventory and prepaid expenses.

Which of the following is not a metric to use for measuring the length of the cash
cycle?

Acid test days.

Increasing the credit period from 30 to 60 days, in response to a similar action taken by

an increase in the average collection period.

the account payable, accruals and notes payable listed on balance sheet has
current liability

in weighted average cost of capital, the capital components are the fund usually
offered by
capital

capital

Which of the following would be considered a use of funds

an increase in cash.

A profitability index of .85 for a project means that

the project returns 85 cents in present value for each current

dollar invested.

Equity Ratio is 3:1,the amount of total assets Rs.20

12 lakh

A critical assumption of the net operating income (NOI) approach to valuation is

that ko remains constant regardless of changes in leverage.

The company purchases goods but not pay suppliers the payments immediately
record them
Account payable

Which of the following would be consistent with a more aggressive approach to

financing

Financing some long-term needs with short-term funds.

In a merger or acquisition, a firm should be acquired if it: a. generates a positive

net present value to the shareholders of an acquiring firm.

reserves and surplus are which form financing internal financing

8. Which of the following statements (in general) is correct?

The lower the total debt-to-equity ratio, the lower the financial
risk for a firm.

cash conversion cycle, The length of time between the firm's actual cash
expenditures on produc

Suppose that Exxon-Mobil acquired Schlumberger, an exploration/drilling

company. Ignoring potential
Vertical merger

Which of the following would be included in a cash estimation/ budget

Dividents

XYZ is an oil based business company, which does not have adequate working capital
Liquidity

XYZ is an oil based business company, which does not have adequate working capital
Miller and Modigliani

The long-run objective of financial management is to:

b) maximize the value of the firm's common stock.

The stockholders that do not get benefits even if the company's earnings grow are classified
as

1)
preferred stockholder

94. Which of the following would not be financed from working capital?
Credit sales

When total current assets exceeds total current liabilities it refers to.
b. Temporary Working Capital

In calculating the costs of the individual components of a firm's financing, the

corporate tax rate is important to which of the following component cost
formulas?
Debt

Financing a long-lived asset with short-term financing would be

an example of "high risk -- high (potential) profitability" asset financing

Which of the following statements is correct?

If the PI of a project is less than 1, its NPV should be less than 0

In weighted average capital, the capital structure weights estimation does not rely on the value
of

book value of equity

A single, overall cost of capital is often used to evaluate projects because: a) it

avoids the problem of computing the required rate of return for each investment
proposal

Marketable securities are primarily a) short-term debt instruments

When __________ is greater than zero the project should be accepted.

Net present value

An asset is a
Use of fund

is the price at which the bond is traded in the stock exchange

market value

Which of the following illustrates the use of a hedging (or matching) approach to
financing?
Permanent working capital financed with long-term liabilities.

The payments if made at the end of each period such as end of the year is classified
as
Both a and b

The complete absorption of one company by another, wherein the acquiring firm
retains its identity and the acquired firm ceases to exist as a separate entity, is
called a: a. merger.

An increase in the firm's receivable turnover ratio means that: a) it is collecting

credit sales more quickly than before.

The type of cost which is used to raise common equity by reinvesting internal earnings is
classified as

cost of common equity

Proprietary ratio is calculated by

Proprietors Funds/Total

The acquisition of a firm in the same industry as the bidder is called a _____
acquisition
Horizontal

The modified internal rate of return is considered as present value of costs and is equal to

p.v of terminal value

"the payback period in which the expected cash flow are discounted with the
help of project cost of capital is classified as"
Discounted cash flow