FIN 357 SB CH 4 EXAM WITH |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
CORRECT ANSWERS |||\\\
Dot's financial planning model shows assets are projected to increase by $800,000 but
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
liabilities and equity increase by $395,000. What is the external financing need (EFN)? - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔$405,000
|||\\\
Which of the following are common elements of a financial planning model? - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔1. Sales Forecast |||\\\ |||\\\
2. Economic Assumptions
|||\\\ |||\\\
3. Pro Forma Statements
|||\\\ |||\\\ |||\\\
The degree of financial ___________ the firm chooses determines the amount of borrowing of
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
the firm - correct answer✔✔leverage
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Assume Zoe Corp.'s plant capacity will allow for sales of $250 million and last year's sales were
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
$180 million. Zoe's current gross plant and equipment total is $340 million. You project sales
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
growth of 20% in the upcoming year. What total should you forecast for Zoe's plant and
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
equipment on your pro forma balance sheet?TO CALCULATE:With $216 million in sales ($180 |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
million x 1.2), Zoe is not at plant capacity. - correct answer✔✔$340 million
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
A financial plan looks at what needs to be done in the - correct answer✔✔future
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Growth, by itself, is: - correct answer✔✔not an appropriate goal |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Which of the following can be accomplished with financial planning - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔Avoiding surprises |||\\\
Exploring options |||\\\
CORRECT ANSWERS |||\\\
Dot's financial planning model shows assets are projected to increase by $800,000 but
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
liabilities and equity increase by $395,000. What is the external financing need (EFN)? - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔$405,000
|||\\\
Which of the following are common elements of a financial planning model? - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔1. Sales Forecast |||\\\ |||\\\
2. Economic Assumptions
|||\\\ |||\\\
3. Pro Forma Statements
|||\\\ |||\\\ |||\\\
The degree of financial ___________ the firm chooses determines the amount of borrowing of
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
the firm - correct answer✔✔leverage
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Assume Zoe Corp.'s plant capacity will allow for sales of $250 million and last year's sales were
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
$180 million. Zoe's current gross plant and equipment total is $340 million. You project sales
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
growth of 20% in the upcoming year. What total should you forecast for Zoe's plant and
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
equipment on your pro forma balance sheet?TO CALCULATE:With $216 million in sales ($180 |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
million x 1.2), Zoe is not at plant capacity. - correct answer✔✔$340 million
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
A financial plan looks at what needs to be done in the - correct answer✔✔future
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Growth, by itself, is: - correct answer✔✔not an appropriate goal |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Which of the following can be accomplished with financial planning - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔Avoiding surprises |||\\\
Exploring options |||\\\
