WGU - C214: Financial Management
Save
Terms in this set (95)
If accounts receivable CFO decreases
increases, what is the
impact on CFO?
Are actual taxes paid No.
the same as how on
the GAAP income Actual Taxes = IRS Rules
statement? Income Statement = GAAP
Which decisions Economic life of a new asset.
require using
subjective estimates?
If there is a 30% 70%
change of a recession,
what is the probability *The sum of probabilities must equal 100%
of expansion?
2 years and 3 months:
How much interest is 2 + (3/12) = 2 + (.25) = 2.25
paid on a 6% bond
over 2 years and 3 6% x 1,000 = $60 per year
months?
$60 x 2.25 = $135
How does a "prudent Seeks the highest return for "appropriate"
investor" select amount of risk.
investments?
, What do points on the The maximum return for a given level of risk;
Efficient Frontier maximum Return-to-Risk ratio.
measure?
What is "Beta?" Measure of a stock's risk relative to the market.
Why are accurate Plan for resources for production; accurate
forecasts important? evaluation of capital projects.
Which ratio is used in PE ratio in the "Comparable Multiples" method.
valuing a private
company?
What are 3 costs 1. Product
associated with 2. Storage
holding inventory? 3. Opportunity
What risk is eliminated Idiosyncratic Risk - Risk affecting a single firm.
by a diversified
portfolio?
What are the impacts Fewer U.S. jobs and lower priced products.
of outsourcing?
What are the impacts More U.S. jobs and higher product costs for
of tariffs? consumers.
What securities are Municipal bond interest is tax-exempt. Treasury
exempt from FEDERAL securities ARE taxable.
income taxation?
Why would a firm Debt has a lower required return. Debt interest
prefer to issue bonds is tax deductible.
rather than stock?
What is the impact on APY increases
the APY as the number
of interest payments
per year increase?
Save
Terms in this set (95)
If accounts receivable CFO decreases
increases, what is the
impact on CFO?
Are actual taxes paid No.
the same as how on
the GAAP income Actual Taxes = IRS Rules
statement? Income Statement = GAAP
Which decisions Economic life of a new asset.
require using
subjective estimates?
If there is a 30% 70%
change of a recession,
what is the probability *The sum of probabilities must equal 100%
of expansion?
2 years and 3 months:
How much interest is 2 + (3/12) = 2 + (.25) = 2.25
paid on a 6% bond
over 2 years and 3 6% x 1,000 = $60 per year
months?
$60 x 2.25 = $135
How does a "prudent Seeks the highest return for "appropriate"
investor" select amount of risk.
investments?
, What do points on the The maximum return for a given level of risk;
Efficient Frontier maximum Return-to-Risk ratio.
measure?
What is "Beta?" Measure of a stock's risk relative to the market.
Why are accurate Plan for resources for production; accurate
forecasts important? evaluation of capital projects.
Which ratio is used in PE ratio in the "Comparable Multiples" method.
valuing a private
company?
What are 3 costs 1. Product
associated with 2. Storage
holding inventory? 3. Opportunity
What risk is eliminated Idiosyncratic Risk - Risk affecting a single firm.
by a diversified
portfolio?
What are the impacts Fewer U.S. jobs and lower priced products.
of outsourcing?
What are the impacts More U.S. jobs and higher product costs for
of tariffs? consumers.
What securities are Municipal bond interest is tax-exempt. Treasury
exempt from FEDERAL securities ARE taxable.
income taxation?
Why would a firm Debt has a lower required return. Debt interest
prefer to issue bonds is tax deductible.
rather than stock?
What is the impact on APY increases
the APY as the number
of interest payments
per year increase?
