Questions from Financial Management

Q: If a firm’s earnings per share grew from $1 to $

If a firm’s earnings per share grew from $1 to $2 over a 10-year period, the total growth would be 100%, but the annual growth rate would be less than 10%. True or false? Explain.

Q: Why would the inventory turnover ratio be more important for someone analyzing

Why would the inventory turnover ratio be more important for someone analyzing a grocery store chain than an insurance company?

Q: Over the past year, M. D. Ryngaert & Co

Over the past year, M. D. Ryngaert & Co. had an increase in its current ratio and a decline in its total assets turnover ratio. However, the company’s sales, cash and equivalents, DSO, and fixed asset...

Q: Describe the different ways in which capital can be transferred from suppliers

Describe the different ways in which capital can be transferred from suppliers of capital to those who are demanding capital.

Q: Answer the following questions: a. Assuming a rate of

Answer the following questions: a. Assuming a rate of 10% annually, find the FV of $1,000 after 5 years. b. What is the investment’s FV at rates of 0%, 5%, and 20% after 0, 1, 2, 3,...

Q: You have applied for a job with a local bank. As

You have applied for a job with a local bank. As part of its evaluation process, you must take an examination on time value of money analysis covering the following questions: a. Draw time lines for...

Q: Jan sold her house on December 31 and took a $10

Jan sold her house on December 31 and took a $10,000 mortgage as part of the payment. The 10-year mortgage has a 10% nominal interest rate, but it calls for semiannual payments beginning next June 30....

Q: If a company’s board of directors wants management to maximize shareholder wealth

If a company’s board of directors wants management to maximize shareholder wealth, should the CEO’s compensation be set as a fixed dollar amount, or should the compensation depend on how well the firm...

Q: Find the amount to which $500 will grow under each of

Find the amount to which $500 will grow under each of these conditions: a. 12% compounded annually for 5 years b. 12% compounded semiannually for 5 years c. 12% compounded quarterly for 5 years d. 12%...

Q: Find the present value of $500 due in the future under

Find the present value of $500 due in the future under each of these conditions: a. 12% nominal rate, semiannual compounding, discounted back 5 years b. 12% nominal rate, quarterly compounding, discou...