The frequency of spending or the rate or turnover of money a. Demand for money b. Velocity of money c. Transaction demand d. Speculative demand
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- Multiple choice: 1. If you sell on credit, your cash inflow depends very much on the A. Cash sales B. Agreements or unsecured accounts C. Collection of AR D. Age of receivables 2. Initial investment of the owner A. Fixed capital B. Working capital C. Capital structure D. Equity capitalUsing financial functions (RATE, PMT, FV, NPER, PV) complete the shaded cells to analyze 5 financial options for MIS Enterprises. (HINT: Make sure your interest rate and number of payments are set to the correct terms) See attached for shaded cells (1) Calculate PMT (2) Calculate FV (3) Calculate PV (4) Calculate RATE (5) Calculate NPER1. Basic concepts A. Finance, or financial management, requires the knowledge and precise use of the language of the field. Match the terms relating to the basic terminology and concepts of the time value of money on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term. Term Answer Description Discounting A. A schedule or table that reports the amount of principal and the amount of interest that make up each payment made to repay a loan by the end of its regular term. Time value of money B. A loan in which the payments include interest as well as loan principal. Amortized loan C. A value that represents the interest paid by borrowers or earned by lenders, expressed as a percentage of the amount borrowed or invested over a…
- 1. Basic concepts Finance, or financial management, requires the knowledge and precise use of the language of the field. A. Match the terms relating to the basic terminology and concepts of the time value of money on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term. Term Answer Description Discounting A. A cash flow stream that is generated by a share of preferred stock that is expected to pay dividends every quarter indefinitely. Time value of money B. A cash flow stream that is created by an investment or loan that requires its cash flows to take place on the last day of each quarter and requires that it last for 10 years. Amortized loan C. A cash flow stream that is created by a lease that requires the payment to…Finance, or financial management, requires the knowledge and precise use of the language of the field. Match the terms relating to the basic terminology and concepts of the time value of money on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term. Term Answer Description Discounting A. A cash flow stream that is created by a lease that requires the payment to be paid on the first of each month and a lease period of three years. Time value of money B. A cash flow stream that is created by an investment or loan that requires its cash flows to take place on the last day of each quarter and requires that it last for 10 years. Amortized loan C. A schedule or table that reports the amount of principal and the amount of interest that…Please answer the following question. In this method, the company compares the amount spent on the investment with the discounted expected future cash inflows. a.Payback b.NRV c.Investment d.IRR
- When a firm sells its accounts receivable to raiseshort-term cash, it is engaging in a strategycalleda. factoring.b. financial planning.c. equity financingd. debt financing.e. draftingDiscuss the important of financial market, then illustrate with a diagram the flowof funds from lenders to borrowers in a financial system.The balance sheet balances each period because the model assumes Group of answer choices: 1:Any additional financing required is funded with the line of credit 2:Any additional financing need is funded first with additional equity, and then the line of credit as needed 3:Any additional financing is funded with excess cash, and then the line of credit as needed 4:None of the above
- 1. IS THE FOLLOWING STATEMENT TRUE or FALSE? “A financial security is simply a contractbetween the provider of funds and the user of these funds that clearly specifies the amount of money that hasbeen provided and the terms and conditions of how the user is going to repay the provider.”a. Trueb. False2. IS THE FOLLOWING STATEMENT TRUE or FALSE? “A share of stock represents ownership of acorporation divided up into units, so that multiple people can own a percentage of the business.”a. Trueb. False3. A consol is a bond that:a. Pays a fixed annual coupon amount, and when originally issued, is set to mature in 30 years.b. Pays a fixed annual coupon amount, and when originally issued, is set to mature in 50 years.c. Does not pay an annual coupon (i.e., the annual coupon payment is $0) but when it matures pays out thepar value of the bond.d. Pays a fixed annual coupon amount forever.e. Does not pay an annual coupon (i.e., the annual coupon payment is $0) and never maturesTo calculate free cash flow to equity (FCFE), the analyst needs which of the following: O A. Cash flow from operations (CFO) B. Cash flow from investments (CFI) Oc. Cash flow from financing (CFF)Q4: Engineering Economics. Please (1) Identify the Given (2). Draw a cash flow diagram (3). Show Solution in getting the final answer indicated.
