Finance w4 test | Business & Finance homework help

 

Question 1

Describe the CAPM theory and identify one criticism of this theory. Your response should be in your own words. 

 

Question 2

If you were to issue a bond for your organization to raise funds for a capital project, what type of bond would you choose and why? Your response should be in your own words.

 

Question 3

What is trend analysis and what information can it tell you about an organization that looking at the $$ s on the financial statements alone cannot provide?  

 

Question 4

Identify three key solvency ratios (debt and asset ratios), explain in your own words how they are calculated, and discuss what each ratio can tell about an organization s performance. 

 

Question 5

Identify three key solvency ratios (debt and asset ratios), explain how they are calculated, and discuss what each ratio can tell about an organization s performance. Your response should be in your own words.

 

Question 6

What are the key types of stock typically issued by publicly traded organizations? If you were to invest $10,000 of your own funds, which type would you choose, why? Your response should be in your own words.

 

Question 7

Provide an example of an annuity found in a business environment and how you would find the present value of that annuity. Your response should be in your own words.
 

Question 8

Why is the time value of money an important concept in business? Your response should be in your own words.
 

Question 9

Identify two key liquidity ratios, explain how they are calculated, and discuss what each ratio can tell about an organization s performance. Your response should be in your own words.

 

Question 10

What is common-size analysis and what information can it tell you about an organization that looking at the $$ s on the financial statements alone cannot provide? Your response should be in your own words. 







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