SU MBA6010 All Weeks Knowledge Checks Latest 2019 JUNE Question # 00603022 Course Code : MBA6010 Subject: Business Due on: 07/12/2019 Posted On: 07/12/2019 10:25 AM Tutorials: 1 Rating: 4.9/5

MBA6010 Managerial Finance

Week 1 Knowledge Check

Question 1
Asset management ratios measure how effectively a firm is managing its assets.

Question 1
options:

True

False

Question 2
The financial report that measures a firm’s position at a point in time is
called the Income Statement.

Question 2
options:

True

False

Question 3
The extent to which a firm uses debt financing is called financial leverage.

Question 3
options:

True

False

Question 4
The ratio of total assets to total debt is called the debt ratio.

Question 4
options:

True

False

Question 5
The ratio of net income to common equity measures is called the ROE.

Question 5
options:

True

False

MBA6010 Managerial Finance

Week 2 Knowledge Check

Question 1
If a bond is selling above par, then the coupon rate must be higher than the
markets for new bonds.

Question 1
options:

True

False

Question 2
If you purchased a bond that was callable and it was called, you would have the
option to keep it until maturity.

Question 2
options:

True

False

Question 3
The value of a share of common stock is a function of the dividends expected
and the possible price appreciation.

Question 3
options:

True

False

Question 4 One
of the most important reasons for stockholders to have the preemptive right is
to protect them against dilution.

Question 4
options:

True

False

Question 5 Preferred
stock is a mixture of debt and equity.

Question 5
options:

True

False

MBA6010 Managerial Finance

Week 3 Knowledge Check

Question 1 The
before tax cost of debt is used to calculate the WACC.

Question 1
options:

True

False

Question 2
The two sources of equity capital are debt and preferred stock.

Question 2
options:

True

False

Question 3 Market
risk on a project is measured by its effect on the beta coefficient.

Question 3
options:

True

False

Question 4 The
cost of common equity is the rate of return by the firm’s stockholders.

Question 4
options:

True

False

Question 5 The
best proxy for the risk free rate of return is the rate on Treasury bonds.

Question 5
options:

True

False

MBA6010 Managerial Finance

Week 4 Knowledge Check

Question 1 Some
degree of risk is present in all investment opportunities.

Question 1
options:

True

False

Question 2 Beta
measures the responsiveness of a security to movements in the market portfolio.

Question 2
options:

True

False

Question 3 The
expected return on the market is the sum of the risk-free rate plus some
compensation for the risk inherent in the market portfolio.

Question 3
options:

True

False

Question 4 The
expected return on a security is positively (and linearly) related to the
security’s beta.

Question 4
options:

True

False

Question 5 A
diversified portfolio can eliminate the risk of the individual securities.

Question 5
options:

True

False

MBA6010 Managerial Finance

Week 5 Knowledge Check

Question 1 A
basic premise in finance is to collect cash as soon as possible and delay
payments as long as possible.

Question 1
options:

True

False

Question 2 Holding
significant cash balances is an important tool in corporate financial
management.

Question 2
options:

True

False

Question 3
Working capital can be defined as current assets less current liabilities.

Question 3
options:

True

False

Question 4 A
cycle of cash inflows and outflows is known as the operating cycle.

Question 4
options:

True

False

Question 5 The
time it takes for a company to buy raw materials, convert them into saleable
products, and then sell those products is the inventory conversion period.

Question 5
options:

True

False