A) They reduce competition B) They are only needed for reporting C) Strategies succeed only if finances are managed well D) Strategies can be implemented without them
A) Optional B) Irrelevant C) Central D) Secondary
A) Competitive advantage B) Political advantage C) Cultural advantage D) Legal advantage
A) Level of profits B) Amount of cash on hand C) Mix of debt and equity D) Market value of stock
A) Evaluate competitors B) Measure employee productivity C) Forecast sales D) Decide the best capital structure
A) Equity Per Share B) Estimated Profit Share C) Earnings Per Stock D) Earnings Per Share
A) Earnings Before Interest and Taxes B) Earnings After Taxes C) Earnings Before Income Taxes D) Equity Before Interest and Taxes
A) Earnings After Taxes B) Equity After Taxes C) Earnings And Taxes D) Earnings At Time
A) Compute EPS B) Calculate taxes C) Graph EPS and EBIT D) Gather input data
A) Y-axis B) Horizontal bar C) Z-axis D) X-axis
A) Y-axis B) Z-axis C) Horizontal bar D) X-axis
A) Has the lowest debt B) Uses only equity C) Avoids taxes D) Has the highest EPS for a given EBIT level
A) Net income B) Interest expense C) Control and flexibility D) Tax rates
A) 3 years B) 5 years C) 2 years D) 4 years
A) Balance Sheet B) Income Statement C) Statement of Retained Earnings D) Cash Flow Statement
A) COGS and operating expenses B) Dividends only C) Assets only D) Taxes only
A) Net income + dividends B) EBIT − taxes C) Sales − expenses D) Net income − dividends
A) Dividend B) Liability C) Fixed value D) Plug figure
A) To explain assumptions and major changes B) To increase length C) To hide losses D) To calculate EPS
A) Acquisitions B) Daily operations C) Divestitures D) Mergers
A) P/E Ratio Method B) Outstanding Shares Method C) Net Income Method D) Net Worth Method
A) Net income × stock price B) Net income × 5 C) Net income ÷ EPS D) Net income × 10
A) Assets − liabilities B) EPS × P/E ratio C) Net income × 5 D) Number of shares × stock price
A) Predicts stock prices B) Eliminates risk C) Tracks performance and identifies strengths and weaknesses D) Replaces financial statements
A) Buys another firm B) Issues bonds C) Declares dividends D) Sells stock to the public for the first time |