Week 5 FIN370 Exam Questions

Question: #1532

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. (2 points total)

1.   Profit maximization stresses the efficient use of timing and risks.
2.   Financial assets are tangible assets such as houses, equipment, and inventories.
3.   The sustainable rate of growth represents the rate at which a firm’s sales can grow if it wants to maintain its present financial ratios and does not want to resort to a sale of new equity shares.
4.   Business risk refers to the relative disperses in the firm’s expected earnings after interest and taxes.
5.   New capital-budgeting projects are always new products taken to market.
6. The stock of cash is a type of inventory.
7.   If an asset is sold above depreciated value, it may be used to offset gains and thus result in tax savings.???

Solution: #1514

Week 5 FIN370 Exam Questions

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. (2 points total) 1. Profit maximization stresses the efficient use of timing and risks. 2. Financial assets are ta...