Financial Planning and Analysis
Exam Questions
Course Introduction
Financial Planning and Analysis is a course designed to equip students with the analytical tools and strategic perspective necessary to drive organizational growth and profitability. The course covers the principles and practices of budgeting, forecasting, financial modeling, and the evaluation of financial performance. Students learn how to interpret financial statements, assess risk, and make informed recommendations to support effective business decision-making. Emphasis is placed on aligning financial planning with corporate strategy, utilizing data-driven insights, and communicating financial information to stakeholders. Through practical case studies and hands-on projects, students gain valuable experience in applying financial planning concepts within a dynamic business environment.
Recommended Textbook
Principles of Managerial Finance Brief 8th Edition by Chad J. Zutter
Available Study Resources on Quizplus 15 Chapters
2711 Verified Questions
2711 Flashcards
Source URL: https://quizplus.com/study-set/3425 Page 2
Chapter 1: The Role of Managerial Finance
Available Study Resources on Quizplus for this Chatper
111 Verified Questions
111 Flashcards
Source URL: https://quizplus.com/quiz/68037
Sample Questions
Q1) Institutional investors are professional investors who work on behalf of individuals,business,and government.
A)True
B)False
Answer: True
Q2) Which of the following is TRUE of accrual basis accounting?
A)Expenses are recognized either when they are incurred or cash is paid.
B)Revenue is recognized when a customer pays cash.
C)Expenses are recognized when they are incurred.
D)Revenue is recognized when a customer pays cash or shows interest to purchase the product or service.
Answer: C
Q3) The primary goal of a financial manager is ________.
A)minimizing risk
B)maximizing profit
C)maximizing wealth
D)minimizing return
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: The Financial Market Environment
Available Study Resources on Quizplus for this Chatper
104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/68030
Sample Questions
Q1) The Securities Act of 1933 focuses on regulating the sale of securities in the primary market,whereas the 1934 Act deals with the regulations governing the transactions in the secondary market.
A)True
B)False
Answer: True
Q2) Which ordering below best describe the level of responsibility for helping a firm conduct an IPO offering (ordering goes from most responsible to least responsible)?
A)originating investment bank > underwriting syndicate > selling group
B)originating investment bank > selling group > underwriting syndicate
C)underwriting syndicate > originating investment bank > selling group
D)selling group > underwriting syndicate > originating investment bank
Answer: A
Q3) Commercial banks advise firms on major transactions such as mergers or financial restructurings.
A)True
B)False Answer: False
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Financial Statements and Ratio Analysis
Available Study Resources on Quizplus for this Chatper
218 Verified Questions
218 Flashcards
Source URL: https://quizplus.com/quiz/68029
Sample Questions
Q1) In ratio analysis,the financial statements being used for comparison should be dated at the same point in time during the year.If not,the effect of seasonality may produce erroneous conclusions and decisions.
A)True
B)False
Answer: True
Q2) A firm with a total asset turnover lower than industry standard may have ________.
A)excessive debt
B)excessive interest costs
C)insufficient sales
D)insufficient fixed assets
Answer: C
Q3) The ________ measures the activity,or liquidity,of a firm's stock of goods.
A)average collection period
B)inventory turnover ratio
C)average payment period
D)total asset turnover ratio
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Long- and Short-Term Financial Planning
Available Study Resources on Quizplus for this Chatper
189 Verified Questions
189 Flashcards
Source URL: https://quizplus.com/quiz/68028
Sample Questions
Q1) The excess cash balance is the amount available for investment by a firm if the desired minimum cash balance is less than the period's ending cash.
A)True
B)False
Q2) Net operating profit after taxes (NOPAT)represents a firm's earnings before interest and after taxes.
A)True B)False
Q3) In the month of August,a firm had total cash receipts of $10,000,total cash disbursements of $8,000,depreciation expense of $1,000,and a beginning cash balance of $500.At the end of August,the firm wants a minimum cash balance of $3,000.At the end of August,the firm ________.
A)required total financing of $500
B)had an excess cash balance of $5,500
C)had an excess cash balance of $500
D)required total financing of $2,500
Q4) Depreciation is considered to be an outflow of cash.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Time Value of Money
Available Study Resources on Quizplus for this Chatper
185 Verified Questions
185 Flashcards
Source URL: https://quizplus.com/quiz/68027
Sample Questions
Q1) Entertainer's Aid plans five annual colossal concerts,each in a different nation's capital.The concerts will raise funds for an endowment which would provide the World Wide Hunger Fund with $3,000,000 per year into perpetuity.The endowment will be given at the end of the fifth year.The rate of interest is expected to be 9 percent in all future periods.How much must Entertainer's Aid deposit each year to accumulate to the required amount?
A)$5,569,749
B)$3,333,333
C)$1,830,275
D)$8,568,980
Q2) An annuity with an infinite life is called a(n)________.
A)perpetuity
B)primia
C)option
D)deep discount
Q3) Calculate the present value of $800 received at the beginning of year 1,$400 received at the beginning of year 2,and $700 received at the beginning of year 3,assuming an opportunity cost of 9 percent.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Interest Rates and Bond Valuation
Available Study Resources on Quizplus for this Chatper
214 Verified Questions
214 Flashcards
Source URL: https://quizplus.com/quiz/68026
Sample Questions
Q1) A sinking-fund requirement requires a corporate to make semiannual or annual payments that are used to retire bonds by purchasing them in the marketplace.
A)True
B)False
Q2) The conversion feature of a bond is a feature that is included in nearly all corporate bond issues that gives the issuer the opportunity to repurchase bonds at a stated price prior to maturity.
A)True
B)False
Q3) A Eurobond bond is a bond denominated in Euros.
A)True
B)False
Q4) The purpose of the restrictive debt covenant that prohibits the sale of accounts receivable is to ________.
A)assure the lender that additional borrowing is constrained
B)limit the amount of fixed-payment obligations
C)prevent the firm from selling current assets to raise cash to pay current obligations
D)limit the payment of annual cash dividends
To view all questions and flashcards with answers, click on the resource link above.
8
Chapter 7: Stock Valuation
Available Study Resources on Quizplus for this Chatper
172 Verified Questions
172 Flashcards
Source URL: https://quizplus.com/quiz/68025
Sample Questions
Q1) A certain preferred stock will pay a dividend of $1.20 per share till perpetuity.If the required return is 10 percent,the value of the preferred stock is ________.
A)$120
B)$10
C)$12
D)$100
Q2) If a firm has class A and class B common stock outstanding,it usually means that ________.
A)each class receives a different dividend
B)the par value of each class is different
C)the dividend paid to one of the classes is tax deductible by the corporation
D)the classes have different voting rights
Q3) The ________ is utilized to value preferred stock.
A)capital asset pricing model
B)arbitrage pricing model
C)zero-growth model
D)Black-Scholes model
Q4) Xiao Xin owns stock in a company which has paid the annual dividends shown in Table 7.1.Calculate the growth rate of these dividends.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Risk and Return
Available Study Resources on Quizplus for this Chatper
214 Verified Questions
214 Flashcards
Source URL: https://quizplus.com/quiz/68024
Sample Questions
Q1) A common approach of estimating the variability of returns involving the forecast of pessimistic,most likely,and optimistic returns associated with an asset is called
A)marginal analysis
B)scenario analysis
C)break-even analysis
D)DuPont analysis
Q2) Two assets whose returns move in the opposite directions and have a correlation coefficient of -1 are either risk-free assets or low-risk assets.
A)True
B)False
Q3) Unsystematic risk is the relevant portion of an asset's risk attributable to market factors that affect all firms.
A)True
B)False
Q4) Assuming a risk-free rate of 8 percent and a market return of 12 percent,would a wise investor acquire a security with a beta of 1.5 if its expected return were 14 percent?
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: The Cost of Capital
Available Study Resources on Quizplus for this Chatper
130 Verified Questions
130 Flashcards
Source URL: https://quizplus.com/quiz/68023
Sample Questions
Q1) If a firm's stock price increases and everything else remains constant,the proportion of debt in the firm's capital structure will fall.
A)True
B)False
Q2) The ________ is a weighted average of the cost of funds which reflects the interrelationship of financing decisions.
A)internal rate of return
B)sunk cost
C)cost of capital
D)risk-free rate
Q3) The weighted average cost of capital up to the point when retained earnings are exhausted is ________.(See Table 9.1)
A)7.5 percent
B)8.65 percent
C)10.4 percent
D)11.9 percent
Q4) Most firms finance their activities with a blend of debt and equity.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Capital Budgeting Techniques
Available Study Resources on Quizplus for this Chatper
148 Verified Questions
148 Flashcards
Source URL: https://quizplus.com/quiz/68036
Sample Questions
Q1) A firm can accept a project with a net present value of zero because ________.
A)the project would maintain the wealth of the firm's owners
B)the project would enhance the wealth of the firm's owners
C)the project would maintain the earnings of the firm
D)the project would enhance the earnings of the firm
Q2) The first step in the capital budgeting process is ________.
A)review and analysis
B)implementation
C)decision making
D)proposal generation
Q3) The cash flow pattern depicted is associated with a capital investment and may be characterized as ________.(See Table 10.1)
A)an annuity and a conventional cash flow
B)a mixed stream and a nonconventional cash flow
C)an annuity and a nonconventional cash flow
D)a mixed stream and a conventional cash flow
Q4) A project's net present value profile is a graph that plots a project's NPV for various discount rates.
A)True
B)False
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Capital Budgeting Cash Flows and Risk
Refinements
Available Study Resources on Quizplus for this Chatper
184 Verified Questions
184 Flashcards
Source URL: https://quizplus.com/quiz/68035
Sample Questions
Q1) Projects with a small chance of being acceptable and a broad range of possible cash flows are riskier than projects having a high chance of being acceptable and a narrow range of possible cash flows.
A)True
B)False
Q2) Behavioral approaches ________.
A)are used to explicitly recognize project risk
B)are used to get a feel for project risk
C)are not used by rational financial managers
D)are used to quantify the risk
Q3) A corporation is selling an existing asset for $21,000.The asset,when purchased,cost $10,000,was being depreciated under MACRS using a five-year recovery period,and has been depreciated for four full years.If the assumed tax rate is 40 percent on ordinary income and capital gains,the tax effect of this transaction is ________.
A)$0 tax liability
B)$7,560 tax liability
C)$4,400 tax liability
D)$7,720 tax liability
Q4) Which project do you recommend? (See Table 11.9)
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Leverage and Capital Structure
Available Study Resources on Quizplus for this Chatper
213 Verified Questions
213 Flashcards
Source URL: https://quizplus.com/quiz/68034
Sample Questions
Q1) Total leverage measures the effect of fixed costs on the relationship between
A)sales and EBIT
B)sales and EPS
C)EBIT and EPS
D)EBIT and dividend
Q2) ________ leverage measures the effect of fixed ________ costs on the relationship between EBIT and EPS.
A)Operating; operating
B)Financial; financial
C)Operating; financial
D)Financial; operating
Q3) A firm has fixed operating costs of $150,000,total sales of $1,500,000,and total variable costs of $1,275,000.The firm's operating breakeven point in dollars is ________.
A)$150,000
B)$176,471
C)$1,000,000
D)$1,425,000
To view all questions and flashcards with answers, click on the resource link above.
14
Chapter 13: Payout Policy
Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/68033
Sample Questions
Q1) A stock split commonly increases the stock's per share par value.
A)True
B)False
Q2) Which of the following is TRUE of a dividend payout?
A)When a firm announces that it will increase its dividend,the share price usually decreases on that news.
B)Dividend payments send a positive signal to investors in the marketplace that management believes that the stock is overvalued.
C)When a stock begins to trade ex dividend the share price will fall.
D)When a stock begins to trade ex dividend there is no impact on the share price if the market.is efficient
Q3) At the quarterly meeting of Tangshan Mining Corporation,held on September 10th,the directors declared a $1.00 per share dividend for the firm's 100,000 shares of common stock outstanding.The net effect of declaring and paying this dividend would be to ________.
A)decrease total assets by $100,000 and increase stockholders equity by $100,000
B)decrease total assets by $100,000 and decrease stockholders equity by $100,000
C)increase total assets by $100,000 and increase stockholders equity by $100,000
D)increase total assets by $100,000 and decrease stockholders equity by $100,000
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 14: Working Capital and Current Assets Management
Available Study Resources on Quizplus for this Chatper
325 Verified Questions
325 Flashcards
Source URL: https://quizplus.com/quiz/68032
Sample Questions
Q1) Commercial paper is a short-term loan issued by commercial banks that have variable yields based on size,maturity,and prevailing money market conditions.
A)True
B)False
Q2) The difference between the number of days resources are tied up in the operating cycle and the number of days a firm can use spontaneous financing before payment is made is the ________.
A)cash conversion cycle
B)average payment period
C)operating cycle
D)average age of inventory
Q3) A computerized inventory system that simulates needed materials requirements for the finished product,and then compares production needs to available inventory balances to determine when orders should be placed is the ________.
A)basic economic order quantity system
B)materials requirement planning system
C)just-in-time system
D)red-line method
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Current Liabilities Management
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/68031
Sample Questions
Q1) Compared to a line of credit,a revolving credit agreement will be ________ for a firm.
A)a lower cost,higher risk method of short-term borrowing
B)a lower cost,lower risk method of short-term borrowing
C)a higher cost,higher risk method of short-term borrowing
D)a higher cost,lower risk method of short-term borrowing
Q2) Short-term,self-liquidating loans are intended to ________.
A)provide one-time loan to the borrower who needs funds for a specific purpose
B)cover seasonal peaks in financing caused by inventory and receivable buildups
C)provide maximum amount to the firm that it can owe to the bank
D)recapitalize the firm
Q3) A large portion of the commercial paper is issued by ________.
A)commercial finance companies
B)government agencies
C)venture capitalists
D)small manufacturing firms
Q4) The security agreement is an agreement between the borrower and the lender that specifies the collateral held against a secured loan.
A)True
B)False
Page 17
To view all questions and flashcards with answers, click on the resource link above.