Busıness Fınance I

Yanıt Açıklaması: Contribution margin ratio of the company: (0.60*0.50)+(0.40*0.60) = 0.54 Overall break-even sales: $540,000/0.54 = $1,000,000 Break-even sales for gloves: $1,000,000*0.60 = $600,000

Yanıt Açıklaması: E(R A )=R F +B(E(R M )-R F ) will give the expected return of asset A (R A ) given the expected market return (E(R M )) and risk-free return (R F ). Thus: 12=6+(10-6)B 6=4B 1.5=B

Yanıt Açıklaması: Quick Ratio, Or Acid Test provides a severe test of immediate liquidity, revealing a company’s ability to meet sudden demands upon liquid current assets. quick ratio= current assets - inventories / short-term debt = $100.000 - $ 30.000 / $70.000 = 1

Yanıt Açıklaması: The Capital Market Line (CML) is the line that connects the risk-free asset with the market portfolio, where the line is just tangent to the efficient frontier on an expected return/ standard deviation graph.

Yanıt Açıklaması: times financial expenses earned= (net income before taxes and financial expense)/financial expenses Thus for 2014; times financial expenses earned=(18000+3600+2400)/2400=24000/2400=10

Yanıt Açıklaması: Expected return of a portfolio is simply the weighted average of the returns of securities.

Yanıt Açıklaması: Value= Div0 /r = 10/0.08 = $125

Yanıt Açıklaması: Even during periods where the company loses money, the companies may strategically decide to distribute dividends (as long as they have cash and sufficient retained earnings from the past) in order to satisfy the expectations of their shareholders and manage their position in the market.

Yanıt Açıklaması: The important factors in determining the amount of the working capital are: Length of period of manufacture Volume of business The proportion of the cost of raw materials to total cost Use of manual labor or mechanization Inventory level for raw materials of finished goods Turnover of working capital Terms of credit Short term financing options Seasonality of product demand Price level changes

Yanıt Açıklaması: Delinquency cost is a type of cost arises on account in relation with the delay in payment of receivables by the customer when they fall due and become doubtful debts.

Yanıt Açıklaması: The sales budget is the core of the overall budgeting efforts within an organization.

Yanıt Açıklaması: Semistrong form of the EMH states that all publicly available information is fully reflected in prices. If semistrong form efficiency holds, it should not be possible for investors using publicly available information to obtain consistent excess profits.

Yanıt Açıklaması: Correction of Deviations is the final step of financial control process. The steps stated in choices A to D are steps in financial control but the one in E is a part of cash budget preperation.

Yanıt Açıklaması: The gross working capital refers to the total current asset holdings of a company which can be converted into cash in less than a year time. The current assets include but are not limited to cash, cash in banks, marketable securities, receivables with a term less than 1 year which are mainly from clients, but also from others, inventory of raw materials, work-in-progress, finished goods, and prepayments received.

Yanıt Açıklaması: Factoring : Factoring entails the sale of accounts receivable to another firm, called the factor, who then collects payment from the customer. Through factoring, a business can shift the costs of collection and the risk of nonpayment to a third party. In a factoring arrangement, a company and the factor work out a credit limit and average collection period for each customer. As the company makes new sales to a customer, it provides an invoice to the factor. The customer pays the factor directly, and the factor then pays the company based on the agreed upon average collection period, less a slight discount that covers the factor’s collection costs and credit risk. The correct answer is B.

Yanıt Açıklaması: Transparency is not a dimension of working capital management.

Yanıt Açıklaması: A Bond is a security that contractually obligates the issuer to make fixed coupon payments at fixed intervals plus it also pays out the face value of the bond at maturity together with the last coupon payment. The correct answer is A.

Yanıt Açıklaması: The operational peculiarities of a company and the cost accounting structure determine the coverage and reliability of a financial planning system. The required data mainly includes Breakeven Analysis, Ratio Analysis and the Investment Projects Evaluations. Therefore, the correct option is B

Yanıt Açıklaması: Upward sloping yield curve implies that short-term interest rates will increase in the future.

Yanıt Açıklaması: Weak form of the EMH states that all information contained in past prices is fully reflected in prices. If weak-form efficiency holds, it should not be possible for investors using information from past price changes to obtain consistent excess profits. Chartists and other technical analysts are engaging in useless activities.