01/04/15

Question 1

VALUE OF EQUITY/VALUE OF DEBT+VALUE OF EQUITY=
PROPORTION OF EQUITY IN FINANCIAL STRUCTURE.

DIVIDING RETAINED EARNINGS BY THIS PERCENTAGE GIVES THE?????

Answer 1

MAXIMUM LEVEL OF INVESTMENT THAT CAN BE MADE WITHOUT INCREASING DEBT OR EQUITY.

Question 2

THE COST OF MOVING, HANDLING, AND STORING ANY

INDIVIDUAL PRODUCT…THIS NON VALUE ADDED COST ASSOCIATED WITH ???? ??? ???? INVENTORY IS THE MOST SIGNIFICANT

Answer 2

WORK IN PROCESS

Question 3

TO ADJUST A HISTORICAL COST FOR INFLATION TAKE THE HISTORICAL COST AMOUNT AND MULTIPLY IT BY THE CPI CURRENT/CPI LAST.

Answer 3

HOW TO GET HISTORICAL COST USING CPI

Question 4

TO CALCULATED THE ????? RETURN FROM INVESTMENT TAKE THE PV OF CASH FLOWS X PROBABILITY OF OUTCOME AND ADD THEM ALL TOGETHER.

Answer 4

EXPECTED RETURN

Question 5

????? ELEMENTS NEEDED WOULD BE THE MOST CRITICAL REPORT TO INCLUDE IN A SYSTEMS SPECIFICATION REPORT FOR A FINANCIAL REPORT

Answer 5

DATA

Question 6

A CHANGE IN US TASTES IN FAVOR OF JAPANESE GOODS WOULD CAUSE PRESSURE FOR THE JAPANSE YEN TO ????? IN COMPARISON TO THE US DOLLAR….THE INCREASE IN DEMAND FOR THE GOODS IN THE US WOULD INCREASE DEMAND FOR YEN

Answer 6

APPRECIATE

Question 7

Y=A+BX (WHATS THE INDEPENDENT VARIABLE?)

Answer 7

X—IT CAN TAKE ON ANY VALUE AND DOES NOT DEPEND ON ANOTHER

Question 8

?????? IS EQUAL TO THE NET OPERATING PROFIT AFTER TAXES MINUS THE COST OF CAPITAL INVESTED

Answer 8

ECONOMIC VALUE ADDED

Question 9

ASSISTS WITH NON ROUTINE DECISIONS, SERVES STRATEGIC LEVELS OF THE ORG., ANSWERS QUESTIONS ABOUT COMPANY COMPETITORS, AND IDENTIFIES ACQUISITIONS THAT WOULD PROTECT THE COMPANY FROM CYCLICAL BUSINESS SWINGS

Answer 9

EXECUTIVE SUPPORT SYSTEM

Question 10

THE ?????? PREVENTS A PROGRAMMER FROM ALTERING A PROGRAM AND USING THAT PROGRAM IN A PRODUCTION RUN

Answer 10

LIBRARIAN (SECURES PROGRAMS AND DATA)

Question 11

NET INCOME / INVESTMENT =

Answer 11

ROI RETURN ON INVESTMENT

Question 12

WACC-

TAKE THE PERCENTAGE OF THE DEBT OR EQUITY IN RELATION TO THE TOTAL OF THE TWO AND MULTIPLY THIS PERCENTAGE TIMES THE INTEREST RATE GET THE ????FACTOR

Answer 12

WEIGHTING FACTOR

ADD THE WEIGHTING FACTORS UP TO GET THE WACC

Question 13

?????? RATE SWAP—–

THIS TRANSACTION IS USED TO OFFSET INTEREST RATE RISK. IT DOES THIS BY ENTERING INTO AN AGREEMENT WITH A BANK TO SWAP ONE INTEREST RATE FOR ANOTHER IF NEED BE.

Answer 13

INTEREST RATE SWAP

Question 14

THE USE OF MESSAGE ENCRYPTION SOFTWARE INCREASES ??????

Answer 14

OVERHEAD—

THE TIME TO ENCRYPT AND DECRYPT THE DATA SLOWS DOWN PRODUCTION.

Question 15

BUSINESS, OPERATIONS, SUPPLY, PRODUCT, AND POLITICAL RISK ALL FALL UNDER ????? RISK ERM

Answer 15

FINANCIAL

Question 16

A CURRENT RATIO OF 2.5 TO 1 MEANS THAT THE COMPANY HAS 250,000 IN ASSETS TO EVERY 100,000 IN ?????

Answer 16

LIABILITIES

Question 17

EXAMPLE NET INVESTMENT CALCULATION:

The new press costs $225,000 and will require $20,000 to install ($225,000 + $20,000 = $245,000).

In addition, the investment in the new press will require an increase in working capital of $6,000.

Increase in inventory: $ 4,000
Increase in accounts receivable: 16,000
Increase in accounts payable: (14,000)
———
Increase in working capital: $ 6,000
=========
From a cash flow perspective, an increase in inventory and accounts receivable is a reduction of cash. An increase in accounts payable is an increase in cash.

Therefore, the total cash outflow is $251,000 ($245,000 + $6,000).

Cash inflows:

The old press has a book value of $15,000. The loss on the sale is $10,000 ($15,000 book value - $5,000 cash received) and the tax savings from the loss is $4,000 (40% × $10,000). Thus, total cash inflows are $9,000 ($5,000 + $4,000).

Net investment:

Cash outflows - Cash inflows = $251,000 - $9,000 = $242,000

Answer 17

EXAMPLE NET INVESTMENT CALCULATION:

Question 18

THE 8 COMPONENTS OF ???? ERM FRAMEWORK ARE…
INTERNAL ENVIRONMENT, OBJECTIVE SETTING, EVENT IDENTIFICATION, RISK ASSESSMENT, RISK RESPONSE, CONTROL ACTIVITIES, INFORMATION AND COMMUNICATION, AND MONITORING

Answer 18

THE COSO

Question 19

COMPONENT OF INTERNAL CONTOL THAT ENSURES THAT MANAGEMENTS DIRECTIVES ARE CARRIED OUT….

Answer 19

CONTROL ACTIVITIES

Question 20

A DOWNWARD SLOPING YIELD CURVE THAT DEPICTS THE TERM STRUCTURE OF INTEREST RATES IMPLIES THAT PREVAILING ST RATES ARE HIGHER THAN PREVAILING?????

Answer 20

LT RATES