FIN 3104 Review Questions and Answers 2022 with complete solution

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FIN 3104 Review Questions and Answers 2022 with complete solution T/F: The purpose of financial markets is to bring borrowers and savers together. -Answer- True All of the following operate as f... inancial intermediaries EXCEPT -Answer- the US Treasury All of the following are true about insurance companies EXCEPT -Answer- They may only invest their reserves in interest paying bank accounts under Federal Law All of the following are classified as non-bank financial intermediaries except -Answer- stock brokerages T/F: the goal of profit maximization is equivalent to the goal of maximization of share value -Answer- False Managers of corporations need to act in an ethical manner because -Answer- a business must be trusted by investors, customers and the public if it is to succeed On the income statement, sales revenue, minus COGS and operating expenses, equals: -Answer- Net operating income (EBIT) Which of the following streams of income is not affected by how a firm is financed (whether its a debt or equity)? -Answer- Operating Income Which of the following is NOT included in computing EBT? -Answer- Dividends Your firm has the following income statement items: sales of $50,250,000; income tax of $1,744,000; operating expenses of $10,115,000; COGS of $35,025,000; and interest expense of $750,000. What is the firm's EBIT? -Answer- $5,110,000 Sales- Operating Expenses- COGS Your firm has the following income statement items: sales of $52,000,000; income tax of $1,880,000; operating expenses of $9,000,000; COGS of $36,000,000; and interest expense of $800,000. Compute the firm's gross profit margin. -Answer- 30.8% (Sales-COGS)/(Sales) Which of the following represents operating income? -Answer- Earnings before interest and taxes [Show More]

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