10)ff a company is all equity Binanced, there would be no meed so make adustomen
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10)ff a company is all equity Binanced, there would be no meed so make adustoment Funds Needed" its fimancial planning sage truePuds b) false 11)A company's shares are traded at 516 per share yust betfore the announced dividends are paid. A dividend payment of $4 per share is made. What should be the immediate price (everything else the same)7 a) $20 because owners of the share will now have the share and the dividend b) $12 because after the payment, share price will no more carry the dividend money c) $i6 because the dividends are announced and the price should reflect that information already We cannot know d) 12)The best capital structure is the one in which a company is all equity financed and has no debts to outside sources such as the banks and bond investors a) true a) free cash flows to reject customers for long-distance travels. Why? b) false c) in some sectors, yes. But not in all the sectors. 13)If the lead times are reduced, there would be improvement in: b) EBITDA e) profits d) none 14)Taxi rates are flat (the same) in Istanbul. During traffic congestions taxi drivers tend a) they try to cut the lead time b) d) none of the above they try to increase the asset turnover ratio both a and b 15)A company's cost of debt is 1% monthly and its ROCE is 10% annually. If this company increases its debt ratio, its ROE would increase. a) True b) False )we cannot know 16)According to the Principle Agent Theory (PAT), a company always tries to maximize its profits. a) True b) False c) PAT does not make any generalization about profits 17)A perfectly competitive firm should spend money on advertisements because in a competitive environment, a company should try to differentiate itself from the competitors a) True b) False cwe cannot know 18) Minimum efficient scale point of production is attained at the b) lowest long run total cost point d) lowest long run average variable cost pt lowest long run average cost point c) lowest long run fixed cost point 19)EBIT figure comes from the a) Balance Sheet c) Cash Flows Statement b) Ledger d) Profit and Loss Statement accounts receivable amount is always the largest part of the balance sheet by natu a) automotive 20)In which of the following industries, debt to equity is the highest and the long term aerospace and defense banking c) management consultancy Have a nice, productive Summer! All the Best in Life!Explanation / Answer
The answer of Q16 is Option A.
The principle of the firm is found on Principal agent theory is
Short - run and Long - run profit maximization (First Principal)
Managerial utility maximization
Sales revenue maximization
The answer of Q17 is False.
This condition happened in monopolastic competition market not in perfectly competitive market.
The answer of Q18 is Option A.
In industrial organization, the minimum efficient scale (MES) or efficient scale of production is the lowest point where the plant (or firm) can produce such that its long run average costs are minimized.
The answer of Q19 is Option D (Profit and loss statement).
Earnings Before Interest & Taxes (EBIT) is an indicator of a company's profitability, calculated as revenue minus expenses, excluding tax and interest.EBIT is also referred to as Operating Earnings, Operating Profit, and Profit Before Interest and Taxes (PBIT). All this items are found in only P&L statement.
The answer of Q20 is Option D (Banking).
The financial sector overall has one of the highest D/E ratios and trade receivable. Banks borrow large amounts of money to loan out large amounts of money, and they typically operate with a high degree of financial leverage.
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