Strategy Implementation - Finance and Accounting

What is the purpose of determining the capital structure of a firm?

• To acquire needed capital to implement strategies

• To calculate the total assets of the firm

• To analyze the market share of the firm

• To determine the number of outstanding shares

What is E P S in finance and accounting?

• Earnings per share

• Earnings per situation

• Earnings per stock

• Earnings per strategy

What is the E B I T analysis used for?

• To analyze the market trends

• To project the balance sheet items

• To determine the appropriate capital structure needed

• To calculate the total liabilities of a firm

What is the purpose of performing projected financial statements?

• To examine the expected results of various actions and approaches

• To calculate the net income of the firm

• To analyze the financial ratios of the firm

• To determine the cash value of the firm

What is the purpose of corporate valuation?

• To examine the financial ratios of the firm

• To determine the worth of the firm

• To determine the cash value of the firm

• To calculate the projected net income

How are financial ratios examined?

• Based on the number of outstanding shares

• Based on how they compare to industry norms

• Based on the total assets of the firm

• Based on the projected net income

What does 'going public' with an I P O mean?

• Acquiring needed capital to implement strategies

• Issuing corporate bonds to raise capital

• Selling off a percentage of a company to others to raise capital

• Analyzing the financial ratios of the firm

What is the purpose of issuing corporate bonds?

• To analyze the market trends

• To obtain funds from investors to raise capital

• To calculate the total liabilities of a firm

• To determine the cash value of the firm

What is NOT the method used for in corporate valuation?

• Net worth

• EBIT

• Price-earning ration

• Outstanding shares

What is net income divided by number of shares outstanding?

• EPS

• EBIT

• EBT

• EAT