Finance 2 "A little Mock-exam"

• Bedrijfseconomie
• HBO
• Studiejaar 1

Finance 2 

"A little Mock-exam"

Week 4 
FTA2
AC2A

[e-mail]

Give 3 out of the 5 principals of finance.

What describes term "Opportunity cost" the best?

1. The cost of giving up a choice
2. The cost of foregoing a choice
3. The cost of making a choice expressed in the cost of the alternative
4. The cost of making a choice expressed in terms of the chosen cost

Which financial statements do you need to determine the "Cash flow statement"?

What are retained earnings?

1. Cumulative profits retained in a business up to the date of the balance sheet
2. Profits in a given period
3. Earnings from operating activities
4. None of the given possibilities

Beginning retained earnings is 100
Net income for the year is 250
Dividends paid during the year is 70
Based on the information above, what are the ending retained earnings?

Do you deduct or add the "Depreciation expense" when filling in activity 1 of the cash flow statement?

A decrease in "Accounts receivable" is this a cash inflow or outflow?

Debt ratio = total debt / total assets. True or False?

When we value common stock we assume 'the growth factor' as well. What do we take this information in the model of stock valuation?