Archives: Quiz

2. The nurse provides the client with the URL for a new website dedicated to self-management of a chronic respiratory disease. 3. The nurse advocates for the client who has decided to forego further dialysis. 4. Client information is entered […]

Sullivan, Effective Leadership and Management, 8/e Chapter 3 Question 1 Type: MCSA The nurse manager tells a newly hired nurse that the unit practices functional nursing. What should the new nurse expect? 1. One nurse has responsibility for all the […]

A health care organization is using the quality concepts of lean thinking and decentralization as part of their redesign efforts. Which initiatives would this organization undertake? Note: Credit will be given only if all correct choices and no incorrect choices […]

3. The nurse-to-client ratio is 4 to 1. 4. The primary nursing model is used for care. Correct Answer: 2 Rationale 1: Organizational climate is based on physical attributes and policy and procedure. Private rooms are an example of organizational […]

Sullivan, Effective Leadership and Management, 8/e Chapter 2 Question 1 Type: MCSA Using the classical organizational theory model, what would be the most appropriate method for the nurse to voice concern over unfair client workload assignments? 1. Circulate a petition […]

Question 23 Type: MCMA The administrators of a small hospital are revising its disaster plan. What should be the primary focus of this plan? Note: Credit will be given only if all correct choices and no incorrect choices are selected. […]

4. “Women still outnumber men in nursing.” Correct Answer: 2 Rationale 1: The average age of the registered nurse is 46 years, and while the number of RNs under age 30 is increasing, more RNs are retiring than are entering […]

Sullivan, Effective Leadership and Management, 8/e Chapter 1 Question 1 Type: MCSA A nurse manager is participating in the health care organization’s strategic planning committee. Which factor is the primary driving force and controlling factor in new initiatives this committee […]

53) Annika has purchased put options on 1000 shares of Amazon stock with a striking price of $170 per share. The option premium was $6.00 per share. a. Compute Annika’s profit or loss if the market value of Amazon’s stock […]

21) A call option: A) gives its owner the right to sell a given number of shares or some other asset at a specified price over a given period. B) purchaser makes money if the price of the underlying stock […]

7) Swenson Oil & Gas allows its customers to prepurchase heating oil in June for the coming winter. Customers who took advantage of the offer prepurchased 400,000 gallons of oil at $3.00 per gallon. Swenson hedged its position by contracting […]

Financial Management: Principles and Applications, 11e (Titman) Chapter 20 Corporate Risk Management 1) The major risks assumed by firms include: A) demand risk. B) foreign-exchange risk. C) operational risk. D) all of the above. Answer: D Diff: 1 Topic: 20.1 […]

Principles: Principle 3: Cash Flows Are the Source of Value 10) Exchange rate risk: A) exists when the contract is written in terms of the foreign currency. B) exists also in direct foreign investments and foreign portfolio investments. C) does […]

15) The nominal rate of interest in Russia is 9.5% and the inflation rate is 8%. The nominal rate of interest in Canada is 2.5% and the inflation rate is zero. We would expect: A) the ruble to strengthen against […]

36) The exchange rate that represents the number of units of a home currency that is required to purchase one unit of a foreign currency is referred to as a(n) ________ quote. A) forward B) direct C) market D) indirect […]

Financial Management: Principles and Applications, 11e (Titman) Chapter 19 International Business Finance 1) Trading in foreign exchange markets is dominated by: A) Russian rubles, Indian rupees and Indonesian rupeas. B) Spanish pesetas, German marks, French francs. C) Chinese renminbis, Indian […]

34) A major risk in using commercial paper for short-term financing is the inflexible repayment schedule. Topic: 18.4 Managing Current Liabilities Keywords: commercial paper Principles: Principle 3: Cash Flows Are the Source of Value 35) Prior to establishing trade credit, […]

1) A firm buys on terms of 3/10, net 30. What is the cost of trade credit under these terms? A) 55.7% B) 47.4% C) 31.5% D) 23.2% Answer: A Diff: 2 Topic: 18.4 Managing Current Liabilities Keywords: trade credit […]

2nd quarter $1.7 million, 3rd quarter $1.5 million and 4th quarter $2.2 million. The best estimate for North Pole’s permanent current assets is: A) $2.2 million. B) $1.675 million. C) $1.3 million. D) $0.9 million. Answer: C Diff: 2 Topic: […]

Financial Management: Principles and Applications, 11e (Titman) Chapter 18 Working Capital Management 1) An increase in ________ would increase net working capital. A) plant and equipment B) accounts payable C) accounts receivable D) both B and C Answer: C Diff: […]

1, 2004? A) $32,000 B) $4,300 C) $25,000 D) None of the above Answer: C Diff: 2 Topic: 17.3 Developing a Short-Term Financial Plan Keywords: cash budgets Principles: Principle 3: Cash Flows Are the Source of Value 20) The primary […]

61) Amalgamated Enterprises is planning to purchase some new equipment. With this new equipment, the company expects sales to increase from $8,000,000 to $10,000,000. A portion of the financing for the purchase of the equipment will come from a $1,000,000 […]

25) Assume all else remains the same. Which of the following statements is true? A) The lower a firm’s profit margin, the more discretionary financing a firm will require. B) The higher a firm‘s profit margin, the more discretionary financing […]

Financial Management: Principles and Applications, 11e (Titman) Chapter 17 Financial Forecasting and Planning 1) Types of plans that businesses typically use to guide their operations include: A) strategic plans. B) long-range financial plans. C) short-range financial plans. D) all of […]

7) A justification for stable dividends could be: A) satisfaction of guaranteed current income. B) satisfaction for stockholders’ informational needs. C) existence of legal listing. D) all of the above. Topic: 16.3 Cash Distribution Policies in Practice Keywords: stable dividend […]

27) Fred Handel owns 2000 shares of Haydn Inc. stock which is currently selling for $18 per share. If the company repurchases 10% of its outstanding shares at $18 per share and Fred chooses not to sell any shares back […]

41) Kelly owns 10,000 shares in McCormick Spices, which currently has 500,000 shares outstanding. The stock sells for $86 on the open market. McCormick’s management has decided on a 2-1 split. a. Will Kelly’s financial position alter after the split, […]

Financial Management: Principles and Applications, 11e (Titman) Chapter 16 Dividend Policy 1) In response to a temporary decline in earnings per share, most companies would: A) decrease their cash dividend. B) not decrease their cash dividend. C) suspend their cash […]

Use the following information to answer the following question(s). Your firm is trying to determine whether it should finance a project requiring $800,000 with new common stock or with debt. The firm is faced with the following financing alternatives: I: […]

8) List and briefly explain at least two important reasons why capital structures tend to differ between industries and even companies within the same industry. Topic: 15.3 Why Do Capital Structures Differ across Industries? Keywords: capital structure Principles: Principle 2: […]

13) Which of the following is a reasonable conclusion from the Tradeoff theory of capital structure? A) A high debt ratio will result in a maximum price of a firm’s common stock. B) A firm’s common stock price will not […]

Financial Management: Principles and Applications, 11e (Titman) Chapter 15 Capital Structure Policy 1) The firm’s optimal capital structure is the mix of financing sources that: A) minimizes the risk of financial distress. B) maximizes after-tax earnings. C) maximizes the total […]

1) Pilgrim’s WACC is 12%. It has one opportunity to invest in a high risk project with an expected rate of return of 25%. It has another opportunity to lease a building to a government agency. The expected rate of […]

49) Explain why the investor’s required return on debt is not equal to the corporation’s cost of debt, and explain why the investor’s required return on equity is not equal to the corporation’s cost of equity. Topic: 14.3 Estimating the […]

Principles: Principle 1: Money Has a Time Value Use the following information to answer the following question(s). The current market price of an existing debt issue is $1,125. The bonds have a $1,000 par value, pay interest annually at a […]

Financial Management: Principles and Applications, 11e (Titman) Chapter 14 The Cost of Capital 1) In order to maximize firm value, management should invest in new assets when cash flows from the assets are discounted at the firm’s ________ and result […]

32) Year 0 Year 0 Year 1 Year 2 Revenue $15,000 $15,000 Variable Cost ($5,000) ($5,000) Depreciation ($200) ($200) Fixed Cost ($350) ($350) Operating Income $9,450 $9,450 Taxes at 30% ($2,835) ($2,835) NOPAT $6,615 $6,615 Capital Investment ($5,753) Free Cash […]

12) In the 4th year of project M, expected revenues will be $4,750,000, variable costs will be $4,000,000, depreciation expense $180,000, and fixed cash costs $570,000. Which of the following is true? A) Accounting income equals $0.00 B) Free cash […]

21) What is the expected net operating profit after tax (NOPAT) if the most likely estimates are used? A) $493,500 B) $330,000 C) $300,000 D) $124,500 Topic: 13.2 Tools for Analyzing the Risk of Project Cash Flows Keywords: scenario analysis […]

Financial Management: Principles and Applications, 11e (Titman) Chapter 13 Risk Analysis and Project Evaluation 1) Which of the following is a reason why risk analysis is an important part of capital budgeting? A) The people who propose projects have no […]

2) In 2010, Sunny Electronics expects to sell 100,000 3-D television sets for an average price of 10%, while inflation will increase both the sales price and the cost per unit by 3%. In real dollars, expected gross profit for […]

35) SpaceTech is considering a new project with the following projections for Year 2. Year 2 Projections EBIT $400,000 Interest Expense $20,000 Depreciation Expense $40,000 Tax Rate 40% Net Working Capital Needs $200,000 If the projected net working capital needs […]

3) Incremental cash flows include all of the following EXCEPT: A) research and development costs . B) increased labor costs from the project. C) advertising costs . D) both B and C. Topic: 12.2 Forecasting Project Cash Flows Keywords: incremental […]

Financial Management: Principles and Applications, 11e (Titman) Chapter 12 Analyzing Project Cash Flows 1) Incremental cash flows from a project = A) Firm cash flows without the project plus or minus changes in net income. B) Firm cash flows with […]

Principles: Principle 1: Money Has a Time Value 38) What is the payback period for a $20,000 project that is expected to return $6,000 for the first two years and $3,000 for Years 3 through 5? A) 3 1/2 B) […]

17) Which of the following series of cash flows could have more than one IRR? (Negative cash flows are in parentheses.) A) $(XX,XXX), $X,XXX , $X,XXX, $X,XXX B) $(XX,XXX), $X,XXX , $X,XXX, $X,XXX, $(XX,XXX) C) $X,XXX, $X,XXX , $X,XXX, $X,XXX, […]

21) A machine has a cost of $5,375,000. It will produce cash inflows of $1,825,000 (Year 1); $1,775,000 (Year 2); $1,630,000 (Year 3); $1,585,000 (Year 4); and $1,650,000 (Year 5). At a discount rate of 16.25%, what is the NPV? […]

Financial Management: Principles and Applications, 11e (Titman) Chapter 11 Investment Decision Criteria 1) Which of the following are typical consequences of good capital budgeting decisions? A) The firm increases in value. B) The firm gains knowledge and experience that may […]

28) The cumulative dividend feature is necessary to protect the rights of preferred stockholders. Topic: 10.3 Preferred Stock Keywords: market required yield Principles: Principle 3: Cash Flows Are the Source of Value 29) Preferred stock cannot be retired. Answer: FALSE […]

6) World Wide Interlink Corp. has decided to undertake a large project. Consequently, there is a need for additional funds. The financial manager plans to issue preferred stock with an annual dividend of $5 per share. The stock will have […]