Busıness Fınance I

Yanıt Açıklaması: The margin of safety is the cushion amount that the actual or budgeted sales can drop by, still enabling the business to break even. It is the difference between actual/budgeted sales and the break-even sales. The margin of safety can be stated in units, dollars or in a ratio form.

Yanıt Açıklaması: Degree of Financial Leverage(DFL) = %? EPS / %? EBIT ; Hence given DFL is 2.5 , a 1% increase in EBIT will lead to a 2.5 % increase in EPS.

Yanıt Açıklaması: Main stakeholders are owners, employees, suppliers, lenders, customers, and the community.

Yanıt Açıklaması: Business financial management covers subjects related to decision-makings of company managers, trying to maximise shareholder wealth at given external circumstances at local, regional, international, and global levels of geographical dispersion. Therefore the correct answer is A. Other options are not related.

Yanıt Açıklaması: Intrinsic value is the estimated value, which is calculated by present value of future cash flows that company expects to generate.

Yanıt Açıklaması: dept to equity ratio=total liabilities/owners equity so for 2015; dept to equity=20400/48000=0.425=0.43

Yanıt Açıklaması: Corporate governance can be defined as the system of rules, practices and processes by which a company is managed.

Yanıt Açıklaması: EAR=(1+(0.12/4)^4)-1=12.55%

Yanıt Açıklaması: Quick ratio provides a severe test of immediate liquidity, revealing a company’s ability to meet sudden demands upon liquid current assets. Care must be taken when determining Quick Assets in terms of the assets to be included in the numerator of the equation.

Yanıt Açıklaması: Institutional elements, economic system, business system, financial system are the elements that an environment of a company contains. Other options are not related, therefore D is the correct answer.

Yanıt Açıklaması: The contribution margin shows the amount of income generated to cover up the total fixed costs and earn the targeted profit. The correct answer is B.

Yanıt Açıklaması: Solvency ratios are Long-term Debt Ratio,Debt to Equity, Debt Ratio, Book Value Per Share of Common Stock and Times Financing Expenses Earned. Therefore, the correct answer is C.

Yanıt Açıklaması: Turkish Commercial Code allows the establishment of a singleshareholder Limited Liability Company. The number of shareholders ranges between one (single-shareholder) and 50.

Yanıt Açıklaması: The degree of total leverage shows the combined effects of operating leverage and financial leverage on a company’s earnings. Hence, DTL measures the sensitivity in the EPS relative to a percentage variation in the sales revenue. Operating leverage is an indicator of business risk and financial leverage is a measure of financial risk. Therefore, total leverage indicates the combined effects of the cost structure and capital structure of a firm on its net profit. Degree of total leverage is the product of DOL and DFL.

Yanıt Açıklaması: The general purpose of financial statements is to provide information about the financial position, financial performance, and cash flows of an entity that is useful to a wide range of users in making economic decisions. A complete set of financial statements includes; a statement of financial position (balance sheet), a statement of profit or loss and other comprehensive income, a statement of changes in equity, a statement of cash flows, and notes to financial statements.The correct option is B.

Yanıt Açıklaması: The current ratio is computed as follows: Current Ratio = Current Assets / Current Liabilities

Yanıt Açıklaması: Asset turnover ratio measures how effectively the company makes use of its assets. Thus,if a firm has a higher asset turnover ratio than the industry average, this implies the firm is utilizing assets more efficiently than other firms in the industry.

Yanıt Açıklaması: Total assets are TL 700,000 (TL 250,000+TL 450,000) as we add current assests and fixed assets. Since total assets equal total liabilites and owners' equity, we subtract total lianbilities from total assets to calculate owners' equity, which is TL 200,000 (TL 700,000-TL 500,000)

Yanıt Açıklaması: Financial intermediary is an institution in a financial system that acts as a middleman between borrowers and lenders. A is the correct answer. Other options are not related to the definition.

Yanıt Açıklaması: The greater the perceived risk, the greaster the return required by the investors, since people need to be compensated for the additional risks they undertake.