stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Financial Literacy Year 5 Flashcards | StudBud
Explore
/
Financial Literacy Year 5
Financial Literacy Year 5
10 terms
·
StudBud Administration
Imported from external platform
Flashcards
10 cards
F
Practice quiz
P
Host live
L
Questions
10
Answers
1
Discounted Cash Flow uses WACC as the discount rate.
False
True
2
What method to use: How much should I pay for an investment given its expected future cash flows + time value of money
Net Present Value (NPV)
Discounted cash flow (DCF)
Internal Rate of Return (IRR)
Payback Period
3
What method to use: Is an investment worthwhile
after taking into consideration the time value of money?
Internal Rate of Return (IRR)
Payback Period
Discounted Cash Flow (DCF)
Net Present Value (NPV)
4
An income statement is:
linked to the cash flow statement through investing activities
based on results as at a point in time
based on cash accounting
based on accrual accounting
5
A company's WACC is:
A firm's average cost of capital weighted for different sources of capital
A company's ratio of debt to equity
Weight after combined cost
A firm's weights average cost of debt
6
Which activity impacts your Income Statement?
Selling 50 cups of lemonade but receiving no cash, the sale was invoiced
Receiving payment from customers you invoiced
Paying your advertising agency
Paying interest to your lender
7
If revenue is accrued on the Income Statement, record the associated cost of sales at the same time and reduce inventory
True
False
8
What does EBITDA stand for?
Earnings before interest, depreciation and amortization
The overall profitability of the company
Earnings before interest, taxes, depreciation and amatorization
The earnings divided by the revenue expressed as a percent
9
What method to use: What is the annualized rate of return an investment is expected to generate?
Discounted Cash Flow (DCF)
Internal Rate of Return (IRR)
Net Present Value (NPV)
Payback Period
10
EBITDA Multiple reflects a market-based valuation approach for determining a company's selling price
False
True
