Reference no: EM131008107

1) The real purpose of financial reporting if to obtain

2) A corporation exists to benefit it's a) shareholders b) creditors c) shareholders and creditors d)employee e) company management f) all stakeholders g) none of the above ) all of the above

3) Company's earnings that are predictable with a smooth ascent (i.e. upward trajectory) have n higher multiple on their stock then a company with volatile earnings

4) Limits to continued earnings growth: Name three reasons why a company's earrings will not continue along the upward projection line and will eventually hit the inflection point where earnings will fall short of projections (each answer is considered one question)

a. -
b.

5) One of the commonly heard rationalizations to get rid of expectations that earnings is slowing is for a CEO to tell investor, that new Products will get earnings growth back on track. What is the risk to this strategy?

a. New products

6) If a company has $5million of earnings that will grow at 15% per year for the next S years, what would the company be worth today if
Company will trade at a pie of 20 in 2020 and the investors have a required rate of return of 10%

2015 2016 2017 2018 2019 2020
$5 M

7) When forecasting financial statements, after forecasting the income statement and then the balance sheet, what account is plugging the first time the balance sheet is out of balance?

8) When forecasting retained earnings, we have to computer the payout ratio to forecast dividends. What is Wal-Mart's payout ratio