Financial Management Course Portfolio

Section: AC_FinMgt (2122C BSA 19-2-B)

ID Number: 45223
Last Name: Gerance
First Name: Jericho
Examination: Preliminary Examination

Chapter Question Type Question and Answer Solution (if Applicable)

1 MULTIPLE CHOICE QUESTIONS C. Maximizing shareholder's wealth.

B. Consistent with the objectives of the firm, an

1 MULTIPLE CHOICE QUESTIONS appropriate trade-off between risk and return
should be determined.

1 MULTIPLE CHOICE QUESTIONS B. Stable short term interest rates.

1 MULTIPLE CHOICE QUESTIONS C. Commodity trading

1 MULTIPLE CHOICE QUESTIONS D. All of the given choice

1 MULTIPLE CHOICE QUESTIONS C. Assigning the market price of the company's

stock.

B. The treasurer would be responsible for

activities such as managing cash balances,
1 MULTIPLE CHOICE QUESTIONS granting credit to customer and managing the
process of issuing new securities.

2 MULTIPLE CHOICE QUESTIONS B. Social responsibility and profit maximization

is synonymous.

2 MULTIPLE CHOICE QUESTIONS C. The duty to embrace service to the public

interest.
2 MULTIPLE CHOICE QUESTIONS D. In a competitive market, such behavior
incurs cost that place the company at a
disadvantage.

2 MULTIPLE CHOICE QUESTIONS B. As finance emerged as a new field, much

emphasis was placed on mergers and
acquisitions.

2 MULTIPLE CHOICE QUESTIONS D. For as long as satisfactory level of profit is

earned, he financial manager need not be
concerned with unethical behavior.

2 MULTIPLE CHOICE QUESTIONS A. Performance of professional duties in

accordance with applicable laws.

3 MULTIPLE CHOICE QUESTIONS C. Assigning the market price of the company's

stock.

3 MULTIPLE CHOICE QUESTIONS B. The treasurer would be responsible for

activities such as managing cash balances,
granting credit to customer and managing the
process of issuing new securities.

3 MULTIPLE CHOICE QUESTIONS C. Present the matter to the next higher

managerial level.

3 MULTIPLE CHOICE QUESTIONS D. All of the answers are correct.

3 MULTIPLE CHOICE QUESTIONS A. Performance of professional duties in

accordance with applicable laws.

3 MULTIPLE CHOICE QUESTIONS A. The immediate superior, who reports to the

chief executive officer, knows about situation
but refuses to correct it.

4 MULTIPLE CHOICE QUESTIONS A. That there is unlimited liability to the owner.

4 MULTIPLE CHOICE QUESTIONS A. Avoids the double taxation of earnings and
dividends found in the corporate form of
organization.

4 MULTIPLE CHOICE QUESTIONS D. All of the above.

4 EXERCISES H. Par Value

4 EXERCISES F. Board of Directors

4 EXERCISES D. Shareholders

4 EXERCISES I. Additional paid-in capital

4 EXERCISES B. Charter

4 EXERCISES G. Corporate Officers

4 EXERCISES A. Incorporators

4 EXERCISES E. Stock Certificate

4 EXERCISES C. Bylaws

4 EXERCISES QUESTION #1: What was the average selling Ordinary Share Capital (P.60 par value) 402,000,000.00
price of the stock that had been issued as of
December 31, 20X1?
Add: Additional Paid-in Capital 4,342,000.00
Total Selling Price 406,342,000.00
Divide: 669,847,961.00
Selling Price Per Share 0.60661825318

4 EXERCISES QUESTION #2: The par value of the Total Authorized Shares 900,000,000.00
outstanding shares of ordinary shares as of
December 31, 20X2 is shown as P403 million.
This is actually rounded amount. What is the
exact par value of the coomon stock
outstanding as of that date?
 Less: Shares Issued at December 31, 20X2 671,242,137.00
Number of Outstanding Ordinary Shares 228,757,863.00
Multiply: PAR Value per share 0.6
Total Par Value 137,254,717.80

4 EXERCISES QUESTION #3: How many shares of Common Total shares issued at December 31, 20x2 671,242,137.00
Stock were issued during 20X2?
Less: Total Shares issued at December 31, 20x1 669,847,961.00
Number of shares issued during 20x2 1,394,176.00

4 EXERCISES QUESTION #4: How many shares would Total Authorized Shares 900,000,000.00
Excelsior be allowed to issue during 20x2?
Less: Shares issued at December 31, 20x1 669,847,961.00
230,152,039.00

4 EXERCISES QUESTION #1: How many additional shares Authorized Shares 50,000.00
can Baby Covers, Inc., issue during 20x8?
Less: Helen's Shares 5,000.00
Additional Shares for Issuance 45,000.00

4 EXERCISES QUESTION #2: If 20,000 additional shares Ordinary Shares ( 5,000 + 20,000) 25,000.00
were sold for P35 per share, what would the
balance sheet show for ordinary shares and
additionals paid-in capital - ordinary shares?
Multiply: Par Value 1.00
Total Ordinary Shares 25,000.00

Additiona Shares Sold 20,000.00

Multiply: (Selling price - Par Value) 34.00
Additional Paid-in Capital 680,000.00
4 EXERCISES QUESTION #3: If Helen wanted to raise money
for expansion of the company, what would be
the advantage to issuing preferred stock
instead of ordinary shares?
ANSWER : The advantage to issuing preferred
stock instead of ordinary shares is that most of
the investors are attracted to it because it offer
more consistent dividends than of common
shares and higher payments than bonds.