...FIN400 FINAL EXAM 1. You have a portfolio with a beta of 3.1. What will be the new portfolio beta if you keep 85 percent of your money in the old portfolio and 15 percent in a stock with a beta of 4.5? Ans – 3.31 2. PNB Industries has 20 million shares of common stock outstanding with a market price of $18.00 per share. The company also has outstanding preferred stock with a market value of 50 million, and $500,000 bonds outstanding, each with face value $1,000 and selling at 97% of par value. The cost of equity is 15%, the cost of preferred is 12% and the cost of debt is 8.50%. If PNB’s tax rate is 40%, what is the WACC? Ans – 9.47% 3. A 2 – year Treasury security currently earns 5.13%. Over the next 2 years, the real interest rate is expected to be 2.15% per year and the inflation premium is expected to be 1.75% per year. Calculate the maturity risk premium on the 2 year Treasury Security. Ans – 1.23% 4. Which of the following statements is correct? Ans – If the market is strong form efficient it must also be weak form efficient and semi strong efficient. 5. Netflicks, Inc. has a beta of 3.61. If the market return is expected to be 13.2 percent and the risk free rate is 7%, what is Netflick’s risk premium? Ans – 22.38% 6. Which of the following is incorrect? Ans – It is possible to combine assets that all move in the exact same fashion over time and gain the benefits of diversification. 7. Financial analysts forecast ABC Inc. growth for...
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...Pick the correct answer. If answers A through D are not correct or there is inadequate information, pick answer E. 1. Assume that the one-period spot interest rate is 3% and the two-period spot interest rate is 7%. What is the present value of $100 received one year from now? A. $87.34 B. $93.46 C. $96.12 D. $97.08 E. None of the above.$97.08 2. The present value of $100 received one year from now is $91.27 and the present value of $100 received two years from now is $88.76. What is the two-year spot interest-rate? A. 6.14% B. 6.18% C. 6.23% D. 6.31% E. None of the above.$84.17 3. Assume that the one-period spot interest rate is 3% and the two-period spot interest rate is 7%. You invest $100 one-year from today. What is the time 2 value? A. $110.87 B. $111.16 C. $118.81 D. $119.28 E. None of the above. 4. Assume that the three-year spot interest rate is 3% and the four-year spot interest rate is 9%. You are going to receive $120 four years from now. What is the time 3 value? A. $104.03 B. $104.97 C. $105.19 D. $105.44 E. None of the above.$104.03 $118.81 5. Assume that the one-period spot interest rate is 3% and the two-period spot interest...
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...FIN 534 Midterm Exam Purchase here http://homeworkonestop.com/FIN%20534/fin-534-midterm-exam Product Description FIN 534 Midterm Exam FIN 534 Midterm Exam Purchase here http://homeworkonestop.com/FIN%20534/fin-534-midterm-exam Product Description FIN 534 Midterm Exam FIN 534 Midterm Exam Purchase here http://homeworkonestop.com/FIN%20534/fin-534-midterm-exam Product Description FIN 534 Midterm Exam FIN 534 Midterm Exam Purchase here http://homeworkonestop.com/FIN%20534/fin-534-midterm-exam Product Description FIN 534 Midterm Exam FIN 534 Midterm Exam Purchase here http://homeworkonestop.com/FIN%20534/fin-534-midterm-exam Product Description FIN 534 Midterm Exam FIN 534 Midterm Exam Purchase here http://homeworkonestop.com/FIN%20534/fin-534-midterm-exam Product Description FIN 534 Midterm Exam FIN 534 Midterm Exam Purchase here http://homeworkonestop.com/FIN%20534/fin-534-midterm-exam Product Description FIN 534 Midterm Exam FIN 534 Midterm Exam Purchase here http://homeworkonestop.com/FIN%20534/fin-534-midterm-exam Product Description FIN 534 Midterm Exam FIN 534 Midterm Exam Purchase here http://homeworkonestop.com/FIN%20534/fin-534-midterm-exam Product Description FIN 534 Midterm Exam FIN 534 Midterm Exam Purchase here http://homeworkonestop.com/FIN%20534/fin-534-midterm-exam Product Description FIN 534 Midterm...
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...profitability • financial goals and equity • debt load and equity 3. Earned value management is a technique used to integrate projects • resources • scope, schedule, and resources • schedule, costs, and benefits • costs and profits 4. Bill’s Billiards has total assets of $8 million and a total asset turnover of 2.9 times. If the return on assets is 11%, what is Bill's profit margin? • 11% • 4.10% • 2.50% • 3.79% 5. What are the acceptance criteria for NPV? • If the NPV is less that $0, accept the project. • If the NPV is greater than $0, accept the project. • If the IRR is equal to 0%, reject the project. • If the NPV is equal to the discounted payback, accept the project. University of Phoenix Final Exam Study Guide FIN 575 Final Exam 6. The risk response plan answers what question? • What can be done if risk occurs? What is the backup plan? • What are project costs? • There is no need to plan for risk seldom occurs in a project. • How risk is to be managed 7. For the most recent year, Cal’s Cats had sales of $380,000, cost of goods sold of $93,000, depreciation expense of $47,000, and additions to retained earnings of $61,420. The firm had $52,000 in interest expense, and 34% tax rate. What were the times interest earned ratio? • 2.2 • 5.8 • 4.61 • 2.8 8. Bob’s Garages has sales of $41 million, total assets of $32 million, and total debt of $11 million. If the profit margin is 12% what is the return on equity (ROE)? • 14% • 12% • 51% ...
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...FIN 324 Final Exam To Buy This material Click below link http://www.uoptutors.com/FIN-324/FIN-324-Final-Exam-Guide FIN 324 Final Exam 1. The primary users of external financial reports are a. Those who direct day to day operations of a business enterprise b. Individuals who have an economic interest in the firm but who are not part of management c. Managers of an enterprise who plan, implement plans, and control costs d. None of the above 2. If a company has $15,000 in assets and $10,000 in equities, then liabilities are a. $25,000 b. $10,000 c. $5,000 d. $0 3. A revenue account is increased with a. Debits b. Credits c. Equities d. None of the above 4. Expense items that have been incurred during a period but not recorded by the end of the period are: a. Prepaid liabilities b. Prepaid expenses c. Deferred expenses d. Unrecorded liabilities 5. A purchase of $900 of supplies on account was journalized and posted as $900 debit to Supplies on Hand and a $900 credit to Accounts Receivable. The entry to correct this error is a. A $900 debit to accounts payable and a $900 credit to accounts receivable b. A $900 debit to supplies on hand and a $900 credit to accounts payable c. A $900 debit to accounts receivable and a $900 credit to accounts payable d. A $900 debit to accounts receivable and a $900 credit to supplies on hand 6. The retained earnings balance of Werner Company was...
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...Personal Finance: Turning Money into Wealth, 6e (Keown) Chapter 1 The Financial Planning Process 1.1 Facing Financial Challenges 1) Once a sound financial plan is in place, there should be no need to ever change it. Answer: FALSE Diff: 1 Topic: The Financial Planning Process AACSB: 3. Analytical skills 2) When comparing two different investment opportunities the investor should always choose the investment that minimizes the total amount of taxes paid. Answer: FALSE Diff: 2 Topic: Minimization of Taxes AACSB: 3. Analytical skills 3) Being financially secure involves balancing what you earn with A) your investments. B) what you spend. C) your retirement plans. D) your current level of debt. Answer: B Diff: 1 Topic: Financial Planning AACSB: 3. Analytical skills 4) In order for your financial plan to be realistic and attainable it needs to be based upon your A) budget. B) income level. C) number of tax deductions, exemption, exclusions, and credits. D) balance sheet. E) none of the above Answer: B Diff: 2 Topic: Financial Planning AACSB: 3. Analytical skills 5) Personal financial planning can help you to A) deal with unplanned health issues. B) minimize your tax payments to Uncle Sam. C) minimize your chances of personal bankruptcy. D) have enough money for a comfortable retirement. E) all of the above. Answer: E Diff: 2 Topic: Financial Planning AACSB: 3. Analytical skills 6) What are common factors found...
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...FIN 410 FINAL EXAM To purchase this visit here: http://www.activitymode.com/product/fin-410-final-exam/ Contact us at: SUPPORT@ACTIVITYMODE.COM FIN 410 FINAL EXAM 1. You have a portfolio with a beta of 3.1. What will be the new portfolio beta if you keep 85 percent of your money in the old portfolio and 15 percent in a stock with a beta of 4.5? 2. PNB Industries has 20 million shares of common stock outstanding with a market price of $18.00 per share. The company also has outstanding preferred stock with a market value of 50 million, and $500,000 bonds outstanding, each with face value $1,000 and selling at 97% of par value. The cost of equity is 15%, the cost of preferred is 12% and the cost of debt is 8.50%. If PNB’s tax rate is 40%, what is the WACC? 3. A 2 – year Treasury security currently earns 5.13%. Over the next 2 years, the real interest rate is expected to be 2.15% per year and the inflation premium is expected to be 1.75% per year. Calculate the maturity risk premium on the 2 year Treasury Security. 4. Which of the following statements is correct? 5. Netflicks, Inc. has a beta of 3.61. If the market return is expected to be 13.2 percent and the risk free rate is 7%, what is Netflick’s risk premium? 6. Which of the following is incorrect? 7. Financial analysts forecast ABC Inc. growth for the future to be 12%. ABC’s recent dividend was $1.60. What is the value of ABC stock when the required return is 15%? 8. Which of the following is not correct with...
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...In this file of FIN 415 Final Exam you will find the next information: Section 1 1. The art of risk management is to identify risks specific to an organization and to respond to them in an appropriate way. 2. All levels of an organization do not need to be included in the management of risk in order for it to be effective. 3. Qualitative Risk Analysis Techniques seek to compare the relative significance of risk facing a project in terms of the effect of their occurrence on the project outcome. 4. Quantitative techniques are used when the likehood of the investment or project achieving its objectives with time and budget is required. 5. A forward exchange contract requires delivery at a specified future date of one currency for a specific amount of another currency. 6. Risk tolerance is the degree that one is willing to risk losing some of his original investment in exchange for a chance to earn a higher return. Section 2 Our new start up company has created a new product that we think we do a fantastic job, but our job as risk managers is to calculate what could happen if things do not work out. What is the expected value of profits in the following scenario: Section 3 1. Which of the following best describes risk management? a. A formal process to identify risks. b. A formal process to assess, identify and manage risk. c. A formal process to cover up mis-management...
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...FIN 3716 Midterm Exam Click Link Below To Buy: http://hwaid.com/shop/fin-3716-midterm-exam/ Q 1 : Activities of a firm which require the spending of cash Q 2 : The sources and uses of cash over a stated period of time are reflected on the 3: Common-size income statement is an accounting statement that expresses all of a firm's expenses as a percentage of 4: Standardizes items on the income statement and balance sheet relative to their values as of a common point in time 5: Relationships determined from a firm's financial information and used for comparison purposes 6: Formula which breaks down the return on equity into three component parts 7: U.S. gov't coding system that classifies a firm by the nature of its business operations 8: Source of cash (Asset decreases, Liability increases) 9: Use of cash (Asset increases, Liability decreases) 10: Increase in accounts payable, acquisition of debt, decrease in inventory 11: Increase in long-term debt & dividends paid are _____ on the Statement of Cash Flows 12: Cost of Good Sold, Decrease in accounts payable, Interest paid are _____ on the Statement of Cash Flows 13 : According to the Statement of Cash Flows, a decrease in accounts receivable will ___ the cash flow from ___ activities According to the Statement of Cash Flows, an increase in interest expense will ___ the cash flow from ___ activities On a common-size balance sheet all accounts are expressed...
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...FIN-419/FIN-419-Final-Exam-Guide To Buy This material Click below link http://www.uoptutors.com/FIN-419/FIN-419-Final-Exam-Guide 1) The part of finance concerned with design and delivery of advice and financial products to individuals, business, and government is called A) Managerial Finance. B) Financial Manager. C) Financial Services. D) none of the above. 2) Managerial finance A) involves tasks such as budgeting, financial forecasting, cash management, and funds procurement. B) involves the design and delivery of advice and financial products. C) recognizes funds on an accrual basis. D) devotes the majority of its attention to the collection and presentation of financial data. 3) Finance can be defined as A) the system of debits and credits. B) the science of the production, distribution, and consumption of wealth. C) the art and science of managing money. D) the art of merchandising products and services. 4) Financial service A) is concerned with the duties of the financial manager. B) involves the design and delivery of advice and financial products. C) provides guidelines for the efficient operation of the business. D) handles accounting activities related to data processing. 5) Which of the following legal forms of an organization’s income is NOT taxed under individual income tax rate? A) Sole proprietorships. B) Partnerships. C) Limited partnership. D) Corporation. 6) Under which of the following legal forms of organization, is...
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...571 FIN Final Exam. Chapter 1 The Goals and Functions of Financial Management Multiple Choice Questions 1. What is the primary goal of financial management? A) Increased earnings B) Maximizing cash flow C) Maximizing shareholder wealth D) Minimizing risk of the firm Answer: C Difficulty: Easy Type: Memorization 2. The partnership form of organization A) avoids the double taxation of earnings and dividends found in the corporate form of organization. B) usually provides limited liability to the partners. C) has unlimited life. D) simplifies decision making. Answer: A Difficulty: Easy Type: Memorization 3. Increased productivity due to technology has A) increased corporations' reliance on debt for capital expansion needs. B) created larger asset values on the firm's historical balance sheet. C) made it cheaper (in terms of interest costs) for firms to borrow money. D) helped to keep corporate costs in check. Answer: D Difficulty: Medium Type: Conceptual 4. Insider trading occurs when A) someone has information not available to the public which they use to profit from trading in stocks. B) corporate officers buy stock in their company. C) lawyers, investment bankers, and others buy common stock in companies represented by their firms. D) any stock transactions occur in violation of the Federal Trade Commissions restrictions on monopolies. Answer: A Difficulty: Medium Type: Memorization Chapter 2 Review of Accounting 5. When a firm's earnings are falling more rapidly than its stock...
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...1) Which of the following categories of owners have limited liability? A. General partners B. Sole proprietors C. Shareholders of a corporation D. Both a and b 2) The true owners of the corporation are the: A. holders of debt issues of the firm. B. preferred stockholders. C. board of directors of the firm. D. common stockholders. 3) In terms of organizational costs, which of the following sequences is correct, moving from lowest to highest cost? A. General partnership, sole proprietorship, limited partnership, corporation B. Sole proprietorship, general partnership, limited partnership, corporation C. Corporation, limited partnership, general partnership, sole proprietorship D. Sole proprietorship, general partnership, corporation, limited partnership 4) Which of the following would increase the need for external equity? A. Inadequate investment opportunities B. A slow-down in economic growth C. A reduction in corporate profits D. A seasonal reduction in sales revenues 5) When public corporations decide to raise cash in the capital markets, what type of financing vehicle is most favored? A. Retained earnings B. Preferred stock C. Common stock D. Corporate bonds 6) __________ is a method of offering securities to a limited number of investors. A. Public offering B. Initial public offering C. Syndicated underwriting D. Private placement 7) According to the agency problem, _________ represent the principals of a corporation. A. employees B. shareholders C. suppliers...
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...Running head: ANALYZING PRO FORMA STATEMENTS Analyzing Pro Forma Statements Bridget Harvey and Keva Paul FIN/571 February 09, 2015 Ms. Wendy Thomas 1 ANALYZING PRO FORMA STATEMENTS 2 Introduction The Home Depot is the world’s largest home improvement retailer. The tagline for The Home Depot is “More savings more doing that’s the power of The Home Depot.” The catchy and recognizable tagline can be heard on nearly every TV and radio station in the United States. The Home Depot realizes that in order to maintain its title as the world’s largest home improvement retailer the company will need more than its catchy tagline. Therefore, The Home Depot has decided to extend the time in which small household appliances are available to its customers. Analysis of Pro Forma Data The Home Depot does not usually sell small house appliances like coffee pots, toasters, mini convection ovens, blenders, and irons through the year. The mentioned small appliances were only sold during the Christmas season. The Home Depot has decided to extend the time frame in which small appliances could be purchased. In 2014, The Home Depot sold the small appliances from the Christmas season until March 2015. The extension of the availability of the small appliances increased sales revenue by %. The increase in revenue prompted The Home Depot to employ the idea for the 2015 Christmas season until March 2016. There was an increase in revenue of % for 2016. The same model was used...
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...Devry FIN 351 Final Exam IF You Want To Purchase A+ Work then Click The Link Below For Instant Down Load http://www.hwspeed.com/Devry-FIN-351-Final-Exam-4343940698.htm?categoryId=-1 IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM Question Page 1 Question 1.1.(TCO 1) Which of the following investments would theoretically always carry the highest risk premium? (Points : 4) A U.S. treasury bill Common stock Preferred stock Corporate bond Question 2.2.(TCO 1) From the investment banker's point of view, the major reason syndicates are formed in the distribution of large issues is for the purpose of (Points : 4) improving the liquidity of the issue. improving geographic distribution. reducing the underwriter's risk. improving brand recognition. Question 3.3.(TCO 1) A _____ requires full payment for the purchase of securities, whereas a _____ allows the investor to borrow a portion of the purchase price from the brokerage firm. (Points : 4) money market account; cash account cash account; charge account cash account; margin account type 5 account; type 2 account Question 4.4.(TCO 2) The composite index of leading indicators, made up of 10 leading indicators, has historically (Points : 4) not always preceded changes in the business cycle. given roughly the same notice at peaks as at troughs. varied widely in its timing of notice at peaks and troughs. More than one of the above Question 5.5.(TCO 2) Why would an investor want to...
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...BLAW 2210 Term Paper Career Preparation My top two career choices are corporate financial analysis in investment banking and actuary. I will be discussing the legal environment of my career choices, taxing authorities, entity structure, graduate school in order to obtain certain license, self-assessment of my chosen careers. First, I will discuss how I can work as a corporate financial analysis in investment banking. After that, I will talk about what I need prepare to be an actuary. 1.corporate financial planning and analysis The responsibility of a corporate financial planing and analysis is to support management planning and decision making by identifying, maintaining, and evaluating information,as well as recommending actions. * Legal environment * Entity structure Investment banking is concerned with the primary function of assisting the capital market in its function of capital market intermediation, i.e. the movement of financial resources from those who have them means investors, to those who need to make use of them means issuer for generating profit. Therefore, it can be inferred that investment banks are those institutions that are the counterparts of banks in the capital market in the function of intermediation in resources allocation. Investment banks carried on carious activities it helps companies and governments and their agencies to raise money by issuing and selling securities in the primary market. They assist public and private corporations...
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