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UTSA FIN 3003 quizzes and assignments well answered already passed 2025/2026

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Course FIN 3003
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UTSA FIN 3003 quizzes and assignments well answered already passed 2025/2026

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UTSA FIN 3003 quizzes and
assignments well answered already
passed 2025/2026

"To find the value of an asset in finance, we find the _____."

Present value of future cash flows

Future value of future cash flows

Future value of present cash flows

Present value of present cash flows - ANS ✔✔Present value of future cash flows



Leverage involves using _____ to invest.

Debt

Equity

Sales

Costs - ANS ✔✔Debt



A firms two sources of capital include _____.

Debt and cash

Equity and cash

Debt and equity

Assets and cash - ANS ✔✔Debt and equity



"By using leverage, an investor is able to _____ his return and _____ his risk. "

Increase; decrease

Decrease; decrease

, Decrease; increase

Increase; increase - ANS ✔✔Increase; increase



Investors are able to reduce their risk through the process of _____.

Leveraging

Yielding

Diversifying

Capitalizing - ANS ✔✔Diversifying



The goal of a firm is to

Maximize profits

Masimize revenue

Maximize CEO wealth

Maximize shareholder wealth - ANS ✔✔Maximize shareholder wealth



Investors are assumed to be _____.

Risk adverse

Risk loving

Risk avoiders

Risk takers - ANS ✔✔Risk adverse



Which of the following is NOT a function of money?

Medium of exchange

Liquidity

Store of value

Double coincidence of wants - ANS ✔✔Double coincidence of wants

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