FIN515 MANAGERIAL FINANCE MIDTERM EXAM
1. Question : (TCO G) The firm's equity multiplier measures
Student Answer:
the value of assets held per dollar of shareholder equity.
the return the firm has earned on its past investments.
the firm's ability to sell a product for more than the cost of
producing it.
how efficiently the firm is utilizing its assets to generate
sales.
Instructor Chapter 2
Explanation:
Points Received: 10 of 10
Comments:
-1222461881 MultipleChoice 3 True
0 -1222461881 MultipleChoice 3
Question 2 Question : (TCO G) The DuPont Identity expresses the firm's ROE in terms
. of
Student Answer:
profitability, asset efficiency, and leverage.
valuation, leverage, and interest coverage.
profitability, margins, and valuation.
equity, assets, and liabilities.
Instructor Chapter 2
Explanation:
Points Received: 10 of 10
Comments:
-1222461880 MultipleChoice 4 True
0 -1222461880 MultipleChoice 4
Question 3 Question : (TCO B) A certain investment will pay $10,000 in 20 years. If the
. annual return on comparable investments is 8%, what is this
, investment currently worth? Show your work.
Student Answer: FV= $10000 NPER= 20 YRS RATE= 8% PV =? PV
(Rate,Nper,Pmt,Fv,Type) -> (8%,20,0,10000,0)= ($2145)
Instructor Week 2 Lecture and Chapter 4
Explanation: PV answer 2145
FV 10000
N 20
I .08
PMT 0
Points Received: 20 of 20
Comments:
-1222461879 Essay 2 False
0 -1222461879 Essay 2
Question 4 Question : (TCO B) You take out a 5 year car loan for $20,000. The loan has
. a 5% annual interest rate. The payments are made monthly. What
are the monthly payments? Show your work.
Student Answer: PMT(5%,60,-20000,0,0) = $1057 This doesn't make sense to me
but this is what excel keeps giving me.... I'd expect it to be
somewhere between $350-$450 range
Instructor Week 2 Lecture and Chapter 4
Explanation: PV 20000
FV 0
N 5*12=60
I .05/12=.0041667
PMT answer $377.42
Points Received: 20 of 20
Comments: The interest rate should have been reduced to the monthly rate --
or .05/12 = .0042
-1222461878 Essay 4 False
0 -1222461878 Essay 4
Question 5 Question : (TCO B) Someone leases a car with the following terms: monthly
1. Question : (TCO G) The firm's equity multiplier measures
Student Answer:
the value of assets held per dollar of shareholder equity.
the return the firm has earned on its past investments.
the firm's ability to sell a product for more than the cost of
producing it.
how efficiently the firm is utilizing its assets to generate
sales.
Instructor Chapter 2
Explanation:
Points Received: 10 of 10
Comments:
-1222461881 MultipleChoice 3 True
0 -1222461881 MultipleChoice 3
Question 2 Question : (TCO G) The DuPont Identity expresses the firm's ROE in terms
. of
Student Answer:
profitability, asset efficiency, and leverage.
valuation, leverage, and interest coverage.
profitability, margins, and valuation.
equity, assets, and liabilities.
Instructor Chapter 2
Explanation:
Points Received: 10 of 10
Comments:
-1222461880 MultipleChoice 4 True
0 -1222461880 MultipleChoice 4
Question 3 Question : (TCO B) A certain investment will pay $10,000 in 20 years. If the
. annual return on comparable investments is 8%, what is this
, investment currently worth? Show your work.
Student Answer: FV= $10000 NPER= 20 YRS RATE= 8% PV =? PV
(Rate,Nper,Pmt,Fv,Type) -> (8%,20,0,10000,0)= ($2145)
Instructor Week 2 Lecture and Chapter 4
Explanation: PV answer 2145
FV 10000
N 20
I .08
PMT 0
Points Received: 20 of 20
Comments:
-1222461879 Essay 2 False
0 -1222461879 Essay 2
Question 4 Question : (TCO B) You take out a 5 year car loan for $20,000. The loan has
. a 5% annual interest rate. The payments are made monthly. What
are the monthly payments? Show your work.
Student Answer: PMT(5%,60,-20000,0,0) = $1057 This doesn't make sense to me
but this is what excel keeps giving me.... I'd expect it to be
somewhere between $350-$450 range
Instructor Week 2 Lecture and Chapter 4
Explanation: PV 20000
FV 0
N 5*12=60
I .05/12=.0041667
PMT answer $377.42
Points Received: 20 of 20
Comments: The interest rate should have been reduced to the monthly rate --
or .05/12 = .0042
-1222461878 Essay 4 False
0 -1222461878 Essay 4
Question 5 Question : (TCO B) Someone leases a car with the following terms: monthly
