5/12/25, 2:28 PM BA 323 BRINCKS EXAM 1 | ALL QUESTIONS AND CORRECT ANSWERS | GRADED A+ | NEWEST VERSION | VERIFIED ANS…
BA 323 BRINCKS EXAM 1 | ALL QUESTIONS AND
CORRECT ANSWERS | GRADED A+ | NEWEST
VERSION | VERIFIED ANSWERS
Learn 1/7
2 components of debt
Choose matching definition
debt
short term notes payable
1 2 preferred stock
long term debt
common equity
retained earnings
3 up, bc more expensive component 4
new common stock
… 1/1
3
, 5/12/25, 2:28 PM BA 323 BRINCKS EXAM 1 | ALL QUESTIONS AND CORRECT ANSWERS | GRADED A+ | NEWEST VERSION | VERIFIED ANS…
FICO score measures how risky of a borrower you are
Highest FICO score 850
excellent credit FICO 750-850
score
two ways to maintain high 1. make payments on time
FICO score 2. have low credit utilization ratio
revolving credit utilization measures what percentage of credit you are using at a
ratio given point during the month
credit utilization ratio avg balance / avg credit limit
equation
avg credit card interest 15-20%
rate
compounding used by daily compounding, makes them the most money
credit cards & why
why should you always try credit card charge high interest rates, FICO score can
to pay balance in full decline if not
why do we care about necessary for making investment decisions
WACC
debt
3 main sources of capital
preferred stock
for a firm
common equity
2 components of common retained earnings
equity new common stock
short term notes payable
2 components of debt
long term debt
do we care about after tax after tax capital cost more important, interest tax is
or pre tax analysis? why? deductible
… 2/1
3
BA 323 BRINCKS EXAM 1 | ALL QUESTIONS AND
CORRECT ANSWERS | GRADED A+ | NEWEST
VERSION | VERIFIED ANSWERS
Learn 1/7
2 components of debt
Choose matching definition
debt
short term notes payable
1 2 preferred stock
long term debt
common equity
retained earnings
3 up, bc more expensive component 4
new common stock
… 1/1
3
, 5/12/25, 2:28 PM BA 323 BRINCKS EXAM 1 | ALL QUESTIONS AND CORRECT ANSWERS | GRADED A+ | NEWEST VERSION | VERIFIED ANS…
FICO score measures how risky of a borrower you are
Highest FICO score 850
excellent credit FICO 750-850
score
two ways to maintain high 1. make payments on time
FICO score 2. have low credit utilization ratio
revolving credit utilization measures what percentage of credit you are using at a
ratio given point during the month
credit utilization ratio avg balance / avg credit limit
equation
avg credit card interest 15-20%
rate
compounding used by daily compounding, makes them the most money
credit cards & why
why should you always try credit card charge high interest rates, FICO score can
to pay balance in full decline if not
why do we care about necessary for making investment decisions
WACC
debt
3 main sources of capital
preferred stock
for a firm
common equity
2 components of common retained earnings
equity new common stock
short term notes payable
2 components of debt
long term debt
do we care about after tax after tax capital cost more important, interest tax is
or pre tax analysis? why? deductible
… 2/1
3
