FIN 300 Final Exam 2026 Questions and Answers

FIN 300 Final Exam 2026 Questions and
Answers

_____ have control of the firm since they have the right to elect a firm's directors.

A. Bondholders

B. Preferred Stockholders

C. Creditors

D. Common Stockholders - Correct answer-D. Common Stockholders

The condition under which the expected return on a security is just as equal to its

required return is:

A. Marginal value

B. Equilibrium

C. Realized Value

D. Required Value - Correct answer-B. Equilibrium

Which of the following is most correct.



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, A. There is seldom much difference between realized returns and expected returns

B. Realized returns always exceed expectations

C. Realized returns always are lower than expected returns.

D. There generally are large differences between expected and realized returns -

Correct answer-D. There generally are large differences between expected and

realized returns.

The price of a stock is:

A. The future value of all expected future dividends, discounted at the dividend

growth rate

B. The present value of all expected future dividends, discounted at the dividend

growth rate

C. The future value of all expected future dividends, discounted at the investors

required return

D. The present value of all expected future dividends, discounted at the investors

required return - Correct answer-D. The present value of all expected future

dividends, discounted at the investors required return

The above formula represents the constant growth model of valuing stocks. Which

of the following is true of the above model?
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