BFIN Test 1 Study Guide | Business Finance Fundamentals Practice Questions &
Review 2026
A seven-year investment with quarterly compounding has an effective rate of 5.77%. The
nominal or annual percentage rate is closest to - ✔✔5.65
i/YR = 4
ANNUAL rate
Which of the following business structures has the least favorable tax treatment? -
✔✔corporations
Farro Industries sold 2.5 million Starlight NightLights last year and sales have been growing at
2% per quarter. At this growth rate, how long will it take for sales of Starlight NightLights to
double? - ✔✔8.75
Which of the following is defined as the mixture of a firm's debt and equity financing? - ✔✔A)
Capital structure
Which form of business structure creates the least agency problem? - ✔✔A) Sole
proprietorship
GoldStrike Oil Field Services had revenues of $15,500,000 for 2015 and would like to double this
by 2025. Revenues are expected to grow at about 7.25% annually over this time period.
GoldStrike will: - ✔✔exceed the goal by less than 1%.
Crane Flight Services contributes $25 a week to Helen's retirement plan starting immediately.
Assuming she works for Crane for another twenty-two years and the applicable discount rate is
4 3/4%. Given these assumptions, the value of this employee benefit today is closest to: -
✔✔177,547.78
PV 177,547.78
Review 2026
A seven-year investment with quarterly compounding has an effective rate of 5.77%. The
nominal or annual percentage rate is closest to - ✔✔5.65
i/YR = 4
ANNUAL rate
Which of the following business structures has the least favorable tax treatment? -
✔✔corporations
Farro Industries sold 2.5 million Starlight NightLights last year and sales have been growing at
2% per quarter. At this growth rate, how long will it take for sales of Starlight NightLights to
double? - ✔✔8.75
Which of the following is defined as the mixture of a firm's debt and equity financing? - ✔✔A)
Capital structure
Which form of business structure creates the least agency problem? - ✔✔A) Sole
proprietorship
GoldStrike Oil Field Services had revenues of $15,500,000 for 2015 and would like to double this
by 2025. Revenues are expected to grow at about 7.25% annually over this time period.
GoldStrike will: - ✔✔exceed the goal by less than 1%.
Crane Flight Services contributes $25 a week to Helen's retirement plan starting immediately.
Assuming she works for Crane for another twenty-two years and the applicable discount rate is
4 3/4%. Given these assumptions, the value of this employee benefit today is closest to: -
✔✔177,547.78
PV 177,547.78
