BFIN MIDTERM EXAM 2026: 70+ MOST-TESTED
QUESTIONS AND 100% VERIFIED ANSWERS |
GRADED A+ | GUARANTEED PASS!!
A bonds coupon rate is equal to the annual interest divided by which one of the
following?
? - answer-Face Value
A Johnson & Johnson bond pays an 8% coupon rate on a bond provided that its
earnings exceed an ROE of 8%. What type of security is this?
? - answer-Income bond.
ABC Corporation has current assets of $5,200, fixed assets of $26,000, current
liabilities of $4,900, and long-term debt of $15,000. What is the ABC
Corporation's total equity? What is the NWC of ABC Corporation?
? - answer-Total Equity $11,300, NWC $300
Alan Fishman just computed the present value of a $10,000 bonus he will receive
in the future. The interest rate he used in this process is referred to as which one of
the following?
? - answer-Discount rate
Capital One is charging you 1.5% per month on your credit card. What is your
Annual Percentage Rate (APR)?
? - answer-18.0%
Company has sales of $21,000, costs of $11,200, depreciation expense of $2,300,
and interest expense of $1,300. If the tax rate is 40 percent, what is the operating
cash flow, or OCF?
? - answer-OCF $7320 = EBIT $7500+Depreciation $2300-Taxes $2480
Company X has fixed assets of $6million on its balance sheet that were originally
purchased for $10million; it can be sold for $7million today. The company's
balance sheet also shows current liabilities of $2.6million and NWC of $900,000.
In addition, if all the current assets were liquidated today, the company would
receive $2.8million cash. What is the book value of Company X's total assets?
, What is the market value of Company X's total assets?
? - answer-BV $9.5million, MV $9.8million
Control of a firm ultimately rests with
? - answer-The Stockholders
Don Lemon invested $2,000 six years ago at 4.5%. He spends his earnings as soon
as he earns any interest so he only receives interest on his initial investment. Which
type of interest is Mr. Lemon earning?
? - answer-Simple interest
During the Global Financial Crisis, Interest Only financial products were a
significant problem. Which is the best example of an I/O security?
? - answer-Corporate bond
Find Current ratio: Company A's balance sheet shows current assets of $6,300,
fixed assets of $32,000, total long-term liabilities of $16,200 and total equity of
$18,100.
? - answer-1.58x
How is the Dividend Discount Model get calculated?
? - answer-A model which determines the current price of a stock as its dividend
next period divided by the discount rate less the dividend growth rate
Interest earned on both the initial principal and the interest reinvested from the
prior periods is called
? - answer-Compound interest
Interest earned on interest is referred to as the of interest
? - answer-compounding
Protective covenants:
? - answer-Are primarily designed to protect bondholders.
The bond principal is repaid on which one of these dates?
? - answer-Maturity date
The items included in an indenture that can limit actions of the issuer in order to
protect bondholders interests are referred to as the:
? - answer-Protective covenants
QUESTIONS AND 100% VERIFIED ANSWERS |
GRADED A+ | GUARANTEED PASS!!
A bonds coupon rate is equal to the annual interest divided by which one of the
following?
? - answer-Face Value
A Johnson & Johnson bond pays an 8% coupon rate on a bond provided that its
earnings exceed an ROE of 8%. What type of security is this?
? - answer-Income bond.
ABC Corporation has current assets of $5,200, fixed assets of $26,000, current
liabilities of $4,900, and long-term debt of $15,000. What is the ABC
Corporation's total equity? What is the NWC of ABC Corporation?
? - answer-Total Equity $11,300, NWC $300
Alan Fishman just computed the present value of a $10,000 bonus he will receive
in the future. The interest rate he used in this process is referred to as which one of
the following?
? - answer-Discount rate
Capital One is charging you 1.5% per month on your credit card. What is your
Annual Percentage Rate (APR)?
? - answer-18.0%
Company has sales of $21,000, costs of $11,200, depreciation expense of $2,300,
and interest expense of $1,300. If the tax rate is 40 percent, what is the operating
cash flow, or OCF?
? - answer-OCF $7320 = EBIT $7500+Depreciation $2300-Taxes $2480
Company X has fixed assets of $6million on its balance sheet that were originally
purchased for $10million; it can be sold for $7million today. The company's
balance sheet also shows current liabilities of $2.6million and NWC of $900,000.
In addition, if all the current assets were liquidated today, the company would
receive $2.8million cash. What is the book value of Company X's total assets?
, What is the market value of Company X's total assets?
? - answer-BV $9.5million, MV $9.8million
Control of a firm ultimately rests with
? - answer-The Stockholders
Don Lemon invested $2,000 six years ago at 4.5%. He spends his earnings as soon
as he earns any interest so he only receives interest on his initial investment. Which
type of interest is Mr. Lemon earning?
? - answer-Simple interest
During the Global Financial Crisis, Interest Only financial products were a
significant problem. Which is the best example of an I/O security?
? - answer-Corporate bond
Find Current ratio: Company A's balance sheet shows current assets of $6,300,
fixed assets of $32,000, total long-term liabilities of $16,200 and total equity of
$18,100.
? - answer-1.58x
How is the Dividend Discount Model get calculated?
? - answer-A model which determines the current price of a stock as its dividend
next period divided by the discount rate less the dividend growth rate
Interest earned on both the initial principal and the interest reinvested from the
prior periods is called
? - answer-Compound interest
Interest earned on interest is referred to as the of interest
? - answer-compounding
Protective covenants:
? - answer-Are primarily designed to protect bondholders.
The bond principal is repaid on which one of these dates?
? - answer-Maturity date
The items included in an indenture that can limit actions of the issuer in order to
protect bondholders interests are referred to as the:
? - answer-Protective covenants
