C214 FINAL EXAM QUESTIONS WITH
CORRECT ANSWERS 2025
CouponARate,TheAinterestArateAthatAaAcompanyApromisesAtoApayAonAbonds
MarketARate,TheAinterestArateAonAotherAcomparableAbonds
ParAValue,TheAamountApayableAonAmaturityAofAtheAbond
MarketArate,SameAasAYTMA-AYieldAtoAMaturity
GordonAGrowthAModel,AssumesAstableAgrowthAratesAandAdoesAnotAincorporateArisk
CAPMAModel,AllowsAtoAdetermineAexpectedAreturnAonAstocksAandAincorporatesArisk
HowAdoApublicAcompaniesAmaximizeAshareholderAvalue?,ByAmaximizingAEarningsAPerAShare
HowAdoAprivateAcompaniesAmaximizeAshareholderAvalue?,ByAkeepingAcontrolAwithinAtheAcompany
PositiveAcreditAratingAhasAwhatAeffectAonAcapital?,LowersAcostAofAcapital
WhatAisAcashAflowAfromAoperatingAactivities?,ItAisAcashAflowAgeneratedAforAsaleAofAproductsAandAservices
WhatAisAtheAformulaAforAretainedAearnings?,EndingAretainedAearnings=BeginningAretainedAearningsA+ANet
AIncomeA=ADividends
IsAdepreciationAandAsalvageAvalueAonAanAassetApreciseAorAisAitAanAestimate?,ItAisAanAestimate
WhatAisAanAexampleAofAaccountingAdifference,CompaniesAusingAdifferentAaccountingAmethods
, WhatAisAanAexampleAofAaAtimingAdifference?,CompaniesAusingAdifferentAfiscalAyears
DoAstockAholdersAorAbondAholdersAhaveAvotingArights?,StockAholdersAhaveAvotingArights
WhatAfactorsAareAconsideredAforAtheAinitialAoutlayAofAaAnewAinvestment?,PurchaseApriceAofAnewAequipme
nt,AshippingAcosts,AandAinvestmentAinAworkingAcapital
WhatAisAtheAriskAassociatedAwithAdebtAfinancing?,TooAmuchAdebtAcanAleadAtoAbankruptcy
WhatAareAinventoryArelatedAcosts?,ProductAcosts,AstorageAcosts,AandAopportunityAcosts
WhatAstatementsAareArequiredAtoAbeAfiledAwithAtheASEC,AnnualAauditedAfinancialAstatements
WhatAareAtheAissuesAwithAunderstandingAforeignAfinancialAstatements?,ForeignAfinancialAstatementsAuseAi
nternationalAfinancialAreportingAstandardsAandAtheyAareAdifferentAfromAUSAaccountingAstandards
WhatAdoesAcashAflowAfromAinvestingAactivitiesAmeasure?,ItAmeasureAinvestmentsAinAlongAtermAassetsAsuc
hAasAbuilding,Aequipment,AandAmachinery
WhatAdoesAtheAefficientAfrontierAmeasure?,ItAmaximizesAexpectedAreturnAforAaAgivenAlevelAofArisk
WhatAisAtheAobjectiveAofAportfolioAdiversification?,TheAobjectiveAisAtoAreduceArisk
WhatAisAtheAdefinitionAofAaAcurrentAassetAandAcurrentAliability?,AAcurrentAassetAisAcashAorAanyAotherAassetA
thatAcanAbeAconvertedAtoAcashAwithinA12AmonthsAandAaAcurrentAliabilityAisAanyAliabilityAthatAhasAtoAbeApaid
AwithinA12Amonths
WhatAisAaAdifferentialAcashAflow?,ItAisAtheAamountAofAnetAcashAflowAgeneratedAaAnewAassetAonAaAyearlyAba
sis
CORRECT ANSWERS 2025
CouponARate,TheAinterestArateAthatAaAcompanyApromisesAtoApayAonAbonds
MarketARate,TheAinterestArateAonAotherAcomparableAbonds
ParAValue,TheAamountApayableAonAmaturityAofAtheAbond
MarketArate,SameAasAYTMA-AYieldAtoAMaturity
GordonAGrowthAModel,AssumesAstableAgrowthAratesAandAdoesAnotAincorporateArisk
CAPMAModel,AllowsAtoAdetermineAexpectedAreturnAonAstocksAandAincorporatesArisk
HowAdoApublicAcompaniesAmaximizeAshareholderAvalue?,ByAmaximizingAEarningsAPerAShare
HowAdoAprivateAcompaniesAmaximizeAshareholderAvalue?,ByAkeepingAcontrolAwithinAtheAcompany
PositiveAcreditAratingAhasAwhatAeffectAonAcapital?,LowersAcostAofAcapital
WhatAisAcashAflowAfromAoperatingAactivities?,ItAisAcashAflowAgeneratedAforAsaleAofAproductsAandAservices
WhatAisAtheAformulaAforAretainedAearnings?,EndingAretainedAearnings=BeginningAretainedAearningsA+ANet
AIncomeA=ADividends
IsAdepreciationAandAsalvageAvalueAonAanAassetApreciseAorAisAitAanAestimate?,ItAisAanAestimate
WhatAisAanAexampleAofAaccountingAdifference,CompaniesAusingAdifferentAaccountingAmethods
, WhatAisAanAexampleAofAaAtimingAdifference?,CompaniesAusingAdifferentAfiscalAyears
DoAstockAholdersAorAbondAholdersAhaveAvotingArights?,StockAholdersAhaveAvotingArights
WhatAfactorsAareAconsideredAforAtheAinitialAoutlayAofAaAnewAinvestment?,PurchaseApriceAofAnewAequipme
nt,AshippingAcosts,AandAinvestmentAinAworkingAcapital
WhatAisAtheAriskAassociatedAwithAdebtAfinancing?,TooAmuchAdebtAcanAleadAtoAbankruptcy
WhatAareAinventoryArelatedAcosts?,ProductAcosts,AstorageAcosts,AandAopportunityAcosts
WhatAstatementsAareArequiredAtoAbeAfiledAwithAtheASEC,AnnualAauditedAfinancialAstatements
WhatAareAtheAissuesAwithAunderstandingAforeignAfinancialAstatements?,ForeignAfinancialAstatementsAuseAi
nternationalAfinancialAreportingAstandardsAandAtheyAareAdifferentAfromAUSAaccountingAstandards
WhatAdoesAcashAflowAfromAinvestingAactivitiesAmeasure?,ItAmeasureAinvestmentsAinAlongAtermAassetsAsuc
hAasAbuilding,Aequipment,AandAmachinery
WhatAdoesAtheAefficientAfrontierAmeasure?,ItAmaximizesAexpectedAreturnAforAaAgivenAlevelAofArisk
WhatAisAtheAobjectiveAofAportfolioAdiversification?,TheAobjectiveAisAtoAreduceArisk
WhatAisAtheAdefinitionAofAaAcurrentAassetAandAcurrentAliability?,AAcurrentAassetAisAcashAorAanyAotherAassetA
thatAcanAbeAconvertedAtoAcashAwithinA12AmonthsAandAaAcurrentAliabilityAisAanyAliabilityAthatAhasAtoAbeApaid
AwithinA12Amonths
WhatAisAaAdifferentialAcashAflow?,ItAisAtheAamountAofAnetAcashAflowAgeneratedAaAnewAassetAonAaAyearlyAba
sis