AGEC 4040 Final Exam questions and answers 100%
verified.
Finance can be defined as... - Answer-...the art and science of managing money.
/.The key role of the financial manager is... - Answer-...decision making.
/.All of the following are sources of funds for the Farm Credit Banks EXCEPT... -
Answer-...trade credit.
/.If a young, beginning farmer is willing to accept supervision and guidance in his
activities, he/she is most likely to be able to get credit from... - Answer-...the Farm
Service Agency.
/.The future value of $100 received today and deposited at 6 percent for four years is... -
Answer-...$126.
/.Combining two negatively correlated assets to reduce risk is known as... - Answer-
...diversification.
/.A college received a contribution to its endowment fund of $2 million. They can never
touch the principal, but they can use the earnings. At an assumed interest rate of 9.5
percent, how much can the college earn to help its operations each year? (hint: this is a
perpetuity) - Answer-$190,000
/.The agency problem may result from a manager's concerns about any of the following
EXCEPT... - Answer-...corporate goals.
/._____________________ is the risk to the firm of being unable to cover financial
obligations. - Answer-Financial risk
/.The amount by which the required discount rate exceeds the risk-free rate is called... -
Answer-...the risk premium.
/.Key differences between common stock and bonds include all of the following
EXCEPT... - Answer-...common stockholders have a senior claim on assets and income
relative to bondholders.
/.Preferred stock is valued as if it were a ... - Answer-... perpetuity.
/.A firm has an expected dividend next year of $1.20 per share, a zero growth rate of
dividends, and a required return of 10 percent. The value of a share of the firm's
common stock is ______________. - Answer-$12
verified.
Finance can be defined as... - Answer-...the art and science of managing money.
/.The key role of the financial manager is... - Answer-...decision making.
/.All of the following are sources of funds for the Farm Credit Banks EXCEPT... -
Answer-...trade credit.
/.If a young, beginning farmer is willing to accept supervision and guidance in his
activities, he/she is most likely to be able to get credit from... - Answer-...the Farm
Service Agency.
/.The future value of $100 received today and deposited at 6 percent for four years is... -
Answer-...$126.
/.Combining two negatively correlated assets to reduce risk is known as... - Answer-
...diversification.
/.A college received a contribution to its endowment fund of $2 million. They can never
touch the principal, but they can use the earnings. At an assumed interest rate of 9.5
percent, how much can the college earn to help its operations each year? (hint: this is a
perpetuity) - Answer-$190,000
/.The agency problem may result from a manager's concerns about any of the following
EXCEPT... - Answer-...corporate goals.
/._____________________ is the risk to the firm of being unable to cover financial
obligations. - Answer-Financial risk
/.The amount by which the required discount rate exceeds the risk-free rate is called... -
Answer-...the risk premium.
/.Key differences between common stock and bonds include all of the following
EXCEPT... - Answer-...common stockholders have a senior claim on assets and income
relative to bondholders.
/.Preferred stock is valued as if it were a ... - Answer-... perpetuity.
/.A firm has an expected dividend next year of $1.20 per share, a zero growth rate of
dividends, and a required return of 10 percent. The value of a share of the firm's
common stock is ______________. - Answer-$12
