FNAN 522 Final Exam Questions And
100% Verified Answers | Latest 2025/
2026 Update | Graded A+
Which of the following is a possible market reaction to a company's
announcement that it will increase it's quarterly dividend?
a. The share price may increase because the increased dividend signals
that future earnings will be higher than the market currently expects.
b. The share price may decrease because the increased dividend signals
that future earnings will be higher than the market currently expects.
c. The share price may increase because the increased dividend signals
that future earnings will be lower than the market currently expects.
d. All of these answers. - CORRECT ANSWER-a. The share price may
increase because the increased dividend signals that future earnings
will be higher than the market currently expects.
Which of the following statements regarding what dividends can mean
to prospective investors is true?
,a. Consistent dividends signal that earnings generated by the stock will
be volatile.
b. Stocks with consistently high dividends tend to mitigate agency
conflicts between investors and firm management
c. All of these answers.
d. Dividends do not help mitigate information asymmetry between
investors and firm management - CORRECT ANSWER-b. Stocks with
consistently high dividends tend to mitigate agency conflicts between
investors and firm management
A company has average inventory of $12 million and COGS of $16
million. Its average accounts receivable is $2 million and it had $6
million in credit sales. Its average accounts payable is $3 million and it
had $16 million in purchases. What is its CCC?
a. 326.98 days
b. 273.75 days
c. 158.88 days
d. 479.57 days - CORRECT ANSWER-a. 326.98 days
, Which of the following is a method of payment a corporation can use to
pay a dividend?
a. Securities of other companies.
b. Stock.
c. All of these answers.
d. Cash. - CORRECT ANSWER-c. All of these answers.
A company uses ABC analysis to manage its inventory and it has just
adopted a new product. While this new product is an important part of
the company's sales, it is relatively cheap to manufacture and is not
prone to expiring. It should be ___.
a. a C item.
b. an A item.
c. a B item.
d. accounted for separately outside of the current inventory system. -
CORRECT ANSWER-c. a B item.
A company values its inventory by dividing the total cost of goods
available for sale by the sum of the beginning inventory balance and the
100% Verified Answers | Latest 2025/
2026 Update | Graded A+
Which of the following is a possible market reaction to a company's
announcement that it will increase it's quarterly dividend?
a. The share price may increase because the increased dividend signals
that future earnings will be higher than the market currently expects.
b. The share price may decrease because the increased dividend signals
that future earnings will be higher than the market currently expects.
c. The share price may increase because the increased dividend signals
that future earnings will be lower than the market currently expects.
d. All of these answers. - CORRECT ANSWER-a. The share price may
increase because the increased dividend signals that future earnings
will be higher than the market currently expects.
Which of the following statements regarding what dividends can mean
to prospective investors is true?
,a. Consistent dividends signal that earnings generated by the stock will
be volatile.
b. Stocks with consistently high dividends tend to mitigate agency
conflicts between investors and firm management
c. All of these answers.
d. Dividends do not help mitigate information asymmetry between
investors and firm management - CORRECT ANSWER-b. Stocks with
consistently high dividends tend to mitigate agency conflicts between
investors and firm management
A company has average inventory of $12 million and COGS of $16
million. Its average accounts receivable is $2 million and it had $6
million in credit sales. Its average accounts payable is $3 million and it
had $16 million in purchases. What is its CCC?
a. 326.98 days
b. 273.75 days
c. 158.88 days
d. 479.57 days - CORRECT ANSWER-a. 326.98 days
, Which of the following is a method of payment a corporation can use to
pay a dividend?
a. Securities of other companies.
b. Stock.
c. All of these answers.
d. Cash. - CORRECT ANSWER-c. All of these answers.
A company uses ABC analysis to manage its inventory and it has just
adopted a new product. While this new product is an important part of
the company's sales, it is relatively cheap to manufacture and is not
prone to expiring. It should be ___.
a. a C item.
b. an A item.
c. a B item.
d. accounted for separately outside of the current inventory system. -
CORRECT ANSWER-c. a B item.
A company values its inventory by dividing the total cost of goods
available for sale by the sum of the beginning inventory balance and the
