FIN 3403

Business risk - Answer the risk of the firms’ future earnings that is a direct result of the particular line of business chosen by the firm Financial risk - Answer risk driven by the presence of fixed finance costs in the firm’s capital structure (as opposed to variable finance costs such as dividend declared and paid) Operating Leverage - Answer Results from operating costs that are fixed and do not vary with the level of firm sales Financial Leverage - Answer Results f...

What is the required monthly payment on a $530,000.00 mortgage. Assume a standard mortgage (360 months) with monthly payments. Use a nominal rate (monthly compounding) of 6.00%. - Answer $3,177 You currently have $3,000.00 in an account and plan on depositing $2,500.00 into the account each year, starting in 1 year. If the account earns an annual effective interest rate of 6.70%, how much will be in the account (what is the future value) in 5 years, just after making your final deposit? - A...

Goal of the Firm - Answer Maximize Shareholder Wealth, (Maximizing firm value or Maximizing stock price) Sole proprietorship - Answer A business owned by a single individual. General Partnership - Answer A partnership in which all partners are fully liable for the indebtedness incurred by the partnership limited partnership - Answer A partnership in which one or more of the partners has limited liability, restricted to the amount of capital he or she invest in the partnership ...

the amount of money given today is more valuable than the same amount a year from now due to the ______ of holding the money - Answer opportunity cost the time value of money problems come in two forms which are? - Answer compounding and discounting how do compounding and discounting differ? - Answer compounding is the calculation of finding the FV while discounting is finding the PV of a future value what is the one type of future value calculation that can not be made with a ...

Consider a $300,000, 30-year mortgage with monthly payments and a nominal rate (monthly compounding) of 5.90%. What portion of the first 29 payments goes toward paying interest? - Answer P/YR= 12, PV= 300,000, N= 360, I=5.90 Solve: PMT: 1,779.41 1,779.41 x 29= 51,602.89 1 Input 29 shift AMORT 42,139.60/51,602.89= 82 What is the monthly payment on a $290,000.00 mortgage? Assume a standard mortgage (360 months) with monthly payments. Use a nominal rate (monthly compounding) of 6.40%. - An...

Preferred stock - Answer A hybrid security with characteristics of both common stock and bonds. Preferred stock is similar to common stock in that 1. It has no fixed maturity date 2. The nonpayment of dividends does not bring on bankruptcy 3. Dividends are not deductible for tax purposes. Preferred stock is similar to bonds in that dividends are limited in amount. Cumulative feature - Answer A requirement that all past, unpaid preferred stock dividends be paid before any common...

FIN3403 Business Finance Quiz 4 Results University of Central Florida

FIN3403 Business Finance Quiz 3 Results University of Central Florida

FIN3403 Business Finance Quiz 2 Results University of Central Florida

FIN 3403 Business Finance Quiz 1 Results complete update University of Central Florida