Busi 530 Study guides, Class notes & Summaries

The opportunity cost of capital can best be described as:the expected rate of return given up by investing in a project rather than in the capital market The opportunity cost of capital is determined by the ______ of a project.risk What is the NPV of a project with an initial investment of $95, a cash flow in one year of $107, and a discount rate of 6%? (Be sure to record the initial investment as a negative number.)5.94 Reason: NPV = -$95 + ($107/1.06) = $5.94

A corporation is a legal entity that has the rights to do which of the following?enter into contracts sue or be sued borrow money Which of the following individuals or groups is responsible for appointing the top management of a corporation?The board of directors A disadvantage of a partnership isunlimited liability A business organization in which a single person owns the assets and is responsible for the debt is known as asole proprietorship Separation of ownership and control is a...

Select all that apply Providers of venture capital are: Multiple select question. savings banks wealthy individuals the Federal Reserve Bank mature corporations looking for new technology pension funds specialist venture capital firmswealthy individuals mature corporations looking for new technology pension funds specialist venture capital firms

BUSI 530 MANAGERIAL FINANCE COMPLETED EXAM 2024.

BUSI 530 MANAGERIAL FINANCE COMPLETED EXAM 2024.

BUSI 530 MANAGERIAL FINANCE COMPLETED EXAM 2024.

BUSI 530 QUIZ 1 / BUSI530 QUIZ 1:LATEST-LIBERTY UNIVERSITY• BUSI 530 QUIZ 1 Question 1 2 out of 2 points A firm with no leases has a long-term debt ratio of 50%. This means that the book value of equity: Answer • Question 2 2 out of 2 points The use of debt in the firm's capital structure will increase ROE if the firm: Answer • Question 3 2 out of 2 points When Tri-C Corp. compares its ratios to industry ave...

BUSI 530 QUIZ 1 / BUSI530 QUIZ 1:LATEST-LIBERTY UNIVERSITY• BUSI 530 QUIZ 1 Question 1 2 out of 2 points A firm with no leases has a long-term debt ratio of 50%. This means that the book value of equity: Answer • Question 2 2 out of 2 points The use of debt in the firm's capital structure will increase ROE if the firm: Answer • Question 3 2 out of 2 points When Tri-C Corp. compares its ratios to industry ave...

BUSI 530 QUIZ 2 / BUSI530 QUIZ 2:LATEST-LIBERTY UNIVERSITY BUSI 530 QUIZ 2 Question 1 2 out of 2 points With respect to the notion that stock prices follow a random walk, several researchers have concluded that: Answer • Question 2 2 out of 2 points A fundamental analyst: Answer • Question 3 2 out of 2 points If The Wall Street Journal lists a stock's dividend as $1, then it is most likely the case that the st...

BUSI 530 QUIZ 3 /BUSI530 QUIZ 3:LATEST-LIBERTY UNIVERSITY• BUSI 530 QUIZ 3 Question 1 2 out of 2 points What is the WACC for a firm with 40% debt, 20% preferred stock and 40% equity if the respective costs for these components are 6% after-tax, 12% after-tax, and 18% before-tax? The firm's tax rate is 35%. Answer • Question 2 2 out of 2 points Why is it important to include the tax effect into cost of capital computations for firms with debt fina...