Fin300 Study guides, Study notes & Summaries

BFIN300 Final Review Exam

Which of the following statements is CORRECT? a. The "break point" as discussed in the text refers to the point where the firm has raised so much capital that it has exhausted its supply of additions to retained earnings and thus must raise equity by issuing stock. b. The "break point" as discussed in the text refers to the point where the firm has exhausted its supply of additions to retained earnings and thus must begin to finance with preferred stock. c. The "break point" a...

BFIN300 Final Test Questions with Correct Answers An underlying assumption of the dividend growth model is that a stock is worth: - Answer-the present value of the future income which it generates The value of common stock today depends on: - Answer-the expected future dividends, capital gains, and discount rate. The constant dividend growth model is: - Answer-generally not used in practice because most stocks grow at a non-constant rate. The slope of an asset's security market line ...

BFIN300 Midterm Chapter 1 Exam Questions and Answers

What is the first step when calculating the crossover rate? To calculate the cash flow differences between each project. The Discounted Payback Period Rule states that a company will accept a project if: The calculated payback is less than a pre-specified number of years. The Internal Rate of Return (IRR) represents which of the following: The discount rate that makes the net present value equal to zero. What does the Modified Internal Rate of Return (MIRR) assume? The MIRR assumes th...

BFIN300 Final Review Exam

Surfside Airlines Sales - 150,000 VOP - (105,000) Gross Profit- 45,000 Find DOL, DFL, DTL 1.8, 2.5, 4.5 Loving Gardens (LG) has $6 million in assets, $700,000 EBIT, 80,000 shares of stock outstanding, and a marginal tax rate equal to 40 percent. If LG's debt-to-total-assets ratio (D/TA) is 70 percent, it pays 12 percent interest on debt, whereas if the D/TA ratio is 40 percent, interest is 9 percent. Calculate LG's EPS and ROE for each capital structure. Which capital structure is...

BFIN300 Final Test Questions with Correct Answers An underlying assumption of the dividend growth model is that a stock is worth: - Answer-the present value of the future income which it generates The value of common stock today depends on: - Answer-the expected future dividends, capital gains, and discount rate. The constant dividend growth model is: - Answer-generally not used in practice because most stocks grow at a non-constant rate. The slope of an asset's security market line i...

BFIN300 Midterm Chapter 1 Exam Questions and Answers

ASU FIN300 Midterm 2 questions and answers graded A+ by experts 2024/2025