AND B) Verified Multiple Choice and Conceptual
Actual Final Exam Questions With Reviewed 100%
Correct Detailed Answers
Guaranteed Pass!!Current Update
1. What someone would pay right now for an asset. Go To - ANSWER
Current Market Value
2. A liquidity ratio found by current assets divided by current liabilities.Go To -
ANSWER Current Ratio
3. A secondary market made up of multiple dealers that hold an inventory of
securities and quote prices.Go To - ANSWER Dealer Market
4. A financing ratio found by total liabilities divided by total assets.Go To -
ANSWER Debt Ratio
5. A financing ratios found by total liabilities divided by total equity.Go To -
ANSWER Debt-to-equity Ratio
6. Failure to meet a debt obligation.Go To - ANSWER Default
,7. The probability of a loss resulting from a borrower's failure to repay a
contractual obligation; also called credit risk.Go To - ANSWER Default
Risk
8. Companies or securities with beta less than 1.Go To - ANSWER
Defensive Assets
9. A bond whose price is below its par value.Go To - ANSWER Discount
Bond
10.The name for interest rate when used in time value of money
calculations.Go To - ANSWER Discount Rate
11.Finding a present value given a future value.Go To - ANSWER
Discounting
12.Accounts that do not vary automatically with sales but are left to the
discretion of management.Go To - ANSWER Discretionary Accounts
13.The additional financing needed given a firm's expectations for future
growth.Go To - ANSWER Discretionary Financing Needed (DFN)
14.The process of "spreading" your money over many different assets.Go To -
ANSWER Diversification
,15.A model used to evaluate common stock that calculates the value of a share
of common stock today by taking the present value of future dividend cash
flows.Go To - ANSWER Dividend Discount Model
16.A feature of preferred stock specifying that if a company ignores preferred
stock dividends, it cannot pay anything to its common stockholders.Go To -
ANSWER Dividends in Arrears
17.An expanded formula of the return of equity, net margin times total asset
turnover times leverage multiplier, which represent the components of
profitability, activity (efficiency), and financing.Go To - ANSWER DuPont
Framework
18.A market in which prices fully reflect all the available information about a
specific security.Go To - ANSWER Efficient market
19.Everything that a person owns or controls, especially at death.Go To -
ANSWER Estates
20.An issue in the process of deciding between multiple options where no
option is completely acceptable from an ethical standpoint.Go To -
ANSWER Ethical Dilemma
21.Following accepted standards of moral conduct.Go To - ANSWER Ethics
, 22.A hypothesized estimate of future prices or returns under different
scenarios based on expectational data.Go To - ANSWER Expected
Return
Another name for the discretionary financing needed or additional funds needed.
It represents the additional financing needed given a firm's expectations for future
growth.Go To - ANSWER External Financing Needed (EFN)
The sum of money that a corporation promises to pay at the expiration of a bond;
also called par value.Go To - ANSWER Face Value
The study of managing and allocating funds at the personal or business level.Go
To - ANSWER Finance
An area of finance that includes firms or organizations that exist to accept a wide
variety of deposits, to offer investment products to individuals and businesses, to
provide loans, or to broker financial transactions.Go To - ANSWER Financial
Institutions
A person who makes strategic financial decisions in a corporation.Go To -
ANSWER Financial Managers
Incorporating new finance ideas within a firm.Go To - ANSWER Financial
Policy Implementation