FIN 300 Final Exam 2026 Questions and
Answers
_____ have control of the firm since they have the right to elect a firm's directors.
A. Bondholders
B. Preferred Stockholders
C. Creditors
D. Common Stockholders - Correct answer-D. Common Stockholders
The condition under which the expected return on a security is just as equal to its
required return is:
A. Marginal value
B. Equilibrium
C. Realized Value
D. Required Value - Correct answer-B. Equilibrium
Which of the following is most correct.
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, A. There is seldom much difference between realized returns and expected returns
B. Realized returns always exceed expectations
C. Realized returns always are lower than expected returns.
D. There generally are large differences between expected and realized returns -
Correct answer-D. There generally are large differences between expected and
realized returns.
The price of a stock is:
A. The future value of all expected future dividends, discounted at the dividend
growth rate
B. The present value of all expected future dividends, discounted at the dividend
growth rate
C. The future value of all expected future dividends, discounted at the investors
required return
D. The present value of all expected future dividends, discounted at the investors
required return - Correct answer-D. The present value of all expected future
dividends, discounted at the investors required return
The above formula represents the constant growth model of valuing stocks. Which
of the following is true of the above model?
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Answers
_____ have control of the firm since they have the right to elect a firm's directors.
A. Bondholders
B. Preferred Stockholders
C. Creditors
D. Common Stockholders - Correct answer-D. Common Stockholders
The condition under which the expected return on a security is just as equal to its
required return is:
A. Marginal value
B. Equilibrium
C. Realized Value
D. Required Value - Correct answer-B. Equilibrium
Which of the following is most correct.
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, A. There is seldom much difference between realized returns and expected returns
B. Realized returns always exceed expectations
C. Realized returns always are lower than expected returns.
D. There generally are large differences between expected and realized returns -
Correct answer-D. There generally are large differences between expected and
realized returns.
The price of a stock is:
A. The future value of all expected future dividends, discounted at the dividend
growth rate
B. The present value of all expected future dividends, discounted at the dividend
growth rate
C. The future value of all expected future dividends, discounted at the investors
required return
D. The present value of all expected future dividends, discounted at the investors
required return - Correct answer-D. The present value of all expected future
dividends, discounted at the investors required return
The above formula represents the constant growth model of valuing stocks. Which
of the following is true of the above model?
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