FIN 300 Final Exam (Latest Update 2026 /
2027) Questions and Verified Answers
{Grade A} 100 % Correct - BYU
Given the following information, calculate earnings per share:
Interest Expense - 40,000
Net Income - 400,000
Preferred dividends paid - 65,000
Common dividends paid - 100,000
Common Stock Oustanding - 100,000
a. 1.95
b. 3.35
c. 2.35
d. 3.60 - correct answer b. 3.35
Depreciation:
a. is not a true expense
b. represents a cash outflow on the cash flow statement
c. is deducted from net income
d. is a tax deductible non-cash expense - correct answer d. is a tax deductible non-
cash expense
As the discount rate decreases, the present value of a positive cash flow to be
received at a particular time in the future:
, FIN 300 Final Exam (Latest Update 2026 /
2027) Questions and Verified Answers
{Grade A} 100 % Correct - BYU
a. gets closer to zero
b. gets larger
c. stays unchanged
d. gets smaller without limit - correct answer b. gets larger
You get a twenty-year amortized loan of $100,000 with a 5% annual interest rate.
What are annual payments?
a. $8,718
b. $37,689
c. $4,762
d. $8,024 - correct answer d. $8,024
Compound interest can be best described as:
a. interest earned on the original principal
b. the discount rate
c. interest on interest only
d. interest on interest and interest on original principal - correct answer d. interest on
interest and interest on original principal
When we consider the time value of money, a dollar received in the future:
, FIN 300 Final Exam (Latest Update 2026 /
2027) Questions and Verified Answers
{Grade A} 100 % Correct - BYU
a. is worth less than a dollar received today
b. is worth more than a dollar received today
c. is worth the same as a dollar received today
d. depends on the cimpounding used to determine the relationship to a dollar
received today - correct answer a. is worth less than a dollar received today
As a gift from your parents, you just received $50,000 for your education for the next
four years. You can earn an annual rate of 8% on your investments. How much can
you withdraw each year (end of year) just using up the $50,000?
a. $12,500
b. $11,096
c. $11,750
d. $15,096 - correct answer b. $11,096
You would like to have $500,000 put away in 20 years for your retirement. You plant
to put away $14,000 each year (end of year). What is the minimum interest rate that
you would need to receive $500,000.
a. 6.5%
b. 5.72%
c. 5%
d. 4.5% - correct answer b. 5.72%
2027) Questions and Verified Answers
{Grade A} 100 % Correct - BYU
Given the following information, calculate earnings per share:
Interest Expense - 40,000
Net Income - 400,000
Preferred dividends paid - 65,000
Common dividends paid - 100,000
Common Stock Oustanding - 100,000
a. 1.95
b. 3.35
c. 2.35
d. 3.60 - correct answer b. 3.35
Depreciation:
a. is not a true expense
b. represents a cash outflow on the cash flow statement
c. is deducted from net income
d. is a tax deductible non-cash expense - correct answer d. is a tax deductible non-
cash expense
As the discount rate decreases, the present value of a positive cash flow to be
received at a particular time in the future:
, FIN 300 Final Exam (Latest Update 2026 /
2027) Questions and Verified Answers
{Grade A} 100 % Correct - BYU
a. gets closer to zero
b. gets larger
c. stays unchanged
d. gets smaller without limit - correct answer b. gets larger
You get a twenty-year amortized loan of $100,000 with a 5% annual interest rate.
What are annual payments?
a. $8,718
b. $37,689
c. $4,762
d. $8,024 - correct answer d. $8,024
Compound interest can be best described as:
a. interest earned on the original principal
b. the discount rate
c. interest on interest only
d. interest on interest and interest on original principal - correct answer d. interest on
interest and interest on original principal
When we consider the time value of money, a dollar received in the future:
, FIN 300 Final Exam (Latest Update 2026 /
2027) Questions and Verified Answers
{Grade A} 100 % Correct - BYU
a. is worth less than a dollar received today
b. is worth more than a dollar received today
c. is worth the same as a dollar received today
d. depends on the cimpounding used to determine the relationship to a dollar
received today - correct answer a. is worth less than a dollar received today
As a gift from your parents, you just received $50,000 for your education for the next
four years. You can earn an annual rate of 8% on your investments. How much can
you withdraw each year (end of year) just using up the $50,000?
a. $12,500
b. $11,096
c. $11,750
d. $15,096 - correct answer b. $11,096
You would like to have $500,000 put away in 20 years for your retirement. You plant
to put away $14,000 each year (end of year). What is the minimum interest rate that
you would need to receive $500,000.
a. 6.5%
b. 5.72%
c. 5%
d. 4.5% - correct answer b. 5.72%
