FIN 300 (FIN300)

FIN 300 W04 Case Study Quiz | Questions and Answers | Fall 2025/26 Update | 100% Correct –BYU.

Which of the following is NOT one of the three major credit bureaus? -Experian -Equifax -Trans Union -FICO - Answer FICO An example of a fixed expense is? -Medical expenses -Gifts -Utilities -Home rental payment -Recreation - Answer Home Rental Payment Karen wanted a certificate of deposit that would definitely be available the entire length of time until maturity. She would NOT want to consider a -Bump-up CD -Callable CD -Portfolio CD -Promotional CD -Indexed CD ...

Role of Financial Manager - Answer 1. planning asset management 2. choose assets with greater cash flow 3. capital budgeting 4. day to day operations Capital Budgeting - Answer decision making process regarding productive assets Financial Manager's Goals - Answer 1. survive 2. avoid bankruptcy 3. avoid financial distress 3. beat competition 4. maximize sales and market share 5. minimize costs 6. maximize profits 7. maintain steady earnings growth Stakeholder Theory...

Bootstrapping - Answer The process by which many entrepreneurs raise seed money to obtain other resources necessary to start their business. Seed financing - Answer is a form of securities offering in which an investor invests capital in exchange for an equity stake in the company and include friends and family funding, angel funding, and crowdfunding. Venture Capital - Answer are individuals or firms that help new businesses get started and provide much of their early-stage finan...

Why is a dollar received today worth more than a dollar received in the future? - Answer Today's dollar can be reinvested, yielding a greater amount in the future. compound interest - Answer interest earned on interest The multi-period formula for future value using compounding is - Answer FV = PV × (1 + r)t Present value - Answer the current value of future cash flows discounted at the appropriate discount rate PV = - Answer $1/(1 + r)^t loan amortization - Ans...

RAISING CAPITAL CHAPTER 15 - Answer Which of the following are costs of issuing new securities? - Answer 1. The spread 2. Underpricing 3. The Green Shoe option Dilution of the ownership of existing shareholders can be ________ with a right offering. - Answer Avoided In order to issue a security to the public, management's first step is to _______. - Answer Obtain board approval Whether a firm obtains capital by debt or equity financing depends on: - Answer 1. The...

NPV= - Answer PV (Benefits)-PV (Costs) Accept a project if NPV is - Answer >0 Accept a project if payback period is - Answer less than the cutoff time What are three advantages of payback? - Answer easy to understand, adjusts for uncertainty of later cash flows, based on liquidity What are four disadvantages of payback? - Answer ignores the time value of money, requires an arbitrary cutoff point, ignores cash flows beyond the cutoff date, biased against long-term an...

The December 31, 2018, balance sheet of Whelan, Inc., showed $146,000 in the common stock account and $2,710,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed $156,000 and $3,010,000 in the same two accounts, respectively. The company paid out $151,000 in cash dividends during 2019. What was the cash flow to stockholders for the year? - Answer $-159,000 The December 31, 2018, balance sheet of Justin's Golf Shop, Inc., showed current assets of $1...

Operating Cash Flow (OCF) - Answer EBIT + Depreciation - Taxes Net Capital Spending (NCS) - Answer Ending FA + Depreciation - Beginning FA Net Working Capital (NWC) - Answer CA - CL Net Income - Answer Sales - Costs - Depreciation - Interest Expense = EBT EBT x Tax Rate = Taxes EBT - Taxes = Net Income NI = Addition to RE + Dividends NI = Sales x PM Cash Flow From Assets (CFFA) - Answer Cash Flow to Creditors + Cash Flow to Stockholders Cash Flow to Creditors -...