Finance Study guides, Class notes & Summaries

FIN 370 Final Exam Guide True or False Questions 1. Financial management is concerned with the maintenance and creation of wealth. 2. The current ratio and the acid test ratio are both measures of financial leverage. 3. Sales occurring in the secondary markets increase the total stock of financial assets that exist in the economy. 4. The key ingredient in a firm’s financial planning is the sales forecast. 5. The present value of an annuity increases as the discount rate increases. 6.A...

FIN 200 Final Exam Guide 1) Maximization of shareholder wealth is a concept in which 2) What is the primary goal of financial management? 3) One of the major disadvantages of a sole proprietorship is 4) The statement of cash flows does NOT include which of the following sections? 5) Which of the following is not a primary source of capital to the firm? 6) Which account represents the cumulative earnings of the firm since its formation, minus dividends paid? 7) The mos...

When utilizing the percentage of sales approach, managers fin 370 final exam: Webster United is paying a dividend of $1.32 per share today. There are 350,000 shares outstanding with a market price of $22.40 per share prior to the dividend payment. Ignore taxes. Before the dividend, the company had earnings per share of $1.68. As a result of this dividend, the: A news flash just appeared that caused about a dozen stocks to suddenly drop in value by 20 percent. What type of risk does this news fla...

FIN 571 FIN571 Final Exam 1. Which of the following is considered a hybrid organizational form? 2. Which of the following is a principal within the agency relationship? 3. Teakap, Inc., has current assets of $ 1,456,312 and total assets of $4,812,369 for the year ending September 30, 2006. It also has current liabilities of $1,041,012, common equity of $1,500,000, and retained earnings of $1,468,347. How much long-term debt does the firm have? 4. Which of the following presents a summary of the ...

A) A project has the following estimated cash flow stream: Year Cash Flow Cumulative 0 -$4,800 -$4,800 1 1,200 -3,600 2 2,500 -1,100 3 3,400 2,300 4 1,700 4,000 Refer to the Table above. W hat is the Payback Period for this project?______________(Show your work.) Payback period = If the company wants to make its money back within 3.5 years, does it accept or reject the project based on the payback period? B) Assume an investment project has an initial cost of $8,000 to cover the purchase of new ...

A) A project has the following estimated cash flow stream: Year Cash Flow Cumulative 0 -$4,800 -$4,800 1 1,200 -3,600 2 2,500 -1,100 3 3,400 2,300 4 1,700 4,000 Refer to the Table above. What is the Payback Period for this project?______________(Show your work.) Payback period = If the company wants to make its money back within 3.5 years, does it accept or reject the project based on the payback period? B) Assume an investment project has an initial cost of $8,000 to cover the purchase...

FIN 370 WEEK 2 QUESTION AND PROBLEM SETS Chapter 5 Question 3: Calculating Present Values Question 4: Calculating Interest Rates Chapter 6 Question 2: Present Vale and Multiple Cash Question 20: Calculating Loan Payments Chapter 7 Question 3: Valuing Bonds Question 11: Valuing Bonds Chapter 8 Question 1: Stock Values Question 6: Stock Valuation

1. Award: 5 out of 5.00 points The difference between the present value of an investment’s future cash flows and its initial cost is the: payback period. internal rate of return. discounted payback period. net present value. profitability index. 2. Award: 5 out of 5.00 points Which statement concerning the net present value (NPV) of an investment or a financing project is correct? A financing project should be accepted if, and only if, the NPV is exactly equal to zero. An investment proj...