TOPGRADE

FINC 5510 Part 2 Study Guide Test. Which of the following is a way in which the euro affects markets? A. Consumers and business enjoy price transparency and increased price - based competition. B. Countries within the Euro zone enjoy cheaper transaction costs. C. Currency risks and costs related to exchange rate uncertainty are reduced. D. all of the above - CORRECT ANSWER all of the above One of the innovations introduced by Bretton Woods was the creation of the Special Drawing Righ...

FINC 2400 Chapter 1 Practice Exam Questions & Answers. 1) Most Americans will never be able to understand and develop a personal financial plan. - CORRECT ANSWER FALSE A good understanding of the financial planning process will allow you to make informed decisions without relying on the advice of financial advisors. - CORRECT ANSWER FALSE In the United States the level of savings is about A) 50% of income earned. B) 25% of income earned. C) 4.5% of income earned. D) less than 1% o...

FINC 311 Final Exam Study Guide Test Chapter 11 Correctly Answered. If a stock has a 50% probability of having an expected return of 10% and a 50% probability of having an expected return of 20%, what is the overall expected return for this stock? -10% -20% -15% -30% -Impossible to calculate - CORRECT ANSWER 15% why: 15% = (.5*10% + .5*20%) Mary owns a risky stock and anticipates earning 16.5 percent on her investment in that stock. Which one of the following best describes the 16...

FINC 406 - Module 6 Concept Check Exam Questions & Answers. B) False - CORRECT ANSWER Accounts receivables (net) reported in the current asset section of a company's balance sheet represents the total amount owed by customers within the next year. A) True B) False A) True - CORRECT ANSWER In order to report accounts receivable, net, companies estimate the amount they do not expect to collect from their credit customers. A) True B) False A) True - CORRECT ANSWER Overestimating...

FINC 630 Study Review Practice Test. Which one of the following corporate board characteristics usually improves corporate governance? - CORRECT ANSWER CEO is not the chairman of the board. Which of the following is NOT normally regarded as being a barrier to hostile takeovers? - CORRECT ANSWER Abnormally high executive compensation. Which one of the following statements is TRUE? a. Shareholders benefit when the company is acquired because they usually receive a higher price for the...

FINC 3331 Chapter 5 – 8 Final Exam Prep Questions Correctly Answered. Annuity pays $2,500 at end of year for 3 years. You could earn 5.5% on your money in other investments that have equal risk. What is the most you should pay for the annuity?? - CORRECT ANSWER Payment = $2,500 Interest/year = 5.5% (or .055) N (years) = 3 (2500/(1+0.055)) + (2500/ (1+0.055)^2) + (2500/(1+0.055)^3) = $6,744.83 What is present value of a perpetuity that pays $250 per year if the appropriate inte...

FINC 340 Questions Correctly Answered. An investor deposited $10,000 into a portfolio at the beginning of the year. The portfolio increased by 8% by the end of the year. The investor withdrew half his funds and left the remaining on deposit. These funds increased by 20% over the next year. The investor then closed his account. What is the investor's two year holding period return? - CORRECT ANSWER A. 8.0% B. 14.0% C. 16.6% **D. 18.8% E. 20% Strategic asset allocation identif...

FINC 409 - CH 1 M/C Practice Review Exam Questions. The primary goal of the financial manager of a profit-seeking organization is to: a. maximize market share b. maximize the owners' wealth c. increase sales and profit d. have healthy cash flow - CORRECT ANSWER B Finance has its origins in: a. economics and statistics b. accounting and sociology c. accounting and economics d. psychology and mathematics - CORRECT ANSWER C Finance is: a. the study of how individuals, instituti...

FINC CH 3 Study Guide Test. Discuss how and why banks suffered financial difficulties during the financial crisis. - CORRECT ANSWER The first-half of the 2000s decade was characterized by excessive borrowing by individuals, financial institutions, and governments. Individuals with questionable financial qualifications were encouraged to purchase homes as housing prices continued to decline. However, when the housing price bubble burst in mid-2006, both home values, as well as the mortgag...

FINC 3131- HW Chapter 1 Study Guide Exam Questions. Which one of the following is most apt to create a situation where an agency conflict could arise? - separating management from ownership - downsizing a firm - reducing both management & nonmanagement series - decreasing employee turnover - increasing the size of a firm's operations - CORRECT ANSWER separating management from ownership Which one of the following statements related to securities dealers is correct? - dealers a...

FINC Chapters 10-12 Exam Questions & Answers. Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% coupon rate with semiannual payments, and a par value of $1,000. The interest rate is 6.20%, based on semiannual compounding. What is the bond's price? - CORRECT ANSWER $1,101.59 Grossnickle Corporation issued 20-year, 7.5% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, ...

FINC 3131- Chapter 2 Complete Exam Questions & Answers. The matching principle states that: - costs should be recorded on the income statement whenever those costs can be reliably determined. - sales should be recorded when the payment for that sale is received. - costs should be recorded when paid. - sales should be recorded when the earnings process is virtually completed and the value of the sale can be determined. - the costs of producing an item should be recorded when the sale ...

FINC 420 – Forecasting Exam Guide Test. Operating plan - CORRECT ANSWER Provides a forecast of a firm's free cash flows, usually for the next five years, with greater specificity for the first year and less detail for each succeeding year. Describes a firm's market segments, product lines, sales and marketing strategies, production processes, and logistics, as well as projected timeline and list of who is responsible for each task. Financial Plan - CORRECT ANSWER Forecasts the addit...

FINC 409 Ch. 1 Exam Guide Questions Correctly Answered. Finance - CORRECT ANSWER the study of how individuals, institutions, governments, and businesses acquire, spend and manage money and other financial assets Financial Environment - CORRECT ANSWER financial system, institutions or intermediaries, financial markets, business firms, individuals, and global interactions that contribute to an efficiently operating economy Financial Institutions - CORRECT ANSWER organizations or interme...

FINC 409 Chapter 2 Questions & Answers. Match the following money market securities with their issuers. Securities Issuers a. Treasury bills 1. depository institutions b. negotiable CDs 2. U.S. government c. commercial paper 3. banks d. banker's acceptances 4. business firms & institutions - CORRECT ANSWER a. 2 b. 1 c. 4 d. 3 Match the following money market securities with the level of secondary market activity. a. Treasury bills 1. no activity b. commercial paper 2. low ...

FINC 301 Chapter 6 Study Exam Questions Correctly Answered. Determine a firm's total asset turnover (TAT) if its net profit margin (NPM) is 5 percent, total assets are $8 million, and ROI is 8 percent. A.) 1.60 B.) 2.05 C.) 2.50 D.) 4.00 - CORRECT ANSWER A.) 1.60 Felton Farm Supplies, Inc., has an 8 percent return on total assets of $300,000 and a net profit margin of 5 percent. What are its sales? A.) $3,750,000 B.) $480,000 C.) $300,000 D.) $1,500,000 - CORRECT...

FINC Final Exam Prediction Questions. The net present value of an investment represents the difference between the investment's - CORRECT ANSWER cost and its market value Which of the following indicates that a project is expected to create value for its owners? - CORRECT ANSWER positive net present value Which of the following is generally considered to be the best form of analysis if you have to select a single method to analyze a variety of investment opportunities? - CORRECT ANSWER...

FINC 409 - Ch. 4 Review Practice Questions & Answers. Which of the following is true of the Federal Reserve System? - CORRECT ANSWER It is the central bank of the United States, It is responsible for setting monetary policy, It is responsible for regulating the banking system. (All of the choices are correct.) What is the Federal National Mortgage Association known as? - CORRECT ANSWER Fannie Mae Which of the following organizations was created to issue its own debt securities to obt...

FINC 331 Quiz 3 With Verified Answers. Nico Corp issued bonds bearing a coupon rate of 12 percent, pay coupons semiannually, have 3 years remaining to maturity, and are currently priced at $940 per bond. What is the yield to maturity? A. 14.54% B. 13.99% C. 15.25% D. 12.00% - CORRECT ANSWER A. 14.54% PMT=60 (.12*10000)/2 N=6 (3*2) FV=1000 PV=940 ---------- I/Y= 7.2693*2= 14.54 A firm has issued cumulative preferred stock with a $100 par value and a 12 percent annual ...

FINC 251 Exam 1 Questions & Answers. What strategies will you develop as a result of studying personal financial planning? - CORRECT ANSWER accumulate wealth for special goals, invest intelligently, save for retirement, use insurance to cover your assets, minimize your tax payments, manage unplanned events. You should manage unplanned events so that you can avoid the problem of? A. having to work during your "golden years" or having to sell your home because you can no longer afford ...