Submitted By peteroverby

Words 1073

Pages 5

Words 1073

Pages 5

1. Your credit card company charges you 1.5% per month. What is the annual percentage rate (APR) on your account? What is the actual interest rate you pay to the credit card company per year?

a. APR is 15%; the actual interest rate is 16.08%

b. APR is 16.08%; the actual interest rate is 15%

c. APR is 18%;the actual interest rate is 19.56%

d. APR is 19.56%; the actual interest rate is18%

2. You are comparing two annuities which offer monthly payments of $500 for ten years and pay 0.5% interest per month. Annuity A will pay you on the first day of each month while annuity B will pay you on the last day of each month. Which following statementsareCORRECT concerning these two annuities?

I. Annuity A has a higher value than annuity Bas of 10 years from today.

II. Annuity B has a higher value than annuity A as of 10 years from today.

III. Annuity A has a higher value than annuity B today.

IV. Annuity B has a higher value than annuity A today.

a. I and III only

b. I and IV only

c. II and III only

d. II and IV only

3. The Tarpley Life Insurance Co. is trying to sell you an investment policy that pays you and your heirs $15,000 per year forever. If a sales associate told you that the policy cost $200,000 today. At what interest rate would this be a fair deal?

a. 7%

b. 7.5%

c. 8%

d. 8.5%

4. The principal amount of a bond that is repaid at maturity is called the:

a. coupon.

b. face (or par) value.

c. coupon rate.

d. yield to maturity.

5. Which one of the following bonds has the greatest price risk?

a. 3-year; 4 percent coupon

b. 3-year; 6 percent coupon

c. 7-year; 6 percent coupon

d. 7-year; 4 percent coupon

6. You own a bond that has an 8%coupon and matures 8 years from now. You purchased this bond at par value when it was…...

...FIN 571 Final Exam Get Tutorial by Clicking on the link below or Copy Paste Link in Your Browser http://hwguiders.com/downloads/fin-571-final-exam/ For More Courses and Exams use this form ( http://hwguiders.com/contact-us/ ) Feel Free to Search your Class through Our Product Categories or From Our Search Bar (http://hwguiders.com/ ) Final Exam Please provide your answers as follows in the Assignment newsgroup (Excel spreadsheet is preferred): 1. A 2. B 3. B, etc Chapter 1 The Goals and Functions of Financial Management Multiple Choice Questions 1. What is the primary goal of financial management? A) Increased earnings B) Maximizing cash flow C) Maximizing shareholder wealth D) Minimizing risk of the firm Answer: C Difficulty: Easy Type: Memorization 2. The partnership form of organization A) avoids the double taxation of earnings and dividends found in the corporate form of organization. B) usually provides limited liability to the partners. C) has unlimited life. D) simplifies decision making. Answer: A Difficulty: Easy Type: Memorization 3. Increased productivity due to technology has A) increased corporations’ reliance on debt for capital expansion needs. B) created larger asset values on the firm’s historical balance sheet. C) made it cheaper (in terms of interest costs) for firms to borrow money. D) helped to keep corporate costs in check. Answer: D Difficulty: Medium Type: Conceptual 4. Insider trading occurs when A) someone...

Words: 7248 - Pages: 29

...FIN 401 Final Exam Answers http://www.projbid.com/downloads/fin-401-final-exam-answers/ Group A (3 Points × 10 = 30 Points) 1. Your credit card company charges you 1.5% per month. What is the annual percentage rate (APR) on your account? What is the actual interest rate you pay to the credit card company per year? 2. APR is 15%; the actual interest rate is 16.08% 3. APR is 16.08%; the actual interest rate is 15% 4. APR is 18%;the actual interest rate is 19.56% 5. APR is 19.56%; the actual interest rate is18% 2. You are comparing two annuities which offer monthly payments of $500 for ten years and pay 0.5% interest per month. Annuity A will pay you on the first day of each month while annuity B will pay you on the last day of each month. Which following statementsareCORRECT concerning these two annuities? I. Annuity A has a higher value than annuity Bas of 10 years from today. II. Annuity B has a higher value than annuity A as of 10 years from today. III. Annuity A has a higher value than annuity B today. IV. Annuity B has a higher value than annuity A today. 1. I and III only 2. I and IV only 3. II and III only 4. II and IV only 3. The Tarpley Life Insurance Co. is trying to sell you an investment policy that pays you and your heirs $15,000 per year forever. If a sales associate told you that the policy cost $200,000 today. At what interest rate would this be a fair deal? 4. 7% 5. 5% 6. 8% 7. 5% 4. The principal amount of...

Words: 1078 - Pages: 5

...FIN 370 Final Exam Solution Follow the link below to purchase the Exam http://www.homeworkarena.com/fin-370-final-exam Visit Website: http://www.homeworkarena.com/ Please contact us for more Tutorial & Help (climaxbegin@gmail.com) 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. As the volume of production increases, the fixed cost per unit of the product decreases. 7. Whenever the IRR on a project equals that project’s required rate of return, the NPV equals zero. 8. The hedging principle involves matching the cash flow from an asset with the cash flow requirements of the financing used. 9. Because they operate within a highly uncertain environment, utilities hold a large percentage of their total assets in cash. 10. Accounts receivable are an asset that reflects sales made on credit. 11. Working capital for a project includes investment in fixed assets. 12. Sales captured from the firm’s competitors can be relevant to the capital-budgeting decision. 13. The weighted average cost of capital is the minimum......

Words: 897 - Pages: 4

...FIN 550 Final Exam Solution http://www.homeworkwarehouse.com/downloads/fin-550-final-exam-solution/ FIN 550 Final Exam Solution • Question 1 The five major classes of ratios include the following, except: • Question 2 Which of the following statements regarding financial risk and business risk is true? • Question 3 Which of the following is not a flow ratio? • Question 4 Which of the following ratios is not a measurement of the firm’s liquidity? • Question 5 A common-size income statement expresses all income statement items: • Question 6 The growth rate of equity earnings without external financing is equal to: • Question 7 The most appropriate discount rate to use when applying the Operating Free Cash Flows model is the firm’s: • Question 8 All of the following are ways in which a firm can increase its growth rate of equity earnings without any external financing except: • Question 9 Which of the following is an underlying assumption of the constant growth dividend discount model (DDM)? • Question 10 Dividend growth is a function of: • Question 11 The dividend payout ratio for the aggregate market is 65 percent, the required rate of return is 13 percent, and the expected growth rate for dividends is 8 percent. Compute the current earnings multiple. • Question 12 The correlation of stock market returns between the U.S. and Japan is ____ and ____. • Question 13 Which of the following economic series are included in the NBER lagging indicator......

Words: 848 - Pages: 4

...FIN 401 Final Exam http://www.homework-bank.com/downloads/fin-401-final-exam-answers/ 1. Your credit card company charges you 1.5% per month. What is the annual percentage rate (APR) on your account? What is the actual interest rate you pay to the credit card company per year? a. APR is 15%; the actual interest rate is 16.08% b. APR is 16.08%; the actual interest rate is 15% c. APR is 18%;the actual interest rate is 19.56% d. APR is 19.56%; the actual interest rate is18% 2. You are comparing two annuities which offer monthly payments of $500 for ten years and pay 0.5% interest per month. Annuity A will pay you on the first day of each month while annuity B will pay you on the last day of each month. Which following statementsareCORRECT concerning these two annuities? I. Annuity A has a higher value than annuity Bas of 10 years from today. II. Annuity B has a higher value than annuity A as of 10 years from today. III. Annuity A has a higher value than annuity B today. IV. Annuity B has a higher value than annuity A today. a. I and III only b. I and IV only c. II and III only d. II and IV only 3. The Tarpley Life Insurance Co. is trying to sell you an investment policy that pays you and your heirs $15,000 per year forever. If a sales associate told you that the policy cost $200,000 today. At what interest rate would this be a fair deal? a. 7% b. 7.5% c. 8% d. 8.5% 4. The principal amount of a bond that is repaid at maturity is called......

Words: 1069 - Pages: 5

...FIN 550 Final Exam Part 1 - 2 Solution http://www.homework-bank.com/downloads/fin-550-final-exam-part-1-2-solution/ Fin 550 Final Exam Part 1 - 2 • Question 1 The five major classes of ratios include the following, except • Question 2 Which of the following statements regarding financial risk and business risk is true? • Question 3 Which of the following is not a flow ratio? • Question 4 Which of the following ratios is not a measurement of the firm's liquidity? • Question 5 A common-size income statement expresses all income statement items • Question 6 The growth rate of equity earnings without external financing is equal to • Question 7 The most appropriate discount rate to use when applying the Operating Free Cash Flows model is the firm's • Question 8 All of the following are ways in which a firm can increase its growth rate of equity earnings without any external financing except • Question 9 Which of the following is an underlying assumption of the constant growth dividend discount model (DDM)? • Question 10 Dividend growth is a function of • Question 11 The dividend payout ratio for the aggregate market is 65 percent, the required rate of return is 13 percent, and the expected growth rate for dividends is 8 percent. Compute the current earnings multiple. • Question 12 The correlation of......

Words: 856 - Pages: 4

...FIN 401 Final Exam Solutions http://hwguiders.com/downloads/fin-401-final-exam-solutions FIN 401 Final Exam Solutions 1. Your credit card company charges you 1.5% per month. What is the annual percentage rate (APR) on your account? What is the actual interest rate you pay to the credit card company per year? a. APR is 15%; the actual interest rate is 16.08% b. APR is 16.08%; the actual interest rate is 15% c. APR is 18%;the actual interest rate is 19.56% d. APR is 19.56%; the actual interest rate is18% 2. You are comparing two annuities which offer monthly payments of $500 for ten years and pay 0.5% interest per month. Annuity A will pay you on the first day of each month while annuity B will pay you on the last day of each month. Which following statementsareCORRECT concerning these two annuities? I. Annuity A has a higher value than annuity Bas of 10 years from today. II. Annuity B has a higher value than annuity A as of 10 years from today. III. Annuity A has a higher value than annuity B today. IV. Annuity B has a higher value than annuity A today. a. I and III only b. I and IV only c. II and III only d. II and IV only 3. The Tarpley Life Insurance Co. is trying to sell you an investment policy that pays you and your heirs $15,000 per year forever. If a sales associate told you that the policy cost $200,000 today. At what interest rate would this be a fair deal? a. 7% b. 7.5% c. 8% d. 8.5% 4. The principal amount of a bond that is repaid at......

Words: 1073 - Pages: 5

...FIN 401 Final Exam http://www.homework-bank.com/downloads/fin-401-final-exam-answers/ 1. Your credit card company charges you 1.5% per month. What is the annual percentage rate (APR) on your account? What is the actual interest rate you pay to the credit card company per year? a. APR is 15%; the actual interest rate is 16.08% b. APR is 16.08%; the actual interest rate is 15% c. APR is 18%;the actual interest rate is 19.56% d. APR is 19.56%; the actual interest rate is18% 2. You are comparing two annuities which offer monthly payments of $500 for ten years and pay 0.5% interest per month. Annuity A will pay you on the first day of each month while annuity B will pay you on the last day of each month. Which following statementsareCORRECT concerning these two annuities? I. Annuity A has a higher value than annuity Bas of 10 years from today. II. Annuity B has a higher value than annuity A as of 10 years from today. III. Annuity A has a higher value than annuity B today. IV. Annuity B has a higher value than annuity A today. a. I and III only b. I and IV only c. II and III only d. II and IV only 3. The Tarpley Life Insurance Co. is trying to sell you an investment policy that pays you and your heirs $15,000 per year forever. If a sales associate told you that the policy cost $200,000 today. At what interest rate would this be a fair deal? a. 7% b. 7.5% c. 8% d. 8.5% 4. The principal amount of a bond that is repaid at maturity is called......

Words: 1069 - Pages: 5

...FIN 550 Final Exam Part 1 - 2 Solution http://www.homework-bank.com/downloads/fin-550-final-exam-part-1-2-solution/ Fin 550 Final Exam Part 1 - 2 • Question 1 The five major classes of ratios include the following, except • Question 2 Which of the following statements regarding financial risk and business risk is true? • Question 3 Which of the following is not a flow ratio? • Question 4 Which of the following ratios is not a measurement of the firm's liquidity? • Question 5 A common-size income statement expresses all income statement items • Question 6 The growth rate of equity earnings without external financing is equal to • Question 7 The most appropriate discount rate to use when applying the Operating Free Cash Flows model is the firm's • Question 8 All of the following are ways in which a firm can increase its growth rate of equity earnings without any external financing except • Question 9 Which of the following is an underlying assumption of the constant growth dividend discount model (DDM)? • Question 10 Dividend growth is a function of • Question 11 The dividend payout ratio for the aggregate market is 65 percent, the required rate of return is 13 percent, and the expected growth rate for dividends is 8 percent. Compute the current earnings multiple. • Question 12 The correlation of......

Words: 856 - Pages: 4

...FIN 550 Final Exam Solution http://www.homeworkwarehouse.com/downloads/fin-550-final-exam-solution/ FIN 550 Final Exam Solution • Question 1 The five major classes of ratios include the following, except: • Question 2 Which of the following statements regarding financial risk and business risk is true? • Question 3 Which of the following is not a flow ratio? • Question 4 Which of the following ratios is not a measurement of the firm’s liquidity? • Question 5 A common-size income statement expresses all income statement items: • Question 6 The growth rate of equity earnings without external financing is equal to: • Question 7 The most appropriate discount rate to use when applying the Operating Free Cash Flows model is the firm’s: • Question 8 All of the following are ways in which a firm can increase its growth rate of equity earnings without any external financing except: • Question 9 Which of the following is an underlying assumption of the constant growth dividend discount model (DDM)? • Question 10 Dividend growth is a function of: • Question 11 The dividend payout ratio for the aggregate market is 65 percent, the required rate of return is 13 percent, and the expected growth rate for dividends is 8 percent. Compute the current earnings multiple. • Question 12 The correlation of stock market returns between the U.S. and Japan is ____ and ____. • Question 13 Which of the following economic series are included in the NBER lagging indicator......

Words: 848 - Pages: 4

...FIN 535 Final Exam Purchase here http://homeworkonestop.com/FIN%20535/fin-535-final-exam Product Description FIN 535 Final Exam Solution (Chapter 8-21) All possible questions with answers. A Grade Guaranteed Strayer FIN 535 Final Exam Purchase here http://homeworkonestop.com/FIN%20535/fin-535-final-exam Product Description FIN 535 Final Exam Solution (Chapter 8-21) All possible questions with answers. A Grade Guaranteed Strayer FIN 535 Final Exam Purchase here http://homeworkonestop.com/FIN%20535/fin-535-final-exam Product Description FIN 535 Final Exam Solution (Chapter 8-21) All possible questions with answers. A Grade Guaranteed Strayer FIN 535 Final Exam Purchase here http://homeworkonestop.com/FIN%20535/fin-535-final-exam Product Description FIN 535 Final Exam Solution (Chapter 8-21) All possible questions with answers. A Grade Guaranteed Strayer FIN 535 Final Exam Purchase here http://homeworkonestop.com/FIN%20535/fin-535-final-exam Product Description FIN 535 Final Exam Solution (Chapter 8-21) All possible questions with answers. A Grade Guaranteed Strayer FIN 535 Final Exam Purchase here http://homeworkonestop.com/FIN%20535/fin-535-final-exam Product Description FIN 535 Final Exam Solution (Chapter 8-21) All possible questions with answers. A Grade Guaranteed Strayer FIN 535 Final Exam Purchase here http://homeworkonestop.com/FIN%20535/fin-535-final-exam Product......

Words: 510 - Pages: 3

...FIN 535 Final Exam Purchase here http://homeworkonestop.com/FIN%20535/fin-535-final-exam Product Description FIN 535 Final Exam Solution (Chapter 8-21) All possible questions with answers. A Grade Guaranteed Strayer FIN 535 Final Exam Purchase here http://homeworkonestop.com/FIN%20535/fin-535-final-exam Product Description FIN 535 Final Exam Solution (Chapter 8-21) All possible questions with answers. A Grade Guaranteed Strayer FIN 535 Final Exam Purchase here http://homeworkonestop.com/FIN%20535/fin-535-final-exam Product Description FIN 535 Final Exam Solution (Chapter 8-21) All possible questions with answers. A Grade Guaranteed Strayer FIN 535 Final Exam Purchase here http://homeworkonestop.com/FIN%20535/fin-535-final-exam Product Description FIN 535 Final Exam Solution (Chapter 8-21) All possible questions with answers. A Grade Guaranteed Strayer FIN 535 Final Exam Purchase here http://homeworkonestop.com/FIN%20535/fin-535-final-exam Product Description FIN 535 Final Exam Solution (Chapter 8-21) All possible questions with answers. A Grade Guaranteed Strayer FIN 535 Final Exam Purchase here http://homeworkonestop.com/FIN%20535/fin-535-final-exam Product Description FIN 535 Final Exam Solution (Chapter 8-21) All possible questions with answers. A Grade Guaranteed Strayer FIN 535 Final Exam Purchase here http://homeworkonestop.com/FIN%20535/fin-535-final-exam Product......

Words: 544 - Pages: 3

...discounted payback, accept the project. University of Phoenix Final Exam Study Guide FIN 575 Final Exam 6. The risk response plan answers what question? • What can be done if risk occurs? What is the backup plan? • What are project costs? • There is no need to plan for risk seldom occurs in a project. • How risk is to be managed 7. For the most recent year, Cal’s Cats had sales of $380,000, cost of goods sold of $93,000, depreciation expense of $47,000, and additions to retained earnings of $61,420. The firm had $52,000 in interest expense, and 34% tax rate. What were the times interest earned ratio? • 2.2 • 5.8 • 4.61 • 2.8 8. Bob’s Garages has sales of $41 million, total assets of $32 million, and total debt of $11 million. If the profit margin is 12% what is the return on equity (ROE)? • 14% • 12% • 51% • 23.40% 9. What are the components of project planning that need monitoring? • Resource procurement and quality • Project cost and risk • Project cost, risk, resource procurement and quality • Quality and control 10. During project planning, the project team creates a work breakdown structure that details work tasks that must be completed. The work breakdown structure should include a • schedule of when every task will start and be completed • schedule of project staff meetings • set of management tasks • budget analysis Click here to download the complete class of FIN 575 11. The R. M. Senchack Corporation earned an operating......

Words: 1316 - Pages: 6

...FIN 620 Final Exam Questions Solution Click Link Below To Buy: http://hwaid.com/shop/fin-620-final-exam-questions-solution/ 1. Problem 19-4 Stock Splits and Stock Dividends Roll Corporation (RC) currently has 330,000 shares of stock outstanding that sell for $64 per share. Assuming no market imperfections or tax effects exist, what will the share price be after: a. RC has a five-for-three stock split? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) New share price $ b. RC has a 15 percent stock dividend? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) New share price $ c. RC has a 42.5 percent stock dividend? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) New share price $ d. RC has a four-for-seven reverse stock split? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) New share price $ e. Determine the new number of shares outstanding in parts (a) through (d). (Do not round intermediate calculations and round your answers to the nearest whole number. (e.g., 32)) a. New shares outstanding b. New shares outstanding c. New shares outstanding d. New shares outstanding 2. Problem 19-16 Dividend Smoothing The Sharpe Co. just paid a dividend of $1.80 per share of......

Words: 2412 - Pages: 10

...using which of the following? • Expected returns • Coefficient of variation • Correlation coefficient • Standard deviation 3. What's the current yield of a 6 percent coupon corporate bond quoted at a price of 101.70? • 6.1 percent • 10.2 percent • 6.0 percent • 5.9 percent Download FIN 370 Week 5 Final Exam (Latest - A Graded) complete answers FIN 370 Week 5 Final Exam (Latest - A Graded) 4. Which financial statement reports a firm's assets, liabilities, and equity at a particular point in time? • Statement of cash flows • Balance sheet • Statement of retained earnings • Income statement 5. As new capital budgeting projects arise, we must estimate__________. • the cost of the loan for the specific project • the cost of the stock being sold for the specific project • when such projects will require cash flows • the float costs for financing the project 6. Will's Wheels, Inc. reported a debt-to-equity ratio of 0.65 times at the end of 2013. If the firm's total debt at year-end was $5 million, how much equity does Will's Wheels have? • $3.25 million • $5 million • $7.69 million • $0.65 million FIN 370 Final Exam (Newest) just a click away FIN 370 Final Exam (Newest) 7. Which of these is the process of estimating expected future cash flows of a project using only the relevant parts of the balance sheet and income statements? • Cash flow analysis • Incremental cash flows • Substitutionary analysis • Pro forma analysis 8. Which of......

Words: 1570 - Pages: 7