FIN 370 Final Exam

Get afraid about doing studies? Assignment E Help is

the largest online educational platform present you
the best quality study material of FIN 370 Final Exam,
fin 370 final exam study guide, fin 370 final exam set 1,
2, 3, 4, 5, fin 370 final exam 10 sets, fin 370 final exam
version 4, fin 370 final exam 2016.

http://www.assignmentehelp.com/University-of-
phoenix/FIN-370-Final-Exam.html
 Easy Questions and Answers of FIN 370 Final Exam
(University of Phoenix) course.

1. Which financial statement reports the amounts of cash that the firm
generated and distributed during a particular time period?

statement of retained earnings

Income statement

Statement of cash flows

Balance sheet

1 We commonly measure the risk-return relationship using which of the

following?

Expected returns

Coefficient of variation

Correlation coefficient

Standard deviation

1 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
1 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

1 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

1 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

1 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

1 Which of these is the term for portfolios with the highest return possible for
each risk level?

Total portfolios

Efficient portfolios

Modern portfolios

Optimal portfolios

1 Which financial statement shows the total revenues that a firm earns and
the total expenses the firm incurs to generate those revenues over a
specific period of time generally one year?

Statement of cash flows

Statement of retained earnings

Balance sheet

Income statement

1 What are the tools available for the manager in financial planning?

Delaying disbursement of cash, reducing collection period, cash

management, and Increasing inventory turnover

Delaying disbursement of cash and cash management

Reducing collection period and delaying disbursement of cash

Increasing inventory turnover and reducing collection period

1 When firms use multiple sources of capital, they need to calculate the
appropriate discount rate for valuing their firm's cash flows as__________.

they apply to each asset as they are purchased with their respective forms
of debt or equity

a sum of the capital components costs

a simple average of the capital components costs

a weighted average of the capital components costs

1 You are trying to pick the least-expensive machine for your company. You
have two choices: machine A, which will cost $50,000 to purchase and
which will have OCF of -$3,500 annually throughout the machine's
expected life of three years; and machine B, which will cost $75,000 to
purchase and which will have OCF of -$4,900 annually throughout that
machine's four-year life. Both machines will be worthless at the end of their
life. If you intend to replace whichever type of machine you choose with the
same thing when its life runs out, again and again out into the foreseeable
future, and if your business has a cost of capital of 14 percent, which one
should you choose?

Neither machine A nor B

Both machines A and B

Machine B

Machine A

1 Financial plans include which of the following?

All of the above

Pro forma Income Statement, Balance Sheet

Short Term and Long Term Plan

Schedule of Sales, Expenses, and Capital Expenditure

1 Which of these statements is true regarding divisional WACC?

Using a simple firmwide WACC to evaluate new projects would give an

unfair advantage to projects that present less risk than the firm's average
beta.

Using a divisional WACC versus a WACC for the firm's current operations
will result in quite a few incorrect decisions.
 Using a simple firmwide WACC to evaluate new projects would give an
unfair advantage to projects that present more risk than the firm's average
beta.

Using a firmwide WACC to evaluate new projects would have no impact on

projects that present less risk than the firm's average beta.

1 Which of these provide a forum in which demanders of funds raise funds

by issuing new financial instruments, such as stocks and bonds?

Investment banks

Secondary markets

Primary markets

Money markets

1 What are reasons for the firm to go abroad?

Lower production cost

All of the above

Diversification

Access to raw materials

1 The top part of Mars, Inc.'s 2013 balance sheet is listed as follows (in
millions of dollars). What are Mars, Inc.'s current ratio, quick ratio, and
cash ratio for 2013?

4.2, 1.0, 0.2

2.3333, 0.5556, 0.1111

10.5, 6.0, 1.0

0.1111, 0.5556, 0.2

1 The Rule of 72 is a simple mathematical approximation for__________.

the future value required to double an investment

the present value required to double an investment

the payments required to double an investment

the number of years required to double an investment

1 Which of these ratios show the combined effects of liquidity, asset

management, and debt management on the overall operation results of the
firm?

Coverage

Financial

Liquidity

Profitability

1 The overall goal of the financial manager is to__________.

minimize total costs

maximize shareholder wealth

maximize net income

maximize earnings per share

1 Which of the following can create ethical dilemmas between corporate

managers and stockholders?

Board of directors

Auditors
 Venture Capitalist

Agency relationship

1 Which of the following terms means that during periods when interest rates
change substantially, bondholders experience distinct gains and losses in
their bond investments?

Reinvestment rate risk

Credit quality risk

Interest rate risk

Liquidity rate risk

1 Which of these is used as a measure of the total amount of available cash

flow from a project?

Free cash flow

Investment in operating capital

Operating cash flow

Sunk cash flow

1 Suppose that Model Nails, Inc.'s capital structure features 60 percent

equity, 40 percent debt, and that its before-tax cost of debt is 6 percent,
while its cost of equity is 10 percent. If the appropriate weighted average
tax rate is 28 percent, what will be Model Nails' WACC?

7.73 percent

16.00 percent

8.40 percent

8.00 percent
1 Which of these does NOT perform vital functions to securities markets of
all sorts by channeling funds from those with surplus funds to those with
shortages of funds?

Commercial banks

Insurance companies

Mutual funds

Secondary markets

1 Which of the following is a true statement?

 If interest rates fall, U.S. Treasury bonds will have decreasing values.

If interest rates fall, no bonds will enjoy rising values.

If interest rates fall, corporate bonds will have decreasing values.

If interest rates fall, all bonds will enjoy rising values.

1 Five years ago, Jane invested $5,000 and locked in an 8 percent annual
interest rate for 25 years (ending 20 years from now). James can make a 20-
year investment today and lock in a 10 percent interest rate. How much
money should he invest now in order to have the same amount of money in
20 years as Jane?

$7,346.64

$3,160.43

$5,089.91

$3,464.11

1 We call the process of earning interest on both the original deposit and on
the earlier interest payments:

compounding.

multiplying.

computing.

discounting.

1 We can estimate a stock's value by__________.

using the book value of the total assets divided by the number of shares
outstanding

using the book value of the total stockholder equity section

 compounding the past dividends and past stock price appreciation

discounting the future dividends and future stock price appreciation

1 A firm is expected to pay a dividend of $2.00 next year and $2.14 the
following year. Financial analysts believe the stock will be at their target
price of $75.00 in two years. Compute the value of this stock with a
required return of 10 percent.

$65.40

$65.57

$79.14

$66.67

Click here to download Complete Answers of

University of Phoenix courses:

FIN 370 Final Exam

FIN 571 Connect Problems
FIN 575 Final Exam
LAW 421 Final Exam
LAW 575 Final Exam
LDR 300 Final Exam
LDR 531 Final Exam
 MKT 421 Final Exam
MKT 571 Final Exam
MKT 575 Final Exam

You need more information only a click on away:

www.assignmentehelp.com