BFIN 241 Final Exam Outline

When: Thursday June 22nd from 2:30pm – 5:30pm

Where: McGraw-Hill Connect website (same website used for homework and previous exams).
Worth: 30% of Final Grade
What: The Exam will cover Chapters 1 -8 and 10-12
Time: You will have a total of 3 hours to complete the exam.
Expectations: All Capilano University Exam Policies must be followed. This is an INDIVUDUAL
assessment. No sharing of answers or group work permitted
Exam Format: This review sheet defines the scope of the exam. Exam questions will be clearly
associated with one or more of the questions below. The format of the exam may contain a
variety of questions, including problem solving, multiple choice, short answer, matching, and
calculating.

Topics include:

 Forms of organizations (Ch. 1)

 Ethics (Ch. 1)
 Income statement (Ch. 2)
 Balance sheet (Ch. 2)
 Statement of cash flows (Ch. 2)
 Market ratios (EPS, payout ratio, P/E ratio, dividend yield, market to book
value) (Ch. 2)
 Vertical and horizontal analysis (Ch. 3)
 Profitability ratios (profit margin, gross profit margin, ROA, ROE, equity
multiplier (Ch. 3)
 Asset utilization ratios (receivable turnover, average collection period,
inventory turnover, inventory holding period, accounts payable turnover,
accounts payable period, capital asset turnover, total asset turnover) (Ch.
3)
 Profitability ratios (current ratio, quick ratio) (Ch. 3)
 Debt utilization ratios (Times interest earned, fixed charge coverage, debt
to total assets) (Ch. 3)
 Required new funds (Ch. 4)
 Sales projection schedule (Ch. 4)
 Cash receipts schedule (Ch. 4)
 Production schedule (Ch. 4)
 Cash payments schedule (Ch. 4)
 Cash budget (Ch. 4)
 Break-even in units and total sales (Ch. 5)
 Target profit in units and total sales (Ch. 5)
 Degree of operating leverage (DOL) (Ch. 5)
 Degree of financial leverage (DFL) (Ch. 5)
 Degree of combined leverage (DCL) (Ch. 5)
 Financing plans - Earnings after tax (Ch. 6)
 Financing plans - EPS (Ch. 6)
 Economic order quantity (Ch. 7)
 Ordering costs per order (Ch. 7)
 Carrying costs per order (Ch. 7)
 Total costs per order (Ch. 7)
 Average inventory (Ch. 7)
 Safety stock (Ch. 7)
 Cash collections cycle (Ch. 7)
 Freed up cash (Ch. 7)
 Foregoing a cash discount (Ch. 8)
 Yield rate (Ch. 8)
 Loan rate (Ch. 8)
 Discounted loan rate (Ch. 8)
 Instalment loan rate (Ch. 8)
 Compensating balance loan rate (Ch. 8)
 Compensating balance discounted loan rate (Ch. 8)
 Bonds - present value (Ch. 10)
 Bonds - yield (Ch. 10)
 Preferred shares - price (Ch. 10)
 Preferred shares - yield (Ch. 10)
 Common shares - price (Ch. 10)
 Common shares - yield (Ch. 10)
 After tax cost of debt (Ch. 11)
 Cost of preferred stock (Ch. 11)
 Cost of internal common equity (Ch. 11)
 Cost of external common equity (Ch. 11)
 Weighted average cost of capital (Ch. 11)
 Net present value (Ch. 12)
 Internal rate of return (Ch. 12)
 Profitability index (Ch. 12)
 Payback period (Ch. 12)