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Exam (elaborations)

BFIN 300 Final Exam Questions With Solutions

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  • Course
  • BFIN 300
  • Institution
  • BFIN 300

BFIN 300 Final Exam Questions With Solutions When the expected future cash flows of an investment project increase, the net present value of the project: increases A PE is based on: historical earnings The time value of money concept can be defined as: the relationship between a dollar to ...

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  • October 13, 2024
  • 9
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • BFIN 300
  • BFIN 300
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UpperClass
BFIN 300 Final Exam Questions With
Solutions

When the expected future cash flows of an investment project increase, the net present value of

the project: increases




A PE is based on: historical earnings




The time value of money concept can be defined as: the relationship between a dollar to

be received in the future and a dollar today




Ratios that measure how efficiently a firm's management manages its current assets and current

liability accounts are known as _____ ratios. liquidity




Cash Flow to stockholders must be positive when: the dividends paid exceed the net new

equity raised




The ________ breaks down return on equity into three component parts: Du Point Identity




To convince investors to accept greater volatility, you must: increase the risk premium

, BFIN 300 Final Exam Questions With
Solutions

If a firm produces a twelve percent return on assets and a fifteen percent return on equity, then

the firm has a equity multiplier greater than 1.0




Incremental cash flows include any cost that: will change if a project is undertaken




The default risk premium is the: compensation investors demand for accepting credit risk




Using a payback period of three years for projects is: an arbitrary decision by

management




The cash flow tax savings generated as a result of a firm's tax-deductible depreciation expense is

called the: depreciation tax shield




One of the reasons why cash flow analysis is popular is because: it is difficult to

manipulate, or spin the cash flows.

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