BFIN 300 Final Exam Questions With
Solutions
Securities and Exchange Commission Public offerings of debt and equity must be
registered with?
Yield to Maturity The discount rate that makes the present value of the future expected
cash flows on fixed income instruments equal to the price of those instruments is called the:
dividend growth model is that a stock is worth the present value of the future income
which the stock generates
Capital Market Line optimize the risk-return trade-off
Risk-Free Rate The minimum return an investor expects to earn for being willing to
forego consumption today is the:
According to the Capital Asset Pricing Model, market risk is non-diversifiable
systematic risk For a diversified investor, the primary risk the portfolio is subject to is the
, BFIN 300 Final Exam Questions With
Solutions
Geometric Average is better in the long term because it tens to underestimate values in the
short-term.
Arithmetic Average is better in the short term because tends to overestimate values over
the long-term
internal rate of return the rate that makes the present value of an investment exactly equal
to zero
hurdle rate is the minimum rate that a company expects to earn when investing in a
project. In order for a project to be accepted, its internal rate of return must equal or exceed the
hurdle rate
market risk premium The slope of an asset's security market line is the
Cash flow to stockholders must be positive when: the dividends paid exceed the net new
equity raised.
Solutions
Securities and Exchange Commission Public offerings of debt and equity must be
registered with?
Yield to Maturity The discount rate that makes the present value of the future expected
cash flows on fixed income instruments equal to the price of those instruments is called the:
dividend growth model is that a stock is worth the present value of the future income
which the stock generates
Capital Market Line optimize the risk-return trade-off
Risk-Free Rate The minimum return an investor expects to earn for being willing to
forego consumption today is the:
According to the Capital Asset Pricing Model, market risk is non-diversifiable
systematic risk For a diversified investor, the primary risk the portfolio is subject to is the
, BFIN 300 Final Exam Questions With
Solutions
Geometric Average is better in the long term because it tens to underestimate values in the
short-term.
Arithmetic Average is better in the short term because tends to overestimate values over
the long-term
internal rate of return the rate that makes the present value of an investment exactly equal
to zero
hurdle rate is the minimum rate that a company expects to earn when investing in a
project. In order for a project to be accepted, its internal rate of return must equal or exceed the
hurdle rate
market risk premium The slope of an asset's security market line is the
Cash flow to stockholders must be positive when: the dividends paid exceed the net new
equity raised.
