FIN BUNDLED Exams questions and correct 100% answers

The tendency of individual stock prices to move together is one source of systematic risk - correct answers True Unique risk of the companies is reduced through diversification - correct answers True A portfolio consisting of securities whose returns are highly correlated is not truly divers...

A retirement account for Not- For- Profits is called? - correct answers 403- B The P/E ratio represents...... - correct answers Price of earnings An older person, perhaps age 80, would most likely have a portfolio including what particular stock? - correct answers Income Beta represents ...

What are the 3 main areas of concern in corporate finance? - correct answers capital budgeting, capital structure, and working capital management advantages of sole proprietorship - correct answers easiest to start, least regulated, single owner keeps all profit, taxed once as personal income ...

NPV Rule - correct answers An investment should be acceptied if the NPV is positive and rejected if it is negative Payback Period Rule - correct answers an investment is acceptable if its calculated payback period is less than some prespecified number Average accounting return rule - correc...

The mixture of debt and equity used to finance a firms operations is called: - correct answers Capital Structure Which of the following is not a type of agency cost? - correct answers The cost of financing the firm. Define the Agency Problem: - correct answers Conflict of interests between ...

Modigliani and Miller (M&M) - correct answersThe case of perfect markets (mainly no taxes and no costs of financial distress A Firm cannot change the total value of its securities by splitting its cash flows into different streams. Therefore financing decisions do no matter in perfect market and...

What is corporate finance? - correct answers The collection of finance functions and jobs within companies. True or False: Forecasts are used as the basis for budgets for future periods. - correct answers TRUE; they're used for capital spending budgets, purchasing contracts, sales targets, and...

One of the most important disadvantages of the corporate form of business is: a. limited owner liability b. ease of transferring ownership c. double taxation d. unlimited owner liability - correct answers c. double taxation Profit maximization: a. is the ultimate goal of a firm b. is a...