100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Final Exam Fin 301 Concept Questions with Latest Update CA$16.00   Add to cart
Quickly navigate to
Preview
  2.  
  3. FIN 301
  4.  
  5. FIN 301

Exam (elaborations)

Final Exam Fin 301 Concept Questions with Latest Update
 5 views  0 purchase
  • Course
  • FIN 301
  • Institution
  • FIN 301

The true owners of the corporation are the ________ - Answer-common stockholders which of the following statements best represents what finance is about? - Answer-The study of how people and business make investment decisions and how to finance those decisions The revenue recognition principl...

[Show more]

Preview 2 out of 5  pages

Document information

  • August 24, 2024
  • 5
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • final exam fin 301 concept questions with latest u
  • the true owners of the corporation are the

Written for

  • FIN 301
  • FIN 301

Seller

avatar-seller
lectknancy

Reviews received

Content preview

Final Exam Fin 301 Concept Questions
with Latest Update
The true owners of the corporation are the ________ - Answer-common stockholders

which of the following statements best represents what finance is about? - Answer-The
study of how people and business make investment decisions and how to finance those
decisions

The revenue recognition principle requires that ___________ - Answer-revenue be
recognized in the period when the firm becomes entitled to payment for goods or
services delivered.

Which of the following parties would be interested in an analysis of the firms's financial
statements? - Answer-Creditors, investors, the firm's managers

The principal participants in the markets are - Answer-borrowers, savers, financial
institutions

The market for short-term debt is known as - Answer-the money market

Which of the basic financial statements is best used to answer questions " where did the
company's money come from and how was it spent over the preceding year?" - Answer-
Cash Flow statement

Which of the basic financial statements is best used to answer the questions " what
does the company own and how is it financed?" - Answer-Balance sheet

Investors in common stock increase their wealth when the _______ - Answer-market
value of the stock goes up and when the stock pays a dividend

If managers are making decisions to maximize shareholder wealth, then they are
primarily concerned with making decisions that should_____ - Answer-Increase the
market value of the firms common stock

Evidence that agency costs exists_______ - Answer-because stock prices increase
when an underperforming CEO is unexpectedly replaced

Which of the following sequences is arranged in the correct order, from the highest long
term- returns to lowest? - Answer-International Equities, U.S. Government bonds,
treasury bills

, You are considering buying some stock in continental grain. Which of the following is an
example of non-diversifiable risk? - Answer-Risk resulting from a general decline in the
stock market

The capital asset pricing model _______ - Answer-provides a risk-return trade-off in
which risk is measured in terms of beta

When a company has an initial public offering _______ - Answer-The proceeds of the
sale will increase the company's equity

You are considering investing in U.S. Steel, Which of the following is NOT an example
of non-diversifiable risk? - Answer-Risk resulting from a strike against U.S. Steel

If a stock has a much higher than normal P/E ratio, investors probably expect________
- Answer-Rapid Growth in earnings

The yield to maturity on a bond_____ - Answer-is the required return on the bond

The interest on corporate bonds is typically paid _________ - Answer-semiannually

Jayden spends a lot of time studying charts of stocks past performance, but his
investment return are only average. This outcome supports _________ - Answer-semi-
strong
weak form
and strong form efficient market hypothesis

Which of the following is NOT one of the categories for a project's relevant after tax
cash flows? - Answer-Financing Flows

Webley Corp. is considering two expansion options, but does not have enough capital
to undertake both. Project W requires an investment of $100,000 and has an NPV of
$10,000. Project D requires an investment of $80,000 and has an
NPV of $8,200. If Webley uses the profitability index to decide, it would__________ -
Answer-Choose D because it has a higher profitability index

Which of the following best describes a firm's cost of capital? - Answer-The rate of
return that must be earned on its investments in order to satisfy the firms investors

Which of the following are typical consequences of good capital budgeting decisions? -
Answer-the firm increases value
gains knowledge
good capital budgeting decisions

The investorʹs required rate of return differs from the firmʹs cost of capital due to
the________ - Answer-Tax deductibility of interest

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller lectknancy. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$16.00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

76462 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$16.00
  • (0)
  Add to cart