BFIN 300 midterm exam UPDATED ACTUAL Questions and CORRECT Answers
4 views 0 purchase
Module
BFIN
Institution
BFIN
BFIN 300 midterm exam UPDATED
ACTUAL Questions and CORRECT
Answers
The process of planning and managing a firm's long-term investments is called - CORRECT
ANSWER- Capital Budgeting
Which of the following is an example of an indirect agency cost? - CORRECT
ANSWER- A lost opportunity
Which...
BFIN 300 midterm exam UPDATED
ACTUAL Questions and CORRECT
Answers
The process of planning and managing a firm's long-term investments is called - CORRECT
ANSWER✔✔- Capital Budgeting
Which of the following is an example of an indirect agency cost? - CORRECT
ANSWER✔✔- A lost opportunity
Which of the following forms of business organization is subject to double taxation? -
CORRECT ANSWER✔✔- Corporation
Control of a firm ultimately rests with - CORRECT ANSWER✔✔- The Stockholders
Which of the following should a financial manager take into account when considering an
opportunity? - CORRECT ANSWER✔✔- How much cash they expect to receive, When will
they receive the funds and How likely they are to receive the funds
ABC Corporation has current assets of $5,200, fixed assets of $26,000, current liabilities of
$4,900, and long-term debt of $15,000. What is the ABC Corporation's total equity? What is
the NWC of ABC Corporation? - CORRECT ANSWER✔✔- Total Equity $11,300, NWC
$300
Company X has fixed assets of $6million on its balance sheet that were originally purchased
for $10million; it can be sold for $7million today. The company's balance sheet also shows
current liabilities of $2.6million and NWC of $900,000. In addition, if all the current assets
were liquidated today, the company would receive $2.8million cash. What is the book value
of Company X's total assets? What is the market value of Company X's total assets? -
CORRECT ANSWER✔✔- BV $9.5million, MV $9.8million
Company has sales of $21,000, costs of $11,200, depreciation expense of $2,300, and interest
expense of $1,300. If the tax rate is 40 percent, what is the operating cash flow, or OCF? -
CORRECT ANSWER✔✔- OCF $7320 = EBIT $7500+Depreciation $2300-Taxes $2480
, XYZ Corporation's balance sheet of 2019 showed net fixed assets of $1.56million, and the
2020 balance sheet showed net fixed assets of $1.78 million. The company's 2020 income
statement showed a depreciation expense of $140,000. What was the company's net capital
spending for 2020? - CORRECT ANSWER✔✔- $360,000
Which one of the following is the financial statement which shows the accounting value of a
firm's equity as of a particular date? - CORRECT ANSWER✔✔- Balance sheet
Which is a financial leverage ratio? - CORRECT ANSWER✔✔- Debt to equity
Which is a key turnover ratio? - CORRECT ANSWER✔✔- Inventory turnover ratio, Asset
turnover ratio, Receivables turnover ratio and Fixed asset turnover ratio
Which of the following ratios are market-based ratios? - CORRECT ANSWER✔✔- P/E
ratio and P/BV ratio
Which of the followings are the correct set of components of ROE? - CORRECT
ANSWER✔✔- Profit margin, asset turnover, equity multiplier
Find Current ratio: Company A's balance sheet shows current assets of $6,300, fixed assets of
$32,000, total long-term liabilities of $16,200 and total equity of $18,100. - CORRECT
ANSWER✔✔- 1.58x
Interest earned on both the initial principal and the interest reinvested from the prior periods
is called - CORRECT ANSWER✔✔- Compound interest
Don Lemon invested $2,000 six years ago at 4.5%. He spends his earnings as soon as he
earns any interest so he only receives interest on his initial investment. Which type of interest
is Mr. Lemon earning? - CORRECT ANSWER✔✔- Simple interest
Alan Fishman just computed the present value of a $10,000 bonus he will receive in the
future. The interest rate he used in this process is referred to as which one of the following? -
CORRECT ANSWER✔✔- Discount rate
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card for the summaries. There is no membership needed.
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 MGRADES. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £7.29. You're not tied to anything after your purchase.
