Fin 370 Exam Questions and Answers (100% Pass)

In pro forma analysis, what determines whether or not an account on the balance sheet or income statement is relevant to a project? The projected causes an account to change, then it is revelant. 2. How can you determine if a cash flow is incremental to a project? The cash flow will disappear...

face value The amount the bondholder will be repaid at maturity. coupon rate the interest paid on a bond, expressed as a percentage of the bond's par value expressed in APR coupon payment formula (Coupon Rate)*(Face Value)/(# of payments per year) zero coupon bond a bond that makes...

Capital Budget List all of the projects that a company plans to undertake during the next period Capital Bugeting The process of analyzing investment opportunities and deciding which ones to accept Incremental earnings The amt by which a firm's earnings are expected to change as a res...

Arbitrage definition Arbitrage is a trading activity in which an arbitrageur makes a sure profit without committing an initial investment or without committing any of the arbitrageur's own money. Finance "free lunch" situation in finance, there is free lunch in the form of arbitrag...

the rules of the game (classic gold standard) under the gold standard, a country's money supply was limited to the amount of gold held by its central bank; each country set the rate at which its currency unit (paper or coin) could be converted to a given weight of gold (fixed exchange rat...

The Real Estate Settlement Procedures Act (RESPA) was enacted by Congress to provide each of the following EXCEPT a maximum level of closing costs In the event of mortgage default, FHA-insured loans provide protection for the lender Mortgagees are entitled to possession of mortgaged property...