Exam (elaborations)
FIN515 MANAGERIAL FINANCE MIDTERM EXAM
- Course
- Institution
questions with answers
[Show more]
Seller
Follow
BenMaisonBettergrades25
Content preview
FIN515 MANAGERIAL FINANCE MIDTERM EXAM1. Question : (TCO G) The firm's equity multiplier measures
Student Answer:
the value of assets held per dollar of shareholder equity.
the return the firm has earned on its past investments.
the firm's ability to sell a product for more than the cost of
producing it.
how efficiently the firm is utilizing its assets to generate
sales.
Instructor Chapter 2
Explanation:
Points Received: 10 of 10
Comments:
-1222461881 MultipleChoice 3 True
0 -1222461881 MultipleChoice 3
Question 2 Question : (TCO G) The DuPont Identity expresses the firm's ROE in terms
. of
Student Answer:
profitability, asset efficiency, and leverage.
valuation, leverage, and interest coverage.
profitability, margins, and valuation.
equity, assets, and liabilities.
Instructor Chapter 2
Explanation:
Points Received: 10 of 10
Comments:
-1222461880 MultipleChoice 4 True
0 -1222461880 MultipleChoice 4
Question 3 Question : (TCO B) A certain investment will pay $10,000 in 20 years. If the
. annual return on comparable investments is 8%, what is this
, investment currently worth? Show your work.
Student Answer: FV= $10000 NPER= 20 YRS RATE= 8% PV =? PV
(Rate,Nper,Pmt,Fv,Type) -> (8%,20,0,10000,0)= ($2145)
Instructor Week 2 Lecture and Chapter 4
Explanation: PV answer 2145
FV 10000
N 20
I .08
PMT 0
Points Received: 20 of 20
Comments:
-1222461879 Essay 2 False
0 -1222461879 Essay 2
Question 4 Question : (TCO B) You take out a 5 year car loan for $20,000. The loan has
. a 5% annual interest rate. The payments are made monthly. What
are the monthly payments? Show your work.
Student Answer: PMT(5%,60,-20000,0,0) = $1057 This doesn't make sense to me
but this is what excel keeps giving me.... I'd expect it to be
somewhere between $350-$450 range
Instructor Week 2 Lecture and Chapter 4
Explanation: PV 20000
FV 0
N 5*12=60
I .05/12=.0041667
PMT answer $377.42
Points Received: 20 of 20
Comments: The interest rate should have been reduced to the monthly rate --
or .05/12 = .0042
-1222461878 Essay 4 False
0 -1222461878 Essay 4
Question 5 Question : (TCO B) Someone leases a car with the following terms: monthly
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 or Stuvia-credit 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 BenMaisonBettergrades25. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $20.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76669 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now