Bfin300 - Study guides, Class notes & Summaries

BFIN 300 - FINAL EXAM 2024 Exam Questions With Solutions What is payback period rule? The length of time it takes for a project to return to its initial investment Based on the payback period rule, when is a project acceptable? If its calculated payback is less than the prespecificed number ex; two years What is discounted payback period rule? The length of time its takes for a project's discounted cash flows to equal its initial investment True or False; As long as the cash flows...

BFIN300 Final Test Questions with Correct Answers An underlying assumption of the dividend growth model is that a stock is worth: - Answer-the present value of the future income which it generates The value of common stock today depends on: - Answer-the expected future dividends, capital gains, and discount rate. The constant dividend growth model is: - Answer-generally not used in practice because most stocks grow at a non-constant rate. The slope of an asset's security market line...

BFIN 300 Midterm Review Questions With Solutions 3) Which of the following forms of business organization is subject to double taxation? A. Corporation B. Partnership C. Limited Partnership D. Sole Proprietorship Corporation 4) Control of a firm ultimately rests with. . . A. The CEO B. The SEC C. The Stockholders D. The Founder The Stockholders

BFIN 300 Review Questions With Solutions Which of the following forms of business organization is subject to double taxation? A. Corporation B. Partnership C. Limited Partnership D. Sole Proprietorship A. Corporation Control of a firm ultimately rests with. . . A. The CEO B. The SEC C. The Stockholders D. The Founder C. The Stockholders

BFIN 300 Test 1 Concept Exam Questions With Solutions The minimum return an investor expects to earn for being willing to forego consumption today is the: A) risk-free rate. B) real rate. C) risk premium. A) risk-free rate. The Capital Market Line defines those portfolios that: A) optimize the risk-return trade-off. B) maintain risk for a given level of return. C) are inefficient. A) optimize the risk-return trade-off

BFIN 300 Exam Questions With Solutions When a company introduces a product that competes with one of its own existing products, this is called: B) cannibalism. 4. The primary function of a business is to: C) enhance shareholder wealth over the long term. 5. An investor wishing to decrease volatility should purchase securities with B) lower risk premiums.

BFIN 300 Quiz 1 With Solutions Advantages of Sole Proprietorship -Easiest to start -Least Regulated -Single Owner Keeps all profits -taxed once as personal income Disadvantages of Sole ProprietorShip -Limited life of owner -Equity capital limited to owners personal wealth (limited opportunities) -unlimited liabilities -difficult to sell ownership interest (requires sale of the entire business) Sole Proprietorship a business owned by one perso

BFIN 300 midterm exam Questions With Solutions Which of the following should a financial manager take into account when considering an opportunity? 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? Total Eq...