Finc test - Study guides, Class notes & Summaries

Test 2 - FINC 303 Exam Questions Correctly Solved. Travis is buying a car and will finance it with a loan that requires monthly payments of $265 for the next four years. His car payments can be described by which one of the following terms? - CORRECT ANSWER Annuity Janis just won a scholarship that will pay her $500 a month, starting today, and continuing for the next 48 months. Which one of the following terms best describes these scholarship payments? - CORRECT ANSWER Annuity Due Th...

FINC 3610 Sirmans Test 1 Qs&As Pros of Sole Proprietorship - ANS-easy startup taxed as personal income Cons of Sole Proprietorship - ANS-- Unlimited Liability - Life limited to that of owner - Equity limited to owner's wealth - Difficulty in transferring ownership Pros of General Partnership - ANS-easy start-up partnership agreement taxed as personal income Cons of General Partnership - ANS-unlimited liability equity limited to owners life difficult transfer Difference between gene...

FINC 301 Chapter 8 Study Guide Test. Which of the following statements is true? a. The largest investors in corporate bonds are institutional investors such as life insurance companies and pension funds. b. The market for corporate bonds is thin compared to the market for corporate stocks. c. Prices in the corporate bond market tend to be more volatile than prices of securities sold in markets with greater trading volumes. d. All of the above are true - CORRECT ANSWER d. All of ...

FINC 5510 Part 2 Study Guide Test. Which of the following is a way in which the euro affects markets? A. Consumers and business enjoy price transparency and increased price - based competition. B. Countries within the Euro zone enjoy cheaper transaction costs. C. Currency risks and costs related to exchange rate uncertainty are reduced. D. all of the above - CORRECT ANSWER all of the above One of the innovations introduced by Bretton Woods was the creation of the Special Drawing Righ...

FINC Chapter 2 Study Review Test. Net working capital is defined as: A. the depreciated book value of a firm's fixed assets. B. the value of a firm's current assets. C. available cash minus current liabilities. D. total assets minus total liabilities. E. current assets minus current liabilities. - CORRECT ANSWER E. current assets minus current liabilities. The tax rate that determines the amount of tax that will be due on the next dollar of taxable income earned is called the: ...

FINC 420 – Forecasting Exam Guide Test. Operating plan - CORRECT ANSWER Provides a forecast of a firm's free cash flows, usually for the next five years, with greater specificity for the first year and less detail for each succeeding year. Describes a firm's market segments, product lines, sales and marketing strategies, production processes, and logistics, as well as projected timeline and list of who is responsible for each task. Financial Plan - CORRECT ANSWER Forecasts the addit...

FINC 3210 CH 6 Study Guide Test. What is a corporate bond's yield to maturity (YTM)? - CORRECT ANSWER YTM is the expected return for an investor who buys the bond today and holds it to maturity. YTM is the prevailing market interest rate for bonds with similar features. The relationship between nominal rates, real rates and inflation is called _____ - CORRECT ANSWER The Fisher Effect Equity represents a _____ interest of the firm while debt is ____ an ownership interest in the firm. ...

FINC 311 Final Exam Study Guide Test Chapter 11 Correctly Answered. If a stock has a 50% probability of having an expected return of 10% and a 50% probability of having an expected return of 20%, what is the overall expected return for this stock? -10% -20% -15% -30% -Impossible to calculate - CORRECT ANSWER 15% why: 15% = (.5*10% + .5*20%) Mary owns a risky stock and anticipates earning 16.5 percent on her investment in that stock. Which one of the following best describes the 16...

FINC 3610 Test 3 Sirmans Questions And Answers Debt - Answer->all borrowing incurred by a firm, including bonds, and is repaid according to a fixed schedule of payments Equity - Answer->consists of funds provided by the firms owners (stockholders or investors) that are repaid subject to the firms performance Stockholders (holders of equity) - Answer->owners of the firm unlike creditors generally have voting rights that permit them to select the firm's directors and vote on spe...

FINC 630 Study Review Practice Test. Which one of the following corporate board characteristics usually improves corporate governance? - CORRECT ANSWER CEO is not the chairman of the board. Which of the following is NOT normally regarded as being a barrier to hostile takeovers? - CORRECT ANSWER Abnormally high executive compensation. Which one of the following statements is TRUE? a. Shareholders benefit when the company is acquired because they usually receive a higher price for the...