Fin 340 Study guides, Class notes & Summaries

FIN 3400 Chapter 02 Assignment Questions and Answers- Florida International University Which one of these is not one of the four basic financial statements? Multiple choice question. Statement of ratios Balance sheet Statement of cash flows Income statement Which one of these correctly defines the balance sheet identity? Multiple choice question. Liabilities - Equity = Assets Equity = Assets - Liabilities Liabilities = Assets + Equity Equity = Assets + Liabilities A firm has fixed a...

FIN 3400 Chapter 10 Assignment Questions and Answers- Florida International University Select all that apply Which of the following will decrease the risk level of a firm? Select all that apply. Multiple select question. Selling the lowest-risk division Accepting riskier projects Accepting a low-risk project Acquiring a less risky firm Which one of these best illustrates a probability distribution at it relates to next year's economy? Multiple choice question. 15 percent chance of a b...

FIN 3400 Chapter 06 Assignment Questions and Answers- Florida International University How is a primary market defined? Multiple choice question. A primary market is the market in which a handful of institutions purchase an entire issue of securities. A primary market is the sale of any security that has been registered with the SEC. A primary market is a market in which corporations and other fund demanders obtain funds by issuing new securities. The primary market is defined as the ma...

FIN 3400 Chapter 11 Assignment Questions and Answers- Florida International University What does a firm-wide WACC represent? Multiple choice question. A firm's overall cost of financing A firm's overall rate of return The current yield on a firm's outstanding debt A firm's expected return on its investments A firm funds its operations with $50 of common stock, $30 of preferred stock, and $40 of debt. The component costs are: common = 12 percent; preferred = 10 percent; pretax debt = ...

FIN 3400 Chapter 08 Assignment Questions and Answers- Florida International University Select all that apply Which of these apply to publicly-issued common stock? Select all that apply. Multiple select question. Ownership position Valueless security unless dividends are currently being paid Value determined on the stock exchanges Stock value depends on the issuer's business success How important is the liquidity provided by stock exchanges to the equity markets? Multiple choice questi...

FIN 3400 Chapter 07 Assignment Questions and Answers- Florida International University Which of these statements is correct? Multiple choice question. The value of the bond market is about half of the value of the stock market. The average daily trading volume of the U. S. bond market exceeds $800 billion. The bond market is an insignificant source of funds for business firms. The U. S. bond market consists of only government-issued bonds. What is an indenture agreement? Multiple choic...

FIN 3400 Ch 12 SMARTBOOK - Complete Solutions (Verified) In 4 years, an existing machine will have a zero book value and a market value of $4,200. A new machine costing $26,400 can replace this machine, lower variable costs by $8,200 a year, and have a market value of $13,300 and a zero book value in 4 years. The incremental depreciation is $5,300. The tax rate is 35%. What is the operating cash flow for year 4? $7,185 Rationale: OCF = ($8,200 - $5,300)(1 - 0.35) + $5,300 = $7,185 A firm purchas...

CH 01 What result should you expect from firms that make wise financial decisions? Multiple choice question. You should expect the wealth of individuals to increase in the future. You should expect investors to lose their excess funds. You should expect firms to decrease their level of output. You should expect the economy to remain stable over time. Which one of the following statements correctly identifies a group that supplies money to the financial markets? Multiple choice question....

FIN 3400 Exam 2 Questions and Answers- Florida International University At your full-service brokerage firm, it costs $110 per stock trade. How much money do you receive after selling 100 shares of Time Warner, Inc. (TMX), which trades at $22.62? $2,152.00 $2,372.00 $2,388.20 $2,262.00 What is the taxable equivalent yield on a municipal bond with a yield to maturity of 4 percent for an investor in the 28 percent tax bracket? 2.88 percent 5.56 percent 3.87 percent 4.51 percent Which ...

FIN 3400 Ch 14 SMARTBOOK - Complete Solutions (Verified) Which entities issue commercial paper? Select all that apply. Medium-to-large corporations Large banks A banker's acceptance (B.A.) has which one of these characteristics? Low risk Rationale: A banker's acceptance carries a bank guarantee which makes it low-risk. Which term refers to a firm's need to keep cash on hand to pay normal expenses such as utilities and wages? Transaction facilitation Which of these correctly describe the Baum...