Bfin300 - Study guides, Class notes & Summaries

BFIN300 Final Review Exam Questions With Solutions Formula of NPV NPV = PV of Cash Flows - Initial Investment What is your role as an investor, treasurer, CEO or CFO? To determine which investment has a positive net present value (shareholder value) -done through capital budgeting process + NPV, -NPV, 0 NPV + NPV = accept (binary decision investment) - NPV = reject 0 NPV = agnostic

BFIN300 Final Review Exam

BFIN300 Exam Questions With Solutions Which of the following should a financial manager take into account when considering an opportunity? A. How much cash they expect to receive B. When will they receive the funds C. How likely they are to receive the funds D. All of the above D. All of the above Which is a financial leverage ratio ? A. Current ratio B. Profit margin C. Price to book value D. Debt to equity E. Inventory turnover D. Debt to equity Which is a key turnover ratio ?

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 ...

BFIN300 Midterm Chapter 1 Exam Questions and Answers

BFIN300 Final Review Exam

BFIN300 Midterm Chapter 1 Exam Questions With Solutions sole proprietorship one person owns the business, simplest form of business, best way for owner to keep all of its profits. - all liability falls onto the owner -ex. local business, lemonade stand Partnership two or more owners. Business interests are not easily transferred -ex. Law firms, accounting firms Corporation - most important form of business in the US. Considered a legal person. Separate and distinct from. shareholder...

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 i...

BFIN300 Midterm Chapter 1 Exam Questions and Answers