Finc 5310 exam - Study guides, Class notes & Summaries

FINC 5310 Exam 1 QUESTION 1 A 3-year project is expected to produce a cash flow of $82,400 in the first year and $148,600 in the second year. The project has a present value of $303,764.34 at a discount rate of 12.75 percent. What is the expected cash flow in the third year of the project? A. $164,400 B. $163,800 C. $163,700 D. $163,100 E. $164,900 - D QUESTION 2 A credit card compounds interest monthly and has an effective annual rate of 12.67 percent. What is the annual percent...

QUESTION 1 A 3-year project is expected to produce a cash flow of $82,400 in the first year and $148,600 in the second year. The project has a present value of $303,764.34 at a discount rate of 12.75 percent. What is the expected cash flow in the third year of the project? A. $164,400 B. $163,800 C. $163,700 D. $163,100 E. $164,900 - D QUESTION 2 A credit card compounds interest monthly and has an effective annual rate of 12.67 percent. What is the annual percentage rate? A. 11.93% ...

A 3-year project is expected to produce a cash flow of $82,400 in the first year and $148,600 in the second year. The project has a present value of $303,764.34 at a discount rate of 12.75 percent. What is the expected cash flow in the third year of the project? A. $164,400 B. $163,800 C. $163,700 D. $163,100 E. $164,900 - D QUESTION 2 A credit card compounds interest monthly and has an effective annual rate of 12.67 percent. What is the annual percentage rate? A. 11.93% B. 11.99% C...

1 Which of the following statements is most CORRECT? A. To a large extent, the decision to dissolve a firm through liquidation versus keeping it alive through reorganization depends on a determination of the value of the firm if it is rehabilitated versus the value of its assets if they are sold off individually. b. The basic doctrine of fairness states that all debtholders must be treated equally. c. The primary test of feasibility in a reorganization is whether every claimant agrees with...

1 Which of the following statements is most CORRECT? A. To a large extent, the decision to dissolve a firm through liquidation versus keeping it alive through reorganization depends on a determination of the value of the firm if it is rehabilitated versus the value of its assets if they are sold off individually. b. The basic doctrine of fairness states that all debtholders must be treated equally. c. The primary test of feasibility in a reorganization is whether every claimant agrees with ...

FINC 5310 Exam with correct answers Due to the upside chance of a company doing well, allowing investors to convert their bond into shares, investors are willing to accept a lower coupon rate on convertible bonds than otherwise identical but nonconvertible bonds - Correct Answer-TRUE due to the policies of the Federal Reserve, the yields on treasuries are not a good proxy for the nominal risk-free rate today - Correct Answer-true In an upward(normal)term structure of interest rates...

FINC 5310 1. The Blue Giant has a profit margin of 6.2 percent and a dividend payout ratio of 40 percent. The capital intensity is 1.08 and the debt-equity ratio is .54. What is the sustainable rate of growth? A. 6.30% B. 5.53% C. 5.89% D. 5.60% E. 6.41% - Correct Answer-D 2. Which of the following statements is CORRECT? A. Relative to sole proprietorships, corporations generally face fewer regulations, which makes raising capital easier for corporations. B. One disadvantage of op...

FINC 5310 A bond with a face value of $1,000 that sells for $1,000 in the market is called a _____ bond. - Correct Answer-par value A bond with a face value of $1,000 that sells for less than $1,000 in the market is called a _____ bond. - Correct Answer-discount A par value bond offers a coupon rate of 7 percent with semiannual interest payments. The effective annual rate provided by these bonds must be: - Correct Answer-greater than 7 percent but less than 8 percent. A stock with ...

Due to the upside chance of a company doing well, allowing investors to convert their bond into shares, investors are willing to accept a lower coupon rate on convertible bonds than otherwise identical but nonconvertible bonds - Correct Answer-TRUE due to the policies of the Federal Reserve, the yields on treasuries are not a good proxy for the nominal risk-free rate today - Correct Answer-true In an upward(normal)term structure of interest rates, the inflation premium is ___________ and t...

FINC 5310 FINAL Exam 1 Which of the following statements is most CORRECT? A. To a large extent, the decision to dissolve a firm through liquidation versus keeping it alive through reorganization depends on a determination of the value of the firm if it is rehabilitated versus the value of its assets if they are sold off individually. b. The basic doctrine of fairness states that all debtholders must be treated equally. c. The primary test of feasibility in a reorganization is whether every...