Finc 5310 final - Study guides, Class notes & Summaries

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 ...

risk averse - Correct Answer-dont like risk; must get reward to accept risk; most peoples attitude risk seeker - Correct Answer-look for opportunities to take the risk; small percentage of people risk neutral - Correct Answer-focused only on reward; small percentage of people risk - Correct Answer-possibility that actual out comes will be less than expected Does a higher variance result in less or greater risk? - Correct Answer-greater risk For risk comparison what are the steps - Correct...

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 a beta of zero wo...

FINC 5310 Final risk averse - Correct Answer-dont like risk; must get reward to accept risk; most peoples attitude risk seeker - Correct Answer-look for opportunities to take the risk; small percentage of people risk neutral - Correct Answer-focused only on reward; small percentage of people risk - Correct Answer-possibility that actual out comes will be less than expected Does a higher variance result in less or greater risk? - Correct Answer-greater risk For risk comparison...

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...

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 Final risk averse - Correct Answer-dont like risk; must get reward to accept risk; most peoples attitude risk seeker - Correct Answer-look for opportunities to take the risk; small percentage of people risk neutral - Correct Answer-focused only on reward; small percentage of people risk - Correct Answer-possibility that actual out comes will be less than expected Does a higher variance result in less or greater risk? - Correct Answer-greater risk For risk comparison what are th...