EN.CY.CLO.PE.DI.A

Fina Actual Exam Questions With Reviewed 100% Correct Detailed Answers Guaranteed Pass!! 1. Explain situations in which it would it be better to first undertake a part time business. - ANSWER Before taking a part time job you must ask yourself multiple questions such as; "Do I have enough resources?" "Do I understand how the business works?" " How long will this opportunity last?" "Do I really want to do this full time?" 2. Why are websites import...

Fina Actual Exam Questions With Reviewed 100% Correct Detailed Answers Guaranteed Pass!! 1. The 90-day forward rate for the euro is $1.07, while the current spot rate of the euro is $1.05. What is the annualized forward premium or discount of the euro? - ANSWER [(F/S) - 1] x 360/90 = 7.6 percent. 2. Kalons, Inc. is a U.S.-based MNC that frequently imports raw materials from Canada. Kalons is typically invoiced for these goods in Canadian dollars and is concerned that th...

FINA Actual Exam Questions With Reviewed 100% Correct Detailed Answers Guaranteed Pass!! 1. Traditionally, regulation of FIs in the U.S. has been A. minimal, as evidenced by the recent financial crisis. B. extensive, as a result of the importance of FI to the economy. C. minimal, because the free market is allowed to allocate financial resources. D. extensive, because banks have monopoly power. E. no different from regulation of nonfinancial firms. - ANSWER a result of...

Fina Actual Exam Questions With Reviewed 100% Correct Detailed Answers Guaranteed Pass!! 1. You constructed a pro forma balance sheet for next year and found that external financing required was negative (i.e., the company projected a financing surplus). Which of the following options, all else equal, would NOT correct the projected imbalance? A. A stock repurchase B. A decrease in accounts payable C. An increase in cash and marketable securities D. An increase in the ret...

Fina Actual Exam Questions With Reviewed 100% Correct Detailed Answers Guaranteed Pass!! 1. Anne is considering two independent projects with 2-year lives. Both projects have been assigned a discount rate of 13 percent. She has sufficient funds to finance one or both projects. Project A costs $38,500 and has cash flows of $19,400 and $28,700 for Years 1 and 2, respectively. Project B costs $41,000, and has cash flows of $25,000 and $22,000 for Years 1 and 2, respectively. Wh...

Fina 5320 Actual Exam Questions With Reviewed 100% Correct Detailed Answers Guaranteed Pass!! 1. If a firm issues no debt, its average cost of capital will equal ____. - ANSWER its cost of equity 2. MNO preferred stock pays a dividend of $2 per year and has a price of $20. If MNO's tax rate is 40%, the after-tax rate of return on its preferred stock is: - ANSWER 10 $2/$20 = 10% dividend per year / dividend price = required rate of return on preferred stock ...

Fina Actual Exam Questions With Reviewed 100% Correct Detailed Answers Guaranteed Pass!! 1. What is Net working capital? - ANSWER liabilities current assets minus current 2. According to the bottom up approach, what is the OCF if EBIT is $600, depreciation is $1,800, and the tax rate is 30%? - ANSWER $2,220 3. Have a general rule, when estimating equivalent annual costs, __________ cash flows should be used. (nominal or real) - ANSWER real 4. Buying new...

FINA 5320 Actual Exam Questions With Reviewed 100% Correct Detailed Answers Guaranteed Pass!! 1. Net working capital: A. can be ignored in project analysis because any expenditure is normally recouped by the end of the project. B. requirements generally, but not always, create a cash inflow at the beginning of a project. C. expenditures commonly occur at the end of a project. D. is frequently affected by the additional sales generated by a new project. E. is the only exp...

Fina 5320 Actual Exam Questions With Reviewed 100% Correct Detailed Answers Guaranteed Pass!! 1. Depreciation is a - ANSWER non-cash expense and it is used to save taxes and therefore it is also known as tax shield. 2. There are two common ways to estimate depreciation: - ANSWER 1. Straight line depreciation method which is nothing but the cost of the new investment net of its salvage value divided by its useful life. 2. MACRS: Under this method owner recovers m...

FINA 5320 Actual Exam Questions With Reviewed 100% Correct Detailed Answers Guaranteed Pass!! 1. A cost that has already been paid, or a liability to pay that has already been incurred, is classified as a(n): - ANSWER sunk cost. 2. The cash flows of a project should: - ANSWER and opportunity costs. include all incremental 3. The book value of an asset is primarily used to compute the: - ANSWER amount of tax due on the sale of that asset. 4. The cash flow tax...