Finc 30 Study guides, Class notes & Summaries

Test 2 - FINC 303 Exam Questions Correctly Solved. Travis is buying a car and will finance it with a loan that requires monthly payments of $265 for the next four years. His car payments can be described by which one of the following terms? - CORRECT ANSWER Annuity Janis just won a scholarship that will pay her $500 a month, starting today, and continuing for the next 48 months. Which one of the following terms best describes these scholarship payments? - CORRECT ANSWER Annuity Due Th...

What is the required return of a portfolio consisting of 40% of the asset above (ER 16%) and the rest in an asset with the same risk as the market? 14.3% 12% 13.6% 16% correct answers 13.6% The risk-free rate is 4%, and the required return on the market is 12%. The beta of the asset is 1.5. What is the reward/risk ratio in equilibrium? 16% 12% 8% 28% 24% correct answers 8% The risk-free rate is 4%, and the required return on the market is 12%. What is the required return on an ass...

FINC 301 Chapter 6 Study Exam Questions Correctly Answered. Determine a firm's total asset turnover (TAT) if its net profit margin (NPM) is 5 percent, total assets are $8 million, and ROI is 8 percent. A.) 1.60 B.) 2.05 C.) 2.50 D.) 4.00 - CORRECT ANSWER A.) 1.60 Felton Farm Supplies, Inc., has an 8 percent return on total assets of $300,000 and a net profit margin of 5 percent. What are its sales? A.) $3,750,000 B.) $480,000 C.) $300,000 D.) $1,500,000 - CORRECT...

FINC 306 Exam Questions With 100% Correct Answers. What is a Forward Contract? - answer∙A forward contract is a binding agreement to buy/sell an underlying asset in the future at a price set today Describe the meaning of a forward price, delivery date and payoff of a forward contract - answer∙The forward price is the price at which two parties agree today to transact/deliver in the future ∙The delivery date is the time at which the contract is settled ∙The payoff of a forward con...

FINC 301 Chapter 8 Study Guide Test. Which of the following statements is true? a. The largest investors in corporate bonds are institutional investors such as life insurance companies and pension funds. b. The market for corporate bonds is thin compared to the market for corporate stocks. c. Prices in the corporate bond market tend to be more volatile than prices of securities sold in markets with greater trading volumes. d. All of the above are true - CORRECT ANSWER d. All of ...

UTK FINC 301 Exam 1 Questions With 100% Correct Answers. Stake holders - answerAnyone other than owner who has a claim on the cash flows of the firm ex: Employees, suppliers, creditors, gov't Stockholders - answerthose who have ownership Productive Assets - answerGenerates cash flows EX: rental property Residual Cash Flows - answer- same thing as retained earnings - what's left over after company pay operating expenses and taxes Role of the Financial Managers ( 3 key financial decisi...

FINC 306 Exam 3 UTK Questions With 100% Correct Answers. 14.25% - answerStock A has an expected return of 12%, and Stock B has an expected return of 15%. If you invest $10,000 in Stock A and $30,000 in Stock B, what is the expected return for your portfolio? 13.5% 12% 15% 14.25% between 0 and 1 - answerWhat is the average correlation between a randomly selected pair of U.S. stocks? between 0 and 1 1 0 -1 False - answerThink about a portfolio where $100,000 is spread equally across...

The four basic areas of finance include investments, financial institutions, international finance, and _ finance. correct answers corporate Business finance is broadly concerned with which of the following (select all that apply)? correct answers Which long-term investment to make How to finance long-term investments How to manage day-to-day finances of the firm Which of the following positions generally report to the chief financial officer (CFO)? correct answers Treasurer Controller ...

FINC 306 FINAL Exam Questions With 100% Correct Answers. If you are doing an NPV analysis and using the WACC as the discount rate, how do you account for interest paid to bondholders? - answerthrough the cost of debt portion of the WACC When estimating the WACC, which is the best measure of the firm's cost of debt - answerthe YTM for its bonds When estimating the WACC, which is the best measure of the firm's cost of equity - answerthe stock's expected return according to the CAPM When...

FINC 300 UTK MT Exam Questions And Answers...