Cfin exam - Study guides, Class notes & Summaries

CFIN Chapter 1 & 2 Exam Questions and Answers All Correct Which of the following statements about the corporate form of business organization is incorrect? The corporation is the easiest form of business organization to establish. In the United States, corporations generate a significantly greater percentage of total annual sales than either partnerships or proprietorships. Corporations generally are larger than either partnerships or proprietorships. One of the most important feat...

MBA PREP CFIN REVIEW EXAM TEST BANK 100+ QUESTIONS WITH REVISED AND UPDATED ANSWERS Synergy between two companies - Answer-complementary situation where value is created in the joining of the firms, could be defined by purely qualitative benefits legalities determine whether a merger should occur; a valuation determines what form the business combination shall be - Answer-False Unlike capital budgeting derivations, it is best when evaluating mergers to rely son a single quantitative me...

The "nominal rate of interest" is defined as the sum if the nominal risk-free rate of return and the expected inflation rate. T/F correct answers F If the federal reserve tightens the money supply, other things held constant, short-term interest rates will be pushed upward, and this increase probably will be greater than the increase in rates in the long-term market. T/F correct answers T The term structure is defined as the relationship between interest rates and the similar securities....

CFIN ACTUAL EXAM QUESTIONS WITH CORRECT ANSWERS Which of the following is a qualitative factor of the company? - Answer- fixed cost, product users & marketing strategies Which of the following is a qualitative factor of the industry? - Answer- general economic conditions, fixed costs & variable costs Management has two methods by which it can add value to the firm through components on either side of the accounting equality. - Answer- TRUE The present value equation is a rearrangeme...

CFIN CHAPTER 6 EXAM QUESTIONS WITH CORRECT DETAILED ANSWERS – UPDATED!! government bonds - Answer-long term debt, debt issued by a federal, state, or local gov't municipal bonds - Answer-long term debt, bonds issued by a state or local government corporate bonds - Answer-long term debt, bonds issued by corporations mortgage bond - Answer-long term debt, bond backed by tangible assets, first mortgage bonds are senior in priority to second mortgage bonds debenture - Answer-long ...

CFIN 5 LATEST VERSION WITH REAL EXAM QUESTIONS GRADED A+ Which of the following statements about bonds is always true? a. a bond's yield to maturity is equal to its coupon rate, b. the yield to maturity is equal to the internal rate of return of a bond's cash flows, c. the higher the rating on a bond the higher its rate of interest, d. bonds are of higher risk to investors than stock - Answer-B - the YTM is equal to the IRR The price of a bond can be determined by discounting the rema...

CFIN 6 PRACTICE EXAM LATEST 2024 QUESTIONS AND ANSWERS WITH RATIONALES (VERIFIED ANSWERS) ALREADY GRADED A+ It is impossible for the acquisition price of a target firm to ever fall below book value - Answer-false the following could be reasonable estimates of a firm's future terminal value: a. book value, b. liquidation or salvage value, c. a cash flow in perpetuity based on the flow in the final year of the evaluation horizon - Answer-all of the above when a cash flow in perpetuity i...

CFIN 6 EXAM NEWEST 2024 ACTUAL EXAM TEST BANK COMPLETE QUESTIONS AND CORRECT ANSWERS Which of the following statements are true about relevant cash flow valuations: a. they consider the target to be a going concern, b. they allow for the obligations to debt holders, c. no two investments can be analyzed using the same hurdle rate - Answer-a b and c In order to use a cash flow in perpetuity as a residual value for an asset, it must be reasonable assumed that the cash flow from that asset h...

CFIN Chapter 6 Exam Questions and Complete Solutions Graded A+.