Finc 30 Study guides, Class notes & Summaries

FINC 300 UTK MT Exam Questions With 100% Correct Answers. What is the future value of a stream of $800 annual payments worth to the investor at the end of 10 years if these payments are invested at an annual rate of return of 8.5%? - answer11,868.08 The dollar value of an investment at some future point in time is also known as - answerFuture Value When a loan is paid off in equal installments, this is called a(n) __ loan. - answeramortized A perpetuity is an annuity where the payments -...

DerivativeA financial instrument that has a value determined by the price of the underlying. An agreement between two parties Underlying assetsthe most common include stocks, bonds, commodities, currencies, interest rates and market indexes Types of DerivativesForwards, futures, options, swaps Use of derivativesrisk management, speculation, reduce transaction costs, regulatory arbitrage

FINC 301 UTK Chapter 5 Exam Questions With 100% Correct Answers. Which of the following statements is true> a. The further in the future you receive a dollar, the less it is worth today b. A dollar in hand today is worth less than a dollar to be received in the future c. The higher the rate of interest, the more likely an investor will elect to consumer at present and forgo invest his funds d. The value of a dollar invested at a positive interest rate decreases over time - answera. The...

If you are doing an NPV analysis and using the WACC as the discount rate, how do you account for interest paid to bondholders? - correct answer through the cost of debt portion of the WACC When estimating the WACC, which is the best measure of the firm's cost of debt - correct answer the YTM for its bonds When estimating the WACC, which is the best measure of the firm's cost of equity - correct ...

FINC 301 UTK Chapter 6 Exam Questions With Accurate Answers. Krysel Inc. is expecting a new project to start producing cash flows, beginning at the end of this year. They expect cash flows to be as follows: Year 1 - $663,547 Year 2 - $698,214 Year 3 - $795,908 Year 4 - $798,326 Year 5 - $755,444 If they can reinvest these cash flows to earn a return of 9.2%, what is the future value of this cash flow stream at the end of five years? (Round to the nearest dollar.) a. $4,529,046 b. $4,429,...

What is a Forward Contract? ∙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 ∙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 contract is the value created by the position at expiration Payoff f...

FINC-UB 7 Corporate Finance - New York University You run Wereinit, a profitable conglomerate, that is considering an investment in a gelati project. You have the following data obtained after spendi ng $3 million researching the 2 industry. You believe you can instantaneously capture 3% of the $500 million market. But this business will cannibalize your current food sales by 10%. On the other hand, your new non-food sales figure would increase to $175 million – although you realize that that ...

UTK FINC 301 Exam 1 Questions And Answers @ 2024 ...

FINC 3131 CH. 2 HW Exam Questions Correctly Answered. The accounting statement that measures the revenues, expenses, and net income of a firm over a period of time is called the: - CORRECT ANSWER income statement. Draiman, Inc., has sales of $603,000, costs of $255,000, depreciation expense of $62,000, interest expense of $29,000, and a tax rate of 30 percent. The firm paid out $45,000 in cash dividends. What is addition to retained earnings? - CORRECT ANSWER Addition to retained earning...