Finc 5310 - Study guides, Class notes & Summaries

FINC 5310 Exam 1 QUESTION 1 A 3-year project is expected to produce a cash flow of $82,400 in the first year and $148,600 in the second year. The project has a present value of $303,764.34 at a discount rate of 12.75 percent. What is the expected cash flow in the third year of the project? A. $164,400 B. $163,800 C. $163,700 D. $163,100 E. $164,900 - D QUESTION 2 A credit card compounds interest monthly and has an effective annual rate of 12.67 percent. What is the annual percent...

A 12-year, 5 percent coupon bond pays interest annually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield rises to 6 percent from the current level of 5.5 percent? correct answers -4.26% A bond with a face value of $1,000 that sells for $1,000 in the market is called a _____ bond. correct answers 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 answers d...

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

QUESTION 1 A 3-year project is expected to produce a cash flow of $82,400 in the first year and $148,600 in the second year. The project has a present value of $303,764.34 at a discount rate of 12.75 percent. What is the expected cash flow in the third year of the project? A. $164,400 B. $163,800 C. $163,700 D. $163,100 E. $164,900 - D QUESTION 2 A credit card compounds interest monthly and has an effective annual rate of 12.67 percent. What is the annual percentage rate? A. 11.93% ...

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 opera...

1. A 3-year project is expected to produce a cash flow of $82,400 in the first year and $148,600 in the second year. The project has a present value of $303,764.34 at a discount rate of 12.75 percent. What is the expected cash flow in the third year of the project? A. $164,400 B. $163,800 C. $163,700 D. $163,100 E. $164,900 - Correct Answer-D QUESTION 2 A credit card compounds interest monthly and has an effective annual rate of 12.67 percent. What is the annual percentage rate? A. 11...

A 3-year project is expected to produce a cash flow of $82,400 in the first year and $148,600 in the second year. The project has a present value of $303,764.34 at a discount rate of 12.75 percent. What is the expected cash flow in the third year of the project? A. $164,400 B. $163,800 C. $163,700 D. $163,100 E. $164,900 - D QUESTION 2 A credit card compounds interest monthly and has an effective annual rate of 12.67 percent. What is the annual percentage rate? A. 11.93% B. 11.99% C...

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 operating as a c...

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...