46 Pages

# Chapter 6 Test Bank

Course Number: FIN 3716, Spring 2011

College/University: LSU

Word Count: 6966

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CHAPTER 5 Discounted Cash Flow Valuation I. DEFINITIONS Topic: ANNUITY 1. An annuity stream of cash flow payments is: A) A set of level cash flows occurring each time period for a fixed length of time. B) A set of level cash flows occurring each time period forever. C) A set of increasing cash flows occurring each time period for a fixed length of time. D) A set of increasing cash flows occurring each time period...

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LSU - FIN - 3716
CHAPTER 6 Interest Rates and Bond ValuationI. DEFINITIONSTopic: COUPON 1. The stated interest payment, in dollars, made on a bond each period is called the bond's: A) Coupon. B) Face value. C) Maturity. D) Yield to maturity. E) Coupon rate. Answer: ATo
LSU - FIN - 3716
CHAPTER 7 Equity Markets and Stock ValuationI. DEFINITIONSTopic: GROWING PERPETUITY 1. An asset characterized by cash flows that increase at a constant rate forever is called a: A) Growing perpetuity. B) Growing annuity. C) Common annuity. D) Perpetuity
LSU - FIN - 3716
CHAPTER 8 Net Present Value and Other Investment CriteriaI. DEFINITIONSTopic: NET PRESENT VALUE 1. The difference between the market value of an investment and its cost is the: A) Net present value. B) Internal rate of return. C) Payback period. D) Prof
LSU - FIN - 3716
CHAPTER 9 Making Capital Investment DecisionsI. DEFINITIONS Topic: INCREMENTAL CASH FLOWS 1. The changes in the firm's future cash flows that are a direct consequence of accepting a project are called: A) Incremental cash flows. B) Stand-alone cash flows
LSU - FIN - 3716
CHAPTER 10Some Lessons from Capital Market HistoryI.DEFINITIONSTopic: RISK PREMIUM 1. The excess return required on a risky asset over that earned on a risk-free asset is called (a): A) Risk premium. B) Return premium. C) Excess return. D) Average ret
LSU - FIN - 3716
CHAPTER 11 Risk and ReturnI. DEFINITIONSTopic: PORTFOLIOS 1. A portfolio is _. A) a group of assets, such as stocks and bonds, held as a collective unit by an investor B) the expected return on a risky asset C) the expected return on a collection of ris
LSU - FIN - 3716
CHAPTER 12 Cost of CapitalI. DEFINITIONSTopic: COST OF CAPITAL 1. The opportunity cost associated with the firm's capital investment in a project is called its: A) Cost of capital. B) Beta coefficient. C) Capital gains yield. D) Sunk cost. E) Internal r
LSU - FIN - 3716
CHAPTER 15 Raising CapitalI. DEFINITIONSTopic: VENTURE CAPITAL 1. The financing provided for start-up, often high-risk, private business enterprises is called: A) Venture capital. B) Junk bonds. C) Flotation costs. D) Initial public offerings. E) Financ
LSU - FIN - 3716
CHAPTER 13 Leverage and Capital StructureI. DEFINITIONSTopic: HOMEMADE LEVERAGE 1. The use of personal borrowing to change the overall amount of financial leverage to which the individual is exposed is called: A) Homemade leverage. B) Dividend recapture
LSU - FIN - 3716
CHAPTER 16 Short-Term Financial PlanningI. DEFINITIONSTopic: OPERATING CYCLE 1. The length of time between the acquisition of inventory and the collection of cash from receivables is called the _. A) operating cycle B) inventory period C) accounts recei
LSU - FIN - 3716
CHAPTER 14 Dividends and Dividend PolicyI. DEFINITIONSTopic: DIVIDENDS 1. Payments made out of a firm's earnings to its owners in the form of cash or stock are called: A) Dividends. B) Distributions. C) Share repurchases. D) Payments-in-kind. E) Stock s
LSU - FIN - 3716
CHAPTER 17 Working Capital ManagementI. DEFINITIONSTopic: SPECULATIVE MOTIVE 1. The need to hold cash to take advantage of additional investment opportunities is called the: A) Speculative motive. B) Precautionary motive. C) Transaction motive. D) Float
LSU - FIN - 3716
CHAPTER 18 International Aspects of Financial ManagementI. DEFINITIONSTopic: AMERICAN DEPOSITORY RECEIPT 1. A security that is issued in the United States that represents shares of a foreign stock and allows that stock to be traded in the United States
LSU - FIN - 3716
CHAPTER 13 RISK, RETURN, AND THE SECURITY MARKET LINEAnswers to Concepts Review and Critical Thinking Questions 1. Some of the risk in holding any asset is unique to the asset in question. By investing in a variety of assets, this unique portion of the t
LSU - FIN - 3716
FIN3716- Fall 2010MIDTERM 1 SOLUTION Name _ Time: 75 Min Section_ Total Point: 70Work on this exam is to be yours alone. Any discussion of either the questions or your answers with anyone other than your instructor will be considered as cheating and, th
LSU - FIN - 3716
FI 3716- Fall 2010MIDTERM 2 SOLUTIO Name _ Time: 75 Min Section_ Total Point: 68Work on this exam is to be yours alone. Any discussion of either the questions or your answers with anyone other than your instructor will be considered as cheating and, thu
LSU - FIN - 3716
FIN3716- Fall 2010MIDTERM 3 SOLUTION Name _ Time: 75 Min Section_ Total Point: 60Work on this exam is to be yours alone. Any discussion of either the questions or your answers with anyone other than your instructor will be considered as cheating and, th
LSU - FIN - 3716
CHAPTER 2 FINANCIAL STATEMENTS, TAXES AND CASH FLOWAnswers to Concepts Review and Critical Thinking Questions 1. Liquidity measures how quickly and easily an asset can be converted to cash without significant loss in value. Its desirable for firms to hav
LSU - FIN - 3716
The formula sheet is the appendix copied out the back of the book. These might not be the exact problems, but they are pretty similar and Id suggest knowing how to do them.Given the following information, what is the firm's weighted average cost of capit
LSU - FIN - 3716
Chapter 5CalculatorsI ntroduction to V aluation: The Time Click to edit Master subtitle style V alue of M oneyMcGraw-Hill/IrwinCopyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.Key Concepts and Skills Be able to compute the fu
LSU - FIN - 3716
Chapter 1 I ntroduction to Corporate FinanceMcGraw-Hill/IrwinCopyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.Key Concepts and Skills Know the basic types of financial management decisions and the role of the financial manager Kno
LSU - FIN - 3716
Chapter 7 I nterest Rates and Bond ValuationClick to edit Master subtitle styleMcGraw-Hill/IrwinCopyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.Key Concepts and Skills Know the important bond features and bond types Understand
LSU - FIN - 3716
Chapter 6CalculatorsDiscounted Cash Flow Valuation Click to edit Master subtitle styleMcGraw-Hill/IrwinCopyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.Key Concepts and Skills Be able to compute the future value of multiple cas
LSU - FIN - 3716
Chapter 3 Working With Financial StatementsClick to edit Master subtitle styleMcGraw-Hill/IrwinCopyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.Sample Balance Sheet2009 Cash A/R Inventory Other CA Total CA Net FA Total Assets 696
LSU - FIN - 3716
Chapter 2 Financial Statements, Taxes, and Cash FlowMcGraw-Hill/IrwinCopyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.Balance SheetThe balance sheet is a snapshot of the firms assets and liabilities at a given point in time Assets
LSU - ACCT - 3122
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LSU - ACCT - 3122
LSU - ACCT - 3122
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LSU - ACCT - 3122
LSU - ACCT - 3122
LSU - ACCT - 3122
Accounting 384 - Midterm Fall 2008 (150 points) Name_ Section _ MULTIPLE CHOICE (15 questions @ 4 points each = 60 total points) Identify the choice that best completes the statement or answers the question. 1. Information that does not omit important asp
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KELANA JAYA STUDY CENTRE 18-5 PLAZA CCL, JALAN PERBANDARAN SS6/12 KELANA JAYA URBAN CENTRE 47301 KELANA JAYABACHELOR OF ACCOUNTING MID-TERM EXAMINATION SEMESTER-JANUARY 2006COURSE TITLE COURSE CODE DATE/DAY TIME DURATION: : : : :ACCOUNTING INFORMATION
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Igneous RocksIgneous Rocks Solidified molten rock (which freezes at high temp). Earth is mostly igneous rock. Earth Magma Subsurface melt. Magma Lava Melt at the surface.Magma erupts via volcanoes.Earth: Portrait of a Planet, 3rd edition, by Stephe
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MASS WASTING is the downhill movement of soil or fractured rock under the force of gravityA debris avalanche covers portions of the Cascade Glacier, west of the Saint Elias Range in Alaska. The one pictured was the largest of several dozen triggered by a
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Homework #1 For all the questions below, you need to show as much in detail as possible the process or the reasoning by which you arrive at the answer. Q.1 (20 points) Explain the reason why economic efficiency has to be compromised as a result of enhanci
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Study Guide Chapter 4 - Biodiversity and Evolution The American alligator is an important keystone species in southern wetland ecosystems, and has made a significant comeback since the 1960s. It contributes significantly to the Louisiana economy, and cont
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University of Phoenix - BUS - 210
Joint Stock Companies are the decision to raise capital by sharing some of the businesses stock around to investors. The idea is to share the risky investments from a business this way by not having all of your eggs in one single basket in case it all fal
University of Phoenix - BUS - 210
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University of Phoenix - BUS - 210
Checkpoint due Friday 5/28/2010Vitamin Shoppe City Of Industry, CA Product name : USP Labs Anabolic Pump The Product Anabolic Pump by USP Labs is a supplement that incorporates the burn fat, gain muscle results through maintaining a high complex carb die
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University of Phoenix - BUS - 210
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University of Phoenix - BUS - 210
Assignment: Club IT Part 21Assignment: Club IT Part 2 Gus Arrieta XBIS/219 September 5th, 2010 Shawn RiederAssignment: Club IT Part 2 Assignment: Club IT Part 2 Club IT has an exceedingly impressive future with the development of its information system
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Checkpoint: Web 2.01Checkpoint: Web 2.0 Gus Arrieta XBIS/219 September 17th, 2010 Shawn ReiderCheckpoint: Web 2.0 Checkpoint: Web 2.0 Web 2.0, the second generation of the World Wide Web is the movement way from static WebPages to dynamic and shareable
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Gus Arrieta XBIS/219 Club IT Part 11Gus Arrieta Club IT part 1 XBIS/219 August 19th, 2010 Shawn RiederIn this day and age, Information goes a long way. Information technologyGus Arrieta XBIS/219 Club IT Part 1 establishes many routes to provide this w
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University of Phoenix - BUS - 210
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