Sample_Final_QuestionsRev6_03

Sample_Final_Questio - 1 Sample Questions from Previous FIN 3310 Departmental Final Exams Printed below is a sampling of questions from previous

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Sample Questions from Previous FIN 3310 Departmental Final Exams Printed below is a sampling of questions from previous FIN 3310 Departmental Final Exams. The questions are grouped by major topic and include both theory and problem questions. (A complete listing of the Key Topics in Finance 3310, which governs the material to be covered in the course, is presented at the end of the questions.) Note that some TVM problems may have been worked using interest factor tables while others have been worked using formulas or a business calculator. Thus, your calculated answer, even though correct, may differ slightly from the correct answer listed. However, the answer choices should be sufficiently different to preclude any confusion as to which answer to choose. The following questions relate to particular chapters in the Introduction to Corporate Financial Management textbook: Chapters Section Questions Section Questions Chapter 1 (The Role and Objective of Financial Management) I 1, 2 III 1, 2 Chapter 2 (The Business Environment) II 1-5 Chapter 3 (Review of Financial Statements) III 4 Chapter 4 (Evaluation of Firm Performance) III 5, 6 Chapter 5 (Long-Term and Short-Term Planning) III 3, 7-10 Chapter 13 (Capital Structure Policy: Foundation Concepts) VI 1-7 Chapter 6 (The Time Value of Money) IV 1-3, 5-12 Chapter 8 (Bonds and Other Sources of Debt) IV 13-19 Chapter 9 (Common Stocks and Preferred Stocks) IV 4, 21-30 Chapter 7 (Risk and Return) V 1-11 Chapter 10 (Capital Budgeting and Cash Flow Analysis) IV 42-48 Chapter 11 (Capital Budgeting and Risk Analysis) IV 31-41 Chapter 12 (The Cost of Capital) V 12-22 (Working Capital Management) VI 1-7 I. OBJECTIVE OF THE FINANCIAL MANAGER 1. The primary goal of a publicly-owned firm interested in serving its stockholders is to: a. maximize total corporate profit b. maximize earnings per share of common stock c. minimize the weighted average cost of capital d. maximize the price per share of common stock e. minimize the chance of any loss 2. The agency problem faced by stockholders a. derives from the conflict that a firm's managers face in serving their own interests as well as the interests of the firm's owners. b. is to convince bond holders to subordinate their own interests to those of the stockholders. c. is increased if the managers own a substantial share of the firm's stock. d. is increased if the managers' compensation is tied to the performance of the firm. 1
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e. All of the above II. FINANCIAL MARKETS AND INSTITUTIONS 1. The role of the investment banker in a public offering of securities may include: a. investing the proceeds from the sale of securities. b. meeting the financial needs of the issuer until the securities are sold. c.
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This note was uploaded on 08/22/2009 for the course FIN 3310 taught by Professor Potts during the Spring '08 term at Baylor.

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Sample_Final_Questio - 1 Sample Questions from Previous FIN 3310 Departmental Final Exams Printed below is a sampling of questions from previous

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