Midf - Midterm Examination BUS312 NAME Student Instructions For qualitative questions point form is not an acceptable answer For quantitative

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Midterm Examination, BUS312 NAME : ___________________________________ Student #____________________ Instructions: For qualitative questions, point form is not an acceptable answer. For quantitative questions, an indication of how you arrived at particular numbers is required for the purpose of assigning part marks. There are a total of 70 marks on this examination. This examination is composed of 7 questions and 7 pages. Please answer all questions on the examination. No other sheets of paper will be marked. Please use pen rather than pencil for your responses. The examination period is one hour and fifty minutes: there will be no extensions. 1. (10 marks) Comment on the following assertion: “With respect to corporate financial analysis, the opportunity cost rate of return is the rate of return that a firm earns from its investment into business activity on behalf of all its financial assetholders. This return is called the opportunity cost because the investment allows investors the “opportunity” to profitably investment in the dynamic business environment of this particular firm.” Use no numerical examples in your response. Solution 2. (10 marks) Comment on the following assertion: “An apartment building is a financial asset rather than a real asset because its stable rental income makes the rate of return on this investment of only modest risk.” Use no numerical examples in your response.
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This note was uploaded on 03/31/2010 for the course BUS 316 taught by Professor Blazenko during the Winter '08 term at The University of British Columbia.

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Midf - Midterm Examination BUS312 NAME Student Instructions For qualitative questions point form is not an acceptable answer For quantitative

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