Final-Fall-2009 Mock

Final-Fall-2009 Mock - Print Last Name: COURSE FINANCE...

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Print Last Name: Î Print First Name: Î ID Number: Î COURSE FINANCE NUMBER COMM 308/2 SECTIONS: ( Î Circle your section) A, AA, B, BB, C, D, E EXAMINATION Final Exam VERSION GREEN DATE December 19, 2009 TIME 3 hours # OF PAGES 16 including cover INSTRUCTOR: ( Î Underline your instructor’s name) D. Newton R. Jassim R. Mateti J. Riley T. Walker DIVISION John Molson School of Business Concordia University READ THESE SPECIAL INSTRUCTIONS CAREFULLY You are allowed one 8.5x11 sheet of paper (double sided); You may write, type, draw or copy anything on this sheet. This is Version GREEN of the test. You must submit a GREEN computer answer sheet. For Multiple Choice Questions, All answers must be recorded IN PENCIL on the computer sheet. For Problems: All answers must be recorded within this exam. Show your calculations to earn part marks. Write in the space provided. Cell phones must be turned off, programmable calculators and PDAs are not allowed. Please ensure you have 16 pages (including cover) in this exam. Fill in your name and other required information IN PENCIL on the Computer Answer sheet as well as on this cover sheet. Blank questions or those with multiple answers will not receive credit. Translation dictionaries are allowed if approved by professor at start of exam. REMINDER: Put your Name and ID on (1) this exam; (2) computer answer sheet and (3) Your Crib Sheet. Hand in this exam, computer sheet and your Crib Sheet. Version: MOCK Green Page 1 of 16
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Multiple Choice: answer on the GREEN computer answer sheet Version: MOCK Green Page 2 of 16 Part I: Multiple Choice Questions (25 Questions, 70 Points Total): - This part consists of 10 concept questions and 15 calculation problems. - Each concept question counts 2.5 points for a total of 25 points and each calculation problem counts 3 points for a total of 45 points. - Only answers on the computer answer sheet will be graded. - Use a pencil to mark your answers. - Select only one answer per question, blank or multiple answers will not receive credit. - You are encouraged to also circle your answer on the exam sheet as a back up. A. Concept Questions (10 Questions, 2.5 Points Each) 1. The total financial leverage of a firm includes: I. Common equity II. Inventory III. Accounts payable IV. Accounts receivable A) I. only B) I and II C) II and IV only D) III only E) II, III and IV 2. The principle of diversification states that spreading an investment over a number of assets will eliminate: A) All the systematic risk and some of the unsystematic risk B) All the unsystematic risk and some of the systematic risk C) Most of the systematic risk D) Most of the unsystematic risk 3. If the cost of equity for a firm is 5% then increasing the retention ratio will increase the stock price if (choose best answer): A) The firm is able to earn a return of less than 5% on its equity B) The firm is able to earn a return of more than 5% on its equity C) Increasing the retention ratio will never increase stock prices D) Increasing the retention ratio will always increase stock prices
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Final-Fall-2009 Mock - Print Last Name: COURSE FINANCE...

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