{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

FINANCE 511 Mideterm Exam0 - FINANCE 511 MIDTERM...

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
FINANCE 511 MIDTERM EXAMINATION SUMMER 2010 INSTRUCTIONS : This exam is comprised of one discussion question, two work problems, 10 True/False questions and 10 multiple choice questions. You must answer the discussion question, all multiple choice questions and all true/false questions. You must choose one of the two work problems to solve. If you choose both, only the first problem will be graded. This is an open book, open notes examination. Calculators are allowed but no computers or cell phones should be operating during the examination period. Students may not share notes or other resources. Please show all work and state any assumptions you make when working a problem. Partial credit is generous when I can see the logic of your approach. Please refrain from allowing your eyes to wander during the course of the exam. Cheating is prohibited and failure to comply with this policy may result in your dismissal from the University. Good Luck!
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
FINANCE 511 MIDTERM EXAMINATION SUMMER 2010 Discussion Question [30 points] 1. Explain how security analysis and capital market theory are indirectly linked.
Image of page 2
FINANCE 511 MIDTERM EXAMINATION SUMMER 2010 Problem 1: 30 points The following data is for BMI, Inc.: 2009 2010 Current assets $ 863 $ 896 Current liabilities 710 818 Debt in current liabilities 1 39 Long term debt 506 408 Total Assets 2,293 2,307 Capital expenditures 111 117 Change in deferred taxes (29) (20) Sales 4,056 4,192 Operating Expenses 3,307 3,408 General expenses 562 528 Depreciation 139 136 Investment income 5 6 Interest Expense 39 30 Miscellaneous income (net before taxes) (25) ( 4) Income taxes ( 7) 41 Marginal tax rate 64% 45% a. Compute invested capital (15 points) 2009 2010 Invested Capital Statement Working Capital Long term Assets _____ _____ Operating invested capital ===== ===== Debt Equity
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
FINANCE 511
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern