Practice exam - Exam2 FIN370-01 Winter 2011 Key 1. If...

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Exam2 FIN370-01 Winter 2011 Key Version B 1. If shareholders are granted a preemptive right they will be: A. given the choice of receiving dividends in cash or in additional shares of stock. B. granted shares that receive additional voting privileges. C. given the first right to purchase any new shares of stock that are issued. D. able to determine who the candidates should be for any open seats on the board. E. paid dividends prior to the preferred shareholders during the preemptive period. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEVEL OF DIFFICULTY: BASIC Ross - Chapter 007 #38 SECTION: 7.2 TOPIC: PREEMPTIVE RIGHT TYPE: CONCEPTS 2. Which one of the following statements is correct? A. The future value of an annuity is unaffected by the amount of each annuity payment. B. The present value of an annuity is unaffected by the number of the annuity payments. C. The present value of an annuity increases when the interest rate decreases. D. The present value of an annuity increases when the interest rate increases. E. The future value of an annuity increases when the interest rate decreases. BLOOMS TAXONOMY QUESTION TYPE: COMPREHENSION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 005 #9 SECTION: 5.2 TOPIC: ANNUITY PRESENT VALUE TYPE: CONCEPTS 3. The capital structure of a firm refers to the firm's: A. combination of assets. B. available cash. C. current assets and liabilities. D. long-term debt and equity. E. buildings and equipment. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #19 SECTION: 1.2 TOPIC: CAPITAL STRUCTURE TYPE: CONCEPTS
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4. A debenture is: A. long-term debt secured by fixed assets of the borrower. B. unsecured debt that generally matures in less than ten years. C. unsecured debt that generally matures in ten years or more. D. long-term debt secured by real estate. E. any type of debt that is short-term in nature. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 006 #10 SECTION: 6.2 TOPIC: DEBENTURE TYPE: DEFINITIONS 5. Which one of the following is a form of bond issue wherein interest payments are made directly to the owners of record? A. coupon B. street name C. bearer D. registered E. secured BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 006 #8 SECTION: 6.2 TOPIC: REGISTERED FORM TYPE: DEFINITIONS 6. A real rate of return has been adjusted for: A. market risk. B. taxes. C. interest rate risk. D. inflation. E. default risk. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 006 #24 SECTION: 6.6 TOPIC: REAL RATE TYPE: DEFINITIONS
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7. Which one of the following indicates a firm is utilizing its assets less efficiently than it has in the past? A.
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This note was uploaded on 08/02/2011 for the course FIN 320f taught by Professor Toprac during the Summer '08 term at University of Texas at Austin.

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Practice exam - Exam2 FIN370-01 Winter 2011 Key 1. If...

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