UCB Extn Financial Stmt Analysis and Valuation Final Exam

UCB Extn Financial Stmt Analysis and Valuation Final Exam -...

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U.C. Berkeley Extension Name: ________________________ Fall 2010 Date: _________________________ Financial Statement Analysis and Valuation Final Exam Each question is 20 points. There are 5 questions total. Partial points will be provided as necessary. 1. The substitutability of a particular good/service can play havoc on a company’s sales. This is formally defined as elasticity of a good/service. The elasticity/substitutability changes for 4 reasons. The 4 reasons are stated below, briefly describe/explain them. a) The larger the time interval - b) Broader definition - c) Depends on the size relative to a person’s budget - d) The more the good/service is a necessity - 2. Beta is often referred to/incorporated into analysis, but using beta could be faulty. Why? 3.
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Unformatted text preview: For credit analysis, is the focus on the companys growth or liquidity and why? 4. What is the difference between technical default and actual default. 5. Individuals, just like some companies, are rated for credit risk. Standard and Poors and Moodys are the popular credit rating agencies. For individuals there is the FICO scoring. Although an individual has good credit ratings and isnt a risk for defaulting, say on credit cards, can the government provide the wrong incentive for an individual to consider/actual defaulting? Class, Its been fun while it lasted. I wish you all the best in your pursuits. Remember, look at all the possible ways to analyze something, just like crossing the street look both ways and proceed with caution. Best, Don...
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UCB Extn Financial Stmt Analysis and Valuation Final Exam -...

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