{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Exam3 FIN370 A Key (2)

Exam3 FIN370 A Key (2) - Exam3 FIN370 Winter 2009 Key...

This preview shows pages 1–4. Sign up to view the full content.

Exam3 FIN370 Winter 2009 Key Version A 1. A sunk cost is: a. the value of an asset currently owned by a firm. b. a form of erosion. C. a cost that has already been incurred and cannot be recouped. d. a cost for which there is no alternative option. e. another name for a fixed cost. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 009 #3 SECTION: 9.2 TOPIC: SUNK COST TYPE: DEFINITIONS 2. One year ago, you purchased 200 shares of stock for \$29 a share. The stock pays \$.60 a share in dividends each year. Today, you sold your shares for \$31.60 a share. What is your total dollar return on this investment? BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 010 #44 SECTION: 10.1 TOPIC: DOLLAR RETURN TYPE: PROBLEMS

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

View Full Document
3. Which of the following will increase the net income of a profitable firm? I. decreasing the depreciation II. increasing the variable cost per unit III. decreasing fixed costs IV. increasing revenue BLOOMS TAXONOMY QUESTION TYPE: COMPREHENSION LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 002 #31 SECTION: 2.2 TOPIC: NET INCOME TYPE: CONCEPTS 4. You are considering the following two mutually exclusive projects. The crossover point is _____ and Project _____ should be accepted if the discount rate for the project exceeds the crossover rate. BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 008 #91 SECTION: 8.4 TOPIC: NPV PROFILE TYPE: PROBLEMS
5. All of the following are characteristics of common stock except the: a. right to share proportionally in any residual value in a bankruptcy proceeding. b. ability to vote for corporate directors. c. ability to vote on key issues such as a merger. D. priority over other equity in a bankruptcy proceeding. e. right to share proportionally in dividends paid to common shareholders. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEVEL OF DIFFICULTY: BASIC Ross - Chapter 007 #37 SECTION: 7.2 TOPIC: COMMON STOCK CHARACTERISTICS TYPE: CONCEPTS 6. Which one of the following statements is correct?

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 22

Exam3 FIN370 A Key (2) - Exam3 FIN370 Winter 2009 Key...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online