# Final Exam FINE2000 W2012_solutions - York University...

• Test Prep
• rohini65
• 21
• 86% (7) 6 out of 7 people found this document helpful

This preview shows page 1 - 4 out of 21 pages.

The preview shows page 3 - 4 out of 21 pages.
1York UniversitySchulich School of BusinessIntroduction to Corporate Finance FINE 2000Final Exam: SolutionsSaturday, April 14, 2012Instructions:There are 20 multiple choice questions, 4 problems and a formula sheet on the followingpages. Please examine your quiz booklet to ensure it is complete & answer all questionson the following pages. This is a closed book test.All process work & steps must be shown and will be awarded part marks.No marks willbe awarded if only the answer is provided.Process includes either the calculator key strokes used or formulas and logic includingthe correct values in the right places.Calculators must be set such that the rate of return is the periodic rate.Calculate using 6 significant figures for absolute numbers and 4 significant figures forpercentages. Round any dollar based answers to 2 decimal points.Calculators are permitted. Laptops, cell-phones, and other electronics arenotTime allocation:180 minutes.Mark allocation: Shown on exam.permitted.Printyour name:___________________________________Signyour name:___________________________________Student Number: ___________________________________Nameof Instructor: ___________________________________Section:___________________________________Good Luck!!!
##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Chapter 10 / Exercise 10-4
Fundamentals of Financial Management
Brigham
Expert Verified
Multiple Choice [20 questions: 30 points]1.Stock A has 10 million shares issued and Stock B has 5 million shares issued. If they areboth trading today at \$100 a share, what is their relative weighting in the marketportfolio?
2.All else equal, which of the following bonds would be likely to exhibit agreaterdegree ofinterest-rate risk?
3.Should a project be accepted if it offers an annual after-tax cash flow of \$1,250,000indefinitely, costs \$10 million, is riskier than the firm's average projects, and the firm'sWACC is 12.5%?
4.Given the accumulated evidence concerning the CAPM, which of the following portfoliosmight be expected to plot above the security market line?A)A portfolio of aggressive stocks.B)A portfolio that includes borrowed funds.C)A portfolio of smaller companies.D)A portfolio split between Treasury bills and the market index.
2
3

Course Hero member to access this document

Course Hero member to access this document

End of preview. Want to read all 21 pages?

Course Hero member to access this document

Term
Winter
Professor
GeorgeKlar
##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 10 / Exercise 10-4
Fundamentals of Financial Management
Brigham
Expert Verified