1. Daves Fish and Chips has a beta of 1.2, a variance of .0060, a growth rate of 3 percent, a stock price of $25
a share, and is expected to pay $0.55 as their next annual dividend. The market rate of return is 8.5 percent
and the risk-free rat
Critical thinking is a process in which you learn how to evaluate situations and come up with appropriate
answers. It incorporates several levels of thought, each of which is built upon the skills leaned in the
previous level. You will b
Final Exam Information
What is included?
The final exam will be comprehensive. The pool of questions will come from all of the chapters covered
in the course.
What is it worth?
There will be 100 questions worth 4 points each.
What is the format?
Final Study Guide- Business Finance
1. Advantages, disadvantages, characteristics of partnership, sole proprietorship, and corporation
Characteristics of Partnership:
Can raise more funds than sole proprietorships
Business Finance- Notes
Finance- Finding the value of something.
The value of an asset is the present value of future cash flows.
-Where to invest the funds? (Capital Budgeting)
-Where do we get the funds?
a) Internally generat
You are interested in purchasing a car upon graduation. With your new job, you will be able
to pay $250 per month. If your bank will loan you the money for five years at 6% APR, how
much can you afford to pay for the car today?
You are looking t
1. If your company pays a constant annual dividend of $.25 a share and currently sells for
$10 a share. What is the rate of return?
2. Last year your company paid an annual dividend of $1.25 per share. You, as company
president, just announced t
1. Two years ago, you purchased a stock at a price of $15.22. The stock pays quarterly dividends of
$0.32 per share. Today, the stock is selling for $25.20 per share. What is your capital gain on this
2. You own 400 shares of XZZ Co
1. A firm has $520 in inventory, $1,860 in fixed assets, $190 in accounts receivables, $210 in
accounts payable, and $70 in cash. What is the amount of the current assets?
2. A firm has common stock of $6,200, paid-in surplus of $9,100, total li