PRACTICE FINAL EXAM (Answers provided at practice tests end)
The following questions are worth 3 points each. Provide the single best response.
The primary goal of a publicly-owned firm interested in serving its stockholders should be to
Time Value of Money
Rates of Return
Time Value of Money(TVM)
Has many applications:
Valuing stocks and bonds (our next couple of
Setting up loan paymen
Bonds and Their Valuation
Key Features of Bonds
What is a bond?
A long-term debt instrument in which a
borrower agrees to make payments of
principal and interest, on specific dates, to the
Analysis of Financial Statements
Effects of Improving Ratios
Limitations of Ratio Analysis
A Snack food company underwent major expansion in 2010.
So far, expansion results
Financial Statements, Cash Flow,
Key Financial Statements
Statement of Stockholders Equity
Statement of Cash Flows
Free Cash Flow
Recall that the primary goal of a manager is to
An Overview of Financial Managment:
Brigham and Houston
Fundamentals of Financial Management
Students should be able to:
Identify Forms of Business Organization
Understand concepts of Stock Prices and Shareholder Value
Bank Management and Commercial Lending
Exam II Guidelines Class Discussion and Chapters 13 15
From Chapter 13 Credit Policy and Loan Characteristics
With these topics, be familiar with recent banking trends (we reviewed loan delinquency rates by
Bank Management and Commercial Lending
From Chapter 16 Managing the Investment Portfolio
Chapter 16 is huge, and there is no way we could cover all of its material. Nonetheless, a few key
ideas stand out. Those ideas are highlighted below, and in the next
Part I. The following multiple choice questions are worth 4 points each. Provide the
single best response.
Which of the following expenses would NOT be included in an operating
statement used to calculate net operating income in the income approach to
Chapter 15: Bank Management: A few practice problems and some
selected answers to assigned end of chapter questions
1. Installment loans are for specific purposes and have fixed payouts; with fixed payments at
fixed intervals over a set period of time, in
Chapter 13: Bank Management: A few selected answers to assigned end
of chapter questions
1. A bank's credit culture establishes actual lending principles. The banks credit philosophy
establishes the banks risk tolerance.
2. Business development and credit
Provide the single best response to the following questions. Each question is worth 3.33 points.
1. ABC Corporation's common stock dividend yield is 3.61%, it just paid a dividend of $2.75, and is
expected to pay a dividend of $2.89 one year from now. Div
For Dr. Grahams class
(With an addendum including some additional practice questions.)
The following 30 questions are worth 3 points each. Choose the single best response.
1. The excess return required on a risky asset over th
Practice questions from chapters 10-12 (with a few bonus questions from chapter 13).
1. The excess return required on a risky asset over that earned on a risk-free asset is called (a):
A) Risk premium.
B) Return premium.
C) Excess return.
D) Average retur
Chapter 14 Questions:
1. Payments made out of a firm's earnings to its owners in the form of cash or stock are called:
C) Share repurchases.
E) Stock splits.
Topic: REGULAR CA
Chapter 14 Highlights
In chapter 14, we continue to examine the impact of management decisions on firm value; here, we look
at dividends and dividend policy. A dividend generally refers to a cash payment from the firm to its
S/hs. The payment is made from
Chapter 6 Highlights
In ch. 6, we look at bonds.(define face [par]value, coupon rate, coupon, maturity date and value)
Bonds are bought and sold with their price being a function of prevailing interest(%) rates:
%=f(typical economy wide rates, inflation,
A few practice questions from Chapters 1-5
Go over the problems below, provide an answer, bring your questions to class. Correct answers in bold.
The management of the firms short-term assets and liabilities is called:
a) Working capital management.