3/
This exam consists of ten problems worth 10 points each. Show your work. No credit for
answers only. All answers must include proper units and be in four decimal places
(nearest basis point for %, nearest penny for dollar amounts) to avoid forfeiture
Question 1
1 out of 1 points
Which of the
following is an
advantage of the
sole proprietorship
form of
organization?
Selected Answer:
Profits taxed at only one level.
Answers:
a.
Wide access to capital markets.
b.
Unlimited liability.
c.
A pool of expert
Running head: RISE OF CHINA AS AN ECONOMIC POWER
Rise of China as an Economic Power
Monisha Maharjan
FINC 531001 Foundation of Finance
Lamar University, Beaumont
Dr. Jimmy D. Moss
March 7, 2016
1
RISE OF CHINA AS AN ECONOMIC POWER
2
Table of Contents
1.
1. If you deposit $5000 in a bank account that pays 10% interest annually, how much would be
in your account after 20 years?
2. Your parents will retire in 21 years. They currently have $250,000 saved. They think they
will need $1,000,000 at retirement. W
FINC 3310
ANALYSIS OF FINANCIAL STATEMENTS
Chapter 4
I. Introduction  Ratio analysis is used extensively by business firms in all industries as well as in
nonprofit institutions. A basic knowledge is useful for people whose primary work may be in any
fun
FINC 33100]
EXAM 11
Fall 2013
Name
\ [D FINC 3310 Exam II
This exam consists of ten problems worth 10 points each. Show your work. No credit for
answers only. All answers must include proper units and be in four decimal places
(nearest basis point for
5 Zcfd I; 55, at)
J] 2 (23,9, 0
% A (9.35)
FINC 3310 EXAM IV
This exam consists of ten problems worth ten points each. Show your work. No credit
for answers only. Answers without units or less than 4 decimal places forfeit 1 point
per infraction.
1.
Wu
, FINC 3310 EXAM 111 ,w L
This exam consists of ten problems worth ten points each. Show your work. No credit
for answers only. Answers without units or less than 4 decimal places forfeit 1 point
per infraction.
1. Johnson Jets is considering two mutua
Chapter 7:
* for chapter 7, go through PP and work problemsmemorize concepts*
[information about bonds before Ch 7 questions]
WHAT ARE BONDS?
Bonds are a longterm debt instruments
Bonds are relatively safe investments
Borrower (bond issuer)
agrees t
What are the 4 factors that affect
borrowing costs?

Production opportunities
Time Preferences for consumption
Risk
Expected Inflation
Production opportunities
 The rate of return producers
expect to earn on the borrowed
money:
 The investment opportun
Chapter 8:
Understand the difference between companyspecific or nondiversifiable risk and
market or diversifiable risk
When held as part of a portfolio, an assets risk can be divided into two components:
o Diversifiable risk can be eliminated by buying
FINC 3310
Finance Proficiency Test Study Guide
Shareholders are the owners of the firm and managers work for them; therefore, managers
should do what is best for the shareholders. Shareholders invest in firms mainly to make
money or increase their wealth.
Chapter 6:
Know the 4 factors that affect borrowing costs and how those factors
affect the overall level of interest rates
Higher risk and higher inflation also lead to higher interest rates
Interest is simply the price or cost of borrowing money
The 4 f
FINC 3310 Exam II Review Sheet
Chapters 57
Chapter 5:
Understand the relationship between future value and
present value of a lump sum
Finding a present value is the reverse of finding a future value.
FUTURE VALUE
A dollar in hand today is worth more th
FINC 3310 Exam III Review Sheet
Chapters 810
Chapter 8:
Understand the difference between companyspecific or nondiversifiable risk and market or diversifiable risk
When held as part of a portfolio, an assets risk can be divided into two components:
o D
Chapter 6:
Know the 4 factors that affect borrowing costs and how
those factors affect the overall level of interest rates
Higher risk and higher inflation also lead to higher interest rates.
Interest is simply the price or cost of borrowing money
The 4
FINC 3310
Exam 4 Review
Chapter 11
Know how to implement each of the capital budgeting
methods (payback, discounted payback, NPV, IRR, and
MIRR) and the related decision rule for each method.
 & know the advantages & disadvantages of each one
Capital B
FINC 3310
Exam 4 Review
Chapter 11
Know how to implement each of the capital budgeting
methods (payback, discounted payback, NPV, IRR, and
MIRR) and the related decision rule for each method.
 & know the advantages & disadvantages of each one
Capital B
What are the 4 factors that affect
money?
1. Production opportunities affects
the demand for money by
borrowers.
2. Time preferences for consumption
affect the supply of money from
lenders
3. Risk
4. Expected inflation
represents what investors expect to
1. If a stock has an expected return of 15% in a good economy, 8% in a fair economy, and 4%
in a bad economy and the probability is 25% that there will be a good economy, 50% that
there will be a fair economy, and 25% that there will be a bad economy, wh
Chapter 6
1. Know the 4 factors that affect borrowing costs and how those factors affect the overall level of
interest rates
2. Know the determinants of interest rates and how they affect interest rates for a particular
borrower
3. Understand the terms st
Chapter 10
Understand why minimizing the WACC is equivalent to maximizing stockholder wealth
Weighted Average Cost of Capital
Primary objective of the company managers is to maximize shareholder value.
We should pick projects with:
expected returns > co
Chapter 9:
Know the difference between realized or actual returns and expected returns
Expected Rate
The expected rate is simply the rate an investor can expect to realize if the investment is made.
The expected rate can also be thought of as the rate th
Chapter 6:
Know the 4 factors that affect borrowing costs and how those factors
affect the overall level of interest rates
Higher risk and higher inflation also lead to higher interest rates
Interest is simply the price or cost of borrowing money
The 4 f