Sample Exam #3
Chapters 7, 8, 9
1. Which of the following events would make it more likely that a company would call its outstanding callable
a. The companys bonds are downgraded.
b. Market interest rates rise sharply.
c. Market interest
Sample Exam #1
Chapters 1, 3, 4
_ 1. The primary operating goal of a publicly-owned firm interested in serving its
stockholders should be to
a. Maximize its expected total corporate income.
b. Maximize its expected EPS.
c. Minimize the chances of
Sample Exam #2
1. Which of the following statements is CORRECT?
a. A time line is not meaningful unless all cash flows occur annually.
b. Time lines are not useful for visualizing complex problems prior to doing
Sample Exam #4
Chapters 10, 11
1. Schalheim Sisters Inc. has always paid out all of its earnings as dividends, hence the firm has no retained
earnings. This same situation is expected to persist in the future. The company uses the CAPM to calcul