This is just a practice exam. The actual exam will differ from this one in number of questions,
degree of difficulty, type of questions, order of questions etc.
(Updates noted by Lora 2/27/16 using Track Changes)
Marquette University
College of Business A
MARQUETTE UNIVERSITY
COLLEGE OF BUSINESS

FINA 3001
Chapter 6 Bonds and
Bond Valuation
6.1 What is a Bond?
Longterm debt instruments
Provide periodic interest income annuity series
Return of the principal amount at maturity future
lump sum
62
Figure
Additional practice problems
Chapter 8
(Q13) True/False:
1. The maximum benefits to diversification between securities occurs when they are
perfectly positively correlated.
2. There is some benefit to diversification when the correlation between securiti
MARQUETTE UNIVERSITY
COLLEGE OF BUSINESS

FINA 3001
Chapter 16: Capital
Structure
16.1 Capital Markets: A Quick Review
Companies raise funds for growth in debt and
equity markets.
Investors have different risk preferences and
companies have varying ris
MARQUETTE UNIVERSITY
COLLEGE OF BUSINESS

FINA 3001
Chapter 11: The
Cost of Capital
11.1 The Cost of Capital: A
Starting Point
Figure 11.1 Component sources of capital.
Weighted average cost of capital (WACC)
WACC = wdRd(1 T) + wpRp + wcRs
WACC is essen
MARQUETTE UNIVERSITY
COLLEGE OF BUSINESS

FINA 3001
Chapter 10: Cash Flow
Estimation
10.1 The Importance of Cash
Flow
Cash flow vs net income or profit
102
10.2 Estimating Cash Flow for Projects: Incremental Cash
Flow
Incremental cash flow
Additional/
MARQUETTE UNIVERSITY
COLLEGE OF BUSINESS

FINA 3001
Chapter 5
Interest Rates
Why is interest rate important?
52
5.1 How Financial Institutions Quote
Interest Rates: Annual and Periodic
Interest Rates
Annual percentage rate (APR)
 Most commonly quoted

MARQUETTE UNIVERSITY
COLLEGE OF BUSINESS

FINA 3001
Chapter 8:
Risk and Rates
of Return
8.1 Returns: $ and %
Dollar Profit or Loss = Ending value
+ Distributions
Original Cost
Rate of return = Dollar Profit or Loss
Original Cost
82
Example 1: Calculatin
MARQUETTE UNIVERSITY
COLLEGE OF BUSINESS

FINA 3001
Chapter 9: Capital
Budgeting Decision Models
9.1 What is capital budgeting?
Analysis of potential additions to fixed
assets.
Longterm decisions; involve large
expenditures.
Should we
Very important
This is just a practice exam. The actual exam will differ from this one in number of questions,
degree of difficulty, type of questions, order of questions etc.
Marquette University
College of Business Administration
FINA3001 Fall 2015
Sample Exam 1
Name:
Additional practice problems
Chapter 3
(Q13) True/ False
1. Consider the TVM equation: An increase in the present value will decrease the future value,
other things remaining equal.
2. Consider the TVM equation: A decrease in the interest rate will decre
Additional practice problems
Chapter 10 Cash Flow Estimation
(Q13) True/False
1.
A company could show a loss for the operating period but have generated positive
cash flow for the business.
2.
Cash flow is an accounting measure of performance during a sp
Additional Practice problems
Chapter 1
(Q1 5) True/False:
1)
If a stocks market price is above its intrinsic value, then the stock can be thought of as
being undervalued, and it would be a good buy.
2)
A stocks market price would equal its intrinsic valu
Additional practice problems
Chapter 11 The Cost of Capital
(Q13) True/False
1. If a firms marginal tax rate is increased, this would, other things held constant, lower the cost
of debt used to calculate its WACC.
2. The cost of preferred stock to a firm
Additional practice problems
Chapter 7
(Q13 )True/False
1. A typical practice of many companies is to distribute part of the earnings to shareholders
through coupon payment
2. The payment of cash dividends to shareholders is a deductible expense for the
MARQUETTE UNIVERSITY
COLLEGE OF BUSINESS

FINA 3001
Chapter 7:
Stocks and
Stock Valuation
7.1 Facts About Common Stock
Represents ownership
No maturity date
Common shareholders rights
Cash flow rights:
Dividend: not fixed, nontax deductible
Claim
MARQUETTE UNIVERSITY
COLLEGE OF BUSINESS

FINA 3001
Chapter 4 The Time
Value of Money
(Part 2)
4.1 Future Value of Multiple Payment
Streams
1. Treat each of the cash flows as a lump sum
2. Calculate each cash flows future value
3. Sum up the individual f
FINA 3001
Professor Reinholz
Luis Orozco
February 9, 2017
FMA Event Office of the Comptroller of the Currency (OCC)
The FMA event that I attended was conducted by an employee of the Office of the Comptroller
of the Currency, or the OCC. The OCC is an inde
FINA3001
Brooks Ch 17 Dividends
InClass Exercises
Spring 2017
Name: _
Section: _ Row: _
1. True / False If a stock holder purchases 1000 shares on the payable date, he would
receive the dividend payment. Ex dividend date
2. True / False The stock price o
This is just a practice exam. The actual exam will differ from this one in number of questions,
degree of difficulty, type of questions, order of questions etc.
Marquette University
College of Business Administration
FINA3001 Spring 20176
Sample Exam 1
Na
FINA3001
Additional practice problems
Brooks  Chapter 8
Name: _
Section: _
Row: _
1. TRUE / FALSE The maximum benefits to diversification between securities occurs
when they are perfectly positively correlated.
2. TRUE / FALSE There is some benefit to di
This is just a practice exam. The actual exam will differ from this one in number of questions,
degree of difficulty, type of questions, order of questions etc.
Marquette University
College of Business Administration
FINA3001 Spring 2017
SAMPLE Exam 2
Nam
FINA3001 Exam 3 Ch 91011
Formulas & Calculations
CH 9
Payback: Calculate full and partial years until CF0 is returned.
Discounted Payback:
1. Calculate PV of each years cash flow
2. Calculate payback using the PV form above
NPV: = PV Inflows Cost
NPV(%,
FINA3001
Additional practice problems
Brooks  Chapter 7
Name: _
Section: _
Row: _
1. TRUE / FALSE A typical practice of many companies is to distribute part of the earnings to
shareholders through a coupon payment
2. TRUE / FALSE The payment of cash divi
This is just a PRACTICE EXAM. The actual exam will differ from this one in the number of
questions, the degree of difficulty, the type of questions, and the order of questions etc.
Marquette University
College of Business Administration
FINA3001 Spring 20
FINA3001 Spring 2017
SAMPLE Exam 3  KEY
1. FALSE use cash flow, not net income to determine whether or not to accept a project
2. FALSE All incremental cash flows are to be included (this includes erosion as well as synergic
cash flows)
3. FALSE the IRR