Finance 335 Homework #8
BDJ Inc. has 20,000 shares outstanding with a market price of $18 per share. If net income for the year is $175,000 and the retention ratio is 70%, what is the dividend per share on BDJ's stock?
2. Company B has $90 million in p
FIN 335 Final Exam
Clay M. Moffett
Questions 1-33 are worth 3 points. Grade is out of 100. Turn in your test when finished with scantron. Good
luck! Bonne chance! Viel Glck! Hodn tst! Held og lykke! Lycka till!
1. M&M Proposition I is th
Practice Questions for Chapter 10, 11 & 12
1. You purchase a 6% semiannual coupon bond for 1085 and sell it after one year for 1150. What
is your dollar return?
A $ 30.00
B $ 60.00
C $ 95.00
2. You purchase a 7% semiannual coupon bon
FIN 3313 Spring 2010
(Each Multiple choice question is worth 4 points)
1. The goal of financial management is to increase the:
a. future value of the firm's total equity.
b. book value of equity.
Overseas Fund: First Eagle Funds
First Eagle Overseas Fund seeks long-term growth of capital by
investing primarily in equities issued by non-U.S. corporations.
Management's research-driven approach seeks to minimize risk by
FIN 330-3 University Studies Writing Assignment
In accordance with University Studies policies for Student Learning Outcome (SLO) in a
Writing Intensive Course, FIN 330 requires that students write a research paper.
You may work with others on t
A market risk factor is a risk that influences only a small number of assets.
In the first chapter, it was stated that financial managers should act to maximize
shareholder wealth. Why are the efficient markets hypothesis
1. cash budget
a forecast of cash receipts and disbursements for the next planning period
2. dutch auction underwriting
type of underwriting in which the offer price is set based on competitive bidding by investors
3. best efforts underwriting
type of und
Which of the following legal forms of organization is characterized by limited liability?
Analyzing the effect of more debt on the firms capital structure
Determining whether to accept or reject a capital asset acquisition
Both the mix a
Summer 09 Test III
1. The rate that banks charge each other for overnight loans is called the _ rate.
B. financial overnight
C. Federal funds
2. Commercial paper is:
A. short-term, secur
330 Spring 2011 Test 1 Key
1. The risk premium is defined as the rate of return on:
A. a risky asset minus the risk-free rate.
b. the overall market.
c. a U.S. Treasury bill.
d. a risky asset minus the rate of inflation.
e. a riskless investment.
2. The g
FIN 330 Spring 10 Test III Dr. Moffett
1. What is the one year interest rate one year from now if the current one-year interest rate is 3.79 percent and the twoyear interest rate is 4.22 percent? Assume the rates are effective annual rates. A.
FIN 330 Spring 10 Test II - A Dr. Moffett
1. A best efforts underwriting is an arrangement where an investment banker: A. buys all of a new issue of securities from the issuer and then attempts to resell those securities. B. pays a fixed amount
FIN 330 Test 1 Spring 2010 Dr. Moffett
1. The annual dividend at time t + 1 divided by the stock price at time t is called the: A. annualized rate of return. B. capital gain. C. total annual rate of return. D. total dollar return. E. dividend y
Principles of Investments
The objective of this course is to introduce students to the basics of investments. Upon completion
of the course the student should understand the following topics: the ris
1 SET 1 PRACTICE QUESTIONS Background Chapters 1-5 CHAPTER 1: 1. Risk is best thought of as a. the chance that the actual return will be zero or negative b. the chance that the actual return will differ from the expected return c. the chance that the expe
If the future return on a security is known with absolute certainty, then the risk premium on that security
should be equal to the risk-free rate.
Indifference curves refle
1. The return on which one of the following is used as the risk-free rate of return?
a. long-term corporate bonds
b. long-term government bonds
c. short-term corporate bonds
d. U.S. Treasury bills
e. the Consumer Price Index
2. The CEO of Je
COST OF CAPITAL
CAPITAL STRUCTURE THEORIES
Dividends and Dividend Policy
1. Explain what a dividend is and describe the different types of dividends and the dividend
2. Explain what a stock repurchase is and how companies repurchase their stock.
RISK AND RETURN: THE CAPITAL
ASSET PRICING MODEL (CAPM)
Answers to Concept Questions
Some of the risk in holding any asset is unique to the asset in question. By investing in a variety of
assets, this unique portion of the total risk can be
Mutual Funds: Fund Objective and Style
A fund tells you what it wants to achieve and how
it plans to do it.
Each mutual fund has an investment objective a goal or
financial result it wants to realize. And each fund manager
has an inv
MACRS 3 years
Cost of Capital 10%
Tax Rate 40%
Revenues $100,000 per year
Operating Cost $40,