Financial Management Foundations
February 1, 2014
Which one of the following business types is best suited to raising large amounts of capital? (37)
A. sole proprietorship
B. limited liability company
D. general par
A portfolio is:
a group of assets, such as
bonds, held as a collective
B. the expected return on a risky asset.
C. the expected return on a collection of risky assets.
D. the variance of returns for a risky asset.
E. the standard deviation
FINANCIAL MANAGEMENT FOUNDATIONS FINAL EXAM PART 2 CH21-31
In a lease arrangement, the owner of the asset is:
B. the lessee.
C. the lessor.
D. the leaser.
E. None of these.
In a lease arrangement, the user of the asset is:
The investor presentation must be clear, concise
and compelling to:
Generate investor interest and build confidence
Lead to additional investor meetings
Should be 20-30 minutes in length
Charts, graphics, pictures and v
FIN599 Y: Homework after July 11th Class
1) How will each of the following changes in demand and/or supply affect equilibrium price
and equilibrium quantity in a competitive market; that is, do price and quantity rise, fall,
or remain unchanged, or are th
1. Suppose that annual output in year 1 in a 3-good economy is 3 quarts of ice cream, 1 bottle of
shampoo, and 3 jars of peanut butter. In year 2, the output mix changes to 5 quarts of ice cream,
2 bottles of shampoo, and 2 jars of peanut butter. If the p
Ch 25, Prob 1
Real GDP $30,000 $31,200
SolvGrowth rate of real GDP per capita
Real GDP Per Capita $300.00
SolvAnnual growth to double a country's output in:
a. 7 years:
FINANCIAL MANAGEMENT FOUNDATIONS
QUIZ 1: SEPTEMBER 2016
1. Which of the following are not stakeholders of a corporation?
e. Local communities where the corporation operates
2. The board of directors
TREASURY AND AGENCY SECURITIES MARKETS
ANSWERS TO QUESTIONS FOR CHAPTER 6
2. The following questions are about Treasury Inflation Protected Securities (TIPS).
(a) What is meant by the real rate?
In terms of TIPS, the real rate is the coupon rate
Amount at hand : $ 5,000,000
Target Amount - $ 25,000,000
Time 10 years
What is a Put Option?
An option contract giving the owner the right, but not the obligation, to sell a specified
amount of an underlying security at a specified price
Financial Management Foundations FIN599
HB 10BII Calculator Steps for Final Exam
FV of Cash Flow
PV of Cash Flow
Formulas for Financial Management Foundations Midterm
GDP = Consumption (C) + Investment (I) + Government Spending (G) + Net Exports (NX)
Net Exports (NX) = Exports (X) Imports (M)
Real GDP =
Economic wants exceed productive
Social science concerned with
making optimal choices under
conditions of scarcity
The Economic Perspective
Thinking like an economist
Scarcity and choice
FIN599 Y: Homework after July 11th Class Answer Sheet_Jin Zhang
a. Equilibrium price increases and equilibrium quantity decreases.
b. Equilibrium price decreases and equilibrium quantity decreases.
c. Equilibrium price decreases and equilibrium quantit
Financial Management Foundations ( FIN 599 )
Text: (youll need it to score well in this course )
CORPORATE FINANCE Ross, Westerfield & Jaffe, McGraw-Hill Irwin ISBN 978-0-07-803477-0
Practice Problems (8/1/15)
1. Bradley Snapp has deposited $6,000 in a guaranteed investment account with
a promised rate of 6% compounded annually. He plans to leave it there for 4
full years when he will make a down payment on a car after graduation. How
Loan Amortization With Fixed Principal Payment Example
St Bal Prin Pmt Int Pmt
Balance Sheets as of December 31, 2011 and 2012
($ in millions)
Net plant and equipment
a. Req'd increase in gov't spending to increase AD by $25B
b. Req'd increase in taxes to increase AD by $25B
c. Determine possible combinations of spending and tax cuts
a. Multiplier =
1. The asset demand for money:
A. is unrelated to both the interest rate and the level of GDP.
B. varies inversely with the rate of interest.
C. varies inversely with the level of real GDP.
D. varies directly with the level of nominal GDP.
Tools of Monetary Policy
A. Open-market operations refer to the Feds buying and selling of government bonds.
When the Fed buys securities, bank reserves will increase and the money
supply potentially can rise by a multiple of these reserves.