Name:
BADM 3501: Midterm 3
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Multiple Choice
Identify the choice that best completes the statement or answers the question.
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2.
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A firm is considering a new project whose risk is greater
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mnaneial Nlanagement: Nlidterm l (:1 (1111:1810 Y\SKX
Multiple Choice
Identify the choice that best completes the statement or answers the question.
A 1. Which of the following factors could explain why Michigan Energy's gaggbalance in
Financial Management and Markets
BADM 3501
Spring 2016
Assignment One
Due Date: 1/21/2016
There are 10 questions on this homework, where each question has only one correct answer and is
worth 0.5 points. Please write down your answers in the answer shee
Exam1SEANLYNCH
CrntL.+L/TL.+S.E.=TotalLiabilitiesandSE
NetWorkingCapitalCurrentACurrentL
o TotalCapitalizationTotalLongtermCapital=Equity+Bonds+other
Longtermcapital[allcapitalcommittedbydebtandequityinvestors]
o ReturnonCapitalOperatingIncome/TotalCapita
Dubin
Booknotes
Chap 1 An overview of financial management
Figure 1.1 pg 5
Finance grew from economics and accounting
Sarbanes Oxley act- a law passed by congress tat requires te CWO and CFO to
certify that thiere frims financial statements are accurat
Chapter 3 Self-Test
Definitional Questions
1. Of all its communications with shareholders, a firms _ report is generally the
most important.
2. The income statement reports the results of operations during the past year, the
most important item being _ pe
Chapter 7 Self-Test
Definitional Questions
1. A(n) _ is a long-term contract under which a borrower agrees to make payments of interest and
principal on specific dates.
2. _ bonds are issued by state and local governments, and the _ earned on these
bonds
Chapter 4 Self-Test
Definitional Questions
1. _ ratios are the category of ratios used to measure a firms ability to meet its current
obligations as they come due.
2. The _ ratio measures the extent to which current liabilities are covered by current asse
Chapter 12 Self-Test
Definitional Questions
1. An increase in net operating working capital would show up as a cash _ at
Time 0 and then again as a cash _ at the _ of the projects life.
2. A(n) _ cost is a cash outlay that has already been incurred and th
Chapter 5 Self-Test
Definitional Questions
1. The beginning value of an account or investment in a project is known as its _ value.
2. The difference between a savings accounts present value and its future value at the end of the period
is due to _ earned
Chapter 11 Self-Test
Definitional Questions
1. A firms _ budget outlines its planned expenditures on fixed assets.
2. The number of years necessary to return the original investment in a project is
known as the _ period.
3. The shorter the payback period,
Homework #8.
1. Consider the following information for three stocks, A, B, and C. The stocks returns are positively
but not perfectly positively correlated with one another, i.e., the correlations are all between 0 and 1.
Stock
A
B
C
Expected
Return
10%
1
Chapter 9 Self-Test
Definitional Questions
1.
One of the fundamental rights of common stockholders is to elect a firms
_, who in turn elect officers who manage the business.
2. If a stockholder cannot vote in person, participation in the annual meeting is
723G26/2012-10-10
Practice Set and Solutions #2
What to do with this practice set?
Practice sets are handed out to help students master the material of the course and
prepare for the final exam. These sets contain worked-out problems in corporate
finance
Quiz #1
_
_
_
_
1. The real risk-free rate is 3.55%, inflation is expected to be 2.55% this year, and the maturity risk premium is
zero. Taking account of the cross-product term, i.e., not ignoring it, what is the equilibrium rate of return on a
1-year Tr
Quiz: Interest Rates
_
1. Which of the following statements is CORRECT, other things held constant?
a. If companies have fewer good investment opportunities, interest rates are likely to
increase.
b. If individuals increase their savings rate, interest ra
Quiz 1 Interest Rates
Multiple Choice
Identify the choice that best completes the statement or answers the question. You need to show your work.Time line is
required in all of the solutions.
_
1. One-year interest rates are 6 percent. The market expects o
BADM 3501 Exam 2 Study Guide
Fall 2013
Sean Lynch
Chapter 8- Net Present Value and Other
Investment Criteria.
Opportunity Cost of Capital- Expected rate
of return given up by investing in a project.
Net Present Value- Present value of cash
flows minus ini
1. Truman Industries is considering an expansion. The necessary equipment would be
purchased for $9 million, and the expansion would require an additional $3 million
investment in net operating working capital. The company also spent $50,000 on
research r
(CH1)Capital budgeting decision: Decision to invest in tangible [purchase new] or intangible assets [R&D] (investment decision or CAPEX).
Financing decision: decision on the sources & amounts of financing / Capital structure: the mix of long-term debt & e
Ch. 1- Goals and Governance
Investment Decision- Decision to invest in
tangible or intangible assets- CAPEX
Financing Decision- The form and amount of
financing a firms investments.
Real Assets- Assets used to p
STUDENT INFORMATION SHEET
Please print out, fill out, and bring to class to pass in, or email it to me.
Fall 2013
NAME: Sean Lynch
Class (sophomore, junior, senior, grad): Senior
Major: Information Systems and Technology Management
Previous courses taken
QUIZ #1: INTEREST RATES
_
_
_
1. Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be constant at 2.70%
per year. What is the real risk-free rate of return, r*? The cross-product term should be considered , i.e., if
DEPARTMENT OF FINANCE
COURSE NUMBER:
BADM 3501
SEMESTER : SPRING 2017
SECTION NUMBER:
11
COURSE TITLE:
Financial Management and Markets
COURSE DESCRIPTION:
This is an introductory level undergraduate course in
Finance. It sets the stage for other finance
Financial Management and Markets
BADM 3501
Summer 2017
Assignment Six
Due Date: 08/16/2017
Each question is worth 0.5 points.
1) Which of the following assumptions is embodied in the EFN equation?
A. All balance sheet accounts are tied directly to sales.
Financial Management and Markets
BADM 3501
Summer 2017
Assignment Five
Due Date: 08/09/2017
Each question is worth 0.5 points.
1) Which of the following statements about flotation costs is incorrect:
A. Flotation costs for debt is typically lower than flo
Financial Management and Markets
BADM 3501
Summer 2017
Assignment Four
Due Date: 08/02/2017
Each question is worth 0.5 points.
1) The last dividend on Spirex Corporations common stock was $4.00, and
the expected growth rate is 10 percent. If you require a