.1 Corporate Finance and
the Financial Manager
In this section. we discuss where the ﬁnancial manager ﬁts in the corporation. We start by
deﬁning corporate ﬁnance and the ﬁnancial manager‘s job.
WHAT [5 CORPORATE FINANCE?
Imagine that you were to start yo
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A stock has a beta of 1.05, the expected return on the market is 10 percent, and the risk-free rate is 3.8
percent. What must the expected return on this stock be? (Round your answer to 2 dec
Practice questions
Quiz 1
FIR 3710 Investments
1. Why are derivatives potentially dangerous?
A) They involve leverage.
B) They are used to hedge.
C) They are a tool for risk management.
D) There are more than 1200 different derivatives on the market.
2. _
Score:
130 out of 130 points (100%)
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award:
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If you put up $54,000 today in exchange for a 6.25 percent, 15-year annuity, what will the annual cash
flow be? (Do not round intermediate calculations and round your final answer to 2 d
Score:
20 out of 130 points (15.38%)
1.
award:
10 out of
10.00 points
SDJ, Inc., has net working capital of $3,190, current liabilities of $4,210, and inventory of $3,980.
What is the current ratio? (Round your answer to 2 decimal places. (e.g., 32.16)
Cu
Practice Exam 1: Fin 3403: Through Chapter 6.
1. The process of planning and managing a firms long-term investments is called:
a.
Working capital management.
b.
Financial depreciation.
c.
Christmas party management.
d.
Capital budgeting.
e.
Capital struct
SDJ, Inc., has net working capital of $3,190, current liabilities of $4,210, and inventory of $3,980.
What is the current ratio? (Do not round intermediate calculations. Round your answer to 2 decimal
places, e.g., 32.16.)
Current ratio
1.76
times
What is
Chapter 03 - Securities Markets
Chapter 03
Securities Markets
Multiple Choice Questions
1. Underwriting is one of the services provided by _.
A. the SEC
B. investment bankers
C. publicly traded companies
D. FDIC
2. Under firm commitment underwriting the _
Chapter 09 - Net Present Value and Other Investment Criteria
Chapter 09
Net Present Value and Other Investment Criteria
Multiple Choice Questions
1. A project has an initial cost of $27,400 and a market value of $32,600. What is the
difference between the
Penguin Pucks, Inc., has current assets of $5,100, net fixed assets of $23,800, current liabilities of
$4,300, and long-term debt of $7,400. (Do not include the dollar signs ($).)
The value of the shareholders' equity account for this firm is $.
The amoun
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Show my answer
Huggins Co. has identified an investment project with the following cash flows.
Year
1
2
3
4
Cash Flow
$ 920
1,330
1,590
1,775
If the discount rate is 10 percent, what is the present value of these cash flow
Chapter 11 - Managing Bond Portfolios
Chapter 11
Managing Bond Portfolios
Multiple Choice Questions
1. All other things equal, which of the following has the longest duration?
A. A 30 year bond with a 10% coupon
B. A 20 year bond with a 9% coupon
C. A 20
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SDJ, Inc., has net working capital of $3,320, current liabilities of $4,550, and inventory of $4,600.
What is the current ratio? (Round your answer to 2 decimal places. (e.g., 32.16)
Current
A business owned by a solitary individual who has unlimited liability for its debt is called a:
rev: 09_05_2012
corporation.
sole proprietorship.
general partnership.
limited partnership.
limited liability company.
Which one of the following terms is defi
Score:
70 out of 70 points (100%)
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award:
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The next dividend payment by Blue Cheese, Inc., will be $1.89 per share. The dividends are anticipated
to maintain a growth rate of 5 percent forever. If the stock currently sells for $38
Score:
20 out of 130 points (15.38%)
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A company has net income of $184,000, a profit margin of 8.5 percent, and an accounts receivable
balance of $123,370. Assuming 60 percent of sales are on credit, what is the companys day
FIN 4504
Problem Set 3 Solutions
Student Name _ Class time _
Instructions:
1. There are 35 questions in this problem set. The questions are drawn from Bond Pricing, Interest Rate
Risk, Term Structure Analysis, Introduction to Options, Option Valuation, an
Penguin Pucks, Inc., has current assets of $4,200, net fixed assets of $23,400, current liabilities of
$3,750, and long-term debt of $8,400.
What is the value of the shareholders equity account for this firm?
Shareholders' equity
$
How much is net working
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Perry, Inc., has a total debt ratio of 0.38. What is its debtequity ratio? (Round your answer to 2
decimal places. (e.g., 32.16)
Debtequity ratio
What is its equity multiplier? (Round your an
Score:
127.50 out of 130 points (98.08%)
1.
award:
10 out of
10.00 points
Wainright Co. has identified an investment project with the following cash flows.
Ye
ar
Cash Flow
1
2
3
4
$
72
0
93
0
1,1
90
1,2
75
If the discount rate is 10 percent, what is the p
Score:
130 out of 130 points (100%)
1.
award:
10 out of
10.00 points
Wainright Co. has identified an investment project with the following cash flows.
Ye
ar
Cash Flow
1
2
3
4
$
88
0
1,2
50
1,5
10
1,6
75
If the discount rate is 8 percent, what is the prese
Chapter 1
Introduction to Corporate Finance
1
Chapter 5
The Time Value of Money
2
2. Calculating Future Values. For each of the following, compute the future value:
Present Value
Years
Interest Rate
Future Value
$2,250
11
13%
$8,630.69
$8,752
7
9
$15,999
Name:
Homework #2
FIN 4504 Equity and Capital Markets
Instructor: Cem Demiroglu
Fall 2004
DUE DATE: September 28, 2004 (Tuesday)
Multiple Choice Questions
1.
Firm A has $1,000 cash at hand and $1,200 worth of debt that will mature in a month. There
are
tw
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Perry, Inc., has a total debt ratio of 0.33. What is its debtequity ratio? (Round your answer to 2
decimal places. (e.g., 32.16)
Debtequity ratio
What is its equity multiplier? (Round your an
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award:
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SDJ, Inc., has net working capital of $3,190, current liabilities of $4,210, and inventory of $3,980.
What is the current ratio? (Round your answer to 2 decimal places. (e.g., 32.16)
Current
Score:
20 out of 130 points (15.38%)
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award:
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Perry, Inc., has a total debt ratio of 0.49. What is its debtequity ratio? (Round your answer to 2
decimal places. (e.g., 32.16)
Debtequity ratio
What is its equity multiplier? (Round yo
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A company has net income of $196,000, a profit margin of 9.7 percent, and an accounts receivable
balance of $135,370. Assuming 70 percent of sales are on credit, what is the companys days sal
Chad Capraro
Finance Quizzes
Chapter 1
1. The primary goal of financial management is to:
A: Maximize the current value per share of the existing stock
2. Which of the following help convince managers to work in the best
interest of the stockholders?
B: C