Score:
0 out of 100 points (0%)
6.
award:
0 out of
10.00 points
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
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 _
Score:
130 out of 130 points (100%)
5.
award:
10 out of
10.00 points
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
1.
Award: 10 out of 10.00 points
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 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
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. _
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
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
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
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 $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
Score:
0 out of 130 points (0%)
1.
award:
0 out of
10.00 points
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
1.
Award: 10 out of 10.00 points
Show my answer
For each of the following, compute the future value: (Do not round intermediate calculations and round your answers to 2
places, e.g., 32.16.)
Present Value
Years
Interest Rate
Future Value
$
$
2,200
12
8,65
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
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
Score:
70 out of 70 points (100%)
1.
award:
10 out of
10.00 points
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
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
Score:
70 out of 70 points (100%)
1.
award:
10 out of
10.00 points
Suppose a stock had an initial price of $52 per share, paid a dividend of $1.00 per share during the year,
and had an ending share price of $62.
Compute the percentage total return. (Round
For each of the following, compute the future value (Do not round intermediate calculations and
round your final answers to 2 decimal places. (e.g., 32.16) :
Prese
Intere
nt Years
st
Value
Rate
$ 2,250
11
8,752
7
76,35
14
5
183,7
8
96
Future Value
13%
9
$
Score:
0 out of 130 points (0%)
1.
award:
0 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)
Current
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:
0 out of 130 points (0%)
5.
award:
0 out of
10.00 points
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:
0 out of 130 points (0%)
5.
award:
0 out of
10.00 points
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
Score:
20 out of 130 points (15.38%)
9.
award:
0 out of
10.00 points
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
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
1.
award:
10 out of
10.00 points
An investment project has annual cash inflows of $3,200, $4,100, $5,300, and $4,500, and a discount
rate of 14 percent.
What is the discounted payback period for these cash flows if the initial cost is $5,900? (Do not roun
Score:
20 out of 130 points (15.38%)
5.
award:
0 out of
10.00 points
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
Score:
0 out of 130 points (0%)
9.
award:
0 out of
10.00 points
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
Chapter 10 - Making Capital Investment Decisions
Chapter 10
Making Capital Investment Decisions
Multiple Choice Questions
1. The difference between a firm's future cash flows if it accepts a project and the firm's future
cash flows if it does not accept t
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
Stock Valuation
The basic model of stock valuation recognizes the importance of income that the owner
of the stock will receive. That is,
Value =
Incomet
1 r
t
t 1
But there are some obvious problems with applying this model to stock prices:
1) Unlike b
The Weighted Average Cost of Capital
Cost of Capital the cost that a firm must pay for the capital it uses to finance new
investments and investment projects.
Capital comes from:
1) Debt
2) Preferred stock
3) Retained earnings
4) Common stock
Alternativel
CAPITAL BUDGETING
The process of developing and evaluating long term investment projects of the firm.
How to evaluate the alternative projects?
1. Calculate NPV of the cash flows derived from the project and then subtract the initial
cash outlay.
2. If PV