NAME: _ BSAD 180: Managerial Finance Midterm Exam
I. Multiple Choices (40%) ( b) a. b. c. d. e. 1. The primary goal of financial management is to: maximize current dividends per share of the existing
Book value of a firms stock can exceed its market * Proxy - grant of authority allowing someone else to vote your stock. Efficient Market Hypothesis: 3 Explanations for why Value firms earn higher ret
Exam2 FIN470 Spring 2009 Key
1. Glassparts, Inc. uses machines to manufacture windshields for automobiles. One machine costs $142,000 and lasts about 5 years before it needs replaced. The operating co
CHAPTER 4
Long-Term Financial Planning and Growth I. DEFINITIONS
PLANNING HORIZON a 1. The long-range time period, usually the next two to five years, over which the financial planning process focuses
CHAPTER 10
Making Capital Investment Decisions I. DEFINITIONS
INCREMENTAL CASH FLOWS a 1. The changes in a firms future cash flows that are a direct consequence of accepting a project are called _ cas
CHAPTER 13
Return, Risk, and the Security Market Line I. DEFINITIONS
PORTFOLIOS a 1. A portfolio is: a. a group of assets, such as stocks and bonds, held as a collective unit by an investor. b. the ex
CHAPTER 8
Stock Valuation I. DEFINITIONS
GROWING PERPETUITY a 1. An asset characterized by cash flows that increase at a constant rate forever is called a: a. growing perpetuity. b. growing annuity. c
CHAPTER 10
Making Capital Investment Decisions I. DEFINITIONS
INCREMENTAL CASH FLOWS a 1. The changes in a firms future cash flows that are a direct consequence of accepting a project are called _ cas
CHAPTER 9
Net Present Value and Other Investment Criteria I. DEFINITIONS
NET PRESENT VALUE a 1. The difference between the present value of an investment and its cost is the: a. net present value. b.
CHAPTER 13
Return, Risk, and the Security Market Line I. DEFINITIONS
PORTFOLIOS a 1. A portfolio is: a. a group of assets, such as stocks and bonds, held as a collective unit by an investor. b. the ex
How do you standardize balance sheets and income statements? We use the common-size balance sheets (Compute all accounts as a percent of total assets)and common-size income statements (Compute all lin
CHAPTER 7
Interest Rates and Bond Valuation
I.
DEFINITIONS
COUPON a 1. The stated interest payment, in dollars, made on a bond each period is called the bonds: coupon. face value. maturity. yield to m
CHAPTER 2
Financial Statements, Taxes, and Cash Flow I. DEFINITIONS
BALANCE SHEET b 1. The financial statement showing a firms accounting value on a particular date is the: a. income statement. b. bal
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MBA 816: Advanced Corporate Finance
Mid-Term Exam #1: Practice Problems
Cash Flow Problems
Nishi Tofu Co. 2014 Income Statement (in $thousand)
Sales
Cost of goods sold
Other expenses
Depreciation
Othe
Chapter 20: International Corporate Finance
Practice Problems
Q1.
Suppose that the exchange rate between the U.S. dollar and the Euro is $1.10 per Euro. Is this the
direct quote or the indirect quote?
Chapter 7: Capital-budgeting Decisions
NPV, PI & IRR
A1.
Capulet Industries Inc. is considering a project that provides an annual cash inflow of $200,000
for the first ten years and $500,000 per year
MBA 816: Advanced Corporate Finance
Mid-Term Exam #1: Formula Sheet
Liquidity ratios
Total current assets
Current Ratio =
Quick Ratio =
Cash Ratio =
Total current liabilities
Cash + Acount receivables
Chapter 10: Practice Problems
Risk & Return
D1.
You bought 1 share of Black & Scholes Co. stock for $34.00 per share and sold it for $36 three
month later after collecting a $1.00 per share dividend.
Exam 1: Answers and Solutions
#
1
2
3
4
5
6
Key
A
C
C
C
B
B
7
B
8
9
10
11
12
D
E
E
E
E
Solution / Explanation
OCF = 1,600 + 1,000 255 = $2,345
Net fixed assets (2016) - Net fixed assets (2015) + Depre
Chapter 8: Pro Forma Financial Statement
Black & Scholes Co. is considering a 3-year project. The straight line depreciation method is
applied to all the fixed assets necessary for this project. For t
MBA 816: Advanced Corporate Finance
Mid-Term Exam #1: Study Guide
General Guideline
25 multiple-choice questions (4 points each). You have 60 minutes.
Review the lecture notes thoroughly, especially
Chapter 9: Risk Analysis
Sensitivity Analysis
For the next six questions, use the information in the table below:
Life of project
Initial investment
Number of units
Price per unit
Variable cost per un
MBA 816: Advanced Corporate Finance
Final Exam: Study Guide
General Guideline
40 multiple-choice questions (5 points each). You have 100 minutes.
There should be no surprise in computational questio
MBA 816: Advanced Corporate Finance
Final Exam: Formula Sheet
Liquidity ratios
Total current assets
Current Ratio =
Quick Ratio =
Cash Ratio =
Total current liabilities
Cash + Acount receivables
Tot
Problem 2-2 Building an Income Statement
Miller, Inc., has sales of $655,000, costs of $304,000, depreciation expense of $56,000, interest expense of
$38,000, a tax rate of 35 percent and paid out $73