1
FINANCE 300
FALL 2016
DR. BOUDREAUX
HANDOUT XIV
EXAM PREP
I WILL NOT POST ANY ANSWERS.
I. PROBLEMS/CASES/ESSAY
1 What are the two requirements for a firm to be successful discussed in the 5minute lesson for success?
Produce at a low cost or provide a b
Systematic risk (nondiversifiable Risk) cannot be eliminated (called market risk)

Affected by: wars, inflation, recession, high interest rates, confidence
Unsystematic risk can be reduced by diversification

Affected by: strikes, interruption of raw ma
Payback  amount of time it takes to get paid back. (Need and accum. column)
IRR(cf at 0, cfw_cf1,cf2,cf3,cfw_# of cashflow values)
Profitability index  (NPV + Initial investment)/ (Initial investment)
MIRR
1. PV (neg cf) (find pv)
FV (pos cf), (find fv
1
FINANCE 300
SPRING 2017
HANDOUT XII
DR. BOUDREAUX
EXAM PREP
I WILL NOT POST ANY ANSWERS.
I. PROBLEMS/CASES/ESSAY
1 What are the two requirements for a firm to be successful discussed in the 5 minute
lesson for success?
Competitive Advantage and cover al
Advanced Persistent
Threats: Detection,
Protection and Prevention
By Barbara Hudson, Senior Product Marketing Manager
The many ways in which industry experts have defined advanced persistent
threats (APT) have not exactly led to a better understanding. Th
Introduction to Valuation: The Time Value of Money
And
Discounted Cash Flow Valuation
Future Value and Compounding
Present Value and Discounting
More on Present and Future Values
Summary and Conclusions of the Time Value of Money
Future and Present V
GBUS502
Examtype questions
Chapter 1
1.
Which of the following statements is most correct?
a.
b.
c.
d.
2.
One advantage of forming a corporation is that you have limited liability. *
Corporations face fewer regulations than sole proprietorships.
One disa
RISK AND RATES OF RETURN
1.
You have the following data on three stocks:
Stock
A
B
C
Standard Deviation
20%
10%
12%
Beta
0.59
0.61
1.29
If you are a strict risk minimizer, you would choose Stock _ if it is to be held in isolation and Stock
_ if it is to b
CORPORATE FINANCE
MBAC 6060
Chapter 6 Risk and Return (13th ed.)
1. A highly riskaverse investor is considering the addition of an asset to a 10stock
^
portfolio. The two securities under consideration both have an expected return, k, equal
to 15 percen
m rs
s. the
Nike, Inc; Cost of Capital
On July 5, 200]. Kimi Ford, a portfolio manager at NorthPoint Group, a mutual fund
management rm. pored over analyst writeups of Nike. Inc. the athletic shoe man
ufacturer. Nike's share price had declined signic
CORPPORATE FINANCE
MBAC 6060
1Chapter 10 (13th ed.) The Basics of Capital Budgeting
1.
Assume a project has a normal cash flows (i.e., the initial cash flow is negative, and all
other cash flows are positive). Which of the follow1ng statements is most cor
The Cost
of Capital
1
Learning Goals
Sources of capital
Cost of each type of funding
Calculation of the weighted average cost of
capital (WACC)
Construction and use of the marginal cost of
capital schedule (MCC)
2
Factors Affecting the Cost of
Capital
B144 SOLUTIONS
CHAPTER 9
NET PRESENT VALUE AND OTHER
INVESTMENT CRITERIA
Answers to Concepts Review and Critical Thinking Questions
1.
A payback period less than the projects life means that the NPV is positive for a zero discount rate,
but nothing more
PRACTICE FINAL EXAM (Answers provided at practice tests end)
The following questions are worth 3 points each. Provide the single best response.
1. The primary goal of a publiclyowned firm interested in serving its stockholders should be to
a. Maximize ex