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Finance Final Exam
Finance Final Exam
[Show more]Finance Final Exam
[Show more]The cost of preferred stock is computed the same as the __________ 
A. pre-tax cost of debt. 
B. rate of return on an annuity. 
C. after-tax cost of debt. 
D. rate of return on a perpetuity. 
E. cost of an irregular growth common stock. - Rate of return on a perpetuity 
Which one of the following st...
Preview 3 out of 25 pages
Add to cartThe cost of preferred stock is computed the same as the __________ 
A. pre-tax cost of debt. 
B. rate of return on an annuity. 
C. after-tax cost of debt. 
D. rate of return on a perpetuity. 
E. cost of an irregular growth common stock. - Rate of return on a perpetuity 
Which one of the following st...
what is the definition of debt? 
A. Debt is the amount you save 
B.Debt is the amount you owe 
C.Debt is the amount you can borrow 
D.Debt is the amount you spend1 - B 
What are the housing market conditions that indicate a real estate "bubble"? 
A. Housing Values stagnate as consumer income rises...
Preview 2 out of 6 pages
Add to cartwhat is the definition of debt? 
A. Debt is the amount you save 
B.Debt is the amount you owe 
C.Debt is the amount you can borrow 
D.Debt is the amount you spend1 - B 
What are the housing market conditions that indicate a real estate "bubble"? 
A. Housing Values stagnate as consumer income rises...
3 Equivalent ways of calculating the present value of a single cash flow - 
1. The Present Value Formula 
2. Present Value PV Excel Function 
3. A Present Value Timeline where each column corresponds to a period 
What is the effect on the FV of a single cash flow when you increase: 
a.Present Value...
Preview 2 out of 5 pages
Add to cart3 Equivalent ways of calculating the present value of a single cash flow - 
1. The Present Value Formula 
2. Present Value PV Excel Function 
3. A Present Value Timeline where each column corresponds to a period 
What is the effect on the FV of a single cash flow when you increase: 
a.Present Value...
Capital budgeting decisions that include both investment and financing decisions can be 
analyzed by: 
I) Adjusting the present value 
II) Adjusting the discount rate 
III) Ignoring financing mix - D. I and II only 
Total market value of a firm (V): [D = market value of debt; E = market value of equ...
Preview 4 out of 71 pages
Add to cartCapital budgeting decisions that include both investment and financing decisions can be 
analyzed by: 
I) Adjusting the present value 
II) Adjusting the discount rate 
III) Ignoring financing mix - D. I and II only 
Total market value of a firm (V): [D = market value of debt; E = market value of equ...
Exam Preparation 
The _____ uses Monetary Policy to help control the Money Supply. - Fed 
The price of one country's currency in terms of another's currency is the ___ rate. - foreign 
exchange 
___ represents an ownership position in a corporation. - Stock 
A(n) _____ is an obligation of the borr...
Preview 4 out of 39 pages
Add to cartExam Preparation 
The _____ uses Monetary Policy to help control the Money Supply. - Fed 
The price of one country's currency in terms of another's currency is the ___ rate. - foreign 
exchange 
___ represents an ownership position in a corporation. - Stock 
A(n) _____ is an obligation of the borr...
A 3-year project is expected to produce a cash flow of $82,400 in the first year and $148,600 in 
the second year. The project has a present value of $303,764.34 at a discount rate of 12.75 
percent. What is the expected cash flow in the third year of the project? 
A. $164,400 
B. $163,800 
C. $163,...
Preview 4 out of 45 pages
Add to cartA 3-year project is expected to produce a cash flow of $82,400 in the first year and $148,600 in 
the second year. The project has a present value of $303,764.34 at a discount rate of 12.75 
percent. What is the expected cash flow in the third year of the project? 
A. $164,400 
B. $163,800 
C. $163,...
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