FIN 300 Exam Actual Set Questions & Revised Correct Answers PASSED!!
8 views 0 purchase
Course
FIN 300
Institution
FIN 300
FIN 300 Exam Actual Set Questions &
Revised Correct Answers
PASSED!!
Profit maximization as a goal of the firm -
ANSWER : Does not consider cash flow or risk
Wealth maximization as a goal of the firm -
ANSWER : Takes a long-run perspective and
focuses on the owners of the firm
A manage...
FIN 300 Exam Actual Set Questions & Revised Correct Answers PASSED!! Profit maximization as a goal of the firm - ANSWER : Does not consider cash flow or risk Wealth maximization as a goal of the firm - ANSWER : Takes a long -run perspective and focuses on the owners of the firm A manager has responsibilities to stockholders - ANSWER : For legal and ethical issues Which of the following would least affect the value of a firm's stock - ANSWER : Mark et share Problems with seeking profit as a goal of the firm would include each of the following except - ANSWER : Profit is completely unrelated to cash flow Stocks that are offered for sale in a secondary market that consist of a network of dealers trading over computers - ANSWER : Traded on "over the counter market" Junk bonds are - ANSWER : Bonds that have been rated below investment grade Which of the following risk premiums are most likely to be included in a corporation's commercial paper yield - ANSWER : Inflation, default and liquidity risk premiums Which of the following are traded in money markets - ANSWER : Banker's acceptances Zero-coupon bond - ANSWER : Makes no periodic interest payments With respect to spreads, a dealer: - ANSWER : Has a spread representing his/her fee The treasury bill auction - ANSWER : Issues T-bills in minimum denominations of $100 The expected inflation ra te is 4% and the nominal risk -free rate is 6%; the real rate of interest is - ANSWER : 2% The real rate of interest tis 3% - ANSWER : The inflation rate is 3% and the nominal risk -
free rate is 6% The economy is suffering from a recession - ANSWER : A junk bond's interest rate increases relative to that of AAA corporate bonds The economy is experiencing a sever recession. The Fed will most likely - ANSWER : Buy treasury securities The economy is experiencing strong economic growth. The Fed will m ost likely: - ANSWER : Sell treasury securities National commercial banks are examined primarily by - ANSWER : The controller of the currency Commercial banks that are state member banks are examined primarily by - ANSWER : The federal reserve A bank needs ____ before it opens for business - ANSWER : A charter Open market operations - ANSWER : Are used in attempt to manipulate the economy through changes in short -term interest rates and the money - supply The Fed makes loads to financial in stitutions - ANSWER : At the discount window Each of the following items represents a liability with the exception of - ANSWER : Prepaid expenses Which of the following is a use of cash that would appear on the statement of cash flows? - ANSWER : Pu rchase of marketable securities
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TOPPLUGGER. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.34. You're not tied to anything after your purchase.
