package deal of FINC 409 Combined Exam Correctly Answered.

If the exchange rate in New York for British pounds sterling is quoted at 1 pound = $1.60, and in London rate is quoted at 1 pound = $1.62, financial arbitragers should: - correct answer simultaneously buy pounds in New York and sell pounds in London The direct exchange rate is the rate at w...

Future value - correct answer FV=PV(1+r)^t Effective rate - correct answer Reffective=(1+Rnomial/n)^n Discount - correct answer PV=FV/(1+r)^t Asset price - correct answer (Price/attribute)xYour attribute Net present value (NPV) - correct answer -Initial cost+CF1/...

Dividends - correct answer Not all cash a company generates will be returned to the investors. Which of the following will NOT reduce the amount of capital returned to the investors? All the managers above use finance - correct answer Which of the following managers would NOT use financ...

Finance is the study of what? - correct answer How individuals, institutions, governments, and businesses acquire, spend, and manage money and other financial assets. What should the primary goal of the financial manager of a profit-seeking organization be? - correct answer Maximize the...

finance - correct answer study of applying specific value to things we own, services we use, and decisions we make financial management - correct answer concentrates on valuing things from a perspective of a company or firm cash flow - correct answer describes process of paying ...

Finance is the study of how individuals, institutions, and businesses acquire, spend and manage money and other financial resources. - correct answer TRUE statement includes government but this doesn't make the statement false Financial markets provide the mechanism for allocating financia...

Chapter 1 - correct answer Chapter 1 Finance is the study of how individuals, institutions, and businesses acquire, spend and manage money and other financial resources. (T/F) - correct answer True The statement includes government but this doesn't make the statement false. Fina...

Suppose the risk-free rate is 3.5%; on average, an AAA-rated corporate bond carries a credit spread of 0.3%, an A-rated corporate bond carries a credit spread of 1.1%, and a B-rated corporate bond carries a credit spread of 3.9%. Company XYZ's outstanding debt is rated BBB by rating agencies. What ...

Which of these is the interest rate that is actually observed in financial markets? - correct answer Nominal Interest Rate Which of these is the interest rate that would exist on a default-free security if no inflation were expected? - correct answer Real Interest Rate Which of the f...

During periods of economic expansion, firms usually rely more on internal sources of funds. - correct answer false Most of the annual funds raised from security issues come from corporate bond sales. - correct answer true Long term business funds are obtained by issuing commercial pa...

Not all cash a company generates will be returned to the investors. Which of the following will NOT reduce the amount of capital returned to the investors? a) retained earnings b) taxes c) dividends - correct answer Dividends This subarea of finance looks at firm decisions in acquiring...

Greater risk decreases the amount of money I require to wait. - correct answer False Suppose the bank pays an annual interest rate of 5% compounded annually, and the interest every year is distributed to the account holder (Not compounded) What would the account balance be in 5 years if the ...