FIN 301 Final UTK Exam Questions with Complete Solutions
5 views 0 purchase
Course
FIN 301
Institution
FIN 301
If an asset will generate payments of $30 forever, what is today's value of this investment, assuming your required rate of return is 10%? - Answer-$300
ToF: The present value of an annuity due is less than the present value of an ordinary annuity. - Answer-False
ToF The IRR method of analyzi...
FIN 301 Final UTK Exam Questions with
Complete Solutions
If an asset will generate payments of $30 forever, what is today's value of this
investment, assuming your required rate of return is 10%? - Answer-$300
ToF: The present value of an annuity due is less than the present value of an ordinary
annuity. - Answer-False
ToF The IRR method of analyzing a capital expenditure determines how much the
present value of the cash inflows exceeds the present value of costs. - Answer-False
Money market instruments, compared to capital market instruments: - Answer-have
lower default risk
What is the gross profit margin? - Answer-It's the percentage of sales after the cost of
good sold is deducted
After an economic retraction, interest rates are expected to: - Answer-decrease
ToF A decrease in accrued wages in considered a cash inflow from operating activities
on the statement of cash flows. - Answer-False
Magpies recently bought some equipment for $210,000. Where in Magpie's financial
statements would you find the amount of money paid for this equipment during the most
recent quarterly report? - Answer-Statement of Cash Flows, Cash from Investing
Activities
If a firm has a debt ratio of .6, what is its debt to equity ratio? (Hint, use proportions) -
Answer-1.5
Which of the following transactions would improve a firm's current ratio? - Answer-The
firm uses cash to pay off accounts payable
ToF An overhead cost should not be considered when calculating free cash flows. -
Answer-True
What type of risk cannot be eliminated by diversification? - Answer-Systematic risk
What is a measure of "stand alone" risk? - Answer-standard deviation
ToF Bonds sell at a premium when the yield to maturity on the bond is greater than the
coupon rate. - Answer-False
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 lectknancy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.49. You're not tied to anything after your purchase.
