BFIN 300 Exam Questions With Solutions
When a company introduces a product that competes with one of its own existing products, this
is called: B) cannibalism.
4. The primary function of a business is to: C) enhance shareholder wealth over the long
term.
5. An investor wishing to decrease vo...
When a company introduces a product that competes with one of its own existing products, this
is called: B) cannibalism.
4. The primary function of a business is to: C) enhance shareholder wealth over the long
term.
5. An investor wishing to decrease volatility should purchase securities with B) lower risk
premiums.
8. A disadvantage of the internal rate of return method of valuing capital budgets is it: C)
assumes all cash flows are reinvested at the IRR.
12. The rate of return required by investors in the market for owning a bond is called the:
C) yield to maturity.
15. The terms of a bond issue are spelled out in the bond: B) indenture.
, BFIN 300 Exam Questions With Solutions
16. A cost that has already been paid, or the liability to pay has already been incurred is a(n):
B) sunk cost.
19. The ratio that measures how much an investor is willing to pay for a dollar of earnings is
known as a _____________ ratio. A) market value
21. Which of the following is not a disadvantage of the discounted payback period method?
It ignores the time value of money.
22. Management may be hesitant to initiate regular dividends because: A) dividends are
sticky.
27. A security's beta is described as: C) a measure of how the returns of that security co-
vary with the returns of the market.
28. To determine cash flows for a capital budget, we must consider: B) changes in net
working capital.
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 UpperClass. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
