Fin 301 exam 3 - Study guides, Class notes & Summaries

Which of the following asset classes would you expect to have the highest expected return and standard deviation? Treasury bills Government bonds Corporate bonds Large company stocks Small company stocks - Answer-Small company stocks Calculate the compound annual return on an investment that was purchased at $20 and sold 5 years later for $40. 14.9% 100% 20% 4.6% 16.8% - Answer-14.9% Given the following information, calculate the Fund's alpha: T-Bill Return: ...

Net Present Value Definition - Answer-Incremental or marginal net value created by undertaking a project Net Present Value Decision Rule - Answer-1) If the NPV is positive, accept the project 2) Most reliable method to compare and evaluate projects A positive NPV is expected to..? - Answer-* add value to the firm, and therefore increase the wealth of the owners * NPV directly measures the increase in value to the firm Advantages to using the payback period approach? - Answer-1) Easy t...

FIN 301 Exam #3 Questions And Accurate Answers...

Fin 480 test practice Exam Questions And Answers 100% Verified A firm has sales of $1,310, net income of $241, net fixed assets of $501, and current assets of $301. The firm has $97 in inventory. What is the common-size statement value of inventory? 12.1 percent - answer12.1 percent Common-size inventory = $97/($501 + $301) = 12.1 percent What is the quick ratio for 2009? - answer.80 Quick ratio for 2009 = ($2,450 - $1,530)/$1,150 = 0.8 What is the debt-equity ratio for 2009? - answer.38...

One disadvantage of the corporate form of business ownership is the: A. double taxation of distributed profits B. firm's greater ability to raise capital than other forms of ownership. C. limited liability of its shareholders for the firm's debts. D. firm's potential for an unlimited life. - Answer-A Agency problems are most associated with: A. limited partnerships. B. corporations. C. general partnerships. D. sole proprietorships. - Answer-B Which one of the following actio...

MCS 005 FINAL EXAM LATEST 2023 REAL EXAM 100 QUESTIONS AND CORRECT ANSWERS|AGRADE 1) TV as a “vast wasteland”: expression coined by FCC chair Newton Minow in 1961 to describe television content. Minow advocated for the programming of the public interest. Financial Interest in Syndication Rules (Fin-Syn) imposed: to ban networks to own or produce more programming ●Pave the way for new alternatives like PBS 2) Pseudo-eventing and news staging: pseudo-event: event that has no real ...

balance sheet - Answer-provides a snapshot of a firm's financial position at one point in time. income statement - Answer-summarizes a firm's revenues and expenses over a given period of time. statement of retained earnings - Answer-reconciles the firm's earnings with its balance sheet retained earnings Connects two statements statement of stockholders equity - Answer-shows how much of the firm's earnings were retained, rather than paid out as dividends. statement of cash flows ...

Shareholder Wealth - Answer-Represented by market price of a firm's common stock. Present Value - Answer-the value today of some future payment or stream of payments evaluated at an appropriate discount rate. Discount Rate - Answer-takes into account the returns that are available from alternative investment opportunities during a specific (future) time period. Risk - Answer-"the greater the risk associated with receiving a future benefit, the lower the value investors place on tha...

MCS 005 FINAL EXAM LATEST 2023 REAL EXAM 100 QUESTIONS AND CORRECT ANSWERS|AGRADE 1) TV as a “vast wasteland”: expression coined by FCC chair Newton Minow in 1961 to describe television content. Minow advocated for the programming of the public interest. Financial Interest in Syndication Rules (Fin-Syn) imposed: to ban networks to own or produce more programming ●Pave the way for new alternatives like PBS 2) Pseudo-eventing and news staging: pseudo-event: event that has no real in...