Fin 3400 - Study guides, Class notes & Summaries

KIN 3400 Final Exam : If you jumped from the same height into water as opposed/) If you jumped from the same height into water as opposed to onto concrete, it would take a greater impulse when landing on concrete to reduce your speed to zero velocity assuming you have the same posture at impact in each case a.) True (NOT THIS) (From Rafael’s pictures) b.) False (Correct) 2.) Typically, in which part of a 100m race would expect to find the greatest acceleration? a.) End (NOT This) (From R...

CHAPTER 14--TAXES ON THE FINANCIAL STATEMENTSCHAPTER 14--TAXES ON THE FINANCIAL STATEMENTS Student: ___________________________________________________________________________ 1. If a corporation has no subsidiaries outside the U.S., its book and taxable income are identical. True False 2. Only U.S. corporations are included in a combined GAAP financial statement. True False 3. Foreign entities owned at least 80% by the parent are included in a consolidated group’s U.S. tax return. Tru...

FIN 3400 Midterm Chapters 1-10 Flashcards- Florida International University/FIN 3400 Midterm Chapters 1-10 Flashcards- Florida International University/FIN 3400 Midterm Chapters 1-10 Flashcards- Florida International University/FIN 3400 Midterm Chapters 1-10 Flashcards- Florida International University/FIN 3400 Midterm Chapters 1-10 Flashcards- Florida International University/FIN 3400 Midterm Chapters 1-10 Flashcards- Florida International University

FIN 3400 Exam 1 Questions and Answers- Florida International University/FIN 3400 Exam 1 Questions and Answers- Florida International University/FIN 3400 Exam 1 Questions and Answers- Florida International University/FIN 3400 Exam 1 Questions and Answers- Florida International University/FIN 3400 Exam 1 Questions and Answers- Florida International University/FIN 3400 Exam 1 Questions and Answers- Florida International University/FIN 3400 Exam 1 Questions and Answers- Florida International Univers...

FIN 3400 Ch 12 SMARTBOOK - Complete Solutions (Verified) In 4 years, an existing machine will have a zero book value and a market value of $4,200. A new machine costing $26,400 can replace this machine, lower variable costs by $8,200 a year, and have a market value of $13,300 and a zero book value in 4 years. The incremental depreciation is $5,300. The tax rate is 35%. What is the operating cash flow for year 4? $7,185 Rationale: OCF = ($8,200 - $5,300)(1 - 0.35) + $5,300 = $7,185 A firm purchas...

FIN 3400 Ch 14 SMARTBOOK - Complete Solutions (Verified) Which entities issue commercial paper? Select all that apply. Medium-to-large corporations Large banks A banker's acceptance (B.A.) has which one of these characteristics? Low risk Rationale: A banker's acceptance carries a bank guarantee which makes it low-risk. Which term refers to a firm's need to keep cash on hand to pay normal expenses such as utilities and wages? Transaction facilitation Which of these correctly describe the Baum...

FIN 3400 Ch 8 SMARTBOOK - Complete Solutions (Verified) Assume you are computing P0, which is the current price of a stock. What discount factor will you use to discount the dividend in year 3? (1 + i)^3 Which one of these defines the current value of a stock? Discounted value of both the future dividends and the future stock price What is the disadvantage of a market order? The execution price is unknown in advance. A stock is expected to pay a dividend of $2 in year 2, $3 in year 3, and sell ...

FIN 3400 Ch 11 SMARTBOOK - Complete Solutions (Verified) How can business risk be defined? Variability of a firm's cash flows What value is being sought from other firms when the pure-play approach is used for a new project? Beta Rationale: Beta is the value sought as it provides a measure of market risk comparable to the project. A firm has an overall beta of 1.12 and a proxy project beta of 1.49. The risk-free rate is 3 percent and the firm's cost of equity is 11.96 percent. What is the pro...

FIN 3400 Ch 10 SMARTBOOK - Complete Solutions (Verified) In the CAPM formula, what does the symbol RM stand for? Market rate of return If you buy a stock with a beta of 1.43 when the risk-free rate is 2.4 percent and the market rate is 8.7 percent, what is your expected rate of return? 11.41 percent Rationale: E(R) = 0.024 + 1.43(0.087 - 0.024) = 0.1141 = 11.41% If a stock has more market risk than the market portfolio and is overpriced, where will it plot on a security market line graph? To the...

FIN 3400 Chapter 12 Assignment Questions and Answers- Florida International University What is pro forma analysis? Multiple choice question. Comparing the financial statements from one time period to another Ascertaining how an action would affect a firm's taxes Reviewing historical data to determine trends Estimation of future project cash flows using only the relevant parts of the financial statements What is an incremental cash flow? Multiple choice question. A cash flow that incre...