Fin300 - Study guides, Class notes & Summaries

Which of the following statements is CORRECT? a. The "break point" as discussed in the text refers to the point where the firm has raised so much capital that it has exhausted its supply of additions to retained earnings and thus must raise equity by issuing stock. b. The "break point" as discussed in the text refers to the point where the firm has exhausted its supply of additions to retained earnings and thus must begin to finance with preferred stock. c. The "break point" a...

BFIN300 Final Review Exam

BFIN300 Final Review Exam Questions With Solutions Formula of NPV NPV = PV of Cash Flows - Initial Investment What is your role as an investor, treasurer, CEO or CFO? To determine which investment has a positive net present value (shareholder value) -done through capital budgeting process + NPV, -NPV, 0 NPV + NPV = accept (binary decision investment) - NPV = reject 0 NPV = agnostic

ASU FIN300 Midterm 2 questions and answers graded A+ by experts 2024/2025

BFIN300 Final Test Questions with Correct Answers An underlying assumption of the dividend growth model is that a stock is worth: - Answer-the present value of the future income which it generates The value of common stock today depends on: - Answer-the expected future dividends, capital gains, and discount rate. The constant dividend growth model is: - Answer-generally not used in practice because most stocks grow at a non-constant rate. The slope of an asset's security market line ...

BFIN300 Exam Questions With Solutions Which of the following should a financial manager take into account when considering an opportunity? A. How much cash they expect to receive B. When will they receive the funds C. How likely they are to receive the funds D. All of the above D. All of the above Which is a financial leverage ratio ? A. Current ratio B. Profit margin C. Price to book value D. Debt to equity E. Inventory turnover D. Debt to equity Which is a key turnover ratio ?

BFIN300 Midterm Chapter 1 Exam Questions and Answers

What is the first step when calculating the crossover rate? To calculate the cash flow differences between each project. The Discounted Payback Period Rule states that a company will accept a project if: The calculated payback is less than a pre-specified number of years. The Internal Rate of Return (IRR) represents which of the following: The discount rate that makes the net present value equal to zero. What does the Modified Internal Rate of Return (MIRR) assume? The MIRR assumes th...

BFIN300 Final Review Exam