Finc 3610 - Study guides, Class notes & Summaries

Sirmans FINC 3610 Final Exam Questions & Answers 1. Which one of the following best states the primary goal of financial management? - Answer-Maximize the current value per share 1. Which one of the following actions by a financial manager is most apt to create an agency problem? - Answer-Increasing current profits when doing so lowers the value of the firm's equity 1. Corporate dividends are: - Answer-Taxable as personal income when received by shareholders even though that income was ...

FINC 3610 Sirmans Test 1 Qs&As Pros of Sole Proprietorship - ANS-easy startup taxed as personal income Cons of Sole Proprietorship - ANS-- Unlimited Liability - Life limited to that of owner - Equity limited to owner's wealth - Difficulty in transferring ownership Pros of General Partnership - ANS-easy start-up partnership agreement taxed as personal income Cons of General Partnership - ANS-unlimited liability equity limited to owners life difficult transfer Difference between gene...

FINC 3610 sirmans final exam Qs&As 2024 returns: - Answer->the total return on your investment types of returns: - Answer->capital gain, income capital gain - Answer->price change of the asset income - Answer->cash distributions in the form of dividends how can we predict stock returns? - Answer->if we can identify the risk of the asset, then we can have an idea of its expected return dollar returns: - Answer->the total dollar amount of return, it depends on the dollar ...

FINC 3610 EXAM 1 SIRMANS Exam Review goal of a firm - Answer->maximize shareholder value capital budgeting - Answer->process of planning and managing a firms long term investments capital structure - Answer->mixture of longterm debt and equity the firm uses to finance its operations and investments agency problems - Answer->when interests and motives of the managers dont coincide with those of the owners -between shareholders and managers who does the board of directors rep...

FINC 3610 Test 3 Sirmans Questions And Answers Debt - Answer->all borrowing incurred by a firm, including bonds, and is repaid according to a fixed schedule of payments Equity - Answer->consists of funds provided by the firms owners (stockholders or investors) that are repaid subject to the firms performance Stockholders (holders of equity) - Answer->owners of the firm unlike creditors generally have voting rights that permit them to select the firm's directors and vote on spe...

FINC 3610 Exam 2 CH.5 Sirmans Questions & Answers Example of assets? - ANS-Property, plant, and equipment, stocks, options, bonds, patents, opportunities, knowledge, reputation, etc. What is an asset in terms of financial analysis? - ANS-a sequence of cash flows What is the value of an asset today? - ANS-a function of the cash flows expected to occur in the future 3 key dimensions of cash flows - ANS-size, timing, and uncertainty Cash flows at different points in time are like different? ...

FINC 3610 Exam 2 Qs&As Annuity - Answer-Finite series of equal payments that occur at regular interval Perpetuity - Answer-Infinite series of equal payments Ordinary Annuity - Answer-If the first payment occurs at the end of the period Annuity Due - Answer-If the first payment occurs at the beginning of the period Perpetuity Formula - Answer-PV = C / r Annuity Formulas - Answer-PV = C [( 1 - 1/(1+r)^t) / r] or PV = C [(1+r)^t - 1) /r ] Annuity Due Formula - Answer-Multiply answer by (1+...

FINC 3610 Final Sirmans Questions And Answers Exam Review Soln Example of a Capital Budgeting decision - ANS-should the company purchase new machinery for the production line? the book value of an asset generally represents: - ANS-historical cost total taxes owed divided by taxable income is the: - ANS-average tax rate what represents a source of cash for a company - ANS-increase in common stock a standardized (or common-sized) statement expresses expenses and profits as a percentage of: ...

Pros of Sole Proprietorship correct answers easy startup taxed as personal income Cons of Sole Proprietorship correct answers - Unlimited Liability - Life limited to that of owner - Equity limited to owner's wealth - Difficulty in transferring ownership Pros of General Partnership correct answers easy start-up partnership agreement taxed as personal income Cons of General Partnership correct answers unlimited liability equity limited to owners life difficult transfer Differe...

FINC 3610 Final Exam Auburn, Sirmans, Fall 2024 New Update agency problem - ANS-a conflict of interest between the corporate shareholders and the corporate managers stakeholder - ANS-any person or entity other than a stockholder or creditors who potentially has a claim on the cash flows of a firm corporate dividends - ANS-taxable as personal income when received by shareholders even though that income was taxes at the corporate level limited liability - ANS-what is a strength of a corp...