Study guides, Class notes & Summaries

BFIN 300 Test Questions with Correct Answers Which one of the following accounts is the most liquid? a.) Inventory b.) Building c.) Accounts Receivable d.) Equipment e.) Land - Answer-c.) Accounts Receivable Noncash items refer to: a.) Accrued expenses b.) Inventory items purchased using credit c.) The ownership of intangible assets such as patents d.) Expenses which do not directly affect net cash flows e.) Sales which are made using store credit - Answer-c.) The ownership o...

BFIN 300 Test Questions and Answers All Correct Wh ich bond would you invest in ? - Answer-You want the bond with the highest yield The process of planning and managing a firm's long - term investments is called A. Capital Budgeting B. Working Capital C. Profit Maximization D. Capital Structure - Answer-A. Capital Budgeting 2 ) Which of the following is an example of an indirect agency cost ? A. Unnecessary corporate expenditure B. Management auditing expense C. A lost opportun...

BFIN 300 Study Questions with Correct Answers A broker is an agent who: - Answer-brings buyers and sellers together Capital Budgeting - Answer-process of planning and managing a firms long-term investments Capital budget - Answer-dedication of business opportunities that are worth more to the business than what they cost to aquire Corporate finance seeks to answer - Answer-how will your decisions affect capital budgeting, working capital and capital structures Corporations face - An...

BFIN 300 Study Questions and Answers All Correct The discount rate that makes the net present value of an investment exactly equal to zero is the - Answer-Internal Rate of Return Ratios that measure how effectively a firm's management uses its assets and equity to generate bottom line net income are known as ratios - Answer- Profitability Efficient Market Hypothesis - Answer-All securities in an efficient market are zero net present value investments Sunk costs include any cost that...

BFIN 300 Questions with Correct Answers capital budgeting - Answer-indetifying investnment opportunities that benefit company FInancial manager - Answer-Determines how much investment you're getting back, as well as timing and risk Capital Structure - Answer-Determines financial decisions. combination of borrowed funds and owners funds that a firm uses for financing and fund requirements Assets less than a year - Answer-Short Term Assets Assets longer than a year - Answer-Long Te...

BFIN 300 Midterm Questions with Complete Solutions what questions do corporate finance seek to answer - Answer-what long term investments are needed, where to get long term financing, how to manage daily activities, how will financial decisions impact the company and its shares job of managers - Answer-represent shareholders and make collective decisions to maximize profits and share price what is capital budgeting - Answer-identifying investment opportunities that are worth more to the b...

BFIN 300 Midterm Exam with Complete Solutions The process of planning and managing a firm's long-term investments is called - Answer-Capital Budgeting Which of the following is an example of an indirect agency cost? - Answer-A lost opportunity Which of the following forms of business organization is subject to double taxation? - Answer-Corporation Control of a firm ultimately rests with - Answer-The Stockholders Which of the following should a financial manager take into account wh...

BFIN 300 Midterm Exam Questions with Correct Answers (1) Capital One is charging you 1.5% per month on your credit card. What is your Annual Percentage Rate (APR)? A. 1.5% B. 18.0% C. 3.0% D. Can't calculate from information provided - Answer-B. 18.0% During the Global Financial Crisis, Interest Only financial products were a significant problem. Which is the best example of I/O security? A. Mortgage B. Corporate Bond C. A pure discount loan D. All of the above - Answer-B. Corpora...

BFIN 300 Midterm Exam Questions and Answers All Correct

BFIN 300 Final Review Exam Questions With 100% Correct Answers Net Present Value (NPV) - answerthe sum of the present values of expected future cash flows from an investment, minus the cost of that investment. If NPV is negative you will reject the investment Payback Period Rule - answeran investment is acceptable if its calculated payback period is less than some pre-specified number of years Discounted Payback Period - answerthe length of time required for an investment's discounted c...