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Hello,Im looking for help with this sample final examination

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Hello,I'm looking for help with this sample final examination paper, to use as a study guide. Could you please help.

FIN/571 Sample Final Examination
This Sample Examination represents the Final Examination that students complete in Week Six. As in the following Sample Examination, the Final Examination includes questions that assess the course objectives. Although the Sample Examination includes one question per objective, the Final Examination includes three questions per course objective. Refer to the questions in the following Sample Examination to represent the type of questions in the Final Examination. Refer to the weekly readings and content outlines for each week as study references for the Final Examination.
Week One: Foundations of Finance

Objective: Discuss the 12 principles of foundational corporate finance.

1. The Behavioral Principle directs managers to
a. 0 follow others in its industry if unsure as to what is best
b. 0 ignore others in its industry if unsure as to what is best
c. 0 follow others in the industry even if sure the industry norm is not wealth-maximizing
d. 0 none of these

Objective: Compare and contrast accounting net income and cash flows.

2. uses financial statements and the accounting system to help identify and estimate the incremental expected cash flows for making financial decisions.
a. 0 The Signaling Principle
b. 0 The Incremental Benefits Principle
c. 0 The Risk-Return Trade-Off Principle
d. 0 The Behavioral Principle

Objective: Compare and contrast the market value of an asset or liability from the book value.

3. Select the false statement(s).
a. 0 Tax-timing option is the difference between what an asset is sold for and its book value, typically referring to an asset that has been owned for a sufficiently long time, such as a year or more.
b. 0 Tax-timing option is the option to sell an asset and claim a loss for tax purposes or not to sell the asset and defer a capital gain tax.
c. 0 Progressive tax system is a tax system wherein the average tax rate increases for some increases in income but never decreases with an increase in income.
d. 0 all of these

Week Two: Business Valuation

Objective: Apply valuation techniques to determine the intrinsic value of debt and equity instruments.

4. Which of the following assets would pay a dividend?
a. 0 A U.S. Treasury security
b. 0 A municipal bond
c. 0 A share of preferred stock
d. 0 A corporate bond

Objective: Analyze how markets adjust for risk.

5. The CAPM uses a firm’s _____ to tell us its required rate of return.
a. 0 beta
b. 0 correlation coefficient
c. 0 standard deviation
d. 0 all of these

Objective: Apply the capital-asset pricing model to calculate a business’s required return.

6. The efficient frontier tells us which portfolios have the highest returns given particular _____ of portfolio returns.
a. 0 covariances
b. 0 correlation coefficients
c. 0 standard deviations
d. 0 none of these

Week Three: Working Capital

Objective: Describe the cash conversion cycle and its importance to working capital management.

7. Stony Products has an inventory turnover of 12 times per year. What is Stony's inventory conversion period (ICP)?
a. 0 About 30.42 days
b. 0 About 31.50 days
c. 0 About 40.83 days
d. 0 None of these

Objective: Identify sources and uses of short-term financing.

8. _____ says not to act unethically to gain short-term profit at the expense of a supplier or a customer, because such behavior can damage or even destroy a profitable long-term relationship.
a. 0 The Principle of Two-Sided Transactions
b. 0 The Self-Interest Principle
c. 0 The Signaling Principle
d. 0 The Principle of Comparative Advantage

Objective: Evaluate how the business policies of a firm affect accounts receivable and inventories.

9. ______ says to calculate the incremental cash flows for receivables and inventory decisions.
a. 0 The Principle of Risk-Return Trade-Off
b. 0 The Principle of Capital Market Efficiency
c. 0 The Principle of Diversification
d. 0 The Principle of Incremental Benefits

Week Four: Capital Budgets

Objective: Calculate the cost of capital.

10. An investor's risky portfolio is made up of individual stocks. Which of the following statements about this portfolio is false?
a. 0 Each stock in the portfolio has its own beta.
b. 0 Selling any stock in this portfolio will likely change the beta of the portfolio.
c. 0 An investor cannot change the risk of this portfolio by her choice about personal leverage (lending or borrowing).
d. 0 none of these

There is more, I can not put it all on this part, if you decide to help, please let me know and I will send the other 10 questions.
Customer: replied 6 years ago.
Relist: I still need help.
Could someone please help me, this is the third time I have posted something and still have not been helped. If I offended anyone or didn't leave a big enough tip, then let me know. I have no problem in fixing the problem if I did something wrong.

Hello Customer,


1. a

2. c

3. a

4. c

5. a

6. c

7. a

8. a

9. d

10. d


Hope this helps!


Chris M. and 4 other Homework Specialists are ready to help you
Customer: replied 6 years ago.
Thank you Mr. Chris,
Could you please help me with the rest of the questions? Here is the rest of the sample exam.

Objective: Apply techniques used in capital budgeting decisions.

11. Projects can be classified into various categories. These include
a. 0 new products and new businesses projects that include research and development activities
b. 0 cost savings and revenue enhancement projects that include improvements in production technology to realize cost savings and marketing campaigns to achieve revenue enhancement
c. 0 capacity expansion projects that involve expanding the current business by adding new equipment and facilities
d. 0 all of these

Objective: Analyze a capital project’s present value based on expected future net cash flows.

12. The _____ for a project equals one plus the present value of the future cash flows divided by the initial investment.
a. 0 NPV
b. 0 PI
c. 0 IRR
d. 0 Payback

Week Five: Long-Term Financing

Objective: Outline a method for managing capital structure.

13. Studies show systematic differences in capital structures across industries. These are due mostly to differences in the availability of tax shelter provided by things other than debt, such as
a. 0 hiring and firing practices
b. 0 operating tax loss carryforwards
c. 0 what the capital asset pricing theory tells us
d. 0 all of these

Objective: Evaluate the effect of dividend policy on stock price.

14. According to the _____ view of dividends, dividend changes are important indicators to investors of changes in management's expectations about the firm's future earnings.
a. 0 clientele
b. 0 signaling
c. 0 capital gains
d. 0 transferable

Objective: Explain the types and main features of long-term debt.

15. Most debt issuers select a coupon rate that will make the bonds
a. 0 less than par
b. 0 worth par
c. 0 greater than par
d. 0 greater than or equal to par

Objective: Compare and contrast leasing with debt/equity finance.

16. Which of the following statement is true?
a. 0 Under an indirect lease, the lessee identifies the asset it requires.
b. 0 Under a direct lease arrangement, the owner of an asset sells it, usually at market value, for cash.
c. 0 A lessor who provides lease financing for an expensive piece of equipment, such as an aircraft, may wish to borrow a portion of the funds to make that investment.
d. 0 none of these

Week Six: Financial Planning

Objective: Analyze the effect of price setting on capital budgeting.

17. You are evaluating a proposed project. You find that the DCF-NPV is -$50,000. However, by investing today, you think you might have a future growth option to expand, but it would cost you an additional $100,000—in today’s dollars—to have this option. If this future opportunity occurs, you estimate the present value of this option will be $500,000. However, there's only a 60% chance of this occurring. Does the growth option make investment in the proposed project a positive NPV?
a. 0 Yes, the NPV is $50,000.
b. 0 Yes, the NPV is $100,000.
c. 0 Yes, the NPV is $125,000.
d. 0 Yes, the NPV is $150,000.

Objective: Explain the methods, pitfalls, and benefits of capital rationing.

18. Which of these statements is true?
a. 0 Future investment opportunities are options to abandon investment possibilities in the future that result from a current opportunity or operation.
b. 0 When a firm makes a capital budgeting decision, one option to consider is the possibility of stopping the project earlier than originally planned.
c. 0 The abandonment option is the option to postpone, rather than cancel, an expansion.
d. 0 none of these

Objective: Create a financial plan.

19. Benefits a firm hopes to realize from the planning process include
a. 0 past orientation
b. 0 nonstandardized assumptions
c. 0 preparing for contingencies
d. 0 subjectivity


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