FIN 370 Final

Exam
If you want to grasp some A+ FIN 370 Final
Examination questions for free and Top the exams so
UOP E Tutors is providing you FIN 370 Final Examination
questions, FIN 370 Final Exam answers absolutely free
on UOP E Tutors for Students. So Don't west your time.

FIN 370 Final Exam (Newest)

1) Which financial statement reports the amounts of cash
that the firm generated and distributed during a particular
time period?
statement of retained earnings
Income statement
Statement of cash flows
Balance sheet

2) We commonly measure the risk-return relationship using

which of the following?
Expected returns
Coefficient of variation
Correlation coefficient
Standard deviation

3) What's the current yield of a 6 percent coupon corporate

bond quoted at a price of 101.70?
6.1 percent
10.2 percent
6.0 percent
5.9 percent

4) Which financial statement reports a firm's

liabilities, and equity at a particular point in time?
Statement of cash flows
Balance sheet
Statement of retained earnings
Income statement

assets,

5) As new capital budgeting projects arise, we must

estimate__________.
the cost of the loan for the specific project
the cost of the stock being sold for the specific project
when such projects will require cash flows
the float costs for financing the project

6) Will's Wheels, Inc. reported a debt-to-equity ratio of 0.65

times at the end of 2013. If the firm's total debt at yearend was $5 million, how much equity does Will's Wheels
have?
$3.25 million
$5 million
$7.69 million
$0.65 million

7) Which of these is the process of estimating expected

future cash flows of a project using only the relevant parts
of the balance sheet and income statements?

 Cash flow analysis

Incremental cash flows
Substitutionary analysis
Pro forma analysis

8) Which of these is the term for portfolios with the highest

return possible for each risk level?
Total portfolios
Efficient portfolios
Modern portfolios
Optimal portfolios

9) Which financial statement shows the total revenues that a

firm earns and the total expenses the firm incurs to
generate those revenues over a specific period of time
generally one year?
Statement of cash flows
Statement of retained earnings
Balance sheet
Income statement

10)
What are the tools available for the manager in
financial planning?
Delaying disbursement of cash, reducing collection period,
cash management, and Increasing inventory turnover
Delaying disbursement of cash and cash management
Reducing collection period and delaying disbursement of
cash
Increasing inventory turnover and reducing collection
period

11)
When firms use multiple sources of capital, they need
to calculate the appropriate discount rate for valuing their
firm's cash flows as__________.
they apply to each asset as they are purchased with their
respective forms of debt or equity
a sum of the capital components costs
a simple average of the capital components costs
a weighted average of the capital components costs

12)
You are trying to pick the least-expensive machine for
your company. You have two choices: machine A, which
will cost $50,000 to purchase and which will have OCF of $3,500 annually throughout the machine's expected life of
three years; and machine B, which will cost $75,000 to
purchase and which will have OCF of -$4,900 annually
throughout that machine's four-year life. Both machines
will be worthless at the end of their life. If you intend to
replace whichever type of machine you choose with the
same thing when its life runs out, again and again out into
the foreseeable future, and if your business has a cost of
capital of 14 percent, which one should you choose?
Neither machine A nor B
Both machines A and B
Machine B
Machine A

13)
Financial plans include which of the following?
All of the above
Pro forma Income Statement, Balance Sheet
Short Term and Long Term Plan
Schedule of Sales, Expenses, and Capital Expenditure

14)
Which of these statements is true regarding
divisional WACC?
Using a simple firmwide WACC to evaluate new projects
would give an unfair advantage to projects that present
less risk than the firm's average beta.
Using a divisional WACC versus a WACC for the firm's
current operations will result in quite a few incorrect
decisions.
Using a simple firmwide WACC to evaluate new projects
would give an unfair advantage to projects that present
more risk than the firm's average beta.
Using a firmwide WACC to evaluate new projects would
have no impact on projects that present less risk than the
firm's average beta.

15)
Which of these provide a forum in which demanders
of funds raise funds by issuing new financial instruments,
such as stocks and bonds?
Investment banks
Secondary markets
Primary markets
Money markets

16)
What are reasons for the firm to go abroad?
Lower production cost
All of the above
Diversification
Access to raw materials

17)
The top part of Mars, Inc.'s 2013 balance sheet is
listed as follows (in millions of dollars). What are Mars,
Inc.'s current ratio, quick ratio, and cash ratio for 2013?
4.2, 1.0, 0.2
2.3333, 0.5556, 0.1111

10.5, 6.0, 1.0

0.1111, 0.5556, 0.2

18)
The Rule of 72 is a simple mathematical
approximation for__________.
the future value required to double an investment
the present value required to double an investment
the payments required to double an investment
the number of years required to double an investment

19)
Which of these ratios show the combined effects of
liquidity, asset management, and debt management on
the overall operation results of the firm?
Coverage
Financial
Liquidity
Profitability

20)
The overall goal of the
to__________.
minimize total costs
maximize shareholder wealth
maximize net income
maximize earnings per share

financial

manager

is

21)
Which of the following can create ethical dilemmas
between corporate managers and stockholders?
Board of directors
Auditors
Venture Capitalist
Agency relationship
22)
Which of the following terms means that during
periods when interest rates change substantially,
bondholders experience distinct gains and losses in their
bond investments?
Reinvestment rate risk
Credit quality risk
Interest rate risk
Liquidity rate risk

23)
Which of these is used as a measure of the total
amount of available cash flow from a project?
Free cash flow
Investment in operating capital
Operating cash flow
Sunk cash flow

24)
Suppose that Model Nails, Inc.'s capital structure
features 60 percent equity, 40 percent debt, and that its
before-tax cost of debt is 6 percent, while its cost of equity
is 10 percent. If the appropriate weighted average tax rate
is 28 percent, what will be Model Nails' WACC?
7.73 percent
16.00 percent
8.40 percent
8.00 percent

25)
Which of these does NOT perform vital functions to
securities markets of all sorts by channeling funds from
those with surplus funds to those with shortages of funds?
Commercial banks
Insurance companies

Mutual funds
Secondary markets

26)
Which of the following is a true statement?
If interest rates fall, U.S. Treasury bonds will have
decreasing values.
If interest rates fall, no bonds will enjoy rising values.
If interest rates fall, corporate bonds will have decreasing
values.
If interest rates fall, all bonds will enjoy rising values.

27)
Five years ago, Jane invested $5,000 and locked in an
8 percent annual interest rate for 25 years (ending 20
years from now). James can make a 20-year investment
today and lock in a 10 percent interest rate. How much
money should he invest now in order to have the same
amount of money in 20 years as Jane?
$7,346.64
$3,160.43
$5,089.91
$3,464.11

28)
We call the process of earning interest on both the
original deposit and on the earlier interest payments:
compounding.

 multiplying.
computing.
discounting.

29)
We can estimate a stock's value by__________.
using the book value of the total assets divided by the
number of shares outstanding
using the book value of the total stockholder equity
section
compounding the past dividends and past stock price
appreciation
discounting the future dividends and future stock price
appreciation

30)
A firm is expected to pay a dividend of $2.00 next
year and $2.14 the following year. Financial analysts
believe the stock will be at their target price of $75.00 in
two years. Compute the value of this stock with a required
return of 10 percent.
$65.40
$65.57
$79.14
$66.67

FIN 370 Week 1 Complete

FIN 370 Week 1 DQ 1 | FIN 370 Week 1 DQ 2 | FIN
370 Week 1 Calculating Ratios | FIN 370 Week 1
Calculating Ratios Worksheet | FIN 370 Week 1
Complete

FIN 370 Week 2 Complete

FIN 370 Week 2 DQ 1 | FIN 370 Week 2 DQ 2 | FIN
370 Week 2 Cash Flow Problem Sets | FIN 370
Week 2 Financial Markets and Institutions Report
| FIN 370 Week 2 Complete

FIN 370 Week 3 Complete

FIN 370 Week 3 DQ 1 | FIN 370 Week 3 DQ 2 | FIN
370 Week 3 Precision Machines Part 1 | FIN 370
Week 3 Risk and Return Problem Sets | FIN 370
Week 3 Risk and Return Analysis | FIN 370 Week
3 Complete

FIN 370 Week 4 Complete

FIN 370 Week 4 DQ 1 | FIN 370 Week 4 DQ 2 | FIN
370 Week 4 Cash Flow Analysis | FIN 370 Week 4
Complete

FIN 370 Week 5 Complete

FIN 370 Week 5 Final Exam (Latest - A Graded) |
FIN 370 Week 5 DQ 1 | FIN 370 Week 5 DQ 2 | FIN
370 Week 5 Precision Machines Part 2 | FIN 370
Week 5 Complete

Worried about online educational tutorial of

Phoenix University, just click on a link:
http://www.uopetutors.com/university-ofphoenix/FIN-370.html

COM 295 Final Exam

COM 537 Final Exam
ECO 365 Final Exam
ECO 372 Final Exam
ECO 561 Final Exam
FIN 575 Final Exam
LAW 421 Final Exam
LAW 575 Final Exam
LDR 300 Final Exam

You need more information just a click on

away: http://www.uopetutors.com/