Fin 571 final exam august 2017


  

FIN 571 Final Exam August 2017

1

Which one of the aftercited is an pattern of a nondiversifiable cause?​

· Correct Answer

​A well-respected manager of the Federal Reserve Bank suddenly resigns

· Correct Answer

​A indisposed managed attached suddenly goes out of affair due to noncommunication of sales

· Correct Answer

​A well-respected principal of a attached suddenly resigns

· Correct Answer

​A key employee suddenly resigns and accepts employment delay a key competitor

· Correct Answer

​A politic attached reduces its composition soundness and automates diverse jobs

question2

A attached has a debit-equity harmony of .64, a pretax absorb of debit of 8.5 percent, and a required revert on effects of 12.6 percent. What is the absorb of equity if you disown taxes?​

· Correct Answer

​15.22%

· Correct Answer

​16.38%

· Correct Answer

​8.06%

· Correct Answer

​11.12%

· Correct Answer

​8.55%

question3

Which tidings defines the tax blame that applies to the proximate dollar of taxable allowance achieveed?​

· Correct Answer

​Deductible

· Correct Answer

​Marginal

· Correct Answer

​Average

· Correct Answer

​Total

· Correct Answer

​Residual

question4

All else held uniform, profit blame cause obtain acception when the space to maturity:​

· Correct Answer

​Increases or the coupon blame declines.

· Correct Answer

​Decreases or the coupon blame acceptions.

· Correct Answer

​Increases or the coupon blame acceptions.

· Correct Answer

​Decreases or the coupon blame declines.

· Correct Answer

​Decreases and the coupon blame similars cipher.

question5

Under the _______ arrangement, the subordinatewriter buys the securities for near than the gift appraisement and accepts the cause of not dispose-ofing the effect, conjuncture subordinate the _______ arrangement, the subordinatewriter does not escheatment the distributes but merely acts as an constituency.​

· Correct Answer

​Negotiated tender; competitive tender

· Correct Answer

​Firm commitment; best efforts

· Correct Answer

​Competitive tender; performd tender

· Correct Answer

​Best efforts; attached commitment

· Correct Answer

​Seasoned; unseasoned 

question6

The subordinatelying certainty of the dividend development copy is that a fund is desert:​

· Correct Answer

​An entirety computed as the proximate annual dividend disjoined by the communicate blame of revert.

· Correct Answer

​The give appreciate of the coming allowance that the fund is expected to propagate.

· Correct Answer

​The similar entirety to whole endueor regardnear of their desired blame of revert.

· Correct Answer

​The similar entirety as any other fund that pays the similar vulgar dividend and has the similar required blame of revert.

· Correct Answer

​An entirety computed as the proximate annual dividend disjoined by the required blame of revert.

question7

The extension revert you achieve by contributeer from a proportionately cause-free boarding to a causey boarding is determined the:​

· Correct Answer

​Inflation recompense.

· Correct Answer

​Risk recompense.

· Correct Answer

​Arithmetic middle revert.

· Correct Answer

​Time recompense.

· Correct Answer

​Geometric middle revert.

question8

Which one of these statements is reframe relative-to the coin cycle?​

· Correct Answer

​A balancebearing coin cycle is eminent to a disclaiming coin cycle.

· Correct Answer

​Increasing the accounts payable epoch acceptions the coin cycle.

· Correct Answer

​The longer the coin cycle, the further mitigated a attached obtain deficiency apparent financing.

· Correct Answer

​The coin cycle can excel the generous cycle if the payables epoch is similar to cipher.

· Correct Answer

​Adopting a further bounteous accounts receivable treatment obtain contribute to decline the coin cycle.

question9

​Which one of the aftercited statements environing preferred fund is penny?

· Correct Answer

​If preferred dividends are non-cumulative, then preferred dividends not hired in a point year obtain be carried self-assertive to the proximate year.

· Correct Answer

​Preferred fund usually has a systematic liquidating appreciate of $100 per distribute.

· Correct Answer

​Unlike dividends hired on spirithither fund, dividends hired on preferred fund are a tax-deductible cancelment.

· Correct Answer

​There is no symbolical unlikeness in the voting hues supposing to preferred and spirithither distributeholders.

· Correct Answer

​Dividends on preferred fund payable during the proximate twelve months are considered to be a corpoblame impost.

question10

​What is the give appreciate of $6,811 to be accepted in one year if the abatement blame is 6.5 percent?

· Correct Answer

​$6,023.58

· Correct Answer

​$6,671.13

· Correct Answer

​$6,395.31

· Correct Answer

​$6,643.29

· Correct Answer

​$7,253.72

question11

The communicate appraisement of a bond acceptions when the:​

· Correct Answer

​Coupon blame declines.

· Correct Answer

​Par appreciate declines.

· Correct Answer

​Face appreciate declines.

· Correct Answer

​Discount blame declines.

· Correct Answer

​Coupon is hired every-year rather than semiannually.

question12

​The regularity of artfulnessning and managing a attached's long-tidings effects is determined:

· Correct Answer

​Capital make.

· Correct Answer

​Financial slander.

· Correct Answer

​Working cardinal treatment.

· Correct Answer

​Agency absorb anatomy.

· Correct Answer

​Capital budgeting.

question13

The abatement blame that makes the net give appreciate of an boarding precisely similar to cipher is determined the:​

· Correct Answer

​Profitability apostacy.

· Correct Answer

​Average accounting revert.

· Correct Answer

​External blame of revert.

· Correct Answer

​Internal blame of revert.

· Correct Answer

​Equalizer.

question14

The coin course resulting from a attached's ongoing, natural affair activities is referred to as the:​

· Correct Answer

​Cash course to endueors.

· Correct Answer

​Operating coin course.

· Correct Answer

​Additions to net compositioning cardinal.

· Correct Answer

​Cash course to retained achieveings.

· Correct Answer

​Net cardinal spending.

question15

Lois is purchasing an annuity that obtain pay $5,000 every-year for 20 years, delay the chief annuity cancelment made on the epoch of escheatment. What is the appreciate of the annuity on the escheatment epoch ardent a abatement blame of 7 percent?​

· Correct Answer

​$66,916.21

· Correct Answer

​$54,282.98

· Correct Answer

​$56,191.91

· Correct Answer

​$52,970.07

· Correct Answer

​$56,677.98

question16

Which one of the aftercited statements is fabrication?​

· Correct Answer

​An aging register includes solely balancedue accounts.

· Correct Answer

​Investments in accounts receivable similar middle daily sales spaces middle store epoch.

· Correct Answer

​Collection efforts may include legitimate operation.

· Correct Answer

​Aging registers are used to instructor accounts receivable.

· Correct Answer

​If sales are seasonal, the percentages shown on an aging register obtain diversify during the year.

question17

The chief motive of financial treatment is to:​

· Correct Answer

​Minimize operational absorbs and maximize attached power.

· Correct Answer

​Maximize vulgar dividends per distribute of the stout fund.

· Correct Answer

​Avoid financial grieve.

· Correct Answer

​Maximize the vulgar appreciate per distribute of the stout fund.

· Correct Answer

​Maintain immovable development in twain sales and net achieveings.

question18

A contrivance has an judicious absorb of $2,250. The coin inflows are $0, $500, $900, and $700 for Years 1 to 4, respectively. What is the payback epoch?​

· Correct Answer

​3.92 years

· Correct Answer

​2.97 years

· Correct Answer

​2.84 years

· Correct Answer

​3.98 years

· Correct Answer

​never

question19

Futures frames dissimilarity delay self-assertive frames by:​

· Correct Answer

​Marking to the communicate on a weekly account.

· Correct Answer

​Providing an discretion for the buyer rather than an bond.

· Correct Answer

​Allowing the parties to perframe the frame bigness.

· Correct Answer

​Requiring frame fulfillment by the two originating parties.

· Correct Answer

​Allowing the dispose-ofer to consign any day during the consigny month.

question20

All else similar, the subscription boundary must acception as:​

· Correct Answer

​The mutable absorb per part declines.

· Correct Answer

​The sales appraisement minus the agricultural absorb per part acceptions.

· Correct Answer

​Sales appraisement per part declines.

· Correct Answer

​The agricultural absorb per part declines.

· Correct Answer

​Both the sales appraisement and mutable absorb per part acception.

question21

Ratios that mete a attached's ability to pay its bills balance the soon run delayout unattributable emphasis are notorious as:​

· Correct Answer

​Market appreciate harmonys.

· Correct Answer

​Asset treatment harmonys.

· Correct Answer

​Liquidity metes.

· Correct Answer

​Profitability harmonys.

· Correct Answer

​Long-tidings solvency metes.

question22

The absorbs of avoiding a bankruptcy filing by a financially grieveed attached are classified as _____ absorbs.

· Correct Answer

​Flotation

· Correct Answer

​Capital make

· Correct Answer

​Financial solvency

· Correct Answer

​Direct bankruptcy

· Correct Answer

​Indirect bankruptcy

question23

An profit blame that is compounded monthly, but is explicit as if the blame were compounded every-year, is determined the _____ blame.​

· Correct Answer

​Daily profit

· Correct Answer

​Compound profit

· Correct Answer

​Effective annual

· Correct Answer

​Periodic profit

· Correct Answer

​Stated profit

question24

The higher the register turnover, the:​

· Correct Answer

​Lesser the entirety of register held by a attached.

· Correct Answer

​Longer it takes a attached to dispose-of its register.

· Correct Answer

​Higher the register as a percentage of entirety effects.

· Correct Answer

​Greater the entirety of register held by a attached.

· Correct Answer

​Less space register items accrue on the rejection.

question25

You artfulness to endue $6,500 for three years at 4 percent uncompounded profit. What obtain your boarding be desert at the end of the three years?​

· Correct Answer

​$6,760.00

· Correct Answer

​$6,941.11

· Correct Answer

​$7,311.62

· Correct Answer

​$7,250.00

· Correct Answer

​$7,280.00

question26

​Which one of these is a reframe specification? 

· Correct Answer

​Tangible effects are agricultural effects such as patents.

· Correct Answer

​Net compositioning cardinal similars vulgar effects plus vulgar liabilities.

· Correct Answer

​Current effects are effects delay soon lives, such as register.

· Correct Answer

​Current liabilities are debits that must be rehired in 18 months or near.

· Correct Answer

​Long-tidings debit is defined as a residual title on a attached's effects.

question27

One hindrance of the corpoblame frame of affair occupation is the:​

· Correct Answer

​Double taxation of produce.

· Correct Answer

​Difficulties encountered when changing occupation.

· Correct Answer

​Firms ability to elevate coin.

· Correct Answer

​Limited impost shelter supposing for all owners.

· Correct Answer

​Unlimited existence of the attached.

question28

​A attached has a entirety debit harmony of .47. This resources the attached has 47 cents in debit for whole:

· Correct Answer

​$1 in vulgar effects.

· Correct Answer

​$1 in agricultural effects.

· Correct Answer

​$.53 in entirety equity.

· Correct Answer

​$.53 in entirety effects.

· Correct Answer

​$1 in entirety equity.

question29

Book appreciate:​

· Correct Answer

​Generally contributes to excel communicate appreciate when agricultural effects are interposed.

· Correct Answer

​Is invetereprove on unromantic absorb.

· Correct Answer

​Is further of a financial than an accounting valuation.

· Correct Answer

​Is equipollent to communicate appreciate for attacheds delay agricultural effects.

· Correct Answer

​Is adjusted to communicate appreciate whenever the communicate appreciate excels the systematic magnitude appreciate.

question30

An causative cardinal communicate is one in which:​

· Correct Answer

​All boardings achieve the communicate blame of revert.

· Correct Answer

​Securities frequently tender a balancebearing NPV.

· Correct Answer

​Security appraisements animadvert all profitable instruction.

· Correct Answer

​Taxes are obstructive.

· Correct Answer

​Brokerage commissions are cipher.