Fin 370 New Academic Professor /Tutorialrank.Com Essay

2743 Words Feb 26th, 2016 11 Pages
FIN 370 Final Exam Guide (New)
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1.Which of the following is true regarding Investment Banks?
2. We compute the profitability index of a capital-budgeting proposal by Initial outlay = $1,748.80
3. Project Sigma requires an investment of $1 million and has a NPV of $10. Project Delta requires an investment of $500,000 and has a NPV of $150,000. The projects involve unrelated new product lines.
What is your evaluation of these two projects?
4. Which of the following is most likely to occur if a firm over-invests in net working capital?
5. The Securities Investor Protection Corporation protects individuals from
6. If managers are making
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Which of the following best describes why cash flows are utilized rather than accounting profits when evaluating capital projects?
13. Which of the following could offset the higher risk exposure a company would face if it’s current ratio and net working capital were relatively low?
14. When the impact of taxes is considered, as the firm takes on more debt
15. Accounting break-even analysis solves for the level of sales that will result in:
16. When calculating the weighted average cost of capital, which of the following has to be adjusted for taxes?
17. Which of the following statements best represents what finance is about?
18. Apple Two Enterprises expects to generate sales of $5,950,000 for fiscal 2014; sales were$3,450,000 in fiscal 2013. Assume the following figures for the fiscal year ending 2013: cash $70,000; accounts receivable $250,000; inventory $400,000; net fixed assets $520,000; accounts payable $235,000; and accruals $155,000. Use the percent-of-sales method to forecast cash for the fiscal year ending 2014.
19. Aspects of demand risk controllable by the firm include:
20. The Oviedo Thespians are planning to present performances of their Florida Revue on 2 consecutive nights in January. It will cost them $5,000 per night for theater rental, event insurance and professional musicians. The theater will also take 10% of gross ticket sales. How many tickets must they sell at $10.00 per ticket to raise $1,000 for their

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