FINANCE SAMPLE EXAM QUESTIONS These test questions were developed by the MBA Research Center. Items have been randomly selected from the MBA Research Center’s Test-Item Bank and represent a variety of instructional areas. Performance indicators for these test questions are at the prerequisite‚ career-sustaining‚ and specialist levels. A descriptive test key‚ including question sources and answer rationale‚ has been provided. Copyright © 2014 by MBA Research and Curriculum Center®‚ Columbus
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FINAL EXAM 1. The accounting measure of a firm’s equity value generated by applying accounting principles to asset and liability acquisitions is called ________. A. book value 2. New-economy companies generally have higher _______ than old-economy companies. B. P/E multiples 3. Earnings yields tend to _______ when Treasury yields fall. A. fall 4. A firm that has an ROE of 12% is considering cutting its dividend payout. The stockholders of the firm desire a dividend yield of 4% and a capital
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ch12 Student: ___________________________________________________________________________ 1. Last year‚ T-bills returned 2 percent while your investment in large-company stocks earned an average of 5 percent. Which one of the following terms refers to the difference between these two rates of return? A. risk premium B. geometric return C. arithmetic D. standard deviation E. variance 2. Which one of the following best defines the variance of an investment’s annual returns over a number
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Name:__________________________________________________________________ Class:______________________________________ Date:____________________ Finance 455 (9:40 class) Examination 2 Monday‚ November 4‚ 2013 9:40 a.m. - 10:55 p.m. 20 Questions 100 points Form (A) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Use a pencil. The proctor is leaving at 10:55 sharp. Calculators permitted‚ but no sharing. Leave your ID where the proctor can check it. All questions are worth five (5) points
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3303 Finance Course review Ale Previtero AGENDA 1. Overview of valuation cases 2. WACC • Cost of equity‚ choosing beta‚ choosing weights‚ when to use premium. 3. Valuation using Discounted Cash Flow (DCF) • Key assumptions‚ Terminal Value‚ sensitivity 4. Valuation using multiples • Key points‚ pros & cons‚ choosing comparable firms • Which multiple? Which year? Example. 5. Financing an Acquisition • Determine price. Financing. Making a decision. 6. Final exam • How
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International finance FIN 412 Exam #2 MC: Examples of "single-currency interest rate swap" and "cross-currency interest rate swap" are: A. fixed-for-floating rate interest rate swap‚ where one counterparty exchanges the interest payments of a floating- rate debt obligations for fixed-rate interest payments of the other counter party B. fixed-for-fixed rate debt service (currency swap)‚ where one counterparty exchanges the debt service obligations of a bond denominated in one currency for
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Exam 1: Chapters 1‚ 3‚ and 5 Insider trading occurs when | | someone has information not available to the public which they use to profit from trading in stocks. | | | corporate officers buy stock in their company. | | | lawyers‚ investment bankers‚ and others buy common stock in companies represented by their firms. | | | any stock transactions occur in violation of the Federal Trade Commissions restrictions on monopolies. | The secondary market is used | | by corporations
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FIN4860 Section 001 Exam 1; Spring 2014 Prof. Nagel Print your last name in large letters: __________________________ Print your first name: ________________________ Print your MTSU email address ______________________ You have 85 minutes to complete this exam. This test is open book and open notes but not open internet. You may use any calculator you wish. Put your answers to essay questions in the space provided. Put all answers to the multiple choice questions below
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Question 1: (1) Ten multiple choice questions. When a firm’s investment decisions have different consequences for the value of equity and the value of debt‚ managers may take actions A) that benefit shareholders at the expense of debt holders. B) to decrease costs of distress. C) to reduce fixed costs. D) to increase debt values. (2) Which of the following is NOT an advantage of private debt over public debt? A) B) C) D) It does not dilute the ownership of the firm. It has to have interest
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1 )Refer to the homework --choice between Current rent a machine/Purchase a machine/Purchase a new machine Tea company rent a bottling machine for 50‚000 per year‚ including all the maintaining cost. It is considering to purchase a machine instead. A. Purchase the machine it is currently costing for 150‚000. The machine will require 21‚000 per year for maintain. B. Purchase a new more advanced machine for 260‚000. The machine will require 15‚000 per year for ongoing maintain. And will save the
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