Exam 2 Finance 470 1. When is EAC analysis appropriate for comparing two or more projects? Why is this method used? Are there any implicit assumptions required by this method that you find troubling? Explain. The EAC approach is appropriate when comparing mutually exclusive projects with different lives that will be replaced when they wear out. This type of analysis is necessary so that the projects have a common life span over which they can be compared; in effect‚ each project is assumed
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check MKT B370 (Specimen) SUGGESTED SOLUTION Page 1 of 6 bagel quality. Corrective action at the source. SECTION B Question 2 (a) : Question 2 (b) The expected project completion time is 46.00 days. Question 2 (c) The critical path and activities are D→E→F→G→J。 MKT B370 (Specimen) SUGGESTED SOLUTION Page 2 of 6 Question 2 (d) To compute the probability of selling the house within 7 weeks (49 days)‚ first compute Z 49 mean / std.dev. 49 46
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Finance 301 1. The NPV for the truck and the pulley are $2026.75 and $5586.05 respectively. Since these projects are independent‚ the company can choose either project. They both will give the company a return higher than 12% as well. (Math is on last page) 2. A. NPV for Alt A is $1892.17 while the payback is 2.86 years. NPV for Alt B is 2289.66 while the payback is 4.62 years. (Math on last page) B. Since these projects are mutually exclusive only one can be chosen. Since NVP is a better
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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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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 of years? A
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for sexual reproduction. C. cognitive changes in adolescence have a major impact on sexuality. D. it is not until adolescence that sexual activity begins to take on the social meaning it will continue to have throughout adulthood. Answer: A 2. Sex play that is innocuous during childhood is no longer innocuous during adolescence because: A. children report erotic feelings before puberty. B. the hormonal changes of puberty result in an increased sex drive in adolescence. C. children are
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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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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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2102 Practice Exam 2 Spring 2007 Name: _________________________________ 1. Sally Inc. has shelving that cost $70‚000 a few years ago. The current book value (carrying value) is $15‚000. They are thinking of selling the shelving in order to renovate the store. If they sell‚ they expect to receive $14‚000 for the shelving. Which of these is TRUE about the shelving? a. The accumulated depreciation at the point of sale will be $41‚000. b. The gain on sale of shelving will be $1‚000. c. The
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