1. | Monitors inside a public firm are |
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2. | The firms highest level financial manager is usually the |
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3. | What type of retirement plan do most companies offer to their employees? |
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4. | The process of monitoring managers and aligning their interests and incentives with shareholders is called |
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5. | Finance managers goal or objective is |
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6. | All of the followinf are subareas osf finance listed in the textbook except |
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7. | If we're discussing business investment (business projects) such as construction of a new assembly line we are most likely describing |
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8. | The often difficult effort to get managers to align their interests with shareholders is |
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9. | These types of analysts examine a firm's financial strength for debt holders |
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10. | A firm has net sales of $1,500,000, Cost of Goods Sold is $700,000, depreciation expense of $100,000, selling and administrative expenses of $200,000, interest expense of $100,000, and an average tax rate of 40%. What is the firm's net income? |
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11. | A firm has net sales of $1,500,000, Cost of Goods Sold is $700,000, depreciation expense of $100,000, selling and administrative expenses of $200,000, interest expense of $100,000, and an average tax rate of 40%. What is the firm's operating margin? |
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12. | A firm has net sales of $1,500,000, Cost of Goods Sold is $700,000, depreciation expense of $100,000, selling and administrative expenses of $200,000, interest expense of $100,000, and an average tax rate of 40%. What is the firm's gross profit margin? |
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13. | In a standard cash flow statement dividends paid are included in cash flows from |
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14. | A decrease in a current liability account is considered a(n) |
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15. | The balance sheet identity states |
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16. | Power's Mold Removal's year-end 2009 balance sheet lists current assets of $325,000, fixed assets of $550,000, current liabilities of $290,000, and long-term debt of $260,000. Calculate Power's total stockholders' equity. |
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17. | Chapman's Home Inspection, Inc.'s 2009 income statement lists the following income and expenses: EBIT = $750,000, Interest expense of $115,000, and taxes of $190,000. Chapman's has no preferred stock outstanding and 200,000 shares of common stock outstanding. Calculate the 2009 earnings per share. |
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18. | Financial Leverage is best described as |
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19. | A firm has net sales of $5,000,000, cost of goods sold is $3,000,000, depreciation expense of $300,000, selling and administrative expenses of $600,000, interest expense of $200,000, and an average tax rate of 20%. The firm's net income is |
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20. | A firm has net sales of $5,000,000, cost of goods sold is $3,000,000, depreciation expense of $300,000, selling and administrative expenses of $600,000, interest expense of $200,000, and an average tax rate of 20%. The firm's operating margin is |
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21. | A firm has net sales of $5,000,000, cost of goods sold is $3,000,000, depreciation expense of $300,000, selling and administrative expenses of $600,000, interest expense of $200,000, and an average tax rate of 20%.The firm's gross profit margin is |
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22. | A firm has net sales of $5,000,000, cost of goods sold is $3,000,000, depreciation expense of $300,000, selling and administrative expenses of $600,000, interest expense of $200,000, and an average tax rate of 20%. The firm's taxable income is |
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23. | A firm has a gross profit of $1,000,000, selling and administrative expenses of $500,000, depreciation of $100,000 and interest expense of $200,000. What is its operating profit? |
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24. | In a standard cash flow statement, cash flows are separated into all of the following efforts except |
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25. | An increase in a current liability account is considered a(n) |
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26. | An industrial park and office complex is available for sale in Berea. Cash flows from rent amount to $1,000,000 per year, every year for the next ten years. Financing arrangements are made to borrow at 8.25%. Calculate the value of the property. |
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27. | A five year, zero coupon bond with a $1,000 face value sells at auction for $774.26. Calculate the bonds yield to maturity |
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28. | Keybank is offering a savings product that pays 6.37% and compounds daily. Calculate the effective rate of return (EAY) |
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29. | The value of any asset is |
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30. | Umberto Fidele holds a special bond that will pay him $100 per year evert year for the next five years. If Umberto uses a discount rate of 7.5% what is the present value of the bond? |
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31. | Ms. Patel deposits $200 per month every month for the next 20 years. She uses an account that expects to pay 7.63% compounded monthly. What will be the balance in Ms. Patel's account in 20 years? |
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32. | You will receive $5,000 per year every year for the next for years beginning at the end of this year. If you use 6% as your discount rate, calculate the present value of this annuity. |
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33. | You will receive $5,000 per year every year for the next for years beginning at the end of this year. If you use 6% as your discount rate, calculate the present value of this annuity. This is an example of a(n) |
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34. | An investor deposits $5,750 in a certificate of deposti which pays 7.35% and compounds weekly. What will be the balance in seven years? |
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35. | This ratio measures liquidity |
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36. | Penowski Corp. reported COGS for 2009 for $23,000,000. The balance sheet showed $5.6 Million in inventory. Using a 365 day year, how many days did Penowski's inventory stay on the premises. |
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37. | A provision in a bond contract that gives the issuer the right to pay-off the bond prior to normal maturity is a |
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38. | A corporate bond has an original maturity of ten years, face value of $1,000,000, coupon rate of 4.25%, annual payments, and seven years to maturity. Current yields on similar risk are 6.25%. Value this bond. |
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39. | Viewed from a firm;s operating statement the priority of payments is |
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40. | Firm specific risk is often referred to as |
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41. | An investor purchases a stock on March 4, 2009 for $1,000 and sells it one year later at a price of $1,450. During the period, the investor receives one dividend payment of $35. The investor |
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42. | Jonathan Printing Inc. purchases an industrial paper shredder for $10,000. It is expected to generate cash flows of $2,000 every year for the next 10 years. What is the expected dollar return per year and percent return (yield) on this investment? |
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43. | A client invests $500 at the end of each month for 25 years beginning one month from today. The account is expected to earn 7.25% interest compounded monthly. What will the balance be in 25 years? |
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44. | A client invests $500 at the end of each month for 25 years beginning one month from today. The account is expected to earn 7.25% interest compounded monthly. What will the balance be in 25 years? If inflation is expected to be 5% over the next 25 years, using the real rate of interest, (nominal minus inflation) recalculate the balance, which reflect the FVA's purchasing power in 2008 dollars. |
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45. | BTR and BTS generated the following investment returns over the last five years: BTR BTC2005 35% 27%2006 13% 28%2007 3% 25%2008 9% 5%2009 115% 2%Calculate the expected return for 2009 (arithmetic mean average) for BTR |
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46. | BTR and BTS generated the following investment returns over the last five years: BTR BTC 2005 35% 27% 2006 13% 28% 2007 3% 25% 2008 9% 5% 2009 115% 2%Calculate the sample standard deviation for BTR |
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47. | A bond with a $10,000 par has a 7.25% annual coupon rate. It will mature in 8 years with semi-annual coupon payments. Present annual yields on similar bonds are 6.23%. What should the current price be? Round your answer to the nearest penny. |
48. | A stock most revently paid a dividend of $1.60 and had a dividend growth rate of 7% over the last few years. If an investor plans to hold the stock through the next three years and estimates the stock price to be $53 at the end of the three years what is the value of the stock with a required rate of return of 10%? Round your answer to the nearest penny. |