FIN/571 Final Examination Study Guide
This study guide will prepare you for the Final Examination you will complete in the final week. It contains practice questions, which are related to each week’s objectives. In addition, refer to each week’s readings and your student guide as study references for the Final Examination.
Week One: Foundations of Finance
Objective: Discuss 12 principles of foundational corporate finance.
1. __________ occurs when inaccurate information exists.
a. 0 The principle of valuable ideas
b. 0 Free-rider problem
c. 0 Moral hazard
d. 0 Adverse selection
Objective: Discuss 12 principles of foundational corporate finance.
2. __________ refers to situations wherein the agent can take unseen
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What is the contribution margin?
a. 0 $0.90
b. 0 $1.70
c. 0 $2.50
d. 0 Not enough information
Objective: Analyze the effect of price setting on capital budgeting.
12. The wholesale price for Captain John’s is $1.00 per loaf, and the variable cost of production is $0.50 per loaf. Captain John’s expects that expansion will allow them to sell an additional 5 million loaves in the next year. What additional revenues minus expenses will be generated from expansion?
a. 0$25,000
b. 0$250,000
c. 0$550,000
d. 0$2,500,000
Objective: Explain the methods, pitfalls, and benefits of capital rationing.
13. Pursuing valuable ideas is the best way to __________.
a. 0 achieve extraordinary returns
b. 0 get yourself in trouble
c. 0 restrain your spending
d. 0 avoid risk
Objective: Explain the methods, pitfalls, and benefits of capital rationing.
14. Due to asymmetric information, the market fears that a firm issuing securities will do so when the stock is __________.
a. 0 undervalued
b. 0 overvalued
c. 0 caught up in a bear market
d. 0 being sold by insiders
Objective: Create a financial plan.
15. __________ says to forecast the firm’s cash flows, and analyze the incremental cash flows of alternative decisions.
a. 0The signaling principle
b. 0The time value of money principle
c. 0The principle of incremental benefits
d. 0The principle of risk-return
Objective: Create a financial
QUESTION 5: Kai decides to keep his price the same and add color, increasing variable costs by $0.40 per issue. What is the percent increase in unit volume (copies per issue) required to maintain $500 profits and cover the increased fixed and variable
Directions: Read the captioned book. Then answer the questions contained in this study guide. Post your completed document to the appropriate assignment box on the course website.
Directions: Read the captioned book. Then answer the questions contained in this study guide. Post your completed document to the appropriate assignment box on the course website.
Use the lecture folder to help you complete this guide. The more detail you can provide the better prepared for the test you will be.
You should read this study guide carefully and also ensure that all the links have been followed to other accompanying documents that include, for example, information on coursework submission. Information in this study guide is maintained by Dr. Maged Ali (maged.ali@brunel.ac.uk), Office EG306.
*If you go through each item on this study guide and read about it on the REFerenced page and corresponding TOPic in your text, you should have an excellent study guide for the Final Exam. If you do not do this, you will likely fail this exam miserably!
• Start your study assignment by reading the directions for the assignment cautiously so that you undoubtedly understand your instructor’s hopes.
Guidelines: You may use all of the resources (e.g., textbook, other books, websites) available to you, EXCEPT FOR OTHER PEOPLE. Your work must be done individually. Any exams that appear similar in format and/or answers will be considered to have been done in a group setting. All such exams will receive a score of 0. Late exams will not be accepted for any reason. Any late exams will receive a score of 0. These policies will be strictly enforced.
Review the sample syllabus and sample rubric under the questions below. Then, provide answers underneath the following questions:
Give an example. (5 marks) Briefly discuss whether the short-term differences between applications in (a) are removed when the investment is sold. (3 marks) Briefly suggest reasons why short-term differences may not be irrelevant. (2 marks)
Complete the following practice exercises from Chapter 1 and 2 and submit them to your instructor. This assignment will be graded as a completion only to allow you to transition into the subject matter during the first week. The instructor will post the answers to these exercises by the end of Day 6 for you to check your accuracy and comprehension on the subject matter. Exercises:
Bulleted answers to these questions are due the first day of school, worth 50 points Answers MUST BE HANDWRITTEN! Study guides thatwere copied will receive a ZERO! The following strategy is suggested for completing this study guide: 1) Read the questions for the chapter before you start reading 2) Read the entire chapter without writing full answers - Highlight, underline or flag with post-it notes, important sections as you discover them 3) Write your
(Please see your Study Reference Guide on pages 619-6-1 and 619-6-2 to answer the following questions.)
This assignment has a maximum total of 100 marks and is worth 10% of your total grade for this course. You should complete it after completing your course work for Units 1 through 5. Answer each question clearly and concisely.
There are six projects which “Cheltenham Races” LTD aims to undertake and for this purpose the company is using investment appraisal methods. Investment appraisal procedure is the technique of evaluation of different projects to choose the best projects which maximise the company’s profit.