FIN 534 Sample Final Exam, Part 1 and 2 | eBooks | Education

FIN 534 Sample Final Exam, Part 1 and 2

FIN 534 Sample Final Exam, Part 1 and 2 PLDZ-34 Instant Download Price
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FIN 534 Final Exam 1 Part 1

1. Which of the following is NOT normally regarded as being a barrier to hostile takeovers?

2. Which of the following is NOT normally regarded as being a good reason to establish an ESOP?

4. If a firm adheres strictly to the residual dividend policy, then if its optimal capital budget requires the use of all earnings for a given year (along with new debt according to the optimal debt/total assets ratio), then the firm should pay?

5. Grandin Inc. is evaluating its dividend policy. It has a capital budget of $625,000, and it wants to maintain a target capital structure of 60% debt and 40% equity. The company forecasts a net income of $475,000. If it follows the residual dividend policy, what is its forecasted dividend payout ratio?

6. The capital budget of Creative Ventures Inc. is $1,000,000. The company wants to maintain a target capital structure that is 30% debt and 70% equity. The company forecasts that its net income this year will be $800,000. If the company follows a residual dividend policy, what will be its total dividend payment?

7. Poff Industries' stock currently sells for $120 a share. You own 100 shares of the stock. The company is contemplating a 2-for-1 stock split. Which of the following best describes what your position will be after such a split takes place?

8. The projected capital budget of Kandell Corporation is $1,000,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $550,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out?

17. Which of the following is NOT directly reflected in the cash budget of a firm that is in the zero tax bracket? 18. Which of the following will cause an increase in net working capital, other things held constant?

19. A lockbox plan is. 20. Which of the following statements is most consistent with efficient inventory management? The firm has a

21. Which of the following is NOT commonly regarded as being a credit policy variable?

22. Which of the following actions should Reece Windows take if it wants to reduce its cash conversion cycle?

24. Suppose 1 U.S. dollar equals 1.60 Canadian dollars in the spot market. ......If interest rate parity holds, what is the U.S. dollar-Canadian dollar exchange rate in the 180-day forward market?

25. Suppose one U.S. dollar can purchase 144 yen today in the foreign exchange market. If the yen depreciates by 8.0% tomorrow, how many yen could one U.S. dollar buy tomorrow?

26. Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.41 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 1.64 euros. What is the cross-rate of Swiss francs to euros? 27. Suppose it takes 1.82 U.S. dollars today to purchase one British pound in the foreign exchange market, and currency forecasters predict that the U.S. dollar will depreciate by 12.0% against the pound over the next 30 days. How many dollars will a pound buy in 30 days?

28. In Japan, 90-day securities have a 4% annualized return and 180-day securities have a 5% annualized return. In the United States, ........Assuming that interest rate parity holds in all markets, which of the following statements is most CORRECT?

29. Suppose Yates Inc., a U.S. exporter, sold a consignment of antique American muscle-cars to a Japanese customer at a price of 143.5 million yen, when the exchange rate was 140 yen per dollar. ......If the yen fell against the dollar such that one dollar would buy 154.4 yen when the invoice was paid, what dollar amount would Yates actually receive after it exchanged yen for U.S. dollars?

30. Suppose that 1 British pound currently equals 1.62 U.S. dollars and 1 U.S. dollar equals 1.62 Swiss francs. What is the cross exchange rate between the pound and the franc?

FIN 534 Final Exam Part 2

1. Which of the following is NOT normally regarded as being a good reason to establish an ESOP? 2. Which of the following is NOT normally regarded as being a barrier to hostile takeovers?

4. If a firm adheres strictly to the residual dividend policy, then if its optimal capital budget requires the use of all earnings for a given year (along with new debt according to the optimal debt/total assets ratio), then the firm should pay

5. The capital budget of Creative Ventures Inc. is $1,000,000. The company wants to maintain a target capital structure that is 30% debt and 70% equity. ..........what will be its total dividend payment?

11. Which of the following statements best describes the optimal capital structure? The optimal capital structure is the mix of debt, equity, and preferred stock that maximizes the company's ____.

12. Other things held constant, which of the following events is most likely to encourage a firm to increase the amount of debt in its capital structure?

13. Companies HD and LD have identical tax rates, total assets, and basic earning power ratios, and their basic earning power exceeds their before-tax cost of debt, rd. .......Which of the following statements is CORRECT?

14. Based on the information below for Benson Corporation, what is the optimal capital structure?

16. Daylight Solutions is considering a recapitalization that would increase its debt ratio and increase its interest expense. .......Assuming the CFO's estimates are correct, which of the following statements is CORRECT?

17. Which of the following is NOT directly reflected in the cash budget of a firm that is in the zero tax bracket? 18. Firms generally choose to finance temporary current operating assets with short-term debt because1

22. Which of the following will cause an increase in net working capital, other things held constant?

23. If 1.64 Canadian dollars can purchase one U.S. dollar, how many U.S. dollars can you purchase for one Canadian dollar?

24. A U.S.-based importer, Zarb Inc., makes a purchase of crystal glassware from a firm in Switzerland for 39,960 Swiss francs, or $24,000, at the spot rate of 1.665 francs per dollar.......If the spot rate in 90 days is actually 1.638 francs, how much will the U.S. firm have saved or lost in U.S. dollars by hedging its exchange rate exposure?

FIN 534 Final Exam 1 Part 1 1. Which of the following is NOT normally regarded as being a barrier to hostile takeovers? 2. Which of the following is NOT normally regarded as being a good reason to establish an ESOP? 4. If a firm adheres strictly t
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