Finance 330 Final Exam
1. At its most basic level, the function of financial intermediaries is to ________.
2. Which of the following is NOT an example of a financial transaction?
3. The movement of money from lender to borrower and back again is known as ________.
4. The fundamental starting point of all the accounting statements is the ________.
5. Which of the statements below is TRUE?
6. To determine the interest paid each compounding period, we take the advertised annual percentage rate and simply divide it by the ________ to get the appropriate periodic interest rate.
7. Suppose you invest $1,000 today, compounded quarterly, with the annual interest rate of 5.00%. What is your investment worth in one year?
8. Suppose you invest $2,000 today, compounded monthly, with an annual interest rate of 7.50%. What is your investment worth in one year?
9. The four steps to determining the price of a bond are:
10. Blackburn Inc. has issued 30-year $1,000 face value, 10% annual coupon bonds, with a yield to maturity of 9.0%. The annual interest payment for the bond is ________.
11. Stocks are different from bonds because ________.
12. Stocks differ from bonds because:
13. Bonds are different from stocks because ________.
14. Jarvis bought a share of stock for $15.75 that paid a dividend of $.45 and sold three months later for $18.65. What was his dollar profit or loss and holding period return?
15. Amy bought a share of stock for $64.50 that paid a dividend of $.50 and sold nine months later for $64.00. What was her dollar profit or loss and holding period return?
16. ________ is at the heart of corporate finance, because it is concerned with making the best choices about project selection.
17. The ________ model is usually considered the best of the capital budgeting decision-making models.
18. A major metric of a company’s health and its prospects for a long life is how much ________ it can generate.
19. Most businesses fail because their ________ dries up.
20. The ________ are critical to business decisions, business growth, and ultimately business success.
21. There are two primary tools used to forecast and set in action a company plan. Which of the tools below is one of these?
22. As with a lot of planning, the financial forecast begins with ________ estimates and ________ schedules.
23. The ________ starts at the time production begins and ends with the collection of cash from the sale of the product.
24. The ________ begins at the time a firm first starts to make a product and lasts until the time the customer buys the product.
25. Which of the statements below is FALSE?
26. An example of a financial statement is ________.
27. Typically, shares of stock are stored in the vault of the brokerage firm and you, as owner, will not take physical possession. Under these circumstances the brokerage firm is the ________ and you are the ________.
28. A common practice today is to have shares of stock in the ________ , using the name of the broker as owner rather than you.
29. The difficulties of managing international business operations stem from three special issues. Which of the choices below is NOT one of these?
30. ________ arise(s) from differences in customs, social norms, attitudes, assumptions, and expectations of the local society in a host country.