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FIN 370 GENIUS Redefined Education--fin370genius.com

1. FIN 370 Assignment Week 1 Apply Exercise FOR MORE CLASSES VISIT www.fin370genius.com FIN 370 Week 1 Apply Exercise Review the Week 1 “Knowledge Check” in Connect®…
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  • 1. FIN 370 Assignment Week 1 Apply Exercise FOR MORE CLASSES VISIT www.fin370genius.com FIN 370 Week 1 Apply Exercise Review the Week 1 “Knowledge Check” in Connect® in preparation for this assignment. Complete the Week 1 “Exercise” in Connect®. Note: You have only one attempt available to complete this assignment. Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date. Materials Learn: McGraw-Hill Connect® Access Maximizing owners’ equity value means carefully considering all of the following EXCEPT Multiple Choice how best to return the profits from those projects to the owners over time. which projects to invest in. how to best bring additional funds into the firm. how best to increase the firm’s risk. Not all cash a company generates will be returned to the investors. Which of the following will NOT reduce the amount of capital returned to the investors? Multiple Choice taxes dividends retained earnings As individual legal entities, corporations assume liability for their own debts, so the shareholders hold Multiple Choice unlimited liability. shared liability. joint liability. only limited liability. For corporations, maximizing the value of owner’s equity can also be stated as Multiple Choice maximizing the stock price. maximizing earnings per share. maximizing retained earnings. maximizing net income. Which of the following is not an impact of the slowdown occurring in China’s economy? Multiple Choice falling community prices lower demand in
  • 2. materials such as steel, iron ore, and copper real estate market declining in Sydney, Australia money going out of Manhattan, New York What is the debt ratio for a firm with an equity multiplier of 3.5? Multiple Choice 58.51 percent 66.25 percent 44.09 percent 71.43 percent Which of the following refer to ratios that measure the relationship between a firm’s liquid (or current) assets and its current liabilities? Multiple Choice internal-growth market value liquidity cross- section For publicly traded firms, which of these ratios measure what investors think of the company’s future performance and risk? Multiple Choice profitability ratios liquidity ratios price value ratios market value ratios Which of the following is the maximum growth rate that can be achieved by financing asset growth with new debt and retained earnings? Multiple Choice sustainable growth rate weighted growth rate internal growth rate retained earnings growth rate To interpret financial ratios, managers, analysts, and investors use which of the following type of benchmarks? Multiple Choice time series analysis time-industry analysis competitive analysis cross-industry analysis n both the original deposit and on the earlier interest payments Multiple Choice discounting. computing. multiplying. compounding. MC Qu. 4-71 A deposit of $500 earns 5… A deposit of $500 earns 5 percent the first year, 6 percent the second year, and 7 percent the third year. What would be the third year future value? Multiple Choice $595.46 $634.91 $671.02 $615.62 MC Qu. 4-9 With regard to money deposited in… With regard to money deposited in a bank, future values are Multiple Choice smaller than present values. are completely independent of present values. equal to present values. larger than present values. MC Qu. 4-17 What is the future value of… What is the future value of $2,000 deposited for one year earning 6 percent interest rate annually?
  • 3. Multiple Choice $4,120 $2.000 $120 $2,120 MC Qu. 4-10 A dollar paid (or received) in… A dollar paid (or received) in the future is Multiple Choice not comparable to a dollar paid (or received) today. worth as much as a dollar paid (or received) today. worth more than a dollar paid (or received) today. not worth as much as a dollar paid (or received) today. MC Qu. 4-29 Approximately how many years does it… Approximately how many years does it take to double a $300 investment when interest rates are 8 percent per year? Multiple Choice 9 years 11 years 4.17 years 0.11 years MC Qu. 4-7 The interest rate, i, which we… The interest rate, i, which we use to calculate present value, is often referred to as the Multiple Choice compound rate. dividend. multiplier. discount rate. MC Qu. 4-73 What is the present value of… What is the present value of a $600 payment in one year when the discount rate is 8 percent? Multiple Choice $525.87 $575.09 $555.56 $498.61 MC Qu. 4-78 Approximately what rate is needed to… Approximately what rate is needed to double an investment over five years? Multiple Choice 12.2 percent 8 percent 15.8 percent 14.4 percent MC Qu. 4-79 Determine the interest rate earned on… Determine the interest rate earned on an $800 deposit when $808 is paid back in one year. Multiple Choice 100 percent 15 percent 10 percent 1 percent MC Qu. 4-109 You double your money in 5… You double your money in five years. The reason your return is not 20 percent per year is because: Multiple Choice it is probably a “fad” investment. it does not reflect the effect of the Rule of 72. it does not reflect the effect of compounding. it does not reflect the effect of discounting. MC Qu. 5-146 Which of the following will increase… Which of the following will increase the future value of an annuity? Multiple Choice The number of periods increases. The amount of the annuity
  • 4. increases. The interest rate increases. All of these choices are . MC Qu. 5-22 What is the future value of… What is the future value of a $1,000 annuity payment over 4 years if the interest rates are 8 percent? Multiple Choice $4,506.11 $9,214.20 $4,320.00 $3,312.10 MC Qu. 5-74 If the present value of an… If the present value of an ordinary, 8-year annuity is $12,500 and interest rates are 9.1 percent, what is the present value of the same annuity due? Multiple Choice $14,114.80 $14,211.90 $13,941.90 $13,637.50 MC Qu. 5-147 Which of the following will increase… Which of the following will increase the present value of an annuity? Multiple Choice The effective rate is calculated over fewer years. The amortization schedule decreases. The interest rate decreases. The number of periods decreases. MC Qu. 5-30 If the future value of an… If the future value of an ordinary, 7-year annuity is $10,000 and interest rates are 4 percent, what is the future value of the same annuity due? Multiple Choice $10,700.00 $10,000.00 $10,400.00 $9,615.38 MC Qu. 5-31 If the future value of an… If the future value of an ordinary, 4-year annuity is $1,000 and interest rates are 6 percent, what is the future value of the same annuity due? Multiple Choice $943.40 $1,000.00 $1,040.00 $1,060.00 MC Qu. 5-33 A loan is offered with monthly… A loan is offered with monthly payments and a 6.5 percent APR. What is the loan’s effective annual rate (EAR)? Multiple Choice 5.69 percent 12.63 percent 7.28 percent 6.697 percent MC Qu. 5-15 People refinance their home… People refinance their home mortgages Multiple Choice when rates fall and rise. whenever they need to, independent of rates. when rates fall. when rates rise. ==============================================
  • 5. FIN 370 Assignment Week 1 Practice Knowledge Check FOR MORE CLASSES VISIT www.fin370genius.com FIN 370 Week 1 Practice Knowledge Check Complete the Week 1 “Knowledge Check” in Connect®. Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded. These assignments have earlier due dates, so plan accordingly. Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date. MC Qu. 1-14 Which of the following managers would… Which of the following managers would NOT use finance? Multiple Choice human resource managers marketing managers operational managers all of these choices are . MC Qu. 1-11 Which of the following is defined… Which of the following is defined as a group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations? Multiple Choice market instruments investments financial markets asset classes MC Qu. 1-63 An angel investor differs from a… An angel investor differs from a venture capitalist because of the Multiple Choice size of investment. voting rights. type of investment. investment time frame. MC Qu. 1-18 This type of business organization is… This type of business organization is entirely legally independent from its owners. Multiple Choice hybrid organizations partnership sole proprietorship public corporations MC Qu. 1-67 Which of these is the system… Which of these is the system of
  • 6. incentives and monitors that tries to overcome the agency problem? Multiple Choice checks and Balances Security Exchange Commission board of Directors corporate Governance MC Qu. 1-54 From the perspective of control, the… From the perspective of control, the best form of business organization is the Multiple Choice corporation. partnership. S corporation. sole proprietorship. MC Qu. 1-19 Which of the following is… Which of the following is NOT considered a hybrid organization? Multiple Choice limited liability partnership limited liability company limited partnership all of these choices are . S corporation MC Qu. 1-1 The increase in oil production in… The increase in oil production in the United States characterizes which of the following key financial concepts presented in this book? Multiple Choice the Rule of 72 time value of money capital budgeting risk and return MC Qu. 1-59 All of the following are an… All of the following are an example of a fiduciary relationship EXCEPT Multiple Choice a financial advisor advises her clients. a CEO manages the firm. the shareholder elects a board member. a bank employee manages deposits. MC Qu. 3-85 Which ratio assesses how efficiently a… Which ratio assesses how efficiently a firm uses its fixed assets? Multiple Choice capital intensity ratio current ratio fixed asset turnover average collection period MC Qu. 3-90 A firm reported working capital of… A firm reported working capital of $5.5 million and fixed assets of $20 million. Its fixed asset turnover was 1.2 times. What was the firm’s sales to working capital ratio? Multiple Choice 4.36 times 6.03 imes 2.21 times 5.19 times MC Qu. 3-103 Which ratio measures the number of… Which ratio measures the number of dollars of operating cash available to meet each dollar of interest and other fixed charges that the firm owes? Multiple Choice fixed-charge coverage ratio cash coverage ratio
  • 7. operating coverage ratio times interest earned MC Qu. 3-25 You are evaluating the balance sheet… You are evaluating the balance sheet for Blue Jays Corporation. From the balance sheet you find the following balances: cash and marketable securities = $200,000, accounts receivable = $800,000, inventory = $1,000,000, accrued wages and taxes = $250,000, accounts payable = $400,000, and notes payable = $300,000. What are Blue Jays’ current ratio, quick ratio, and cash ratio, respectively? Multiple Choice 3.07692, 1.53846, 0.30769 1.05263, 1.05263, 0.21053 2.10526, 1.05263, 0.21053 3.07692, 1.05263, 0.30769 MC Qu. 3-6 Which of the following ratios measure… Which of the following ratios measure how efficiently a firm uses its assets, as well as how efficiently the firm manages its accounts payable? Multiple Choice quick or acid-test cash internal-growth asset management MC Qu. 3-20 For publicly traded firms, which of… For publicly traded firms, which of these ratios measure what investors think of the company’s future performance and risk? Multiple Choice profitability ratios liquidity ratios price value ratios market value ratios MC Qu. 3-116 Which ratio measures the overall return… Which ratio measures the overall return on the firm’s assets including financial leverage and taxes? Multiple Choice basic earning power ROE ROA profit margin MC Qu. 3-112 The maximum growth rate that can… The maximum growth rate that can be achieved by financing asset growth with internal financing or retained earnings is called the Multiple Choice internal growth rate. sustainable growth rate. retention rate. operating expansion rate. MC Qu. 3-22 Which of the following is the… Which of the following is the maximum growth rate that can be achieved by financing asset growth with new debt and retained earnings? Multiple Choice weighted growth rate internal growth rate sustainable growth rate retained earnings growth
  • 8. rate MC Qu. 3-23 To interpret financial ratios, managers, analysts,… To interpret financial ratios, managers, analysts, and investors use which of the following type of benchmarks? Multiple Choice time series analysis cross-industry analysis time-industry analysis competitive analysis MC Qu. 3-42 Last year Poncho Villa Corporation had… Last year Poncho Villa Corporation had an ROA of 16 percent and a dividend payout ratio of 25 percent. What is the internal growth rate? Multiple Choice 13.64 percent 33.33 percent 25.40 percent 1.19 percent ============================================== FIN 370 Assignment Week 2 Practice Knowledge Check FOR MORE CLASSES VISIT www.fin370genius.com FIN 370 Week 2 Practice Knowledge Check Complete the Week 2 “Knowledge Check” in Connect®. Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded. These assignments have earlier due dates, so plan accordingly. Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date. Materials  Learn: McGraw-Hill Connect® Access MC Qu. 4-16 What is the future value of… What is the future value of $1,000 deposited for one year earning 5 percent interest rate annually? Multiple Choice $1,005 $1,000 $2,050 $1,050 MC Qu. 4-5 We call the
  • 9. process of earning… We call the process of earning interest on both the original deposit and on the earlier interest payments Multiple Choice discounting. computing. multiplying. compounding. MC Qu. 4-71 A deposit of $500 earns 5… A deposit of $500 earns 5 percent the first year, 6 percent the second year, and 7 percent the third year. What would be the third year future value? Multiple Choice $595.46 $634.91 $671.02 $615.62 MC Qu. 4-9 With regard to money deposited in… With regard to money deposited in a bank, future values are Multiple Choice smaller than present values. are completely independent of present values. equal to present values. larger than present values. MC Qu. 4-17 What is the future value of… What is the future value of $2,000 deposited for one year earning 6 percent interest rate annually? Multiple Choice $4,120 $2.000 $120 $2,120 MC Qu. 4-10 A dollar paid (or received) in… A dollar paid (or received) in the future is Multiple Choice not comparable to a dollar paid (or received) today. worth as much as a dollar paid (or received) today. worth more than a dollar paid (or received) today. not worth as much as a dollar paid (or received) today. MC Qu. 4-29 Approximately how many years does it… Approximately how many years does it take to double a $300 investment when interest rates are 8 percent per year? Multiple Choice 9 years 11 years 4.17 years 0.11 years MC Qu. 4-7 The interest rate, i, which we… The interest rate, i, which we use to calculate present value, is often referred to as the Multiple Choice compound rate. dividend. multiplier. discount rate. MC Qu. 4-73 What is the present value of… What is the present value of a $600 payment in one year when the discount rate is 8 percent? Multiple Choice $525.87 $575.09 $555.56 $498.61 MC Qu. 4-78 Approximately what rate is needed to… Approximately what rate is needed to double an investment over five
  • 10. years? Multiple Choice 12.2 percent 8 percent 15.8 percent 14.4 percent MC Qu. 4-79 Determine the interest rate earned on… Determine the interest rate earned on an $800 deposit when $808 is paid back in one year. Multiple Choice 100 percent 15 percent 10 percent 1 percent MC Qu. 4-109 You double your money in 5… You double your money in five years. The reason your return is not 20 percent per year is because: Multiple Choice it is probably a “fad” investment. it does not reflect the effect of the Rule of 72. it does not reflect the effect of compounding. it does not reflect the effect of discounting. MC Qu. 5-146 Which of the following will increase… Which of the following will increase the future value of an annuity? Multiple Choice The number of periods increases. The amount of the annuity increases. The interest rate increases. All of these choices are . MC Qu. 5-22 What is the future value of… What is the future value of a $1,000 annuity payment over 4 years if the interest rates are 8 percent? Multiple Choice $4,506.11 $9,214.20 $4,320.00 $3,312.10 MC Qu. 5-74 If the present value of an… If the present value of an ordinary, 8-year annuity is $12,500 and interest rates are 9.1 percent, what is the present value of the same annuity due? Multiple Choice $14,114.80 $14,211.90 $13,941.90 $13,637.50 MC Qu. 5-147 Which of the following will increase… Which of the following will increase the present value of an annuity? Multiple Choice The effective rate is calculated over fewer years. The amortization schedule decreases. The interest rate decreases. The number of periods decreases. MC Qu. 5-30 If the future value of an… If the future value of an ordinary, 7-year annuity is $10,000 and interest rates are 4 percent, what is the future value of the same annuity due? Multiple Choice $10,700.00 $10,000.00 $10,400.00 $9,615.38 MC Qu. 5-31 If the future value of an… If the
  • 11. future value of an ordinary, 4-year annuity is $1,000 and interest rates are 6 percent, what is the future value of the same annuity due? Multiple Choice $943.40 $1,000.00 $1,040.00 $1,060.00 MC Qu. 5-33 A loan is offered with monthly… A loan is offered with monthly payments and a 6.5 percent APR. What is the loan’s effective annual rate (EAR)? Multiple Choice 5.69 percent 12.63 percent 7.28 percent 6.697 percent MC Qu. 5-15 People refinance their home… People refinance their home mortgages Multiple Choice when rates fall and rise. whenever they need to, independent of rates. when rates fall. when rates rise. ============================================== FIN 370 Assignment Week 3 Practice Knowledge Check FOR MORE CLASSES VISIT www.fin370genius.com FIN 370 Assignment Week 3 PracticeKnowledge Check Complete the Week 3 “Knowledge Check” in Connect®. Note: You have unlimited attempts available to complete this practice assignment. The highest scored attempt will be recorded. These assignments have earlier due dates, so plan accordingly. Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date. MC Qu. 7-67 Which of the following is NOT… Which of the following is NOT true about EE savings bonds? Multiple Choice These are tax deferred investments. Interest payments are received annually
  • 12. but are tax deductible. About one in six Americans owns a savings bond. Paper bonds sell for one-half of their face value. MC Qu. 7-4 Which of the following is a legal… Which of the following is a legal contract that outlines the precise terms between the issuer and the bondholder? Multiple Choice Prospectus Enforcement codes Debenture Indenture MC Qu. 7-125 A 4.15 percent TIPS has an… A 4.15 percent TIPS has an original reference CPI of 182.1. If the current CPI is 188.3, what is the par value of the TIPS? Multiple Choice $1,000.00 $1,004.75 $967.07 $1,034.05 MC Qu. 7-124 A 2.95 percent TIPS has an… A 2.95 percent TIPS has an original reference CPI of 180.2. If the current CPI is 205.1, what is the current interest payment and par value of the TIPS? (Assume semi-annual interest payments and $1,000 par value.) Multiple Choice $878.60, $16.79, respectively $1,000.00
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