Fin 516 Study guides, Class notes & Summaries

FIN 516 FINAL EXAM

FIN 516 Advanced Managerial Finance Final Exam Questions and Answers (100% Correct). Page: 1 Question 1.1. (TCO B) Which of the following statements concerning the MM extension with growth is not correct? Question 2.2. (TCO D) Which of the following statements is most correct? Question 3.3. (TCO E) Buster’s Beverages is negotiating a lease on a new piece of equipment that would cost $100,000 if purchased. The equipment falls into the MACRS 3-year class, and it would be used for 3 years and t...

Fin 516 Managerial Macroeconomics/Advanced Managerial Finance final exam

FIN 516 FINAL EXAM

FIN 516 FINAL EXAM 1. (TCO B) Which of the following statements concerning the MM extension with growth is NOT CORRECT? (a) The tax shields should be discounted at the unlevered cost of equity.] (b) The value of a growing tax shield is greater than the value of a constant tax shield. (c) For a given D/S, the levered cost of equity is greater than the levered cost of equity under MM’s original (with tax) assumptions. (d) For a given D/S, the WACC is greater than the WACC under MM’s origi...

FIN 516 - Week 8 Final Exam 2019/FIN 516 - Week 8 Final Exam 2019. (CO B) Which of the following statements concerning MM extension with growth is not correct? (CO D) Which of the following statements is most correct? (CO I) Suppose in the spot market 1 U.S. dollar equals 1.60 Canadian dollars. Six month Canadian securities have an annualized return of 6% (and thus a 6-month periodic return of 3%). Six month U.S. securities have an annualized return of 6.5% and a periodic return of 3.25%. I...

FIN 516_WEEK_7_HOMEWORK/FIN 516_WEEK_7_HOMEWORK. Problem 31-1 on Exchange Rates based on Chapter 31 International Corporate Finance (Excel file included) You are a U.S. investor who is trying to calculate the present value of a €5 million cash inflow that will occur 1 year in the future. The spot exchange rate is S = $1.25/€ and the forward rate is F1 = $1.215/€. You estimate that the appropriate dollar discount rate for this cash flow is 4% and the appropriate euro discount rate is 7%.

FIN 516 FINAL EXAM (TCO E) Dakota Trucking Company (DTC) is evaluating a potential lease for a truck with a 4-year life that costs $40,000 and falls into the MACRS 3-year class. If the firm borrows and buys the truck, the loan rate would be 10%, and the loan would be amortized over the truck's 4-year life. The loan payments would be made at the end of each year. The truck will be used for 4 years, at the end of which time it will be sold at an estimated residual value of $10,000. If DTC buys th...

FIN 516 Week 8 Final Exam/FIN 516 Week 8 Final Exam/FIN 516 Week 8 Final Exam

FIN 516 FINAL EXAM