Finc 3610 Study guides, Class notes & Summaries

Sirmans FINC 3610 Final Exam Questions & Answers 1. Which one of the following best states the primary goal of financial management? - Answer-Maximize the current value per share 1. Which one of the following actions by a financial manager is most apt to create an agency problem? - Answer-Increasing current profits when doing so lowers the value of the firm's equity 1. Corporate dividends are: - Answer-Taxable as personal income when received by shareholders even though that income was ...

FINC 3610 Sirmans Test 1 Qs&As Pros of Sole Proprietorship - ANS-easy startup taxed as personal income Cons of Sole Proprietorship - ANS-- Unlimited Liability - Life limited to that of owner - Equity limited to owner's wealth - Difficulty in transferring ownership Pros of General Partnership - ANS-easy start-up partnership agreement taxed as personal income Cons of General Partnership - ANS-unlimited liability equity limited to owners life difficult transfer Difference between gene...

FINC 3610 sirmans final exam Qs&As 2024 returns: - Answer->the total return on your investment types of returns: - Answer->capital gain, income capital gain - Answer->price change of the asset income - Answer->cash distributions in the form of dividends how can we predict stock returns? - Answer->if we can identify the risk of the asset, then we can have an idea of its expected return dollar returns: - Answer->the total dollar amount of return, it depends on the dollar ...

FINC 3610 EXAM 1 SIRMANS Exam Review goal of a firm - Answer->maximize shareholder value capital budgeting - Answer->process of planning and managing a firms long term investments capital structure - Answer->mixture of longterm debt and equity the firm uses to finance its operations and investments agency problems - Answer->when interests and motives of the managers dont coincide with those of the owners -between shareholders and managers who does the board of directors rep...

FINC 3610 Test 3 Sirmans Questions And Answers Debt - Answer->all borrowing incurred by a firm, including bonds, and is repaid according to a fixed schedule of payments Equity - Answer->consists of funds provided by the firms owners (stockholders or investors) that are repaid subject to the firms performance Stockholders (holders of equity) - Answer->owners of the firm unlike creditors generally have voting rights that permit them to select the firm's directors and vote on spe...

FINC 3610 Exam 2 CH.5 Sirmans Questions & Answers Example of assets? - ANS-Property, plant, and equipment, stocks, options, bonds, patents, opportunities, knowledge, reputation, etc. What is an asset in terms of financial analysis? - ANS-a sequence of cash flows What is the value of an asset today? - ANS-a function of the cash flows expected to occur in the future 3 key dimensions of cash flows - ANS-size, timing, and uncertainty Cash flows at different points in time are like different? ...

FINC 3610 Exam 2 Qs&As Annuity - Answer-Finite series of equal payments that occur at regular interval Perpetuity - Answer-Infinite series of equal payments Ordinary Annuity - Answer-If the first payment occurs at the end of the period Annuity Due - Answer-If the first payment occurs at the beginning of the period Perpetuity Formula - Answer-PV = C / r Annuity Formulas - Answer-PV = C [( 1 - 1/(1+r)^t) / r] or PV = C [(1+r)^t - 1) /r ] Annuity Due Formula - Answer-Multiply answer by (1+...

FINC 3610 Final Sirmans Questions And Answers Exam Review Soln Example of a Capital Budgeting decision - ANS-should the company purchase new machinery for the production line? the book value of an asset generally represents: - ANS-historical cost total taxes owed divided by taxable income is the: - ANS-average tax rate what represents a source of cash for a company - ANS-increase in common stock a standardized (or common-sized) statement expresses expenses and profits as a percentage of: ...

FINC 3610 Final Exam Auburn, Sirmans, Fall 2024 New Update agency problem - ANS-a conflict of interest between the corporate shareholders and the corporate managers stakeholder - ANS-any person or entity other than a stockholder or creditors who potentially has a claim on the cash flows of a firm corporate dividends - ANS-taxable as personal income when received by shareholders even though that income was taxes at the corporate level limited liability - ANS-what is a strength of a corp...

FINC 3610 Final Exam Complete Questions And Answers