FIN 370 FINAL GUIDE 1 UOPHELP

Posted by admin on December 21, 2017 in Articles

FIN 370 Final Exam Guide (New)
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1.Which of the following is true regarding Investment Banks?
2. We compute the profitability index of a capital-budgeting proposal by Initial outlay = $1,748.80
3. Project Sigma requires an investment of $1 million and has a NPV of $10. Project Delta requires an investment of $500,000 and has a NPV of $150,000. The projects involve unrelated new product lines.
What is your evaluation of these two projects4. Which of the following is most likely to occur if a firm over-invests in net working capital5. The Securities Investor Protection Corporation protects individuals from
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2. We compute the profitability index of a capital-budgeting proposal by Initial outlay = $1,748.80
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6. If managers are making decisions to maximize shareholder wealth, then they are primarily concerned with making decisions that should:
7. Buying and selling in more than one market to make a riskless profit is called:
8. Given an accounts receivable turnover of 8 and annual credit sales of $362,000, the average collection period (360-day year) is
9. Delta Inc. is considering the purchase of a new machine which is expected to increase sales by $10,000 in addition to increasing non-depreciation expenses by $3,000 annually. Due to the sales increase, Delta expects its working capital to increase $1,000 during the life of the project. Delta will depreciate the machine using the straight-line method over the project’s five year life to a salvage value of zero. The machine’s purchase price is $20,000. The firm has a marginal tax rateof 34 percent, and its required rate of return is 12 percent. The machine’s initial cash outflow is:
10. A company collects 60% of its sales during the month of the sale, 30% one…