Exam2-02 Spring 2016 Key 1. C 2. B 3. C 4. B 5. D 6. A 7. E 8. D 9. B 10. B 11. B 12. C 13. B 14. E 15. D 16. D 17. C 18. B 19. C 20. B 21. E 22. B 23. A 24. D 25. B 26. D 27. A 28. B 29. C Form A 30. A 31. D 32. E 33. A 34. A 35. D 36. E 37. E 38. C 39. C 40. A 41. E 42. D 43. B 44. D 45. A 46. A 47. A 48. D 49. A 50. B 51. E 52. C 53. A 54. E 55. B 56. E 57. B 58. D 59. E 60. D 61. C 62. E 63. A 64. B 65. D Exam2-02 Spring 2016 Summary Category # of Questions AACSB: Analytic 61 AACSB: Ethics 1 Blooms: Analyze 23 Blooms: Remember 19 Blooms: Understand 23 Difficulty: 1 Easy 53 Difficulty: 2 Medium 12 Learning Objective: 01-02 Identify the goal of financial management. 1 Learning Objective: 01-03 Compare the financial implications of the different forms of business organizations. 3 Learning Objective: 01-04 Describe the conflicts of interest that can arise between managers and owners. 1 Learning Objective: 02-01 Differentiate between accounting value (or "book" value) and market value. 3 Learning Objective: 02-02 Distinguish accounting income from cash flow. 1 Learning Objective: 02-04 Determine a firms cash flow from its financial statements. 1 Learning Objective: 03-02 Compute and; more important; interpret some common ratios. 2 Learning Objective: 03-03 Assess the determinants of a firms profitability and growth. 1 Learning Objective: 03-03 Assess the determinants of a firms profitability and growth. 1 Learning Objective: 03-04 Identify and explain some of the problems and pitfalls in financial statement analysis. 1 Learning Objective: 04-01 Determine the future value of an investment made today. 3 Learning Objective: 04-03 Calculate the return on an investment. 1 Learning Objective: 04-04 Predict how long it takes for an investment to reach a desired value. 1 Learning Objective: 05-01 Determine the future and present value of investments with multiple cash flows. 7 Learning Objective: 05-02 Calculate loan payments and find the interest rate on a loan. 5 Learning Objective: 05-03 Describe how loans are amortized or paid off. 1 Learning Objective: 05-04 Explain how interest rates are quoted (and misquoted). 2 Learning Objective: 06-01 Identify important bond features and types of bonds. 5 Learning Objective: 06-02 Describe bond values and why they fluctuate. 6 Learning Objective: 06-03 Discuss bond ratings and what they mean. 2 Learning Objective: 06-04 Evaluate the impact of inflation on interest rates. 2 Learning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth. 13 Learning Objective: 07-02 Identify the different ways corporate directors are elected to office. 1 Learning Objective: 07-03 Explain how the stock markets work. 1 Ross - Chapter 01 5 Ross - Chapter 02 5 Ross - Chapter 03 5 Ross - Chapter 04 5 Ross - Chapter 05 15 Ross - Chapter 06 15 Ross - Chapter 07 15 Section: 1.3 2 Section: 1.4 1 Section: 1.5 1 Section: 1.6 1 Section: 2.1 3 Section: 2.2 1 Section: 2.4 1 Section: 3.2 2 Section: 3.4 2 Section: 3.5 1 Section: 4.1 4 Section: 4.3 1 Section: 5.1 2 Section: 5.2 10 Section: 5.3 2 Section: 5.4 1 Section: 6.1 7 Section: 6.2 2 Section: 6.3 2 Section: 6.4 1 Section: 6.5 1 Section: 6.6 2 Section: 7.1 10 Section: 7.2 4 Section: 7.3 1 Topic: Agency conflict 1 Topic: Amortized loan 1 Topic: Annuities 1 Topic: Annuities and perpetuities 1 Topic: Annuity interest rate 1 Topic: Annuity payment 1 Topic: Annuity present value 1 Topic: Annuity time period 1 Topic: Annuity values 1 Topic: APR and EAR 1 Topic: Bearer form 1 Topic: Bid price 1 Topic: Bond price 1 Topic: Bond rating 1 Topic: Capital gains yield 1 Topic: Cash flow from assets 1 Topic: Coupon 1 Topic: Coupon rate 2 Topic: Cumulative voting 1 Topic: Current ratio 1 Topic: Dealer 1 Topic: Declaration date 1 Topic: Depreciation 1 Topic: Dividend amount 2 Topic: Dividend and capital gain yield 1 Topic: Dividend growth model 2 Topic: Dividend yield 2 Topic: Effective annual rate 1 Topic: Equity multiplier 1 Topic: Face value 1 Topic: Fallen angel 1 Topic: Financial statement analysis 1 Topic: Fisher effect 1 Topic: Future value 3 Topic: General partnership 1 Topic: Goal of financial management 1 Topic: Internal growth rate 1 Topic: Irregular dividends 1 Topic: Multiple cash flow future value 1 Topic: Multiple cash flow present value 1 Topic: Net working capital 2 Topic: Nominal rate 1 Topic: Note 1 Topic: Ordinary annuity loan 1 Topic: Owners equity 1 Topic: Perpetuity 1 Topic: Perpetuity future value 1 Topic: Preemptive right 1 Topic: Preferred stock 1 Topic: Secondary market 1 Topic: Simple versus compound interest 1 Topic: Sole proprietorship 1 Topic: Sustainable growth rate 1 Topic: Time period 1 Topic: Total return 1 Topic: Yield to maturity 2 Topic: Zero coupon bond 1