Exam2 Fall 2015 Key Version A 1. E 2. E 3. D 4. B 5. A 6. C 7. D 8. A 9. C 10. C 11. E 12. D 13. A 14. B 15. E 16. B 17. B 18. B 19. C 20. D 21. A 22. D 23. C 24. E 25. D 26. C 27. B 28. A 29. D 30. E 31. B 32. C 33. E 34. B 35. A 36. C 37. A 38. C 39. B 40. E 41. C 42. A 43. C 44. A 45. D 46. C 47. D 48. D 49. E 50. E 51. E 52. B 53. D 54. B 55. A 56. B 57. B 58. B 59. B 60. C 61. C Exam2 Fall 2015 Summary Category # of Questions AACSB: Analytic 27 AACSB: Ethics 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Analysis 1 Blooms: Comprehension 1 Blooms: Comprehension 1 Blooms: Comprehension 1 Blooms: Comprehension 1 Blooms: Comprehension 1 Blooms: Comprehension 1 Blooms: Comprehension 1 Blooms: Comprehension 1 Blooms: Comprehension 1 Blooms: Comprehension 1 Blooms: Comprehension 1 Blooms: Comprehension 1 Blooms: Comprehension 2 Blooms: Knowledge 1 Blooms: Knowledge 1 Blooms: Knowledge 1 Blooms: Knowledge 1 Blooms: Knowledge 1 Blooms: Knowledge 1 Blooms: Knowledge 1 Blooms: Knowledge 1 Blooms: Knowledge 1 Blooms: Knowledge 1 Blooms: Knowledge 1 Blooms: Knowledge 1 Blooms: Knowledge 1 Blooms: Knowledge 1 Blooms: Knowledge 1 Blooms: Knowledge 1 Blooms: Knowledge 1 Blooms: Knowledge 1 Blooms: Knowledge 1 Blooms: Knowledge 1 Difficulty: Basic 50 Difficulty: Intermediate 11 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 1 Learning Objective: 01-04 Describe the conflicts of interest that can arise between managers and owners 2 Learning Objective: 02-01 Differentiate between accounting value (or "book" value) and market value. 3 Learning Objective: 02-04 Determine a firms cash flow from its financial statements 1 Learning Objective: 03-02 Compute and; more importantly; 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: 04-01 Determine the future value of an investment made today. 2 Learning Objective: 04-02 Determine the present value of cash to be received at a future date. 1 Learning Objective: 04-03 Calculate the return on an investment. 1 Learning Objective: 05-01 Determine the future and present value of investments with multiple cash flows. 5 Learning Objective: 05-02 Calculate loan payments and find the interest rate on a loan. 6 Learning Objective: 05-04 Explain how interest rates are quoted (and misquoted). 4 Learning Objective: 06-01 Identify important bond features and types of bonds 6 Learning Objective: 06-02 Describe bond values and why they fluctuate 7 Learning Objective: 06-03 Discuss bond ratings and what they mean. 1 Learning Objective: 06-04 Evaluate the impact of inflation on interest rates 1 Learning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth. 8 Learning Objective: 07-02 Identify the different ways corporate directors are elected to office. 3 Learning Objective: 07-03 Explain how the stock markets work. 4 Ross - Chapter 01 4 Ross - Chapter 02 4 Ross - Chapter 03 4 Ross - Chapter 04 4 Ross - Chapter 05 15 Ross - Chapter 06 15 Ross - Chapter 07 15 Section: 1.3 1 Section: 1.4 2 Section: 1.5 1 Section: 2.1 3 Section: 2.4 1 Section: 3.2 2 Section: 3.4 2 Section: 4.1 2 Section: 4.2 1 Section: 4.3 1 Section: 5.1 1 Section: 5.2 10 Section: 5.3 4 Section: 6.1 7 Section: 6.2 3 Section: 6.3 1 Section: 6.4 1 Section: 6.5 2 Section: 6.6 1 Section: 7.1 7 Section: 7.2 4 Section: 7.3 4 Topic: After-tax yield 1 Topic: Agency conflict 1 Topic: Annual percentage rate 1 Topic: Annuity due 1 Topic: Annuity future value 1 Topic: Annuity interest rate 1 Topic: Annuity payment 1 Topic: Annuity present value 2 Topic: Annuity time period 1 Topic: Annuity values 1 Topic: Bearer form 1 Topic: Bid price 1 Topic: Bid-ask spread 1 Topic: Bond yields 1 Topic: Broker 1 Topic: Call provision 1 Topic: Capital gain 1 Topic: Capital intensity ratio 1 Topic: Cash flow to stockholders 1 Topic: Constant dividend 1 Topic: Coupon payment 1 Topic: Coupon rate 2 Topic: Cumulative voting 1 Topic: Current yield 1 Topic: Dealer 1 Topic: Debt-equity ratio 1 Topic: Dividend amount 1 Topic: Dividend growth model 1 Topic: EAR 1 Topic: Effective annual rate 2 Topic: Face value 1 Topic: Fallen angel 1 Topic: Fisher effect 1 Topic: Future value 2 Topic: Goal of financial management 1 Topic: Indenture 1 Topic: Interest rate 1 Topic: Internal growth rate 1 Topic: Irregular dividends 2 Topic: Limited liability company 1 Topic: Liquidity 1 Topic: Multiple cash flow future value 1 Topic: Net working capital 2 Topic: Par value bond 1 Topic: Perpetuity 1 Topic: Perpetuity future value 1 Topic: Preemptive right 1 Topic: Present value 1 Topic: Proxy 1 Topic: Sarbox 1 Topic: Straight voting 1 Topic: SuperDOT system 1 Topic: Sustainable growth rate 1 Topic: Total return 1 Topic: Trading in the crowd 1