Exam3-01 Fall 2015 Version A Key

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Exam3-01 Fall 2015 Key Version A

12. E

13. E

14. B

15. E

16. B

17. E

18. C

19. A

5. B

6. C

7. D

8. A

1. E

2. D

3. C

4. E

9. A

10. D

11. E

24. A

25. B

26. D

27. C

20. C

21. A

22. C

23. A

28. D

29. D

53. B

54. B

55. A

56. B

57. C

58. C

59. E

60. A

61. E

62. A

63. D

45. D

46. C

47. C

48. D

49. C

50. A

51. A

52. B

38. B

39. A

40. D

41. E

42. B

43. B

44. A

30. E

31. B

32. D

33. A

34. E

35. A

36. B

37. A

64. C

65. C

66. D

Exam3-01 Fall 2015

Summary

Category

AACSB: Analytic

AACSB: Ethics

Blooms: Analyze

Blooms: Remember

Blooms: Understand

Difficulty: 1 Easy

Difficulty: 2 Medium

Learning Objective: 01-03 Compare the financial implications of the different forms of business organizations.

Learning Objective: 01-04 Describe the conflicts of interest that can arise between managers and owners.

Learning Objective: 02-01 Differentiate between accounting value (or "book" value) and market value.

Learning Objective: 02-02 Distinguish accounting income from cash flow.

Learning Objective: 03-02 Compute and; more important; interpret some common ratios.

Learning Objective: 03-03 Assess the determinants of a firms profitability and growth.

Learning Objective: 04-02 Determine the present value of cash to be received at a future date.

Learning Objective: 04-03 Calculate the return on an investment.

Learning Objective: 05-01 Determine the future and present value of investments with multiple cash flows.

Learning Objective: 05-03 Describe how loans are amortized or paid off.

Learning Objective: 05-04 Explain how interest rates are quoted (and misquoted).

Learning Objective: 06-02 Describe bond values and why they fluctuate.

Learning Objective: 06-04 Evaluate the impact of inflation on interest rates.

Learning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth.

Learning Objective: 07-03 Explain how the stock markets work.

Learning Objective: 08-01 Summarize the payback rule and some of its shortcomings.

Learning Objective: 08-03 Explain the internal rate of return criterion and its associated strengths and weaknesses.

Learning Objective: 08-04 Evaluate proposed investments by using the net present value criterion.

Learning Objective: 08-05 Apply the modified internal rate of return.

Learning Objective: 08-06 Calculate the profitability index and understand its relation to net present value.

Learning Objective: 09-01 Determine the relevant cash flows for a proposed investment.

Learning Objective: 09-02 Analyze a projects projected cash flows.

Learning Objective: 09-02 Analyze a projects projected cash flows.

Learning Objective: 09-02 Analyze a projects projected cash flows.

Learning Objective: 09-02 Analyze a projects projected cash flows.

Learning Objective: 09-03 Evaluate an estimated NPV.

Learning Objective: 10-01 Calculate the return on an investment.

Learning Objective: 10-02 Discuss the historical returns on various important types of investments.

Learning Objective: 10-03 Explain the historical risks on various important types of investments.

Learning Objective: 10-04 Assess the implications of market efficiency.

Ross - Chapter 01

Ross - Chapter 02

Ross - Chapter 03

Ross - Chapter 04

Ross - Chapter 05

Ross - Chapter 06

1

1

4

5

3

1

2

3

9

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2

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1

1

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# of Questions

63

1

28

10

28

49

17

3

3

3

3

3

3

2

6

2

3

4

1

1

Section: 4.3

Section: 5.1

Section: 5.3

Section: 5.4

Section: 6.1

Section: 6.5

Section: 6.6

Section: 7.1

Section: 7.2

Section: 7.3

Section: 8.1

Section: 8.2

Section: 8.4

Section: 8.5

Section: 9.2

Ross - Chapter 07

Ross - Chapter 08

Ross - Chapter 09

Ross - Chapter 10

Section: 1.3

Section: 1.5

Section: 10.1

Section: 10.3

Section: 10.4

Section: 10.5

Section: 10.6

Section: 2.1

Section: 2.2

Section: 3.2

Section: 3.4

Section: 4.2

Section: 9.3

Section: 9.4

Section: 9.6

Section: 9.7

Topic: Agency conflict

Topic: Bid price

Topic: Broker

Topic: Capital gains yield

Topic: Corporation

Topic: Coupon rate

Topic: Crossover point

Topic: Current assets

Topic: Declaration date

Topic: Depreciation

Topic: Dividend amount

Topic: Dividend and capital gain yield

Topic: Dividend growth model

Topic: Dividend yield

Topic: Dollar and percentage returns

5

4

6

1

2

2

1

1

7

1

1

1

1

2

1

1

1

1

2

1

2

3

6

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14

2

1

3

10

12

12

1

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1

1

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1

Topic: Effective annual rate

Topic: Equity multiplier

Topic: General partnership

Topic: Geometric return

Topic: Historical volatility of returns

Topic: Interest rate

Topic: Interest-only loan

Topic: Internal rate of return

Topic: Irregular growth

Topic: Managerial options

Topic: Market efficiency

Topic: Market value

Topic: Modified internal rate of return

Topic: Multiple cash flow present value

Topic: Mutually exclusive investments

Topic: Mutually exclusive projects

Topic: Net present value

Topic: Net working capital

Topic: Operating cash flow

Topic: Opportunity cost

Topic: Payback period

Topic: Preemptive right

Topic: Present value

Topic: Probability range

Topic: Profit margin

Topic: Profitability index

Topic: Real rates

Topic: Relevant cash flows

Topic: Relevant costs

Topic: Risk and return

Topic: Risk premium

Topic: Risk-free rate

Topic: Rule of 72

Topic: Scenario analysis

Topic: Sensitivity analysis

Topic: Side effects

Topic: Standard deviation

Topic: Sunk cost

Topic: Sustainable growth rate

Topic: Total return

Topic: Variance

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3

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1

1

1

1

1

1

1

1

1

1

1

2

2

1

1

1

1

1

1

1

1

1

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