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1) Whenever a firm splits itself into separate units, with each unit having limited liability with respect to its financing, the capital structure of each unit becomes __________
2) An investor's risky portfolio is made up of individual stocks. Which of the following statements about this portfolio is true?
3) An all-equity-financed firm would __________.
4) The capital budgeting process can be broken down into five steps. These steps include which of the following?
5) Projects can be classified into various categories. These include:
6) Boeing Corporation is a world leader in commercial aircraft. In the face of competition, Boeing often faces a critical decision: whether to develop a new generation of passenger aircraft.
7) A firm cannot simply adopt the industry average debt ratio, because differences exist among firms in any particular industry with respect to __________.
8) Studies show systematic differences in capital structures across industries. These are due mostly to differences in __________.
9) Studies show systematic differences in capital structures across industries. These are due mostly to differences in the availability of tax shelter provided by things other than debt, such as __________.
10) Preferred stock payment obligations are typically
11) If the yield to maturity for a bond is less than the bond's coupon rate, then the market value of the bond is __________.
12) Assume that the par value of a bond is $1,000. Consider a bond where the coupon rate is 9% and the current yield is 10%. Which of the following statements is true?
13) Certain countries have restrictions. In practice, U.S. investors have NOT invested very much internationally. Possible factors include __________.
14) Certain countries have restrictions. In practice, U.S. investors have NOT invested very much internationally. Possible factors