FIN 571 Final Exam

FIN 571 Final Exam 1)Which of the following statements is true 2)Book value, or net book value, refers to 3)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 4)If the yield to maturity for a bond is less than the bonds coupon rate, the market value of the bond is __________ 5)For investors, the proper measure of a stocks risk is its __________ 6)A companys beta is -1.5. If the overall stock market decreases by 5, what is the expected change in the firms stock price 7)Which of these investments would you expect to have the highest rate of return for the next 20 years 8)Dimensions of risk include __________ 9)One problem with using negative values for the proportion invested in the riskless asset to represent a borrowed amount is that the implied borrowing rate of interest is the same as the __________. 10)If you were willing to bet that the overall stock market was heading up on a sustained basis, it would be logical to invest in 11)Stony Products has an inventory conversion period (ICP) of about 70 days. The receivables collection period (RCP) is 30 days. Fin 370 final exam. The payables deferral period (PDP) is about 40 days. What is Stonys cash conversion cycle (CCC) 12)The main source of short-term operating capital is _________ 13)An investors risky portfolio is made up of individual stocks. Which of the following statements about this portfolio is true 14)An all-equity-financed firm would __________. 15)If a firm wants to lower its weighted average cost of capital (WACC), one way to do so would be to 16)Boeing 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 17)Ideas for capital budgeting projects come from all levels within an organization. The bottom-up process results in ideas moving __________ through the organization