This document contains a set of questions that appear to be from a FIN 515 final exam. It includes 20 multiple choice and short answer questions covering topics like types of businesses, advantages of sole proprietorships, factors that affect the future value of an annuity, components and calculations of the DuPont identity, stock and bond pricing, risk, weighted average cost of capital, the job of a financial manager as related to the balance sheet, the cash conversion cycle, and capital budgeting techniques. The document provides a link to a website for an A+ tutorial guideline and notes that more classes can be found on the same site.

1. FIN 515 Final Exam 5 Sets
Check this A+ tutorial guideline at
http://www.fin515entirecourse.com/fin-
515/fin-515-final-exam-5-sets
For more classes visit
http://www.fin515entirecourse.com
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ourse.com
FIN 515 Final Exam 5 Sets(TCO A) In the United States, the most
common type of business by number of
businesses is the _____. (Points : 5)
(TCO A) Sole proprietorships have all of the
following advantages except (Points : 5)

2. (TCO B) Which of the following would cause
the future value of an annuity to decrease?
(Points : 5)
(TCO B) Which of the following is an annuity
due? (Points : 5)
(TCO G) What are the names of the four
components ofthel>uPo,£ldentity ata how are
they calculated? What does each measure?
(Points : 20)
(TCO D) A stock pays an annual dividend of
$2.50 and that dividend is not expected to
change. Similar stocks pay a return of 10%.
What is P0? (Points : 20)

3. (TCO D) A stock has just declared an annual
dividend of $2.25 to be paid one year from
today. The dividend is expected to grow at a
7% annual rate. The return on equity for
similar stocks is 12%. What is P0? (Points :
20)
(TCO D) A particular bond has 8 years to
maturity. It has a face value of $1,000. It has a
YTM of 7% and the coupons are paid
Wsemiannually at a 10% annual rate. What
does the bond currently sell for? (Points : 10)
(TCO D) A bond currently sells for $1,000 and
has a par of $1,000. It was issued two years
ago and had a maturity of 10 years. The
coupon rate is 7% and the interest payments
are made semiannually. What is its YTM?
(Points : 10)

4. (TCO D) Using examples, explain the
difference between systematic risk and
nonsystematic risk. Explain why the
distinction is important for both investors
and issuers of stock.(Points : 30)
(TCO E) A company has 10 million shares
outstanding trading for $7 per share. It also
has $300 million in outstanding debt. If its
equity cost of capital is 15%, and its debt cost
of capital is 9%, and its effective corporate tax
rate is 40%, what is its weighted average cost
of capital? (Points : 30)
(TCO A) Relate how the job of the financial
manager can be explained using the balance
sheet. (Points : 25)

5. (TCO H) Other things being equal, would a
firm prefer a longer or shorter Cash
Conversion Cycle? What are some examples of
ways a firm could attain this? (Points : 30)
(TCO F) A company has the opportunity to do
any of the projects for which the net cash
flows per year are shown below. The company
has a cost of capital of 12%. Which should the
company do and why? You must use at least
Vtwo capital budgeting methods. Show your
work

6. (TCO H) Other things being equal, would a
firm prefer a longer or shorter Cash
Conversion Cycle? What are some examples of
ways a firm could attain this? (Points : 30)
(TCO F) A company has the opportunity to do
any of the projects for which the net cash
flows per year are shown below. The company
has a cost of capital of 12%. Which should the
company do and why? You must use at least
Vtwo capital budgeting methods. Show your
work