FIN 310 Midterm Exam

FIN 310 Midterm Exam

FIN 310 Midterm Exam
Grading Summary
These are the automatically computed
results of your exam. Grades for essay
questions, and comments from your
instructor, are in the “Details” section
Date Taken: 8/18/2013
Time Spent: 2 h , 18 min , 16 secs
Points Received: 150 / 150 (100%)
Question Type: # Of Questions: # Correct:
Multiple Choice 20 20
Grade Details – All Questions

1. Question : The purchase and sale of Ford’s stocksafter the original issuance (IPOs)

occurs in the:
Student Answer:
Primary market.
Secondary market.
Dealer market.
Auction market.
Liquidation market.
Points Received: 5 of 5

2. Question : Financial leverage refers to:

Student Answer:
The amount of debt used in a firm’s capital structure.
The ratio of retained earnings to shareholders’ equity.
The ratio of paid-in surplus to shareholder’s equity.
The ratio of cost-of-goods-sold to total sales.
The amount of receivables present in the firm’s asset structure.
Points Received: 5 of 5

3. Question : The receivables turnover ratio is measured as:

Student Answer:
Sales plus accounts receivable.
Sales divided by accounts receivable.
Sales minus accounts receivable, divided by sales.
Accounts receivable times sales.
Accounts receivable divided by sales.
Points Received: 4 of 4

4. Question : The interest rate used to calculate the present value of future cash flows is
called the __________ rate.

Student Answer:
free interest
Page 1of 6 Student Gradebook Exam
annual interest
compound interest
simple interest
Points Received: 8 of 8

5. Question : You have $800 that you would like to invest. You have 2 choices: Savings
account A which earns 7% compounded semiannually, or savings account B
which earns 6.9% quarterly. Which...

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