Fin 550 Final Exam Part 1 - 2 Solution

FIN 550 Final Exam Part 1 - 2 Solution

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Fin 550 Final Exam Part 1 - 2

• Question 1

The five major classes of ratios include the following, except

• Question 2

Which of the following statements regarding financial risk and business risk is true?

• Question 3

Which of the following is not a flow ratio?

• Question 4

Which of the following ratios is not a measurement of the firm's liquidity?

• Question 5

A common-size income statement expresses all income statement items

• Question 6

The growth rate of equity earnings without external financing is equal to

• Question 7

The most appropriate discount rate to use when applying the Operating Free Cash Flows model is the firm's

• Question 8

All of the following are ways in which a firm can increase its growth rate of equity earnings without any external financing except

• Question 9

Which of the following is an underlying assumption of the constant growth dividend discount model (DDM)?

• Question 10

Dividend growth is a function of

• Question 11

The dividend payout ratio for the aggregate market is 65 percent, the required rate of return is 13 percent, and the expected growth rate for dividends is 8 percent. Compute the current earnings multiple.

• Question 12

The correlation of stock market returns between the U.S. and Japan is ____ and ____.

• Question 13

Which of the following economic series are included in the NBER lagging indicator series?

• Question 14

The growth rate will most likely increase if the:

• Question 15

If, for the S&P Industrials Index, the profit margin was .25 and the equity turnover ratio was 12, the ROE would be:

• Question 16

At what stage in the industrial life cycle is there an...