E)

Question 33(0.5 points)

Saved

Corporate shareholders are same members of Management team.

Question 33 options:

a	True
b	False

Question 34(1 point)

PV is higher in value than FV.

Question 34 options:

a	Never
b	Some time
c	Always
d	can not be decided

Question 35(0.5 points)

Low credit rating bonds are called: "Premium Bonds":

Question 35 options:

a	True
b	False

Question 36(0.5 points)

Which of the following is NOT a property of a sole proprietorship?

Question 36 options:

A)	Ease of setup

B)	Single taxation

C)	No separation of ownership and control

D)	Limited liability

Question 37(0.5 points)

Sales for a firm are $600,000, cost of goods sold are $400,000, and interest expenses are $25,000. What is the gross profit margin?

Question 37 options:

A)

66.67%

B)

25.0%

C)

20.0%

D)

16.0%

E)

4.0%

Question 38(0.5 points)

When making a decision using NPV, the following is correct( 1 answer only):

Question 38 options:

a	NPV = PV(Benefits) - PV (Costs)
b	NPV = 1 + r , where r is the rate of return
c	none is correct
d	NPV = FV / (1+r)^n

Question 39(1 point)

Three types of directors in a corporate board are:

Question 39 options:

a	General Manager, Financial Manager and Operations Manager.
b	None
c	CEO, CFO and COO.
d	Inside directors, Grey directors and Independent directors.

Question 40(0.5 points)

Callable bonds, are in favor of Bond Issuer:

Question 40 options:

a	True
b	False

Question 41(1 point)

FV formula includes

Question 41 options:

a	Interest rate and compounding periods
b	interest rate
c	PV
d	FV

Question 42(1 point)

Management team of corporation consists of:

Question 42 options:

a	Shareholders
b	CFO & COO
c	Board of directors
d	CEO

Question 43(1 point)

What is the return on equity if net income was $60,000, total assets are $120,000, EBIT was $120,000, and equity is $80,000?

Question 43 options:

A)

63.1%

B)

47.8%

C)

73.3%

D)

75.0%

E)

55.0%

Question 44(0.5 points)

In bonds Coupon rate, is calculated annually, and paid monthly mostly:

Question 44 options:

a	True
b	False

In Bonds, Face value is not necessarily same as Buying Price

Question 45 options:

a	True
b	False

Question 46(0.5 points)

The ________ is a snapshot of the firm at a particular point in time.

Question 46 options:

A)	income statement

B)	None of the above

C)	balance sheet

D)	statement of cash flows

E)	statement of retained earnings

Question 47(0.5 points)

In a corporation, the ultimate decisions regarding business matters are made by:

Question 47 options:

A)	shareholders.

B)	debt holders.

C)	investors.

D)	the Board of Directors.

Question 48(0.5 points)

In finance, the following risk - return rule is correct:

Question 48 options:

a	none
b	High risk ---> Low return
c	Low risk ---> High return
d	Low risk ---> Low return

Question 49(0.5 points)

Time value of money is behind the existence of interest rate concept.

Question 49 options:

a	True
b	False

Question 50(1 point)

On a board composed of insider, gray and independent directors, the role of watch dog belongs to:

Question 50 options:

a	Independent directors
b	Grey director
c	Insider director
d	All directors

Question 51(0.5 points)

What type of company trades on an organized stock exchange?

Question 51 options:

A)	A private company

B)	A limited liability company

C)	An Limited Liability Company

D)	A public company

Question 52(0.5 points)

If you buy shares of Apple Corp. on the secondary market:

Question 52 options:

A)	Apple Corp. receives the money because the company has issued new shares.

B)	you buy the shares from the Federal Reserve.

C)	you buy the shares from another investor who decided to sell the shares.

D)	you buy the shares from the New York Stock Exchange.

Please note that this final exam is for the Corporate Finance of Business Administration course. A brief explanation of the answers is acceptable just to minimize the time of answering the questions. Or you send the answers with incomplete explanations, as my exam is ongoing now allowed to complete within 2 hrs. Thank you.