FIN 3312 TXST Exam 1 Review (2026) – 75 Questions on Cash Flow, Ratios & Sustainable Growth

This document contains approximately 75 fully verified multiple-choice exam questions and solutions for FIN 3312 Exam 1 at TXST, focusing on core corporate finance principles and financial statement analysis. The review covers essential formulas and applications including the Balance Sheet Identity, Net Working Capital (NWC), Operating Cash Flow (OCF), Capital Spending (CapEx), Cash Flow to Creditors, Cash Flow to Stockholders, and Free Cash Flow (CFFA), as outlined in the formula sheet and worked examples (pages 1–4). The material provides in-depth coverage of profitability and efficiency ratios such as ROA, ROE, DuPont decomposition (profit margin, total asset turnover, equity multiplier), capital intensity ratio, debt ratios, receivables turnover, days sales in receivables, and financial leverage interpretation. It also thoroughly reviews internal growth rate, sustainable growth rate, retention and payout ratios, marginal taxation, and asset utilization analysis. Step-by-step computational solutions are included for applied problems involving working capital changes, capital spending calculations, equity multiplier determination, and growth rate formulas, making it highly exam-focused and calculation-driven. This document may concern: – Students enrolled in FIN 3312 Corporate Finance – Texas State University students preparing for Exam 1 – Undergraduate finance and business majors – Students reviewing financial statement analysis and ratio interpretation – Learners preparing for introductory corporate finance midterms It is especially valuable for students using standard corporate finance textbooks such as Fundamentals of Corporate Finance by Ross, Westerfield & Jordan, as the formulas and problem structures align closely with textbook methodologies and classroom applications. Keywords: FIN 3312 exam 1, corporate finance formulas, balance sheet identity, net working capital, operating cash flow, capital spending calculation, cash flow to creditors, cash flow to stockholders, free cash flow, DuPont identity, return on equity, return on assets, equity multiplier, total asset turnover, profit margin, sustainable growth rate, internal growth rate, retention ratio, dividend payout ratio, financial leverage, capital intensity ratio, receivables turnover, days sales in receivables, marginal tax rate, working capital decisions