TAMU FINC 409 Exam 1 Questions
With 100% Verified Answers
Not all cash a company generates will be returned to the investors.
Which of the following will NOT reduce the amount of capital
returned to the investors?
a) retained earnings
b) taxes
c) dividends -
correct answer ✅Dividends
This subarea of finance looks at firm decisions in acquiring and
utilizing cash received from investors or from retained earnings.
a) investments
b) financial management
c) financial institutions and markets -
correct answer ✅b) Financial Management
Which of the following personal decisions is impacted by finance?
a) borrowing money to purchase cars or homes
b) making credit card payments
,TAMU FINC 409 Exam 1 Questions
With 100% Verified Answers
c) making retirement decisions
d) all of these choices are correct -
correct answer ✅d) All of these choices are correct
This type of business organization is relatively easy to start, and it is
subject to much lighter regulatory and paperwork burden than
other business forms.
a) sole proprietorship
b) partnership
c) corporation
d) hybrid organization -
correct answer ✅a) Sole Proprietorship
The practice generally known as double taxation is due to:
a) shareholders' dividends being taxed at both the federal and state
levels.
b) corporate income being taxed at both the federal and state
levels.
c) interest on shareholders' dividends being taxed as income.
, TAMU FINC 409 Exam 1 Questions
With 100% Verified Answers
d) corporate incomes being taxed at the corporate level, then again
at the shareholder level when corporate profits are paid out as
dividends. -
correct answer ✅d) corporate incomes being taxed at the
corporate level, then again at the shareholder level when corporate
profits are paid out as dividends.
What is the future value of $500 deposited for one year earning an
8 percent interest rate annually? (Do not round intermediate
calculations. Enter your answer as a whole number.)
FV = ? -
correct answer ✅FV = $540
Calculation:
N = 1, I = 8, PV = −500, PMT = 0, CPT FV == 540
How much would be in your savings account in 11 years after
depositing $150 today if the bank pays 8 percent per year? (Do not
round intermediate calculations. Round your answer to 2 decimal
places.)
With 100% Verified Answers
Not all cash a company generates will be returned to the investors.
Which of the following will NOT reduce the amount of capital
returned to the investors?
a) retained earnings
b) taxes
c) dividends -
correct answer ✅Dividends
This subarea of finance looks at firm decisions in acquiring and
utilizing cash received from investors or from retained earnings.
a) investments
b) financial management
c) financial institutions and markets -
correct answer ✅b) Financial Management
Which of the following personal decisions is impacted by finance?
a) borrowing money to purchase cars or homes
b) making credit card payments
,TAMU FINC 409 Exam 1 Questions
With 100% Verified Answers
c) making retirement decisions
d) all of these choices are correct -
correct answer ✅d) All of these choices are correct
This type of business organization is relatively easy to start, and it is
subject to much lighter regulatory and paperwork burden than
other business forms.
a) sole proprietorship
b) partnership
c) corporation
d) hybrid organization -
correct answer ✅a) Sole Proprietorship
The practice generally known as double taxation is due to:
a) shareholders' dividends being taxed at both the federal and state
levels.
b) corporate income being taxed at both the federal and state
levels.
c) interest on shareholders' dividends being taxed as income.
, TAMU FINC 409 Exam 1 Questions
With 100% Verified Answers
d) corporate incomes being taxed at the corporate level, then again
at the shareholder level when corporate profits are paid out as
dividends. -
correct answer ✅d) corporate incomes being taxed at the
corporate level, then again at the shareholder level when corporate
profits are paid out as dividends.
What is the future value of $500 deposited for one year earning an
8 percent interest rate annually? (Do not round intermediate
calculations. Enter your answer as a whole number.)
FV = ? -
correct answer ✅FV = $540
Calculation:
N = 1, I = 8, PV = −500, PMT = 0, CPT FV == 540
How much would be in your savings account in 11 years after
depositing $150 today if the bank pays 8 percent per year? (Do not
round intermediate calculations. Round your answer to 2 decimal
places.)
