FINA EXAM NEWEST 2026 ACTUAL EXAM| FINA
FINAL EXAM PREP WITH COMPLETE 250 REAL EXAM
QUESTIONS AND CORRECT VERIFIED ANSWERS/
ALREADY GRADED A+ (BRAND NEW!!)
Q1. What is the future value
of 1, 000𝑖𝑛𝑣𝑒𝑠𝑡𝑒𝑑𝑓𝑜𝑟5𝑦𝑒𝑎𝑟𝑠𝑎𝑡𝑎𝑛𝑎𝑛𝑛𝑢𝑎𝑙𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡𝑟𝑎𝑡𝑒𝑜𝑓6𝐴)
1,276.28
B) 1, 300.00𝐶)1,338.23
D) $1,400.00
Correct Answer: C
Rationale: FV = PV × (1 + r)^n = 1,000 × (1.06)5 =1,000 ×
1.338225 = $1,338.23.
Q2. Which of the following is the most liquid asset?
A) Accounts receivable
B) Inventory
C) Cash
D) Property, plant, and equipment
Correct Answer: C
Rationale: Cash is the most liquid asset as it can be used
1
,immediately to settle transactions. Accounts receivable and
inventory require conversion to cash.
Q3. The weighted average cost of capital (WACC) represents:
A) The cost of debt only
B) The average return required by all of the company's investors
(debt and equity)
C) The cost of equity only
D) The risk-free rate of return
Correct Answer: B
Rationale: WACC is the weighted average of the costs of debt
and equity, reflecting the overall required return for the firm's
capital providers.
Q4. A bond with a face value of 1,000, 𝑎5950. What is the
yield to maturity (YTM)?
A) 5.00%
B) 5.50%
C) 5.73%
D) 6.00%
2
,Correct Answer: C
Rationale: YTM is the discount rate that equates the present
value of future cash flows (coupons + face value) to the current
price. Since price < face value, YTM > coupon rate ≈ 5.73%.
Q5. If a project has a net present value (NPV) greater than
zero, the project should be:
A) Rejected because it destroys value
B) Accepted because it adds value to the firm
C) Delayed until the discount rate increases
D) Accepted only if the payback period is less than 1 year
Correct Answer: B
Rationale: Positive NPV means the present value of future cash
flows exceeds the initial investment, increasing shareholder
wealth. Accept the project.
Q6. The risk-free rate is 3%, and the expected market return is
10%. A stock has a beta of 1.2. According to the Capital Asset
Pricing Model (CAPM), the required return on this stock is:
A) 10.2%
B) 11.4%
3
, C) 12.6%
D) 13.8%
Correct Answer: B
Rationale: CAPM: Re = Rf + β(Rm – Rf) = 3% + 1.2(10% – 3%)
= 3% + 1.2(7%) = 3% + 8.4% = 11.4%.
Q7. What is the present value
of
5, 000𝑡𝑜𝑏𝑒𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑3𝑦𝑒𝑎𝑟𝑠𝑓𝑟𝑜𝑚𝑡𝑜𝑑𝑎𝑦𝑖𝑓𝑡ℎ𝑒𝑑𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑟𝑎𝑡𝑒𝑖𝑠8𝐴)
3,969.16
B) 4, 000.00𝐶)4,629.63
D) $5,000.00
Correct Answer: A
Rationale: PV = FV / (1 + r)^n = 5,000/(1.08)3 =5,000 /
1.259712 = $3,969.16.
Q8. A company's current ratio is 2.5, and its quick ratio is 1.2.
This suggests that:
A) The company has high inventory levels
B) The company has no long-term debt
4
FINAL EXAM PREP WITH COMPLETE 250 REAL EXAM
QUESTIONS AND CORRECT VERIFIED ANSWERS/
ALREADY GRADED A+ (BRAND NEW!!)
Q1. What is the future value
of 1, 000𝑖𝑛𝑣𝑒𝑠𝑡𝑒𝑑𝑓𝑜𝑟5𝑦𝑒𝑎𝑟𝑠𝑎𝑡𝑎𝑛𝑎𝑛𝑛𝑢𝑎𝑙𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡𝑟𝑎𝑡𝑒𝑜𝑓6𝐴)
1,276.28
B) 1, 300.00𝐶)1,338.23
D) $1,400.00
Correct Answer: C
Rationale: FV = PV × (1 + r)^n = 1,000 × (1.06)5 =1,000 ×
1.338225 = $1,338.23.
Q2. Which of the following is the most liquid asset?
A) Accounts receivable
B) Inventory
C) Cash
D) Property, plant, and equipment
Correct Answer: C
Rationale: Cash is the most liquid asset as it can be used
1
,immediately to settle transactions. Accounts receivable and
inventory require conversion to cash.
Q3. The weighted average cost of capital (WACC) represents:
A) The cost of debt only
B) The average return required by all of the company's investors
(debt and equity)
C) The cost of equity only
D) The risk-free rate of return
Correct Answer: B
Rationale: WACC is the weighted average of the costs of debt
and equity, reflecting the overall required return for the firm's
capital providers.
Q4. A bond with a face value of 1,000, 𝑎5950. What is the
yield to maturity (YTM)?
A) 5.00%
B) 5.50%
C) 5.73%
D) 6.00%
2
,Correct Answer: C
Rationale: YTM is the discount rate that equates the present
value of future cash flows (coupons + face value) to the current
price. Since price < face value, YTM > coupon rate ≈ 5.73%.
Q5. If a project has a net present value (NPV) greater than
zero, the project should be:
A) Rejected because it destroys value
B) Accepted because it adds value to the firm
C) Delayed until the discount rate increases
D) Accepted only if the payback period is less than 1 year
Correct Answer: B
Rationale: Positive NPV means the present value of future cash
flows exceeds the initial investment, increasing shareholder
wealth. Accept the project.
Q6. The risk-free rate is 3%, and the expected market return is
10%. A stock has a beta of 1.2. According to the Capital Asset
Pricing Model (CAPM), the required return on this stock is:
A) 10.2%
B) 11.4%
3
, C) 12.6%
D) 13.8%
Correct Answer: B
Rationale: CAPM: Re = Rf + β(Rm – Rf) = 3% + 1.2(10% – 3%)
= 3% + 1.2(7%) = 3% + 8.4% = 11.4%.
Q7. What is the present value
of
5, 000𝑡𝑜𝑏𝑒𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑3𝑦𝑒𝑎𝑟𝑠𝑓𝑟𝑜𝑚𝑡𝑜𝑑𝑎𝑦𝑖𝑓𝑡ℎ𝑒𝑑𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑟𝑎𝑡𝑒𝑖𝑠8𝐴)
3,969.16
B) 4, 000.00𝐶)4,629.63
D) $5,000.00
Correct Answer: A
Rationale: PV = FV / (1 + r)^n = 5,000/(1.08)3 =5,000 /
1.259712 = $3,969.16.
Q8. A company's current ratio is 2.5, and its quick ratio is 1.2.
This suggests that:
A) The company has high inventory levels
B) The company has no long-term debt
4
