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Exam (elaborations)

FINA 3000 FINAL T F QUESTIONS AND CORRECT ANSWERS

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FINA 3000 FINAL T F QUESTIONS AND CORRECT ANSWERS

Institution
FINA 3000
Course
FINA 3000

Content preview

1 of 61

Term Definition



The main weakness of the True
infinite dividend pricing model
is that we think of corporations
as having unlimited life.

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True False



Correct definition



False




2 of 61

Term Definition



True

,One advantage of the
discounted cash flow model is
that we use firm financials to
help find enterprise value.



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True False




3 of 61

Term Definition



If we increase N, the future False
value of an investment
increases.

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True False



Correct definition



True




4 of 61

Term Definition



Convertible debt refers to a False
financing tool where the

,coupon rate or interest rate
increases over time.




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True False




5 of 61

Term Definition



In our current event, Lyft has a True
similar percentage of short
sellers as Facebook at the
moment.

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True False



Correct definition



False




6 of 61

Term Definition



The main reason for the Toys R False
Us bankruptcy was increased

, competition from Amazon.




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True False




7 of 61

Term Definition



The market portfolio risk True
premium is larger for small
stocks than for large stocks.

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True False



Correct definition



False




8 of 61

Term Definition



We would never end a project True
that is generating positive cash
flows.

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Institution
FINA 3000
Course
FINA 3000

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Uploaded on
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Number of pages
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Written in
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Type
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