FIN 515 FINAL EXAM, 05 SETS LATEST 2023
FIN 515 FINAL EXAM
1. TCO A) In the United States, which of the following types
of organization has the greatest revenue in total? (Points :
5)
Sole
proprietorship C
corporation
S corporation
Limited
partnership
2. TCO A) A sole proprietorship is owned by (Points : 5)
one person.
one or two people, but if there are two owners, they must be
married to each other.
up to 100
owners. up to
64 owners.
3. TCO B) Which of the following would cause the present value of an
annuity to increase? (Points : 5)
Reducing the number of payments.
Increasing the interest
rate. Decreasing the
interest rate.
Decreasing the liquidity of the payments.
4. TCO B) Which of the following is an annuity due? (Points : 5)
A typical car
loan. A typical
mortgage.
A typical apartment rental
agreement. A credit card
balance.
5. TCO G) If you were a manager of a company, which of the three
right side components of the DuPont Identity would you want to
increase and which would you want to decrease, other things being
equal? Give a specific example for how to do that for each of the
three. (Points : 20)
The DuPont Identity measures the company’s ROE in terms of its
profitability, asset efficiency, and leverage. The model helps investors
compare similar companies like these with similar ratios. Investors can then
apply perceived risks with each company's business model. Based on these
three performances measures i.e. Profit Margin, Total Asset Turnover and
https://www.coursehero.com/file/13606751/FIN-515-FINAL-EXAM/
, FIN 515 FINAL EXAM, 05 SETS LATEST 2023
Financial Leverage, the model concludes that a company can raise its ROE by
maintaining a high profit margin, increasing asset turnover, or leveraging
assets more effectively. In details, net profit margin can be used to margin a
company's overall profitability. Besides, the firm’s asset turnover is used to
identify how efficiently the firm is utilizing its assets to generate sales. The
term equity multiplier indicates the value of assets held per dollar of
shareholder equity.
The right side components of the DuPont Identity that can be increased
are Net Income and Sales. The inventory and account receivable can be
This study source was downloaded by 100000815611969 from CourseHero.com on 01-11-2023 02:04:30 GMT -06:00
https://www.coursehero.com/file/13606751/FIN-515-FINAL-EXAM/
FIN 515 FINAL EXAM
1. TCO A) In the United States, which of the following types
of organization has the greatest revenue in total? (Points :
5)
Sole
proprietorship C
corporation
S corporation
Limited
partnership
2. TCO A) A sole proprietorship is owned by (Points : 5)
one person.
one or two people, but if there are two owners, they must be
married to each other.
up to 100
owners. up to
64 owners.
3. TCO B) Which of the following would cause the present value of an
annuity to increase? (Points : 5)
Reducing the number of payments.
Increasing the interest
rate. Decreasing the
interest rate.
Decreasing the liquidity of the payments.
4. TCO B) Which of the following is an annuity due? (Points : 5)
A typical car
loan. A typical
mortgage.
A typical apartment rental
agreement. A credit card
balance.
5. TCO G) If you were a manager of a company, which of the three
right side components of the DuPont Identity would you want to
increase and which would you want to decrease, other things being
equal? Give a specific example for how to do that for each of the
three. (Points : 20)
The DuPont Identity measures the company’s ROE in terms of its
profitability, asset efficiency, and leverage. The model helps investors
compare similar companies like these with similar ratios. Investors can then
apply perceived risks with each company's business model. Based on these
three performances measures i.e. Profit Margin, Total Asset Turnover and
https://www.coursehero.com/file/13606751/FIN-515-FINAL-EXAM/
, FIN 515 FINAL EXAM, 05 SETS LATEST 2023
Financial Leverage, the model concludes that a company can raise its ROE by
maintaining a high profit margin, increasing asset turnover, or leveraging
assets more effectively. In details, net profit margin can be used to margin a
company's overall profitability. Besides, the firm’s asset turnover is used to
identify how efficiently the firm is utilizing its assets to generate sales. The
term equity multiplier indicates the value of assets held per dollar of
shareholder equity.
The right side components of the DuPont Identity that can be increased
are Net Income and Sales. The inventory and account receivable can be
This study source was downloaded by 100000815611969 from CourseHero.com on 01-11-2023 02:04:30 GMT -06:00
https://www.coursehero.com/file/13606751/FIN-515-FINAL-EXAM/
