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UGA FINA 3000 Final Exam with
complete solutions latest version
A non-profit is an example of a firm that does not maximize monetary wealth -
CORRECT ANSWER-True
$1,000 in my wallet today is worth more than $1,000 in my wallet on December 1st. -
CORRECT ANSWER-True
An investor is considering purchasing shares of Uber stock or Apple stock. We tend to
think of Uber as riskier than Apple, so an investor would need a smaller expected return
to buy Uber Stock. - CORRECT ANSWER-False
Suppose that Zaxby's decides to add more debt to their balance sheet and reduce the
amount of equity. We would say that Zaxby's has increased their leverage. - CORRECT
ANSWER-True
An example of diversification would be only applying to ONE job when you graduate
from college. - CORRECT ANSWER-False
The cash ratio is a more conservative measure of liquidity than the quick ratio. -
CORRECT ANSWER-True
Suppose that you and a few friends decide to lease an apartment at the Mark. The
lease calls for 12 equal payments of $3,000 per month, with the first payment being
made TODAY. From our finance terms, we would call this an annuity due. - CORRECT
ANSWER-True
The balance of a loan is the future value of all remaining loan payments. - CORRECT
ANSWER-False
APR stands for Annual Percentage Ratio. - CORRECT ANSWER-False
The gross profit margin includes the impact of cost of goods, overhead, and
administrative costs. - CORRECT ANSWER-False
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The EAR describes the compounded annual interest rate for an investment. -
CORRECT ANSWER-True
If we increase the interest rate, the present value of a perpetuity increases. - CORRECT
ANSWER-False
Walmart sued Tesla because the company did not deliver all the promised solar panels
to their stores. - CORRECT ANSWER-False
Currently, Uber is trading below its IPO offer price. - CORRECT ANSWER-True
Toys R Us was publicly traded before the private equity buyout. - CORRECT ANSWER-
True
In the GE current event, Harry Markopolos is accused of being funded by a hedge fund.
The hedge fund is "shorting" GE stock which is basically gambling that the price of GE
will increase in the near future. - CORRECT ANSWER-False
A 1% increase in Apple stock price would have a smaller impact than a 1% increase in
Pfizer on the Dow Jones Industrial Average. - CORRECT ANSWER-False
Apple and other firms have rushed to issue long term debt recently as a way to finance
the repurchase of their common stock. - CORRECT ANSWER-False
The dual-share class structure of WeWprk is viewed as a negative for potential public
shareholders in the company. - CORRECT ANSWER-True
Fixed Asset turnover would likely be more useful to a manufacturer than a service firm. -
CORRECT ANSWER-True
Limited liability is an advantage of being a sole proprietor. - CORRECT ANSWER-False
It is easier to raise capital as a corporation than a sole proprietor. - CORRECT
ANSWER-True
There are more regulations for a sole proprietorship than a corporation. - CORRECT
ANSWER-False
Dr. Pope discussed the Atlanta Hawks as an example of the disadvantages of a
partnership. - CORRECT ANSWER-True
A credit default swap is an example of a short option. When you take a short position,
you believe that price of an asset will increase. - CORRECT ANSWER-False
As the financial crisis of 2008 approached, credit rating agencies often assigned a rating
of AAA to Mortgage Backed Securities (MBS) - CORRECT ANSWER-True
BRAINSCAPE1
UGA FINA 3000 Final Exam with
complete solutions latest version
A non-profit is an example of a firm that does not maximize monetary wealth -
CORRECT ANSWER-True
$1,000 in my wallet today is worth more than $1,000 in my wallet on December 1st. -
CORRECT ANSWER-True
An investor is considering purchasing shares of Uber stock or Apple stock. We tend to
think of Uber as riskier than Apple, so an investor would need a smaller expected return
to buy Uber Stock. - CORRECT ANSWER-False
Suppose that Zaxby's decides to add more debt to their balance sheet and reduce the
amount of equity. We would say that Zaxby's has increased their leverage. - CORRECT
ANSWER-True
An example of diversification would be only applying to ONE job when you graduate
from college. - CORRECT ANSWER-False
The cash ratio is a more conservative measure of liquidity than the quick ratio. -
CORRECT ANSWER-True
Suppose that you and a few friends decide to lease an apartment at the Mark. The
lease calls for 12 equal payments of $3,000 per month, with the first payment being
made TODAY. From our finance terms, we would call this an annuity due. - CORRECT
ANSWER-True
The balance of a loan is the future value of all remaining loan payments. - CORRECT
ANSWER-False
APR stands for Annual Percentage Ratio. - CORRECT ANSWER-False
The gross profit margin includes the impact of cost of goods, overhead, and
administrative costs. - CORRECT ANSWER-False
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, BRAINSCAPE1
The EAR describes the compounded annual interest rate for an investment. -
CORRECT ANSWER-True
If we increase the interest rate, the present value of a perpetuity increases. - CORRECT
ANSWER-False
Walmart sued Tesla because the company did not deliver all the promised solar panels
to their stores. - CORRECT ANSWER-False
Currently, Uber is trading below its IPO offer price. - CORRECT ANSWER-True
Toys R Us was publicly traded before the private equity buyout. - CORRECT ANSWER-
True
In the GE current event, Harry Markopolos is accused of being funded by a hedge fund.
The hedge fund is "shorting" GE stock which is basically gambling that the price of GE
will increase in the near future. - CORRECT ANSWER-False
A 1% increase in Apple stock price would have a smaller impact than a 1% increase in
Pfizer on the Dow Jones Industrial Average. - CORRECT ANSWER-False
Apple and other firms have rushed to issue long term debt recently as a way to finance
the repurchase of their common stock. - CORRECT ANSWER-False
The dual-share class structure of WeWprk is viewed as a negative for potential public
shareholders in the company. - CORRECT ANSWER-True
Fixed Asset turnover would likely be more useful to a manufacturer than a service firm. -
CORRECT ANSWER-True
Limited liability is an advantage of being a sole proprietor. - CORRECT ANSWER-False
It is easier to raise capital as a corporation than a sole proprietor. - CORRECT
ANSWER-True
There are more regulations for a sole proprietorship than a corporation. - CORRECT
ANSWER-False
Dr. Pope discussed the Atlanta Hawks as an example of the disadvantages of a
partnership. - CORRECT ANSWER-True
A credit default swap is an example of a short option. When you take a short position,
you believe that price of an asset will increase. - CORRECT ANSWER-False
As the financial crisis of 2008 approached, credit rating agencies often assigned a rating
of AAA to Mortgage Backed Securities (MBS) - CORRECT ANSWER-True
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