FIN 306 MULTIPLE CHOICE
COMPREHENSIVE STUDY GUIDE 2026 FULL
QUESTIONS AND SOLUTIONS GRADED A+
◍ I, II, and III only.
Answer: What factors are encouraging financial institutions to offer
overlapping financial services such as banking, investment banking,
brokerage, etc.?I. Regulatory changes allowing institutions to offer more
servicesII. Technological improvements reducing the cost of providing
financial services III. Increasing competition from full-service global
financial institutionsIV. Reduction in the need to manage risk at financial
institutions
◍ II only.
Answer: Which of the following bond terms are generally positively related
to bond price volatility?I. Coupon rateII. MaturityIII. YTMIV. Payment
frequency
◍ You purchased 1,050 shares of Barrett Golf Corporation stock at a price of
$36.45 per share. While you owned the stock, you received dividends
totaling $.53 per share. Today, you sold your stock at a price of $39.40 per
share. What was your total dollar return on the investment?Multiple
Choice$3,098$2,943$3,654$3,515$3,376.
Answer: $3,654
◍ None of the options.
Answer: Classify each of the following in terms of their effect on interest
rates (increase or decrease):I. Perceived risk of financial securities
increases.II. Near term spending needs decrease.III. Future profitability of
real investments increases.
, ◍ One year ago, you purchased 260 shares of Titan Wood Products for $57.59
per share. The stock has paid dividends of $.65 per share over the past year
and is currently priced at $62.58. What is your total dollar return on your
investment?Multiple
Choice$1,515.28$1,466.40$1,297.40$733.20$1,381.90.
Answer: $1,466.40
◍ required rate of return..
Answer: The interest rate used to find the present value of a financial
security is the
◍ False.
Answer: Suppose two bonds of equivalent risk and maturity have different
prices such that one is a premium bond and one is a discount bond. The
premium bond must have a greater expected return than the discount bond.
◍ Shannara Manufacturing writes 24 checks a day for an average amount of
$473 each that generally clear 3.25 days after they are written. In addition,
the firm generally receives 32 checks each day with an average amount of
$526 each that are available after 2.75 days. Is this a collection or
disbursement float? What is the amount of the float?Multiple ChoiceA
collection float of $11,189A collection float of $9,394A disbursement float
of $11,189A disbursement float of $9,394A collection float of $10,288.
Answer: A collection float of $9,394
◍ The basic factors that are reviewed when evaluating the creditworthiness of
a potential customer are called the:Multiple Choicereceivables factors.five
Cs of credit.terms of sale.credit scores.collection policy determinants..
Answer: five C's of credit
◍ I and II only.
Answer: Money markets trade securities thatI. mature in one year or less.II.
have little chance of loss of principal.III. must be guaranteed by the federal
government.
◍ The lower the standard deviation of returns on a security, the
COMPREHENSIVE STUDY GUIDE 2026 FULL
QUESTIONS AND SOLUTIONS GRADED A+
◍ I, II, and III only.
Answer: What factors are encouraging financial institutions to offer
overlapping financial services such as banking, investment banking,
brokerage, etc.?I. Regulatory changes allowing institutions to offer more
servicesII. Technological improvements reducing the cost of providing
financial services III. Increasing competition from full-service global
financial institutionsIV. Reduction in the need to manage risk at financial
institutions
◍ II only.
Answer: Which of the following bond terms are generally positively related
to bond price volatility?I. Coupon rateII. MaturityIII. YTMIV. Payment
frequency
◍ You purchased 1,050 shares of Barrett Golf Corporation stock at a price of
$36.45 per share. While you owned the stock, you received dividends
totaling $.53 per share. Today, you sold your stock at a price of $39.40 per
share. What was your total dollar return on the investment?Multiple
Choice$3,098$2,943$3,654$3,515$3,376.
Answer: $3,654
◍ None of the options.
Answer: Classify each of the following in terms of their effect on interest
rates (increase or decrease):I. Perceived risk of financial securities
increases.II. Near term spending needs decrease.III. Future profitability of
real investments increases.
, ◍ One year ago, you purchased 260 shares of Titan Wood Products for $57.59
per share. The stock has paid dividends of $.65 per share over the past year
and is currently priced at $62.58. What is your total dollar return on your
investment?Multiple
Choice$1,515.28$1,466.40$1,297.40$733.20$1,381.90.
Answer: $1,466.40
◍ required rate of return..
Answer: The interest rate used to find the present value of a financial
security is the
◍ False.
Answer: Suppose two bonds of equivalent risk and maturity have different
prices such that one is a premium bond and one is a discount bond. The
premium bond must have a greater expected return than the discount bond.
◍ Shannara Manufacturing writes 24 checks a day for an average amount of
$473 each that generally clear 3.25 days after they are written. In addition,
the firm generally receives 32 checks each day with an average amount of
$526 each that are available after 2.75 days. Is this a collection or
disbursement float? What is the amount of the float?Multiple ChoiceA
collection float of $11,189A collection float of $9,394A disbursement float
of $11,189A disbursement float of $9,394A collection float of $10,288.
Answer: A collection float of $9,394
◍ The basic factors that are reviewed when evaluating the creditworthiness of
a potential customer are called the:Multiple Choicereceivables factors.five
Cs of credit.terms of sale.credit scores.collection policy determinants..
Answer: five C's of credit
◍ I and II only.
Answer: Money markets trade securities thatI. mature in one year or less.II.
have little chance of loss of principal.III. must be guaranteed by the federal
government.
◍ The lower the standard deviation of returns on a security, the
