FI 360
Park University
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Exam (elaborations)
FI 360 UNIT 4: MIDTERM EXAM WITH QUESTIONS AND ANSWERS. LATEST
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---23November 20222022/2023A+
- FI 360 UNIT 4: MIDTERM EXAM WITH QUESTIONS AND ANSWERS. LATEST.Instructions 
 
Directions 
 
The midterm exam covers material from week one through week three (Chapters 1 through 5). 
 
The exam consists of 30 multiple choice questions. 
 
You will have 90 minutes to complete the midterm exam. You are only able to take the exam once. 
The exam is open textbook and open notes. The exam is not proctored. 
 
 
Question 1 
4 / 4 pts 
Which of the following statements is CORRECT? 
 
 
For a stock to ...
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Exam (elaborations)
FI 360 FINAL EXAM(VERSION 2), COMPLETE WITH QUESTIONS AND ANSWERS. LATEST UPDATE
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---17November 20222022/2023A+
- FI 360 FINAL EXAM(VERSION 2), COMPLETE WITH QUESTIONS AND ANSWERS. LATEST UPDATE.Question 1 
6.5 / 6.5 pts 
An important consideration in the lease versus purchase decision is 
the loss of the depreciation tax shield if leased. 
the benefit of the lease payment as a tax deduction. 
the effect on financial structure and future funding needs. 
all of the above. 
Question 2 
6.5 / 6.5 pts 
Net working capital decreases when 
inventory falls, accounts receivable falls, or accounts payable increases ...
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Exam (elaborations)
FI 360 FINAL EXAM, COMPLETE WITH QUESTIONS AND ANSWERS
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---12November 20222022/2023A+
- FI 360 FINAL EXAM, COMPLETE WITH QUESTIONS AND ANSWERS.Question 1 
6.5 / 6.5 pts 
The feature in a bond indenture that requires systematic retirement of the bond issue is a 
planned call provision. 
sinking fund provision. 
forced conversion provision. 
mandated redemption provision. 
Question 2 
6.5 / 6.5 pts 
Operating leverage describes the relationship between... 
EBIT and sales 
taxes and sales 
debt and equity 
fixed costs and variable costs 
Question 3 
6.5 / 6.5 pts 
The risk-free rate i...
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Exam (elaborations)
FI 360 MIDTERM EXAM, COMPLETE WITH QUESTIONS AND ANSWERS
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---23November 20222022/2023A+
- FI 360 MIDTERM EXAM, COMPLETE WITH QUESTIONS AND ANSWERS.Question 1 
4 / 4 pts 
Which of the following statements is CORRECT? 
In most corporations, the CFO ranks above the CEO. 
By law in most states, the chairman of the board must also be the CEO. 
The CFO generally reports to the firm's chief accounting officer, who is normally the 
controller. 
The board of directors is the highest ranking body in a corporation, and the chairman of 
the board is the highest ranking individual. The CEO gen...
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