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Exam (elaborations)
FINA 3311 Summer 1 - Final Exam Study Guide Questions and Answers Graded A+
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---2December 20252025/2026A+
- FINA 3311 Summer 1 - Final Exam Study Guide Questions and Answers Graded A+ 
What is the pure play approach? - Answers Using a WACC that is based on companies in similar lines of business. 
What is the subjective approach? - Answers Using a WACC that involves making subjective adjustments based upon the project. 
The coupon rate on the firm's outstanding debt can be used as a substitute for the cost of debt. - Answers False 
For the Dividend Growth Model, the equation can be written as follow...
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joshuawesonga22
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Exam (elaborations)
FINA 3311 Exam 2 Questions with Correct Answers Latest Update 2025/2026
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---7December 20252025/2026A+
- FINA 3311 Exam 2 Questions with Correct Answers Latest Update 2025/2026 
The present value of a single future sum 
 
a) is generally larger than the future sum. 
 
b) increases as the discount rate increases. 
 
c) depends upon the number of discount periods. 
 
d) increases as the number of discount periods increases. - Answers c. depends upon the number of discount periods. 
You decide you want your child to be a millionaire. You have a son today and you deposit $10,000 in an investment accoun...
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joshuawesonga22
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Exam (elaborations)
FINA 3311 Test 1 Questions with Correct Answers Latest Update 2025/2026
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---9December 20252025/2026A+
- FINA 3311 Test 1 Questions with Correct Answers Latest Update 2025/2026 
5% 
(Rate of Interest + Inflation + maturity risk premium) - Answers You are considering an investment in a U.S. Treasury bond but you are not sure what rate of interest it should pay. Assume that the real 
risk−free 
rate of interest is 1.0%; inflation is expected to be 1.5%; the maturity risk premium is 2.5%; and, the default risk premium for AAA rated corporate bonds is 3.5%. What rate of interest should the U.S. Trea...
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joshuawesonga22