Multiple Choice Exam: Time 180 minutes😀
These are topics regarding the questions that will be on the exam to give you an idea of what the exam consist of!
1.1 Explain the three primary financial concerns of corporations.
1.2 Contrast the structure and use of various financial statements.
1.3 Classify the different uses and sources of cash flow.
1.4 Calculate and interpret key financial ratios.
1.5 Interpret a company’s financial results against historical data and industry benchmarks.
2.1 Calculate present and future values of cash flows and annuities.
2.2 Determine bond prices and yields using basic discounted cash flow principles.
2.3 Discuss how bond prices move in comparison to interest rates.
2.4 Interpret how stock prices can be valued by discounting their dividends.
2.5 Describe the factors used to calculate the price-to-earnings ratio.
3.1 Calculate the project cash flow using the net present value (NPV).
3.2 Analyze the internal rate of return (IRR) and payback methods.
3.3 Explicate how the discounted cash flow approach can be applied to NPV.
3.4 Examine the different methods of calculating operating cash flow.
3.5 Calculate the break-even point.
4.1 Explain how systematic and unsystematic risks are applied in a diversification strategy.
4.2 Examine the Sharpe Ratio and how it is used in risk management.
4.3 Discuss the capital asset pricing model (CAPM).
4.4 Calculate the weighted average cost of capital (WACC).
4.5 Investigate how companies use hedging strategies to reduce risk.
5.1 Outline how the efficiency in receiving information can affect stock prices.
5.2 Explain the market efficiency hypothesis and its implications on corporate finance.
5.3 Discuss the importance of leverage on earnings per share.
5.4 Examine the effects of corporate taxes on cash flow and leverage.
5.5 Distinguish the direct and indirect costs of bankruptcy.
6.1 Explain basic sources of long-term financing.
6.2 Discuss the various stages in venture capital financing.
6.3 Examine the short-term uses and sources of cash.
6.4 Distinguish between carrying costs and shortage costs.
6.5 Describe the components of an effective credit policy.
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