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Midterm Exam with Key for Business Finance | BUSA 3150, Exams of Corporate Finance

Material Type: Exam; Professor: Valentine; Class: Business Finance; Subject: Business Administration; University: Georgia Southwestern State University; Term: Spring 2011;

Typology: Exams

2010/2011

Uploaded on 03/29/2011

maceri82399
maceri82399 🇺🇸

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1
.Corporation 1
Which form of a corporation is not subjected to double taxation?
Student
Response
Value Correct Answer Feedback
1. LLC
2. S Corp
3. C Corp
4. Both A and B 100%
5. All the above
Score: 10/10
2
.Goals
The goal of the firm is to maximize
Student
Response
Value Correct Answer Feedback
1. earnings
2. taxable income
3. shareholder
wealth
100%
4. cash flows
Score: 10/10
3
.Agency
Which one of the following is used in an attempt to remedy agency conflict?
Student
Response
Value Correct Answer Feedback
1. Increasing
executive pay
2. stock options
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1 . Corporation 1 Which form of a corporation is not subjected to double taxation? Student Response Value Correct Answer Feedback

  1. LLC
  2. S Corp
  3. C Corp
  4. Both A and B^ 100%
  5. All the above Score: 10/ 2 . Goals The goal of the firm is to maximize Student Response Value Correct Answer Feedback
  6. earnings
  7. taxable income
  8. shareholder wealth
  1. cash flows Score: 10/ 3 . Agency Which one of the following is used in an attempt to remedy agency conflict? Student Response Value Correct Answer Feedback
  2. Increasing executive pay
  3. stock options

Student Response Value Correct Answer Feedback

  1. executive perks
  2. corporate meetings

Score: 0/ 4 . Pecking Order Who is paid FIRST in the event a corporation goes bankrupt? Student Response Value Correct Answer Feedback

  1. creditors
  2. common stock holders
  3. management
  4. preferred stock holders

Score: 0/ 5

. Real Asset Which of the following is NOT a real asset? Student Response Value Correct Answer Feedback

  1. Car
  2. House
  3. Land
  4. Stocks^ 100%
  5. Table Score: 10/

9 . Taxes The U.S. has a ___tax system. Student Response Value Correct Answer Feedback

  1. fair
  2. flat
  3. progressive^ 100%
  4. demonstrative Score: 10/ 1 0 . Taxes 4 You have a marginal tax rate of 35%. This means that you pay this rate on ______ of your income. Student Response Value Correct Answer Feedback
  5. all
  6. none
  7. the next dollar earned
  1. too little info to tell Score: 10/ 1 1 . Current Ratio 2 The current ratio is a ____ ratio. Student Response Value Correct Answer Feedback
  2. liquidity^ 100%

Student Response Value Correct Answer Feedback

  1. asset management
  2. debt management
  3. profitability
  4. market value Score: 10/ 1 2 . Debt Ratio A company has long term debt of $40,000 and current liabilities of $20,000. It has current assets of $30,000 and fixed assets of $50,000. What is its debt ratio? Student Response Value Correct Answer Feedback
  5. 20%
  6. 50%
  7. 75%^ 100%
  8. 80%
  9. 120% Score: 10/ 1 3 . Current Ratio 3 A company has long term debt of $40,000 and current liabilities of $20,000. It has current assets of $30,000 and fixed assets of $50,000. What is its current ratio? Student Response Value Correct Answer Feedback 1..