FIN 370 Final Exam Homework | Page 7

Which of these is the process of estimating expected future cash flows of a project using only the relevant parts of the balance sheet and income statements?
​Substitutionary analysis ​Incremental cash flows ​Cash flow analysis ​Pro forma analysis
Five years ago, Jane invested $ 5,000 and locked in an 8 percent annual interest rate for 25 years( ending 20 years from now). James can make a 20-year investment today and lock in a 10 percent interest rate. How much money should he invest now in order to have the same amount of money in 20 years as Jane?
​ $ 7,346.64
​ $ 5,089.91
​ $ 3,160.43
​ $ 3,464.11
The overall goal of the financial manager is to __________. ​maximize net income ​maximize earnings per share ​maximize shareholder wealth ​minimize total costs
Which of the following can create ethical dilemmas between corporate managers and stockholders?
​Auditors ​Board of directors ​Agency relationship ​Venture Capitalist