FIN 571 Final Exam Guide ( New )
FIN 571 Final Exam Guide ( New )
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1 . A proxy fight occurs when : the board of directors disagree on the members of the management team .
2 . A stakeholder is any person or entity :
3 . Which one of the following is least apt to help convince managers to work in the best interest of the stockholders ? threat of a proxy fight pay raises based on length of service implementation of a stock option plan
4 . Financial managers primarily create firm value by : maximizing current sales . investing in assets that generate cash in excess of their cost .
5 . First City Bank pays 7 percent simple interest on its savings account balances , whereas Second City Bank pays 7 percent interest compounded annually .
If you made a $ 59,000 deposit in each bank , how much more money would you earn from your Second City Bank account at the end of 9 years ? ( Do not round intermediate calculations and round your answer to 2 decimal places , e . g ., 32.16 .)
12299.09
6 . What is the future value of $ 3,136 invested for 12 years at 6.50 percent compounded annually ?
7 . What is the present value of $ 12,750 to be received 3 years from today if the discount rate is 5.50 percent ?