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?