FIN 3113 Final Exam Review

Can easily raise capital, continuity of life, protection of personal assets

• Advantages of Corporation

• Disadvantages of Corporation

• Relevant Cash Flows in Capital Budgeting

• Irrelevant Cash Flows in Capital Budgeting

Tax implications, inflation, opportunity costs, changes in NWC, substitutionary and complementary costs

• Advantages of Corporation

• Disadvantages of Corporation

• Relevant Cash Flows in Capital Budgeting

• Irrelevant Cash Flows in Capital Budgeting

Funding from Investors or Creditors

• Ordinary Annuity

• Annuity Due

• Irrelevant Cash Flows in Capital Budgeting

• Capital

Interest earned only on the initial investment is ____________ interest

Interest earned on initial investment as well as interest earned in previous periods

• Simple Interest

• Compound Interest

What is the difference between an ordinary annuity and an annuity due?

Which financial statement shows a snapshot of a company's financials on a specific day?

• Statement of Cash Flows

• Balance Sheet

• Income Statement

Risk that cannot be avoided, it comes from the market

• Diversifiable Risk

• Inflationary Risk

• Systematic Risk

• Fiscal Risk

The "king" method that should be should be used when deciding which capital investment to take on

Which exam did you find the most challenging?

• Exam 1

• Exam 2

• Exam 3