TTU FIN 3322 - Finance 3322 Practice First Exam (8 pages)

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Finance 3322 Practice First Exam



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Finance 3322 Practice First Exam

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Pages:
8
School:
Texas Tech University
Course:
Fin 3322 - Corporation Finance I

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Finance 3322 Practice First Exam Chapters 1 2 3 5 and 6 Name print Student ID last 4 digits Exam Procedures Read Carefully A The exam is worth 100 points Everyone begins the exam with 8 points B Multiple Choice Questions four points each Multiple choice questions are graded credit no credit You can circle more than one answer but will receive reduced credit For instance if you circle two answers and one of the two circled answers is correct you will only receive one half credit If you circle three answers and one of the three circled answers is correct you will only receive one third credit and so on Answer all 18 multiple choice questions C Problem Questions 10 points each Problem questions allow for partial credit You must be within of the correct answer to receive full credit You will receive one bonus point if your answer is exactly correct Therefore to receive the bonus point do not round the solutions to intermediate steps in the problem Round your final answer to the number of decimal places indicated in the problem Even if your answer is wrong you may receive partial credit if you legibly and logically show your work Only answer 2 of the 3 problem questions If you answer all three problem question your grade will reflect the average score on the three questions D This is a closed note closed book test However you are allowed two crib sheets 8 5 x 11 inches time value of money table calculator and calculator manual E Your score depends on the answers given on the answer sheet Check to make sure you have put all of your answers on the answer sheet and that you have marked the correct answers The Exam Part One Multiple Choice Questions Worth four points each Answer all of the multiple choice questions 1 One of the advantages of the corporate form of business is limited liability Assume Bill buys 100 000 of stock in a corporation Limited liability means A B 2 The minimum value of Bill s stock is 100 000 The minimum value of Bill s stock is 0 Bank A pays an



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