FIN 540 Final Exam (FIN540)

CHAPTER 24—BANKRUPTCY, REORGANIZATION, AND LIQUIDATION Total Cost = k(C/2) + c(T/C) TRUE/FALSE 1. A central question that must be addressed in bankruptcy proceedings is whether the firm’s inability to meet scheduled interest payments results from a temporary cash flow problem or from a potentially permanent problem caused by falling asset values. True 2. In the event of bankruptcy under the federal bankruptcy laws, debtholders have a prior claim to a firm’s income and assets be...

1. A central question that must be addressed in bankruptcy proceedings is whether the firm's inability to meet scheduled interest payments results from a temporary cash flow problem or from a potentially permanent problem caused by falling asset values. 2. Which of the following statements is most CORRECT? 3. Bankruptcy laws have been used to help reach settlements in major product liability lawsuits. By using financial projections to show that contingent claims against the company jeopar...

FIN 540 Final Exam 2 A central question that must be addressed in bankruptcy proceedings is whether the firm’s inability to meet scheduled interest payments results from a temporary cash flow problem or from a potentially permanent problem caused by falling asset values. Which of the following statements is most CORRECT? Bankruptcy laws have been used to help reach settlements in major product liability lawsuits. By using financial projections to show that contingent claims against the compan...

FIN 540 Final Exam A firm’s credit policy consists of which of the following items? Which of the following is NOT a real option? Which of the following statements is most CORRECT? Which of the following is true of the EOQ model? Note that the optimal order quantity, Q, will be called EOQ. Which one of the following is an example of a “flexibility” option? Which of the following are the factors for the Fama-French model? Which of the following statements about defined contribution plans i...

FIN 540 Final Exam with Answers A swap is a method used to reduce financial risk. Which of the following statements about swaps, if any, is NOT CORRECT? A firm’s credit policy consists of which of the following items? You have the following data on three stocks: As a risk minimizer, you would choose Stock if it is to be held in isolation and Stock Which of the following statements about pension plans if any, is incorrect? Which of the following statements is most CORRECT? Which of the followi...