final exam summer 2013 494641

DIRECTIONS: Exam consists of 35 QUESTIONS. Questions 1-20 are multiple choice and worth 2 pts each. Questions 21-35 are essay and/or calculation problems. These are worth 4 points each. Total exam is worth 100 point. Please answer on the exam itself. You may also submit an Excel spreadsheet as backup if you wish. Wrong answers may receive partial credit if work is shown. Please submit your exam in your homework folder by 12noon Eastern Time, Saturday, Aug 17, 2013 1) Which of the following is NOT an example of an agency cost? A) Paying an accounting firm to audit your financial statements B) Paying an insurance company to assure that building codes have been met for new construction C) Paying a landscaping firm to maintain your firm’s grounds D) All of the above are agency costs. 2) Which of the statements below is FALSE? A) Officers of a company or others who have a fiduciary responsibility to the owners can trade on their acquired private information about the company prior to the information being made public. B) One potential problem in the world of finance can arise when some owners or potential owners have access to more information about a company than do others. C) Regulation Fair Disclosure (or Reg FD) requires companies to release all material information to all investors at the same time. D) The 10-K must be filed within sixty days after the end of the company’s fiscal year. 3) Dan Preston made $18,000 in the first movie he ever starred in. Dan soon made more and more movies and more and more money. At a 46.18% rate of salary increase per movie, how many movies did Dan make in order to earn $5,350,000 in a single movie? A) 84 movies B) 34 movies C) 22 movies D) 15 movies 4) A wealthy woman just died and left her pet cats the following estate: $50,000 per year for the next 15 years with the first cash flow today. At a discount rate of 3.2%, what is the feline estate worth in today’s dollars? A) $588,352.84 B) $607,180.14 C) $750,000.00 D)…