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Midterm 1 February 2020, questions and answers
Business Finance I (Carleton University)
StuDocu is not sponsored or endorsed by any college or university
Midterm 1 February 2020, questions and answers
Business Finance I (Carleton University)
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BUSI 2504 E – Business Finance I
Winter 2020 Midterm
Sprott School of Business, Carleton University
Examiner: Professor M. Al Guindy, PhD.
Aids Allowed: Scientific Calculator, Financial Calculator
Exam Duration: 1:45 Hr.
Student Name:
Student Number:
Notes to students
• This exam consists of 30 multiple choice questions, worth 1 mark each.
• If you choose the right answer, you automatically receive 1 point for a
question. Otherwise, you receive no credit. Please record your answers on
the accompanying scantron.
Exam booklet is 8 pages (not including this page) – please check that you have all the pages
Student Score
30
Downloaded by Ali Al Dulaimi (scooterproali@gmail.com)
lOMoARcPSD|4817415
1) IGX Inc. has a 7.5% coupon bond that matures in 9 years. The bond pays interest semi-annually.
What is the market price of a $1,000 face value bond if the yield to maturity is 6.8%?
A) $1,046.55
B) $1,051.33
C) $1,050.10
D) $1,049.07
E) $1,045.18
2) The best definition of capital markets is:
A) The possibility of conflicts between shareholders and management in a large corporation.
B) The purchase or sale of securities whose value derives from the price of another, underlying,
asset.
C) The process of planning and managing a firm’s long-term investments.
D) A venue where buyers and sellers of capital equipment come together to trade such assets.
E) A venue where long-term debt and equity securities are bought and sold.
3) Which of the following are advantages of the corporate form of ownership?
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