Study Guide

FIN515 Midterm Exam Study Guide

YOU MAY WANT TO PRINT THIS GUIDE.

1. The Midterm Exam is open book and open notes. The maximum time you can spend in the exam is 3 hours, 30 minutes. If you have not clicked the Submit for Grading button by then, you will be exited from the exam automatically. In the Midterm Exam environment, the Windows clipboard is disabled, so you will not be able to copy exam questions or answers to or from other applications.

2. You should click the Save Answers button in the exam frequently. This helps prevent connection timeouts that might occur with certain Internet service providers and also minimizes lost answers in the event of connection problems. If your Internet connection does break, when you reconnect, you will normally be able to get back into your Midterm Exam without any trouble. Remember, though, that the exam timer continues to run while students are disconnected, so students should try to log in again as quickly as possible. The Help Desk cannot grant any student additional time on the exam.

3. See the Syllabus section "Due Dates for Assignments & Exams" for due date information.

4. Reminders

· You will only be able to enter your online Midterm Exam one time.

· Click the Save Answers button often.

· If you lose your Internet connection during your Midterm Exam, log on again and try to access it. If you are unable to enter the Midterm Exam, first contact the Help Desk and then your instructor.

· You will always be able to see the time remaining in the Midterm Exam at the top right of the page.

5. Assessments With Multiple Pages

· Make sure to click the Save Answers button before advancing to the next page (we also suggest clicking on Save Answers while you are working).

· Complete all of the pages before submitting your Midterm Exam for instructor review.

· Do NOT use your browser's Back and Forward buttons during the Midterm Exam.

· Please use the provided links for navigation.

6. Submitting Your Midterm Exam

· When you are finished with the Midterm Exam, click on the Submit for Grading button.

· Please note: Once you click the Submit for Grading button, you will NOT be able to edit or change any of your answers.

7. Exam Questions

· The exam covers material from the first 3 weeks of the course, including TCOs B, F, and G.

· The exam is worth 200 points consisting of the following.

· Two multiple choice questions worth 10 points each.

· Six calculation questions worth 20 points each.

· One calculation and analysis question worth 40 points.

· You will have 2 hours to complete the exam.

· You will have only one opportunity to take the exam.

· Save your answers frequently, because when the time limit is reached you will be exited from the exam.

· If you encounter any technical difficulties while completing the exam, contact the Help Desk at 800-594-2402.

· Remember to always use proper citation when quoting other sources. This means that ANY borrowed material (even a short phrase) should be placed in quotation marks with the source (URL, author/date/page number) immediately following the end of the passage (the end quote). Changing a few words in a passage does NOT constitute putting it in your own words, and proper citation is still required. Borrowed material should NOT dominate a student’s work; it should only be used sparingly to support the student’s thoughts, ideas, and examples. Heavy usage of borrowed material (even if properly cited) can jeopardize the points for that question. Uncited material can jeopardize a passing grade on the exam. As a part of our commitment to academic integrity, your work may be submitted to turnitin.com, an online plagiarism-checking service. So please be VERY mindful of proper citation. 

9. Areas that were discussed in the Discussion areas will be prime targets.

10. Problem Sets will also be prime targets for revisiting.

11. Reviewing the TCOs, which are listed below for your convenience, will also be a great preparation for the Midterm Exam.

A	Given the financial management scenario, evaluate the responsibilities of a financial manager and how he/she ensures that the firm is meeting its financial management goals.
B	Given the principles of time value of money and specific future cash flow information, determine the present value, future value, rate of return, and number of periods related to the future cash flow stream.
C	Given the term structure of interest rates, the particulars of corporate income tax theory, and the trade off between risk and return, demonstrate the risk and return for both individual assets and portfolios of assets.
D	Given a company's capital requirements, design an appropriate capital structure using preferred and/or common stock, long-term debt, bond classes, bond ratings, and security valuation.
E	Given a company's current capital structure and projected capital needs, calculate the weighted average cost of capital (WACC).
F	Given a set of alternative projects, utilize capital budgeting decision making process tools and recommend criteria for selection.
G	Given a company’s financial statements and sales forecast, develop a monthly cash budget for at least one year and pro forma financial statements for five years. Utilizing financial ratios and other analytical techniques, evaluate the company’s strengths and weaknesses and its long-term financial requirements.
H	Given a company's capital requirements, determine the working capital needs of the company and evaluate how the working capital should be financed.

Finally, if you have any questions for me, please post them to our Q & A Forum or e-mail me. Good luck on the exam!