Documente Academic
Documente Profesional
Documente Cultură
PREFACE
Major Changes in this Edition
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Difficulty Level
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Acknowledgments
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Correspondence
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TEST QUESTIONS
Chapter
1-1
Chapter
2-1
Chapter
3-1
Chapter
4-1
Chapter
5-1
Chapter
6-1
Chapter
7-1
Chapter
8-1
Chapter
9-1
Chapter 10
10-1
Chapter 11
11-1
Chapter 12
12-1
Chapter 13
13-1
Chapter 14
Distributions to Shareholders:
Dividends and Share Repurchases
14-1
Chapter 15
15-1
Chapter 16
16-1
Chapter 17
17-1
Chapter 18
18-1
Chapter 19
19-1
Chapter 20
Hybrid Financing:
Preferred Stock, Leasing, Warrants, and Convertibles
20-1
21-1
Chapter 21
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PREFACE
This Test Bank is designed for use with Fundamentals of Financial Management,
Tenth Edition.
MULTIPLE CHOICE:
CONCEPTUAL
Easy
Medium
Tough
II.
MULTIPLE CHOICE:
PROBLEMS
Easy
Medium
Tough
Multiple Part
III.
Easy
Medium
Tough
Multiple Part
Difficulty Level
The questions and problems range from quite easy to very difficult. Some are
easy to categorize, but others are not--what might be a hard problem to one
set of students might be easy to another set. These differences arise due to
differences in students innate abilities and backgrounds, to the time an
instructor spends on a topic, and, for some of the numerical problems, on the
type of calculator a student has. Also, if pre-exam review sessions are held,
and a particular type of problem is covered, then that will lower the
difficulty level for other problems of that type.
Still, the difficulty
groupings will help instructors select a reasonable mix of questions for a
given quiz or exam.
themselves how long it will take their students to work them. Generally, the
harder problems will require the most time.
We always make up an exam, have several student assistants take it, and
then adjust it until it seems feasible for a two-hour exam. Further, we give
exams at night, scheduled for two hours, and generally make them terminate on
schedule. However, if it is obvious early on that the exam is too long even
for the best of the students, we may extend the time for an extra 15 or 20
minutes. We make it clear to the class, though, that these exams are like the
SAT or GMAT exams in that some students will not be able to complete all the
questions within the allotted time.
The type of calculator used is extremely important in determining the
time required to work time value of money, bond valuation, stock valuation,
and capital budgeting problems. At Florida, we made a College-wide decision
to require students to have and to learn to use financial calculators, and
exams reflect that situation--it would be virtually impossible for anyone to
pass the type of exams we use without a financial calculator. With the cost
of a relatively powerful calculator down to about $30, and with their use so
pervasive in business, we concluded that the time had come to force business
students to learn how to use them.
At any rate, it is important for
instructors to think about what type of calculator his or her students will be
using when making up exams.
Adopters may obtain the regular computerized test bank or the Microsoft
Word version by contacting their local South-Western sales representative.
To use ExamView, one must install it on his or her computer and then
read through the documentation provided.
Like all sophisticated software,
this requires a couple of hours. However, if you plan to use the Test Bank
and will be making up a number of exams, the product is worth the time
invested--it really is good.
If you are familiar with Microsoft Word and do not want to invest the
time to learn how to use ExamView, then we would recommend the Microsoft Word
files. Most departmental secretaries can use Microsoft Word or some
comparable system, and with our files the physical construction of exams is
quite easy. First, scan through the paper copy and select what you regard as
the proper mix of questions and problems.
Make a list of them, by number.
Then retrieve (or delegate the job to the departmental secretary) both the
Header.doc file and the file for the first chapter covered. The Header.doc
file contains the exam heading and exam instructions that can be edited, along
with the appropriate font specifications. Questions copied from the original
test bank diskette should be pasted onto the Header.doc file.
With the appropriate chapter file retrieved, scroll down to the first
question to be taken from that chapter, copy the question (do not cut the
question as this will alter the original test bank file) except for the first
line containing the answer, open the Header.doc file and paste the question to
the Header.doc file, switch back to the original test bank file, screen to the
second selected question, and so forth. The font may change when the question
is pasted into the Header.doc file. This can be easily corrected by selecting
Replace from the Edit pull-down menu, clicking on the Format button at
the bottom of the Dialog box and clicking on Font.
Select Times New
Roman as the Find Font, then click OK.
Click in the Replace With
field, then click the Format button again.
Click Font, then select
Courier New and Size 10 before clicking OK.
Then click Find Next
button.
When the text is highlighted click Replace All.
Word makes the
change for all text in Times New Roman.
We generally use 20 questions on an exam, and it takes us about 30
minutes to construct an exam once the questions have been selected. Its even
easier to give the list of questions and the diskette to the departmental
secretary; he or she can then get it done in about 15 minutes.
We realize that Microsoft Word is not the only word processing system.
Although we are at this point unable to offer the diskette in other formats,
it is easy to translate from one system to another, at least for most systems.
sufficient preparation.
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produce any specified GPA. For example, if we want to end up with a 2.7 GPA,
the model will produce that result.
This is useful in the 1,000-student
course, but it is also useful in our advanced courses, where there are
multiple sections of a given course and we would prefer that students grades
not be too dependent on which instructor they were assigned to.
(3) The
program makes it easy to sort by students grades to obtain a listing of
students by rank order, and to sort by social security number for purposes of
posting grades without names.
Since other instructors may find the model useful, we have included it
in the test bank diskette, under the filename GRADES.xls.
More detail and
instructions on the use of the model are given following this Preface.
Acknowledgments
We would like to thank Professors Andy McCollough, Craig Tapley, Lou Gapenski,
Bob Radcliffe, and Carolyn Takeda for permitting us to use some of their old
exam questions, and also for giving us many insights into the whole
examination process. We also appreciate the work done by a whole host of TAs
and graduate students, over many years, in helping to develop and debug the
questions/problems. Dana Aberwald Clark did her usual good job of riding herd
on all of us, and making sure the Test Bank was completed on time and was
consistent with the text of Fundamentals. Finally, Susan Whitman took care of
the massive typing job; her care and dedication is much appreciated.
Correspondence
We would very much appreciate hearing from test bank users--what difficulties
are you having, and what can we do to improve it? If you have any complaints
or suggestions, please address your correspondence to Joel Houston at the
address below.
Eugene F. Brigham
Joel F. Houston
4723 NW 53rd Ave., Suite A
Gainesville, FL 32606
(352)392-7546
e-mail address: fundamentals@joelhouston.com
January
2003
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5. At Florida we do not force Grade Point Averages for a class to equal any
particular number, but GPAs for different courses are published, and many
of us try to insure that the grades in our own courses are not too far out
of line with those in other courses, and especially with other sections of
the same course.
Therefore, we built a feature into the Excel model
which can be used to help produce a student letter grade distribution
which produces a reasonable class GPA. The same process also produces a
situation where 90 and up = A, 80-89 = B, 70-79 = C, 60-69 = D, and below
60 = F (or any other setup, including the use of + and - grades). This
subroutine involves formulas in Columns L and M which look up a students
points as shown in Column J in the Lookup table contained in the range
A16.C20 and then assign the student a Grade Point and a letter grade. The
model also shows (in Cell N15) the class GPA.
If the class GPA is too
high or too low given our target reference range, we merely change the
forced average grade shown in L18, and the entire worksheet is instantly
recalculated.1
We change the value in Cell L18 until we get a
reasonable class GPA. With only 5 students, as in the sample model, it
is difficult to produce a precise target GPA, but with 20 or more
students, this is not difficult.
6. When we use the model, we build it up slowly over the term, having just
one data set after the first exam, two after the second, and so on. Also,
we sort on the total points and use the printout to show the ranked order
to students (identified by SSN) when they ask about where they stand in
the class. This is easy, and it lets students know their standing with a
minimum of explanation.
Students understand and approve of our grading system. The cost to the
instructor is low, and the value to the students is high. If you have easy
access to a spreadsheet program and are familiar with it, we recommend that
you consider using our program.
1In actual use, we set the worksheet on manual recalculation to speed up data entry.
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Table 1
Microsoft Excel GRADESHEET MODEL
NOTES:
1.
2.
Copy B11.C13 into E11.F13 and then to H11.I13 after the 2nd
midterm and the final exam.
3.
4.