HIS CARE CHRISTIAN INSTITUTE

OF SANTA MARIA STO. TOMAS BATANGAS INC.

(Formerly: His Care Learning Center of Santa Maria
Sto. Tomas Batangas Inc.)
Sec 8 Blue Isle Subd., Sta. Maria, Sto. Tomas, Batangas
(090755538150)
NKP- Gov. Recognition K- 008 S. 2012, Elem– Gov. Permit NO. E-180, S.2021, Secondary– Gov.
Recognition NO. S-123 S. 2017 under K to 12 Curriculum
“Nothing matters more than knowing God„s purposes for your life”

Final Examination in Business Finance

Name: __________________________________________________ Grade and Strand: _______

I. Multiple choices -
Directions: Choose the letter corresponding to the correct answer for each of the questions provided
below. Note: Any enactment of cheating is prohibited. Violating the rule will cause deduction if
necessary. Before you submit your paper, double check it first. (1pt each)
___1. The ___________ is created by a financial relationship between suppliers and users of short-term
funds.
A. financial market B. money market C. Stock Market D. capital
market
___2. Firms that require funds from external sources can obtain them from ______________________.
A. financial market B. private placement C. financial institutions D. all of the
above
3. The major securities traded in the capital markets are ________________.
A. stocks and bonds B. bonds and commercial paper
C. commercial paper and Treasury bills D. Treasury bills and certificates of deposit
___4. The primary goal of the financial manager is ________________________
A. minimizing risk B. maximizing profit C. maximizing wealth D. minimizing return
___5. Corporate owners receive realizable return through
A. earnings per share and cash dividends C. increase in share price and earnings per
share
B. increase in share price and cash dividends D. profit and earnings per share
___7.The wealth of the owners of a corporation is represented by
A. profits B. earnings per share C. share value D. cash flow.
___8. Wealth maximization as the goal of the firm implies enhancing the wealth of
A. the Board of Directors B. the firm's employees
C. the federal government D. the firm's stockholders
___9. The goal of profit maximization would result in priority for
A. cash flows available to stockholders B. risk of the investment
C. earnings per share D. timing of the returns
___10. Profit maximization, as a goal, is not ideal because it does NOT consider
A. risk and cash flow B. cash flow and stock price C. risk and EPS D. EPS and
stock price

II. TRUE or FALSE

Directions: Before each statement on the space provided, write TRUE if the statement is correct or
FALSE if the statement is incorrect. Note: Any enactment of cheating is prohibited. Violating the rule
will cause deduction if necessary. Before you submit your paper, double check it first. (1pt each)
______1. To achieve the goal of profit maximization for each alternative being considered, the financial
manager would select the one that is expected to result in the highest monetary return.
______2. Dividend payments change directly with changes in earnings per share.
______3. The wealth of corporate owners is measured by the share price of the stock.
______4. Financial markets are intermediaries that channel the savings of individuals, businesses, and
government into loans or investments.
______5. The money market involves trading of securities with maturities of one year or less while the
capital market involves the buying and selling of securities with maturities of more than one year.
______6. The wealth of corporate owners is measured by the share price of the stock.
______7. Risk and the timing of cash flows are the key determinants of share price, which represents the
wealth of the owners in the firm.
 ______8. When considering each financial decision alternative or possible action in terms of its impact
on the share price of the firm's stock, financial managers should accept only those actions that are
expected to maximize shareholder value.
______9. An increase in firm risk tends to result in a higher share price since the stockholder must be
compensated for the greater risk.
______10. Stockholders expect to earn higher rates of return on investments of lower risk and lower
rates of return on investments of higher risk.

III. Performance
Directions: Create a Portfolio about the topics discussed. Explain the topic with your own words. Note:
Any enactment of cheating is prohibited. Violating the rule will cause deduction if necessary. Before
you submit your paper, double check it first (50pts)
It will be graded based on the following rubrics;

Indicators 10 5 3 1
There are some
All topics are Complete topic but
excluded topic and Topic are not
Topic included and have some answer are
there are some wrong related
a correct answer wrong
answer
There are some
Almost half of the All are the
explanation that is
Originality No Plagiarism explanation are copied same with
same with others
on others (internet) other(internet)
(internet)
The design are The design are is from There are the same
Creativity No creativity
unique internet design with others
The Portfolio are in a The portfolio
The Portfolio is There are some
Cleanliness not totally in a good are not clean
clean and neat scratches and/or dirt
condition and neat at all
Four or more
The portfolio was
Timeliness One day late Two days late than four days
passed on time
late
TOTAL
SCORE

“I have more understanding than all my teachers, for your testimonies are my meditation.
I understand more than the aged, for I keep your precepts.”
-Psalm 119:99-100

May God Bless the Philippines!

Prepared by:
Macapuno, Alrose B.
Grade 11/12 ABM Adviser