Exam 2 (Libby Chapters 10-13, Appendix E)

The exam is open from Saturday January 23, 12:01 a.m. until Wednesday January 27, 11:55 p.m. The exam is due by Wednesday January 27, 11:55 p.m. All times are U.S. Eastern Time.

You have a total of 135 minutes to finish the exam, and you have ONLY ONE attempt at the exam, which means you have to complete the exam in one single sitting staying logged in. Once you log out, you are not allowed to log back in and retake the exam.

Under the Kelley School of Business Student Code of Ethics, this exam is an individual assignment. You should not receive help from another person. By submitting the exam, you indicate that it is your work alone. Additionally, you may not discuss the exam with any other student after you have taken the exam until the exam period is over.

You are allowed to use the book, notes, and other sources you have prepared prior to the exam; however, you may not use web sources during the exam. A calculator or a spreadsheet program is allowed for computational problems. When calculating present values, the problems will provide access to present value tables (or factors) as are used in the textbook. However, you can also use Excel or a financial calculator when computing present values. Recall that if using Excel or a present value calculator, the answers will be slightly different than using the textbook tables because the tables use only 5 digits. Therefore, you may need to choose the closest answer if your computation does not exactly match the multiple choice answers.

Exam 2 consists of 44 multiple choice questions which include 19 conceptual questions for 2 points each, 13 computational questions for 2 points each, and 12 computational questions for 3 points each.

The exam covers the Libby text chapters 10 through 13 and Appendix E.  Note that the Chapter 5 ROA and its components were covered again in Chapter 13; so, students are also responsible for that ratio.