This study examines whether the first exam grade in a managerial finance course is a significant predictor of a student's final course grade. Mathematical preparedness, measured by grades and number of times required to pass college algebra and business calculus, was also investigated. The data include observations from 214 students from a medium-sized AACSB accredited school of business over the 2016-2017 academic year. Using a measure of pass/fail, the first exam score correctly predicted the course outcome for 87% of the students. Regression analysis confirmed that Exam 1 (administered one month after the start of the semester) was statistically significant as a predictor of final course grade. Performance in prior mathematical courses was also deemed a significant predictor of success.