Loans on which the interest is paid in advance are often called ________. A) premium loans B) long-term loans C) term deposits D) discount loans ANSWER D
Date: September 19th, 2020
Seasonal buildups of inventory and receivables are generally financed with ________. A) short-term loans B) long-term loans C) retained earnings D) stockholders’ equity ANSWER A
Date: September 19th, 2020
If a firm’s variable costs per unit increase,the firm’s ________. A) financial breakeven point will decrease B) operating breakeven point will increase C) sale price per unit will decrease D) fixed costs per unit will increase ANSWER B
Date: September 19th, 2020
If a firm’s fixed financial costs decrease, the firm’s operating breakeven point will ________. A) decrease B) increase C) remain unchanged D) change based on the sale price per unit ANSWER C
Date: September 19th, 2020
Your firm borrows money from the bank on a short-term note due in 9 months. This type of financing would be most appropriate for which of the following activities? A) The support of accounts receivable B) The construction of a new warehouse C) The support of accounts payable D) The financing of new equity […]
Date: September 19th, 2020
In a world with taxes, M&M’s second proposition defines the expected return on equity as: A) Ke = Ku + (Ku – Kd) (1 – t) ( ) B) Ke = Ku + (Ku + Kd) (1 – t) ( ) C) Ke = Ku + (Ku – Kd) (1 + t) ( ) D) […]
Date: September 19th, 2020
What are taxes payable for the Equity and Debt firm? A) $240,000 B) $560,000 C) $300,000 D) $0 ANSWER A Explanation: A) Taxes payable = EBT * Tax rate = $800,000 * .30 = $240,000.
Date: September 19th, 2020
The least frequently issued capital financial instruments listed herein are: A) preferred shares. B) common shares. C) bonds. D) In reality, these instruments are issued in similar magnitude. ANSWER A
Date: September 19th, 2020
A PEST analysis involves an analysis of which of these factors? A) Technological, societal, economic factors, and potential threats B) Societal, technological, political, and economic factors C) Strengths, threats, economic and political factors D) Strengths, threats, potential opportunities, and external environment factors ANSWER B
Date: September 19th, 2020
Breakeven analysis is used by a firm ________. A) to determine the level of operations necessary to cover all fixed operating costs B) to determine the least cost of producing goods and services C) to evaluate the profitability associated with various levels of sales D) to determine the demand of a product ANSWER […]
Date: September 19th, 2020
