At the operating breakeven point, ________ equals zero. A) sales revenue B) fixed operating costs C) variable operating costs D) earnings before interest and taxes ANSWER D
Date: September 19th, 2020
What is LIBOR, how are LIBOR interest rates determined, and for what are they used? What will be an ideal response? ANSWER LIBOR is the London Interbank Offered Rate and is a series of short-term interest rates estimated daily in London by a group of large international banks. Unfortunately, the LIBOR rates (currently […]
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
An INVERTED yield curve is characterized by long-term rates exceeding short-term rates. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Under conditions of perfect capital markets, M&M insist that the value of the levered firm is greater than the value of the unlevered firm. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
A bond rated “D” by Standard and Poor’s rating service is in default on its financial commitments. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Short-term loans that businesses obtain from banks and through commercial paper are ________. A) negotiated and secured B) negotiated and unsecured C) spontaneous and secured D) spontaneous and unsecured ANSWER B
Date: September 19th, 2020
