You have just put $1,000 in an investment that offers a 12% annual yield, using a simple interest calculation. At the end of two years your interest earned will be A) $120.00. B) $144.00. C) $240.00. D) $254.40. ANSWER C
Date: September 19th, 2020
Mortgages with a low down payment may require an escrow account. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The internal rate of return may be defined as the: A) percentage increase in the value of an investment over its useful life. B) the minimum return required by investors to hold a firm’s securities. C) the discount rate at which a project’s NPV is negative. D) the discount rate at which a project’s NPV […]
Date: September 19th, 2020
Assuming positive interest rates, a present value of $1,000 A) is always more desirable to a future value of $1,000. B) is always less desirable than a future value of $1,000. C) is no more or no less desirable than a future value of $1,000. D) You can’t answer without more information. ANSWER […]
Date: September 19th, 2020
Part of your auto lease payments represents finance charges and are, therefore, deductible against your ordinary income on federal tax form. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
A project requires an investment outlay of $100 immediately. The project will generate after-tax cash flows of $50 one year from now and $60 two years from now. What is the IRR of the project? A) 5.39% B) 6.39% C) 10.39% D) 12.39% E) 14.39% ANSWER B
Date: September 19th, 2020
Given recent market experience a dollar today is worth A) more than a dollar five years from now. B) less than a dollar five years from now. C) about the same as a dollar five years from now. D) more or less than a dollar five years from now. ANSWER A
Date: September 19th, 2020
Over the last year, sales at Downscale Department Store increased 10% and EBIT increased 5%. If the increase in earnings-per-share was 20%, what is the degree of total leverage? A) 3 B) 4 C) 5 D) 2 E) 1 ANSWER D
Date: September 19th, 2020
Under the typical leasing agreement, over the term of the lease you do not accumulate any equity in the leased vehicle. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Neeson Co. paid dividends in the last three years of $3.00, $3.15, and $3.31, respectively. The current stock price of Neeson is $30.00. Assuming the next dividend will grow at the same rate as the last three years, what is Neeson’s cost of equity? A) 16.62% B) 10.00% C) 11.59% D) 16.03% E) 12.52% […]
Date: September 19th, 2020
