An insurance firm agrees to pay you $3,310 at the end of 20 years if you pay a premium of $100 per year at the end of each year of the 20 years. Find the internal rate of return to the nearest whole percentage point. A) 9% B) 7% C) 5% D) 3% E) 11% […]
Date: September 19th, 2020
A tax levied on the property of the deceased before it is transferred is A) an estate tax. B) an inheritance tax. C) a gift tax. D) an excise tax. ANSWER A
Date: September 19th, 2020
Jensen’s Travel Agency has a 7 percent preferred stock outstanding that is currently selling for $48 a share. The preferred stock has a $100 par value. The market rate of return is 10 percent and the firm’s tax rate is 34 percent. What is the Jensen’s cost of preferred stock? A) 8.75 percent B) 9.62 […]
Date: September 19th, 2020
Your company is planning to open a new gold mine which will cost $3 million to build, with the expenditure occurring at the end of the year three years from today. The mine will bring year-end after-tax cash inflows of $2 million at the end of the two succeeding years, and then it will cost […]
Date: September 19th, 2020
If you rent a garage to house your car, this should be included as a cost of ownership. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
A tax levied on the property of the deceased after it is transferred to the beneficiary is A) an estate tax. B) an inheritance tax. C) a gift tax. D) an excise tax. ANSWER B
Date: September 19th, 2020
Property taxes are A) primarily imposed by local and city governments. B) primarily imposed by state governments. C) primarily imposed by the federal government. D) are equally likely to be imposed at all levels of government. ANSWER A
Date: September 19th, 2020
Donnelly and Son pay $8 as the annual dividend on their preferred stock. Currently, this stock is selling for $72 a share. What is Donnelly’s cost of preferred stock? A) 7.78 percent B) 9.00 percent C) 9.72 percent D) 11.11 percent E) 11.99 percent ANSWER D
Date: September 19th, 2020
A Certificate of Title is legal evidence of your ownership in the motor vehicle. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The New Watch Times is considering a new printing press to increase its productive capacity. If the cost of the press is $500,000 and the relevant cash flows from the project are $75,000 per year over the next ten years, what is the payback period? A) 6.00 years B) 6.50 years C) 7.00 years D) […]
Date: September 19th, 2020
