Any warranty that does not meet the standards set down in law for a full warranty must be labeled a limited warranty. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The Delta Co owns retail stores that market home building supplies. Largo, Inc builds single family homes in residential developments. Delta has a beta of 1.22 and Largo has a beta of 1.34. The risk-free rate of return is 4 percent and the market risk premium is 6.5 percent. What should Delta use as their […]
Date: September 19th, 2020
Which of the following statements is false? A) IRS publications provide helpful advice on filing the federal personal income tax return. B) The statute of limitations gives the IRS three years from the time the return is filed to impose additional tax liabilities. C) Most tax service companies can provide the expert advice that high-income […]
Date: September 19th, 2020
The opportunity cost associated with the firm’s capital investment in a project is called its: A) cost of capital. B) beta coefficient. C) capital gains yield. D) sunk cost. E) internal rate of return. ANSWER A
Date: September 19th, 2020
A refund anticipation loan is associated with A) electronic tax filing. B) an automatic extension for late filing. C) a tax refund in excess of $10,000. D) an unsuccessful IRS audit. ANSWER A
Date: September 19th, 2020
Foreclosure is the legal process A) for closing on a typical home purchase. B) that terminates your right to the property and forces its sale. C) that ensures marketable title at closing. D) condemning a property that has not been maintained. ANSWER B
Date: September 19th, 2020
A short position reflects the expectation of price increases. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Two projects being considered are mutually exclusive and have the following projected cash flows: Year Project A Project B 0 -$50,000 -$50,000 1 $15,625 0 2 $15,625 0 3 $15,625 0 4 $15,625 0 5 $15,625 $99,500 If the required rate of return on these projects is 10%, which would be chosen and why? A) […]
Date: September 19th, 2020
The cost of capital: A) will decrease as the risk level of a firm increases. B) is primarily dependent on the source of the funds used in a project. C) implies that a project will produce a positive net present value only when the rate of return on the project is less than the cost […]
Date: September 19th, 2020
The Housing Affordability Index is based upon the relationship between the median family income and the income necessary to qualify for a loan on a median priced home. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
