The Sarbanes Oxley act tightened rules governing financial disclosures. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The “due on sale clause” requires A) the buyer to pay the entire amount due at closing. B) the seller to pay all of the buyer’s points at closing. C) repayment of the balance on the home loan when the property changes hands. D) the seller to pay all property taxes that have become due […]
Date: September 19th, 2020
One advantage in dealing with full-service brokers is they often have inside information about a company. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Ben Fasby has taxable income of $7,000, and the following tax rate schedule is applicable: Taxable Income Tax Rate $0 to $3,400 0 % $3,400 to $5,500 12 % $5,500 to $7,600 14 % Ben’s tax liability is A) $980. B) $210. C) $462. D) $870. ANSWER C
Date: September 19th, 2020
Marginal analysis A) only considers costs that vary with the relevant decision. B) considers all historical costs. C) only considers some historical costs. D) considers all past and future costs. ANSWER A
Date: September 19th, 2020
Concerning an adjustable rate loan, which of statements is false? A) Lenders are required to describe circumstances that will lead to rate changes. B) Lenders are required to provide examples of the payment changes that may occur. C) The APR will reflect the interest payments you will actually incur over the life of the mortgage. […]
Date: September 19th, 2020
The primary problem with the NPV technique of capital budgeting is: A) that many people without a background in financial theory may not understand it. B) that there is no adjustments for risk. C) an unclear decision rule. D) the fact that it ignores the time value of money. E) that it uses unorthodox time […]
Date: September 19th, 2020
The cost of ownership A) is a sunk cost. B) is a fixed cost. C) includes financial costs. D) All of the above answers are correct. ANSWER D
Date: September 19th, 2020
You are planning a vacation tour to Florida and trying to choose between the 5-day and 7-day package. You are using marginal analysis when A) you decide the benefits from either package are worth their respective costs. B) compare the added benefits of the 7-day package to its added cost. C) you select one package […]
Date: September 19th, 2020
Which of the following is not a reasonable expectation? A) Continued business cycles B) Stable prices C) Instability in financial markets D) Periodic recessions ANSWER B
Date: September 19th, 2020
