By not driving in bad weather you are engaging in risk avoidance. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
A “living will” A) is also know as an irrevocable living trust. B) automatically redirects assets to your beneficiaries as you age. C) is a medical directive indicated the type of life support you wish to receive should you be incapacitated. D) transfers your assets to your beneficiaries before you die in the event you […]
Date: September 19th, 2020
A dividend reinvestment plan (DRIP) A) is offered by most stockbrokerage firms, rather than individual companies. B) is constructed to acquire a fixed number of shares when dividends are paid. C) accomplishes the same objective as dollar cost averaging; i.e., investing a relatively fixed amount of funds at regular intervals. D) offers investors the choice […]
Date: September 19th, 2020
The Social Security system provides for reduced benefits at an early retirement age. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
With adjustable life insurance both the premiums and the face amount are adjustable. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Count On It Marketing Inc. has an ROCE of 21%, a WACC of 9.35%, and invested capital of $250,000. With this information estimate the firm’s economic value added (EVA). A) $24,639 B) $29,125 C) $41,621 D) There is not enough information to answer this question. ANSWER B Explanation: B) EVA = (ROCE-WACC) * […]
Date: September 19th, 2020
Comparing a stock’s required return (RR) to its expected return (ER), we can say A) the stock is a good buy when they are equal. B) that each represents a different concept and, so, they may have quite different values. C) they are simply different perspectives on the same concept and, so, they should have […]
Date: September 19th, 2020
Social Security normal retirement age is set to increase for future retirees. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Rocky Mountain Drilling Inc has a new shale oil field under development. The firm estimates free cash flows to the firm (FCFF) of $2,000,000 at the end of one year and increases of 20% per year for each of the next two years, and then year-end fcff of $3,000,000 per year for five years before […]
Date: September 19th, 2020
Discounted cash flow analysis is a valuation technique that: A) estimates the present value of expected future cash flows. B) uses comparable firms in the industry to project a market value of the firm. C) uses multiples of earnings to project a price per share. D) is the only accepted form of firm valuation by […]
Date: September 19th, 2020
