A reasonable growth strategy may be to plan for new investments while maintaining financial flexibility to fund opportunistic acquisitions. Indicate whether the statement is true or false ANSWER TRUE
Which item below is not a guideline for effective diversification? Diversify A) among tangibles and intangibles. B) among assets and liabilities. C) on a global basis. D) within asset groups. ANSWER B
________ is a period measure that attempts to capture a firm’s ability to add value for shareholders, after accounting for the requirements of other stakeholders. A) Economic Value Added B) Discounted cash flow analysis C) Price-Earnings measure D) All of the above. ANSWER A
Limits on contributions to a Keogh are more generous than those imposed on IRAs. Indicate whether the statement is true or false ANSWER TRUE
Group mortgage life is a form of whole life insurance. Indicate whether the statement is true or false ANSWER FALSE
During the grace period your insurance protection continues until the cash value of the policy is depleted. Indicate whether the statement is true or false ANSWER TRUE
Which of the following could be a method for Walmart to increase value for shareholders? A) Put greater effort into controlling costs. B) Increase the rate of profitable growth. C) Reduce the cost of financing. D) All of the above. ANSWER D
Which of the following is likely to lead to an increase in a firm’s cost of debt financing? A) An increase in expected inflation. B) An increase in the riskiness of assets. C) An increase in the average age of debt financing. D) All of the above. ANSWER D
All employees are eligible for Keogh plans. Indicate whether the statement is true or false ANSWER FALSE
Which combination of assets is likely to be most effective in reducing portfolio risk? A) Two stocks in the same industry, such as GM and Ford B) Two stocks in the same country, such as GM and IBM C) Two precious metals, such as gold and silver D) One precious metal and one stock, such […]