Which of the following statements about Economic Value Added (EVA) is NOT true? A) EVA is a measure of value creation. B) EVA is a process for attempting to create value. C) If a firm generates positive EVA then it increases shareholder value. D) All of the above are true. ANSWER D
Date: September 19th, 2020
For those workers not nearing retirement, funds in an Employee Stock Ownership Plan are generally held in A) stock issued by the company of employment. B) stock issued by companies in the industry of employment. C) stock held by selected mutual funds. D) both mutual stock funds and mutual bond funds. ANSWER A
Date: September 19th, 2020
A disadvantage of mutual funds is that they cannot be used in IRAs. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Zero coupon bonds pay no intermediate cash flows prior to maturity. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
You may be entitled to receive the funds in your retirement plan under which of the following conditions? I. retirement. II. disability. III. termination of employment. IV. financial hardship. A) only I B) only I and II C) only I, II, and IV D) I, II, III, or IV ANSWER D
Date: September 19th, 2020
A collateral loan contains both a promissory note and a security agreement. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Zero coupon bonds sell at a steep premium to the face value. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
EBITDA represents a simple proxy for cash flows from financing. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
If a bond sells for its par value then the yield to maturity is greater than the coupon rate. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Deposit term insurance is A) typically a good buy, because it combines the benefits of both cash value insurance and pure term protection. B) low cost insurance sold by banks to their customers. C) typically a poor buy, because it is really high cost cash value insurance. D) high cost insurance sold by banks to […]
Date: September 19th, 2020
