The appropriate measure for risk according to the capital asset pricing model is A) the standard deviation of a firm’s stock returns. B) the standard deviation of a firm’s cash flows. C) alpha. D) beta. ANSWER D
Date: September 19th, 2020
A real estate investment trust (REIT) invests A) exclusively in property, such as buildings. B) exclusively in raw land. C) exclusively in both property and raw land. D) in many kinds of properties and mortgages to property. ANSWER D
Date: September 19th, 2020
The monthly income and expense plan often highlights the need for effective cash management during the budget year. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Most financial planners will advise you to begin retirement planning A) as soon as you enter the work force. B) when you reach 30 years of age. C) when you are ready to retire. D) when you are eligible for Social Security. ANSWER A
Date: September 19th, 2020
A REIT’s equity per share is A) its market value per share. B) the amount it has invested in property per share. C) the initial amount of money per share invested in it. D) a value measurement similar to the NAV of a mutual fund. ANSWER D
Date: September 19th, 2020
________ are common forms of non-cash expenses for a firm. A) Depreciation and amortization B) Depreciation and interest C) Depreciation and dividends D) All of the above ANSWER A
Date: September 19th, 2020
If a viable firm is not growing but is expected to continue over time, then we would expect changes in net working capital to be equal to: A) a percentage of total sale. B) EBIT. C) depreciation. D) $0 ANSWER D
Date: September 19th, 2020
Seasonality causes comparability problems in ratio analysis. A common solution is to use an average account balance as opposed to an ending account balance. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Today is your 21st birthday and your bank account balance is $25,000. Your account is earning 6.5% interest compounded daily. How much will be in the account on your 50th birthday? A) $164,631 B) $163,823 C) $162,183 D) $159,795 ANSWER A
Date: September 19th, 2020
It is commonly accepted that the industry average for a ratio is the ideal goal for a financial manager to achieve. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
