________ is the cost of a foregone alternative. A) Opportunity cost B) Time value of money C) Inflation D) An annuity ANSWER A
Date: September 19th, 2020
Under the simple interest method A) the APR is applied to the outstanding balance on the loan. B) interest is deducted from the credit extended at the beginning of the loan. C) interest is added to the credit extended at the beginning of the loan. D) interest is a simple percentage of the initial amount […]
Date: September 19th, 2020
Cash flow changes in net worth can be positive or negative. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following securities will likely have the highest maturity risk premium? A) Bbb-rated corporate maturing in 2020 actively traded on a major exchange B) U.S. Treasury bond maturing in 2027 C) Aaa-rated corporate maturing in 2015 not actively traded D) U.S. Treasury bill ANSWER B
Date: September 19th, 2020
________ refers to how a firm behaves when it feels it is protected from risk compared with how it would behave if it was fully exposed to risk. A) Moral hazard B) Asymmetric engineering C) Systematic risk transfer D) Beta blocking ANSWER A
Date: September 19th, 2020
Which of the following statements is MOST correct regarding beta? A) Beta for a particular company remains constant over time. B) Even professionals may not agree on the measurement of beta. C) Beta can only be measured properly using daily returns. D) Beta must be calculated using at least 5 years of monthly returns data […]
Date: September 19th, 2020
Based on the information contained in Tables 4-5, what was Yen’s return on common equity for 2010? A) 121.4% B) 24.3% C) 50.0% D) 85.0% ANSWER C
Date: September 19th, 2020
Individuals and businesses require compensation for delaying consumption. Which of the following questions may contribute to the magnitude of the compensation? A) Is there a possibility that the price may increase for the delayed good or service? B) If current consumption is delayed is it possible that it may not be realized at all? C) […]
Date: September 19th, 2020
Based on the information contained in Tables 4-5, what was Yen’s operating profit margin for 2010? A) 14.29% B) 21.34% C) 11.67% D) 26.50% ANSWER A
Date: September 19th, 2020
A bond matures in 20 years, at which time it pays the owner $1,000. It also pays $70 at the end of each of the next 20 years. If similar bonds are currently yielding 7%, what is the market value of the bond? A) under $1,000 B) over $1,000 C) exactly $1,000 D) cannot be […]
Date: September 19th, 2020
