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
A real interest rate is the interest rate on a fixed-income security that has no risk in an economic environment of high inflation. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Dynamo Engines Inc., has an ROA of 10%, a profit margin of 6%, an assets to equity ratio of 1.30 and a retention ratio of 0.70. What is the firm’s sustainable growth rate? What will be an ideal response? ANSWER Sustainable growth rate = ROE * b, where b is the retention ratio. […]
Date: September 19th, 2020
Some financial institutions offer continuous compounding. This means that A) your effective yield will be about 20% higher than daily compounding. B) your effective yield will be only slightly higher than daily compounding. C) in reality they are offering only simple interest. D) you must deposit at least $10,000 to open an account offering this […]
Date: September 19th, 2020
Interest is deducted from the credit extended at the beginning of the loan under the A) simple interest method. B) add-on interest method. C) discount interest method. D) Rule of 78. ANSWER C
Date: September 19th, 2020
Assume that you have $100,000 invested in a stock whose beta is .85, $200,000 invested in a stock whose beta is 1.05, and $300,000 invested in a stock whose beta is 1.25. What is the beta of your portfolio? A) 0.97 B) 1.21 C) 1.02 D) 1.12 ANSWER D
Date: September 19th, 2020
Which of the following does your author suggest is NOT a lesson learned from the the Great Recession of 2007 -2009? A) Individuals and firms that took on too much debt suffered dramatically. B) Firms and individuals that relied too heavily on short-term debt to finance long-term assets suffered when financial liquidity dried up. C) […]
Date: September 19th, 2020
Which of the following statements about the corporate form of business organization is TRUE? A) The corporate form has the disadvantage of double taxation relative to a sole proprietorship. B) The corporate form is preferred over the sole proprietorship because a corporation is easier to form and faces less regulation. C) Sole proprietorship is the […]
Date: September 19th, 2020
The sum of current and noncurrent liabilities is net worth. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Your daughter is born today and you want her to be a millionaire by the time she is 40 years old. open an investment account that promises to pay 11.5% per year. How much money must you deposit today so your daughter will have $1,000,000 by her 35th birthday? A) $20,100 B) $22,150 C) $28,575 […]
Date: September 19th, 2020
