The rate of return available on the next best investment alternative for the saver refers to the opportunity cost of funds. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
You inherit $300,000 from your parents and want to use the money to supplement your retirement. You receive the money on your 65th birthday, the day you retire. You want to withdraw equal amounts at the end of each of the next 20 years. What constant amount can you withdraw each month and have nothing […]
Date: September 19th, 2020
The market rewards the patient investor, for between 1926 and 2008, there has never been a time when an investor lost money if she held an all-stock portfolio for ten years. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Financial managers work with the managers from the other functional areas of business. For example: When the financial manager provides funds for activities such as the development of products or services, they are probably working with which functional area? A) Human Resourses B) Information Technology C) Marketing D) Operations ANSWER D
Date: September 19th, 2020
Based on the information in Table 4-2, the times interest earned ratio is A) 4.88. B) 8.65. C) 11.48. D) 5.25. ANSWER B
Date: September 19th, 2020
Which of the following losses would be covered under a Commercial General Liability Policy that has no endorsements? I. The named insured rented a building and an employee of the named insured negligently started a fire at the rented building. II. The cost to recall defective products A) I only B) II only C) both […]
Date: September 19th, 2020
Issuing debt rather than equity will automatically increase a firm’s EPS and EBIT. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Which of the following are characteristics of a limited partnership? A) General partners have unlimited liability. B) There must be one or more general partners. C) Limited partners may not participate in the management of the limited partnership. D) all of the above ANSWER D
Date: September 19th, 2020
Your firm’s sales are estimated to decrease by 10% in the next year. However, soon after the beginning of the year it becomes apparent that the reduction in sales is more likely to be 20%. If your cost of good sold consists of only fixed expenses, which of the following situations would you expect to […]
Date: September 19th, 2020
You sell valuable artifacts from your household estate for $200,000 and want to use the money to supplement your retirement. You receive the money on your 60th birthday, the day you retire. You want to withdraw equal amounts at the end of each of the next 25 years. What constant amount can you withdraw each […]
Date: September 19th, 2020
