You borrow $25,000 to be repaid in 12 monthly installments of $2,292.00. The annual interest rate is closest to A) 24 percent. B) 12 percent. C) 1.5 percent. D) 18 percent. ANSWER D
Date: September 19th, 2020
Pro forma financial statements may be valuable for which of the following reasons? A) To help us estimate how profitable a firm is expected to be B) To help determine if and how much debt financing is required C) To help banks determine if firms are likely to meet lending standards D) All of the […]
Date: September 19th, 2020
Based on the information in Table 4-2, and assuming the company’s stock price is $50 per share, the P/E ratio is A) 24.44. B) 27.50. C) 10.89. D) 14.33. ANSWER C
Date: September 19th, 2020
Tom opened a store in a mall. His store is located between a theater and a department store. Tom counts on the theater and department store to generate walk-in business at his store While his store has been successful, Tom knows that if either or both of the other businesses closed, his store would suffer […]
Date: September 19th, 2020
Beta represents the average movement of a company’s stock returns in response to a movement in the market’s returns. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Financial Managers rely on the firm’s ________ department to relay key financial data, such as cash flow statements, to aid in capital budgeting and financing decisions. A) human resources B) accounting C) marketing D) operations ANSWER B
Date: September 19th, 2020
CompuFix services desktop and laptop computers. The owner of CompuFix is concerned that computers that are left with the business to be repaired may be damaged or destroyed. To address this risk, CompuFix should purchase A) mobile equipment and property insurance. B) coverage for property held by bailees. C) coverage for property of dealers—a “block” […]
Date: September 19th, 2020
The slope of the characteristic line of a security is that security’s beta. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Your firm’s sales are estimated to increase by 10% in the next year. However, soon after the beginning of the year it becomes apparent that the growth in sales is more likely to be 20%. If your cost of good sold consists of only variable expenses, and the relationship between revenues and costs remain the […]
Date: September 19th, 2020
Based on the information in Table 4-2, the return on equity is A) 16.66%. B) 18.47%. C) 15.65%. D) 19.33%. ANSWER C
Date: September 19th, 2020
