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
You own an annuity due contract that will pay you $3,000 per year for 12 years. You need money to pay back a loan in 5 years, and you are afraid if you get the annuity payments annually you will spend the money and not be able to pay back your loan. You decide to […]
Date: September 19th, 2020
Because key variables are often related rather than isolated we often change our estimates for selected variables simultaneously when examining pro forma statements. We call this type of activity: A) ratio analysis. B) scenario analysis. C) sensitivity analysis. D) form analysis. ANSWER B
Date: September 19th, 2020
The characteristic line for any well-diversified portfolio is horizontal. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
A navigation error caused a cargo ship to run aground on a reef. The ship, valued at $1.5 million, was carrying $1.5 million in grain and $1.5 in electronic devices. The ship sustained a $150,000 physical damage loss. If this loss is a “particular average” loss, how will the loss be settled? A) The owners […]
Date: September 19th, 2020
