XYZ Corporation has a P/E ratio of 20 and EFG Corporation has a P/E ratio of 10. It is likely that A) investors expect XYZ’s earnings to grow faster than EFG’s earnings. B) investors believe XYZ stock is overvalued. C) investors believe that for the same level of earnings growth, XYZ is a higher risk […]
Date: September 19th, 2020
The beta of a T-bill is one. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
You estimate you’ll need $200,000 per year for 25 years starting on your 65th birthday to live on during your retirement. Today is your 50th birthday and you want to make equal deposits into an account paying 9% interest per year, the first deposit today and the last deposit on your 64th birthday. How much […]
Date: September 19th, 2020
Forecasted net cash flows are the difference between forecasted cash inflows and forecasted cash outflows. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Assessing the current business environment is NOT a fundamental concept related to financial management. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
XYZ, Inc. would suffer serious financial consequences if either of its two major customers were shut down and could not purchase XYZ products. Which of the following types of consequential loss protection would provide protection against this exposure? A) leasehold interest B) extra expense C) marine insurance D) business income from dependent properties […]
Date: September 19th, 2020
The beta of a T-bill is zero. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The ability to identify the key industry drivers of success is a fundamental concept that a nonfinancial manager should understand in order to: A) better assess the current environment in which the firm operates. B) better assess future financing requirements. C) better understand the role of capital markets in raising long-term funds. D) better measure […]
Date: September 19th, 2020
A cash budget is often more valuable as a LONG-term rather than a SHORT-TERM financial forecasting vehicle. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Which of the following forms is used to insure buildings that are under construction? A) builders risk coverage form B) floor plan coverage form C) new construction coverage form D) labor and materials coverage form ANSWER Answer: A
Date: September 19th, 2020
