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
Limited partnerships are not as prevalent as corporations because A) it is easier to transfer ownership by selling common stock than it is to sell partnership. B) limited partnerships have the disadvantage of double taxation. C) limited partners can lose up to three times the amount they invested in the partnership if the business goes […]
Date: September 19th, 2020
Creative Industries Inc is looking to finance a new project with either debt or equity. The firm anticipates that its breakeven EPS-EBIT point is when EBIT reaches $3,000,000. If the projected EBIT are $3,500,000 for the foreseeable future, then to maximize EPS the firm should issue: A) equity. B) debt C) preferred shares. D) a […]
Date: September 19th, 2020
The costs associated with issuing securities to the public can be high. Some types of securities have greater expenses associated with them than others. Which of the following is the most costly security to issue? A) common stock B) preferred stock C) corporate bonds D) all of the above ANSWER A
Date: September 19th, 2020
Which of the following statements about the condominium commercial-unit owners coverage form is (are) true? I. It provides coverage for the unit owner’s proportionate financial interest in the condominium building. II. It provides coverage for the business personal property of the unit owner. A) I only B) II only C) both I and II D) […]
Date: September 19th, 2020
You are 21 years old today. Your grandparents set up a trust fund that will pay you $25,000 per year for 20 years, starting on your 65th birthday to supplement your retirement. If the trust can earn 7.5% per year, how much will your grandparents need to put in the trust fund today (rounded to […]
Date: September 19th, 2020
Based on the information in Table 4-1, and assuming the company’s stock price is $30 per share, the P/E ratio is A) 9.85. B) 10.99. C) 3.09. D) 4.83. ANSWER B
Date: September 19th, 2020
All of the following statements about business income insurance are true EXCEPT A) Business income is defined as total sales that would have been made if the loss had not occurred. B) Payroll is considered a continuing normal operating expense. C) Business income insurance does not cover the physical damage caused by a peril which […]
Date: September 19th, 2020
Which of the following statements about the business income coverage form is true? A) Business income is defined as gross earnings before taxes. B) Payroll is excluded unless it is specifically added. C) The form covers loss of business income and extra expenses incurred during restoration. D) The form can be used by a manufacturing […]
Date: September 19th, 2020
