You just invested $50,000 into an account that earns 7 percent compounded annually. At the end of each year you can withdraw $4,971. How many years can you continue to make the withdrawals? What will be an ideal response? ANSWER 18 years
Date: September 19th, 2020
You are considering investing in a project with the following possible outcomes: States Probability of Occurrence Investment Returns State 1: Economic boom 18% 20% State 2: Economic growth 42% 16% State 3: Economic decline 30% 3% State 4: Depression 10% -25% Calculate the expected rate of return and standard deviation of returns for this investment, […]
Date: September 19th, 2020
Which of the following statements about the coverage for other structures (Coverage B) under the Homeowners 3 policy is true? A) The coverage applies to a detached garage or tool shed on the residence premises. B) Structures attached to the dwelling by a fence or utility line are considered to be part of the dwelling […]
Date: September 19th, 2020
A corporate treasurer is typically responsible for cash management, credit management, and raising capital. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Assume that an investment is forecasted to produce the following returns: a 20% probability of a 12% return; a 50% probability of a 16% return; and a 30% probability of a 19% return. What is the standard deviation of return for this investment? A) 5.89% B) 16.1% C) 15.7% D) 2.43% ANSWER D
Date: September 19th, 2020
The three basic types of cash-related activities that every business faces are: A) investing, working capital management, and financing. B) financing, operations, and investing. C) working capital management, financing, and budgeting. D) capital budgeting, investing, and cash management. ANSWER B
Date: September 19th, 2020
All of the following would result in an increase in stockholders equity EXCEPT A) the company had positive net income greater than dividends paid. B) the company sold common stock above par value. C) the company sold common stock at par value. D) the company purchased treasury stock. ANSWER D
Date: September 19th, 2020
It is common practice among the largest corporations to sell their securities directly to investors. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The financial manager is involved in these cash-related activities in the firm: A) investing, working capital management, and financing. B) real assets, financing, and investing C) operations, profitability, and financing D) investing, operating, and financing. ANSWER D
Date: September 19th, 2020
Your friend Ricky took a finance class and learned about the risk-return trade-off. Wanting a high return, Ricky invested in a risky, start-up technology company. A year later the company went bankrupt and Ricky lost his entire investment. Ricky is furious with his finance professor for misleading him, claiming he was taught that higher return […]
Date: September 19th, 2020
