The investment banker prefers to avoid a negotiated purchase because it tends to be the least profitable arrangement for the investment banker. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
When constructing pro forma income statements which of the following is the last item to be estimated? A) sales B) the change in retained earnings C) depreciation expense D) taxes ANSWER B
Date: September 19th, 2020
Based on the information in Table 3-1, assuming that no common stock was repurchased during the year, the firm issued how much new common stock during 2010? A) $500 B) $2,000 C) $1,500 D) $1,000 ANSWER C
Date: September 19th, 2020
Rogue Recreation, Inc has normally distributed returns with an expected return of 15% and a standard deviation of 5%, while Lake Tours, Inc has normally distributed returns with an expected return of 15% and a standard deviation of 15%. Which of the following is true? A) Rogue Rec is likely to experience returns larger than […]
Date: September 19th, 2020
Section I of the Homeowners 3 policy provides coverage for which of the following? A) loss of use B) personal liability C) disability of the homeowner D) medical payments ANSWER Answer: A
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
Smith Corporation has earned a return on capital invested of 10% for the past two years, but an investment analyst reviewing the company has stated the company is not creating shareholder value. This may be due to the fact that A) investors’ required rate of return is 8%. B) investors’ required rate of return is […]
Date: September 19th, 2020
Based on the information in Table 3-1, assuming that no assets were disposed of during 2010, the amount of depreciation expense was A) $375. B) $500. C) $3,500. D) $2,500. ANSWER B
Date: September 19th, 2020
