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
All of the following are covered under the dwelling coverage (Coverage A) of the Homeowners 3 policy EXCEPT A) any structure attached to the dwelling. B) the land on which the insured dwelling is located. C) materials and supplies intended for alteration or repair of the dwelling. D) materials and supplies intended for construction of […]
Date: September 19th, 2020
Do corporate decisions that increase the value of the firm’s equity benefit society as a whole? A) Yes, as long as the value of the firm’s equity increases, society is better off. B) Yes. as long as the increase in the value of the firm’s equity does not come at the expense of others. C) […]
Date: September 19th, 2020
When constructing a pro forma income statement, which of the following is likely to be calculated first among the items listed? A) dividends B) taxes C) cost of goods sold D) interest expense ANSWER C
Date: September 19th, 2020
Assume that you have $100,000 invested in a stock that is returning 14%, $150,000 invested in a stock that is returning 18%, and $200,000 invested in a stock that is returning 15%. What is the expected return of your portfolio? A) 15.67% B) 14.97% C) 13.25% D) 15.78% ANSWER D
Date: September 19th, 2020
The major difference between the dwelling coverage (Part A) of the Homeowners 2 (Broad From) policy and the Homeowners 3 (Special Form) policy is that A) the HO-3 provides open perils (“all risks”) coverage and the HO-2 provides named-perils coverage. B) the HO-3 provides actual cash value coverage, the HO-2 provides replacement cost coverage. C) […]
Date: September 19th, 2020
An analyst is evaluating two companies, A and B. Company A has a debt ratio of 50% and Company B has a debt ratio of 25%. In his report, the analyst is concerned about Company B’s debt level, but not about Company A’s debt level. Which of the following would best explain this position? A) […]
Date: September 19th, 2020
