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 […]
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
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
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
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 […]
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 […]
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
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 […]
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) […]
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
