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
A group of investment bankers organized to distribute large securities issues is known as a syndicate. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following goals are in the best long-term interest of shareholders? A) Profit maximization B) Risk minimization C) Maximizing the market value of the existing shareholders’ common stock D) Maximizing sales revenue ANSWER C
Date: September 19th, 2020
The manager of Golden Ray Corporation receives a bonus if company profits exceed $1,000,000 this year. During the final week of the year, the manager changes an accounting policy that will increase reported profits from $950,000 to $1,025,000, triggering his bonus. The change in profits of $75,000 will reverse itself in the next year, and […]
Date: September 19th, 2020
