The New York Stock Exchange (NYSE) is A) an automated electronic trading platform. B) a hybrid market, allowing for face-to-face trading on the floor of the stock exchange in addition to automated, electronic trading. C) an auction market with face-to-face trading on the floor of the stock exchange in addition to automated, electronic trading. D) […]
The astute financial manager will seek to attain the highest current ratio possible. Indicate whether the statement is true or false ANSWER FALSE
The retained earnings balance on IBM’s balance sheet at the end of 2010 is equal to IBM’s 2010 net income minus dividends paid in 2010. Indicate whether the statement is true or false ANSWER FALSE
If the value of a vehicle is increased after repairs, such as repainting an entire auto when only one fender or door is damaged, the insurer will not pay for the increase in value. Another name for the increase in value is A) diminution. B) betterment. C) appraisal. D) subrogation. ANSWER Answer: B
You are considering a sales job that pays you on a commission basis or a salaried position that pays you $50,000 per year. Historical data suggests the following probability distribution for your commission income. Which job has the higher expected income? Commission Probability of Occurrence $15,000 .15 $35,000 .20 $48,000 .35 $67,000 .22 $80,000 .18 […]
At what rate must $287.50 be compounded annually for it to grow to $650.01 in 14 years? A) 6 percent B) 7 percent C) 5 percent D) 8 percent ANSWER A
Patricia purchased a Personal Auto Policy (PAP). Her car was rear-ended by a driver who fled the scene. Patricia suffered whiplash, migraine headaches, and she was unable to work. Which of the following coverages will cover her lost work earnings? A) medical payments B) uninsured motorists C) underinsured motorists D) bodily injury liability […]
A vehicle is considered a constructive total loss when A) it cannot be repaired. B) the repair cost exceeds the actual cash value. C) it can be repaired, but the insured prefers a cash settlement. D) it can be repaired, but the insurer prefers a cash settlement. ANSWER Answer: B
The Securities and Exchange Commission (SEC) A) regulates both primary and secondary markets. B) regulates initial public offerings, but not seasoned equity offerings, in the primary market. C) regulates only initial public offerings, or IPOs. D) regulates only primary market transactions to ensure investors are provided with adequate and accurate information on new securities. […]
Common stockholders’ equity equals common stock issued minus treasury stock. Indicate whether the statement is true or false ANSWER FALSE
