Financial literacy

Trower Corp. has a debt–equity ratio of .85. The company is considering a new pl

Trower Corp. has a debt–equity ratio of .85. The company is considering a new plant that will cost $114 million to build. When the company issues new equity, it incurs a flotation…

Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment

Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the …

Troy Industries purchased a new machine 3 years ago for $80,000. It is being dep

Troy Industries purchased a new machine 3 years ago for $80,000. It is being depreciated under MACRS with a 5-year recovery period using the percentages given in Table 4.2 on page…

Troy and Lisa Kruse just purchased their first home with a traditional (monthly

Troy and Lisa Kruse just purchased their first home with a traditional (monthly compounding and payments) 6%, 30-year mortgage loan of $178,000. a. How much is their monthly payme…

Trucking is considering whether to expand its regional service center in Mohab,

Trucking is considering whether to expand its regional service center in Mohab, U equipment, which is valued at $1 million. Thus, in year 9 the investment cash inflow (Net present…

Trucks are required to pass through a weighing station so that they can be check

Trucks are required to pass through a weighing station so that they can be checked for weight violations. Trucks arrive at the station at the rate of 40 an hour between 7:00 p.m. …

Trucks are required to pass through a weighing station so that they can be check

Trucks are required to pass through a weighing station so that they can be checked for weight violations. Trucks arrive at the station at the rate of 40 an hour between 7:00 p.m. …

True & False 1. The preemptive right gives current stockholders the right to pur

True & False 1.    The preemptive right gives current stockholders the right to purchase, on a pro rata basis, any new shares issued by the firm. This right helps protect curr…

True / False Questions 18. Compound interest pays interest for each time period

True / False Questions 18. Compound interest pays interest for each time period on the original investment plus the accumulated interest. True False 19. For a given amount, the lo…

True / False Questions 6. Residual income is another term for economic value add

True / False Questions 6. Residual income is another term for economic value added. True False 7. EVA is the net profit of the firm adjusted for the cost of capital. True False 8.…

True Blue Company increased its investments in marketable securities by $323,370

True Blue Company increased its investments in marketable securities by $323,370 and paid $1,220,231 for new fixed assests during 2014. The company also repaid $779,200 of existin…

True Blue Transport has a current stock price of $27. For the past year, the com

True Blue Transport has a current stock price of $27. For the past year, the company had net income of $2,187,400, total equity of $13,892,300, sales of $26,511,000, and 2.5 milli…

True Value Tools is considering a new, eight-year maturity bond offering. The in

True Value Tools is considering a new, eight-year maturity bond offering. The investment bankers tell them that the issue costs will amount to two percent of the sale price of the…

True and False questions only please 18. Financial statement (ratio) analysis is

True and False questions only please 18. Financial statement (ratio) analysis is complete and it does not have any limitations. 19. When you buy a call option, your profit rises a…

True and False... please let me know if u are not sure about any one. dont just

True and False... please let me know if u are not sure about any one. dont just guess. thanks. (Print T or F in the space provided to answer each 1. With a formal discipline proce…

True of False? 1. In projecting financial statements, if the left side of the ba

True of False? 1. In projecting financial statements, if the left side of the balance sheet (i.e., the total assets) is more than the right side of the balance sheet, the company …

True of False? Why? 1) A project’s cost of capital is what the organization shou

True of False? Why? 1) A project’s cost of capital is what the organization should earn from the project and the project’s internal rate of return is what the organization can exp…

True of false ? 1.A US$ corporate bond can never have a yield lower than a US go

True of false ? 1.A US$ corporate bond can never have a yield lower than a US government bond with the same maturity. 2.If interest rates rise a 10-year zero coupon bond would fal…

True of false ? 1.A US$ corporate bond can never have a yield lower than a US go

True of false ? 1.A US$ corporate bond can never have a yield lower than a US government bond with the same maturity. 2.If interest rates rise a 10-year zero coupon bond would fal…

True or False ( Please explain 2 and 4, the rest I just want to double check my

True or False (Please explain 2 and 4, the rest I just want to double check my answers) 1. Solvency describes a company's ability to meet its short-term financial obligations whil…

True or False - Flankers are positioned to take sales away from competition? Tru

True or False - Flankers are positioned to take sales away from competition? True or False - A pure service is tied to a physical product? Which of the following are the 4 disting…

True or False - If a stock\'s price is above the strike price of a call option w

True or False - If a stock's price is above the strike price of a call option written on the stock, then the exercise value is equal to the stock minus the strike price. If the st…

True or False - The mean-reverting behavior of sales growth and return on equity

True or False -   The mean-reverting behavior of sales growth and return on equity that is demonstrated by the broader market can be applied to all companies in that market. True …

True or False -Positive of a municipal bond over a corporate bond is that intere

True or False -Positive of a municipal bond over a corporate bond is that interest from a municipal bond is tax exempt. -a $1000 par bond is purchased for $960, has 8 years to mat…

True or False 1) At the end of each accounting period, trading debt securities m

True or False 1) At the end of each accounting period, trading debt securities must be adjusted and reported at fair value. 2) Depreciation means that the business sets aside case…

True or False 1) For a given positive interest rate, the future value of $100 in

True or False 1) For a given positive interest rate, the future value of $100 increases with the passage of time. Thus, the longer the period of time, the greater the future value…

True or False 1)Lawsuit risk is one of the three major risks attitudes that prev

True or False 1)Lawsuit risk is one of the three major risks attitudes that prevail in our lives 2.During the financial crisis (or great recession) of 2007/2008, many mortgages, i…

True or False 1. A rise in the market interest rate will cause the market value

True or False 1. A rise in the market interest rate will cause the market value of a financial instrument such as a bond to rise. 2. When the yield to maturity of a bond is the sa…

True or False 1. Capital refers to the resource requirements the healthcare orga

True or False 1. Capital refers to the resource requirements the healthcare organization uses to expand and grow by well timed and effective projects. 2. The use of Debt and Equit…

True or False 1. Suppose you are given a positive discount (or interest/compound

True or False 1. Suppose you are given a positive discount (or interest/compound) rate. If you calculated the PV (present value) of a series of equal cash flows, it will always ex…

True or False 1.) Your expected future lifestyle doesn’t need to be taken into a

True or False 1.) Your expected future lifestyle doesn’t need to be taken into account when planning for retirement. 2.) The Financial Industry Regulatory Authority does not restr…

True or False 1.If an investor buys enough stocks, he or she can, through divers

True or False 1.If an investor buys enough stocks, he or she can, through diversification, eliminate all of the market risk inherent in owning stocks, but as a general rule it wil…

True or False 1.Starting to invest late for retirement increases the benefits of

True or False 1.Starting to invest late for retirement increases the benefits of compound interest. 2.Variance is a measure of the variability of returns, and since it involves sq…

True or False 16) An income statement reports a firm\'s cumulative revenues and

True or False 16) An income statement reports a firm's cumulative revenues and expenses from the inception of the firm through the income statement date. 17) Owners equity increas…

True or False 5. The corporate valuation model can be used only when a company d

True or False 5. The corporate valuation model can be used only when a company doesn’t pay dividends. 6. From an investor’s perspective, a firm’s preferred stock is generally cons…

True or False 9.An indenture is a bond that is backed by good faith of the compa

True or False 9.An indenture is a bond that is backed by good faith of the company. 10.Default risk is the risk that a company can't make its' interest payments. 11.Subordinated d…

True or False : In general, the more business risk that a firm experienes, the m

True or False: In general, the more business risk that a firm experienes, the more financial leverage the firm will want to employ in its capital structure. True or False: When it…

True or False If an individual actively participates in the management of a rent

True or False If an individual actively participates in the management of a rental property, he may deduct the full amount of the passive activity losses from active income, regar…

True or False Question If the statement is false, please correct it. 1: Annuitie

True or False Question If the statement is false, please correct it. 1: Annuities are unequal cash flows that go on for a finite period of time. 2: We can determine which “PTM” we…

True or False Small group coverage mitigates the problem of adverse selection fo

True or False Small group coverage mitigates the problem of adverse selection for the nine percent of the population who purchase health insurance individually. High deductible pl…

True or False Some capital investments may require several years of outlays befo

True or False Some capital investments may require several years of outlays before they begin to generate cash inflows. True or False Trend analysis is a form of sales forecasting…

True or False ____1. Pure risks are those that, when they occur, create a loss.

True or False ____1.   Pure risks are those that, when they occur, create a loss. ____2.   Insurance is a contract of indemnity, which means that a person is entitled to compensat…

True or False ______ 26) Debentures are an important source of short-term funds

True or False ______ 26) Debentures are an important source of short-term funds for smaller businesses. ______ 27) You will receive $5,000 at the end of 5 years and the rate on co…

True or False ______ 6) Liquidity ratios indicate how fast a company can generat

True or False ______ 6) Liquidity ratios indicate how fast a company can generate cash to pay bills. ______ 7) Financial ratios are exclusively used for those areas of business th…

True or False and Why? 1) When preferred stock has a convertible component in it

True or False and Why? 1) When preferred stock has a convertible component in its offering, the conversion ratio is the ratio that determines how many shares of common stock the i…

True or False and why? 1) An organization’s return on equity will be affected by

True or False and why? 1)  An organization’s return on equity will be affected by the organization’s operating, investing, and financing activities. 2)  When converting from a bon…

True or False questions 1-Starting to invest early for retirement increases the

True or False questions 1-Starting to invest early for retirement increases the benefits of compound interest. 2- If the discount (or interest) rate is positive, the future value …

True or False, Why? 1) The payback period rule, unlike the net present value rul

True or False, Why? 1) The payback period rule, unlike the net present value rule, adjusts for the riskiness of an investment 2) Information signaling can occur in a variety of wa…

True or False,why? 1) Stock buybacks should be considered with other alternative

True or False,why? 1) Stock buybacks should be considered with other alternative investments, using the same criteria of payback, NPV or IRR. 2) A stock repurchase will increase a…

True or False. Place a check mark or X in either the True or False column to ind

True or False. Place a check mark or X in either the True or False column to indicate your answer. True False In order for there to be a benefit to including two stocks in a portf…