Financial literacy

True or False. Place a check mark or ‘X’ in either the True or False column to i

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…

True or False. Please answer all questions. True/False. Two and a half points ea

True or False. Please answer all questions. True/False. Two and a half points each for a total of fifty points. The market value of any real or financial asset, including stocks, …

True or False: (please justify your answer) 1. There does not exist a financial

True or False: (please justify your answer) 1. There does not exist a financial instrument to insure against the default of bonds or asset-backed debt securities. 2. In the case o…

True or False: 1- Interest rate risk is solely a result of movement of market in

True or False: 1- Interest rate risk is solely a result of movement of market interest 2- Credit unions are not for profit depository institutions, owned by their 3- The US federa…

True or False: 1. The reason why retained earnings have a cost equal to r s is b

True or False: 1. The reason why retained earnings have a cost equal to rs is because investors think they can (i.e., expect to) earn rs on investments with the same risk as the f…

True or False: 1. Traditional 401(k) plans can be funded entirely through salary

True or False: 1. Traditional 401(k) plans can be funded entirely through salary reductions by employees, enabling employers to bear no additional cost for employee compensation. …

True or False: A real option embedded in a capital project gives the investing f

True or False: A real option embedded in a capital project gives the investing firm the right and the obligation to buy, sell, or transform an asset at a set price during a specif…

True or False: If you open an individual retirement account (IRA) at a commercia

True or False: If you open an individual retirement account (IRA) at a commercial bank and deposit $1,000 in the account per year, how much will be in the account after 20 years i…

True or False: In some cases, individuals who start a business have special voti

True or False: In some cases, individuals who start a business have special voting rights that help them exercise more control over the firm. They own a special class of stock cal…

True or False: It is free for a company to raise money through retained earnings

True or False: It is free for a company to raise money through retained earnings, because retained earnings represent money that is left over after dividends are paid out to share…

True or False: It is free for a company to raise money through retained earnings

True or False: It is free for a company to raise money through retained earnings, because retained earnings represent money that is left over after dividends are paid out to share…

True or False: The following statement accurately describes how firms make decis

True or False: The following statement accurately describes how firms make decisions related to issuing new common stock. Taking flotation costs into account will reduce the cost …

True or False: The following statement accurately describes how firms make decis

True or False: The following statement accurately describes how firms make decisions related to issuing new common stock. The cost of issuing new common stock is calculated the sa…

True or False: To segment the rights to which certain common shareholders are en

True or False: To segment the rights to which certain common shareholders are entitled, companies often separate common equity into more than one class of shares called classified…

True or False; Explain A. An investor with a long position in fixed-rate governm

True or False; Explain A. An investor with a long position in fixed-rate government bonds could hedge her risk by buying bond futures? B. An investor with a large portfolio of fix…

True or False? (1) Consider the following price changes over the last year: (a)

True or False? (1) Consider the following price changes over the last year: (a) The US dollar went down by 2.8% (against an index that includes most currencies); (b) Commodity pri…

True or False? (A) MRP system is designed for dealing with independent demand, b

True or False? (A) MRP system is designed for dealing with independent demand, because independent demand pattern tends to be predicatble, but lumpy. (B) The use of small lot size…

True or False? 1) A company that sells common stock and uses the money to pay of

True or False? 1) A company that sells common stock and uses the money to pay off a loan is increasing its use of financial leverage. 2) the initial outlay for a new project is an…

True or False? 1. David and Nate work for two different companies, but each perf

True or False? 1. David and Nate work for two different companies, but each performs the same job working on a loading dock. David, however, earns a higher salary than his friend …

True or False? Explain and qualify. a. Investors demand higher expected rates of

True or False? Explain and qualify. a. Investors demand higher expected rates of return on stocks with more variable rates of return. b. The capital asset pricing model predicts t…

True or False? Preferred stock dividends are paid after interest but before divi

True or False? Preferred stock dividends are paid after interest but before dividends to common stock? T or F Preffered stock dividends are not a tax deductible expense for the fi…

True or false -Placing your trades with a discount broker can save you as much a

True or false -Placing your trades with a discount broker can save you as much as 80% of the commission charged by a full-service broker. -Many brokerage firms require that disput…

True or false 1- Starting to invest early for retirement increases the benefits

True or false 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 of an exp…

True or false 1.Companies raise capital by issuing new securities in secondary m

True or false 1.Companies raise capital by issuing new securities in secondary markets. 4.Preferred dividend payments are fixed amounts paid on a regular basis. 5.Preferred stock …

True or false ? 10.suppose asset A and asset B are uncorrelated and both have a

True or false ? 10.suppose asset A and asset B are uncorrelated and both have a Sharpe ratio of .4. Then a portfolio consisting of equal investment in asset A and asset B will als…

True or false, if false why? 1. When compared to mutual funds and ETFs, hedge fu

True or false, if false why? 1. When compared to mutual funds and ETFs, hedge funds have seen little regulation by the SEC. 2. Money market mutual funds usually invest their money…

True or false. (No explanation is required.) 1. A US$ corporate bond can never h

True or false. (No explanation is required.) 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-ye…

True or false. 1. If your bank in Los angeles is owned by the Argentines, your d

True or false. 1. If your bank in Los angeles is owned by the Argentines, your deposits are less safe than if it were owned by Americans. 2. Collateralized debt obligations(CDO) o…

True or false. No explanation is required. 1. Flipagram’s funding has come from

True or false. No explanation is required. 1.Flipagram’s funding has come from venture capitalists. 2.A TIPS bond would have low duration. 3.For most venture capital investments d…

True or false: 1) other things the same, the use of debt financing rdeuces the f

True or false: 1) other things the same, the use of debt financing rdeuces the firm's total tax bill resulting in a higher market value. 2) accounting profits are used to make cap…

True – False Sequential investing is a way to measure risk not a way to manage r

True – False Sequential investing is a way to measure risk not a way to manage risk. True – False The weighted average cost of existing capital is the change in the total returns …

True, False or Uncertain, and explain why. 1. Differences in expected returns on

True, False or Uncertain, and explain why. 1. Differences in expected returns on stocks across firms are entirely due to differences in the expected return for the market minus th…

True, False or Uncertain? Explain. Systematic risk can be virtually eliminated b

True, False or Uncertain? Explain. Systematic risk can be virtually eliminated by holding a portfolio of a large number of stocks. b.You are a risk-averse investor who is consider…

True- False Questions. Circle T or F. Each questiom is wonh 2 pon o po 1. TF It\

True- False Questions. Circle T or F. Each questiom is wonh 2 pon o po 1. TF It's the debtholders who wlt imately bear the conts of banknugcy 2.T F lfafirm has high tevels of free…

True/False (1 pts..) 1. Parallel development processes are universally endorsed.

True/False(1 pts..) 1. Parallel development processes are universally endorsed. 2. The R&D engineers are often the ones most able to identify the maximum performance capabilit…

True/False (1) The balance sheet measures the flow of funds into and out of vari

True/False (1) The balance sheet measures the flow of funds into and out of various accounts over time, while the income statement measures the firm's financial position at a poin…

True/False (1) The balance sheet measures the flow of funds into and out of vari

True/False (1) The balance sheet measures the flow of funds into and out of various accounts over time, while the income statement measures the firm's financial position at a poin…

True/False - The quick ratio is a measure of sales performace.(T/F) - It is best

True/False - The quick ratio is a measure of sales performace.(T/F) - It is best to reduce cash holdings when attempting to increase the valuation of a company. (T/F) - A repeat c…

True/False All else the same, if a company’s interest rate on its borrowings goe

True/False All else the same, if a company’s interest rate on its borrowings goes down, its coverage ratio will go up. Banks receive interest on their customer deposits. Banks are…

True/False Indicate whether the sentence or statement is true or false. 1. A for

True/False Indicate whether the sentence or statement is true or false. 1. A forecast is an accurate estimate of future demand 2. Lenders require Pro Forma statements because they…

True/False Indicate whether the sentence or statement is true or false. 5. Judgm

True/False Indicate whether the sentence or statement is true or false. 5. Judgmental models are quantitative because they use expert opinion and previous experience to determine …

True/False Indicate whether the statement is true or false. ____ 1. State laws a

True/False Indicate whether the statement is true or false. ____ 1. State laws are the supreme law of the United States. ____ 2. The federal government and the states have the sam…

True/False Questions: Ch. 13: ACC 4301 1. To be eligible for the earned income c

True/False Questions: Ch. 13: ACC 4301 1. To be eligible for the earned income credit, an individual must maintain a household that is the principal abode of a qualifying child. 2…

True/False: These Oestions are numbered 51-55. Use side 2 of the scantron to ans

True/False: These Oestions are numbered 51-55. Use side 2 of the scantron to answer these guestions. Each question is worth two (2) points. Circle the correct option for each ques…

True/false 1. When we fail to reject the null (F R H) then we are accepting the

True/false 1. When we fail to reject the null (F R H) then we are accepting the null True False 2. The sample means which is used to estimate the population mean is a point estima…