Financial literacy
81314 questions • Page 1393 / 1627
When a merger is a , it is easier to predict the post-merger cash flows of the t
When a merger is a , it is easier to predict the post-merger cash flows of the target firm. Consider the following scenario: Three Waters Co. is considering an acquisition of Drug…
When a mortgage is for 15 years at a 4.5% interest and the amount borrowed is $2
When a mortgage is for 15 years at a 4.5% interest and the amount borrowed is $200,000 and closing costs are 4% of the new mortgage paid at closing by the buyer what is the...a) m…
When a pharmaceutical company develops a new drug, it often receives patent prot
When a pharmaceutical company develops a new drug, it often receives patent protection for that medication, allowing it to charge a higher price. Explain how this public policy of…
When a project involves an entirely new product line, the firm may be able to ob
When a project involves an entirely new product line, the firm may be able to obtain betas from the firm's previous projects pure-play companies in the new area the firm's previou…
When a project\'s internal rate of return equals its opportunity cost of capital
When a project's internal rate of return equals its opportunity cost of capital, then: The net present value will be negative. The net present value is a linear combination of MIR…
When a speaker aims to reverse audience beliefs, they should use the strategy. a
When a speaker aims to reverse audience beliefs, they should use the strategy. a. Weakening commitment b. Strengthening commitment c. Conversion d. Manipulation Juan knows that hi…
When a taxpayer\'s income increases $1,000 and the taxes owed increases from $7,
When a taxpayer's income increases $1,000 and the taxes owed increases from $7,867 to $8,177, the marginal tax rate is ______ percent. 15 …
When an analyst arrives at a cost of capital for an upcoming project and that co
When an analyst arrives at a cost of capital for an upcoming project and that cost of capital is based on the cost of capital for another firm which operates similarly to your pro…
When an investor buys a previously issued bond whose stated interest rate is bel
When an investor buys a previously issued bond whose stated interest rate is below current market rates the price paid is likely to be d. the par value. If you want to know the an…
When analyzing a potential project, depreciation costs become important because
When analyzing a potential project, depreciation costs become important because _______. Question 24 options: depreciation costs themselves are cash flows. depreciation costs allo…
When answering, please clearly identify which question your answer belongs to. 1
When answering, please clearly identify which question your answer belongs to. 1.) What are 3 brands of the same product (e.g., breakfast cereal) that are positioned differently? …
When anthropologists first studied people hundreds of years ago they noted that
When anthropologists first studied people hundreds of years ago they noted that all people they studied were ethnocentric. Ethnocentrism is still major social problem we face in t…
When asked why Google used an auction for its IPO, CEO Eric Schmidt replied that
When asked why Google used an auction for its IPO, CEO Eric Schmidt replied that they chose it as "a means of allowing (everyone) to participate". Does the goal of opening an IPO …
When bond prices fall, yields tend to: fall twice as fast Get downgraded Rise Ge
When bond prices fall, yields tend to: fall twice as fast Get downgraded Rise Get upgraded Get converted to common stock equity in preparation for an IPO The intention of the Alle…
When bonds change in value depending on the going market rate of interest, compa
When bonds change in value depending on the going market rate of interest, companies are permitted, but not required, to recognize changes in value of such liabilities. Under what…
When calculating bond cash flows for bond valuation, the bond interest payment i
When calculating bond cash flows for bond valuation, the bond interest payment is calculated by _______. adding the market interest rates to the bond price. dividing the current p…
When calculating the net cash flow in a project\'s expected final year, a. recov
When calculating the net cash flow in a project's expected final year, a. recovery of any working capital invested is disregarded b. the after-tax salvage value of any project equ…
When calculating your net taavie ic Explain with an example Problem 3: (25 point
When calculating your net taavie ic Explain with an example Problem 3: (25 points Your regular business has a annual taxable income of $65000. You are investing in concrete mixing…
When can the book value of an asset on a corporation s balance sheet exceed the
When can the book value of an asset on a corporation s balance sheet exceed the market value of that asset? A. When the corporation has fully depreciated the asset for tax purpose…
When choosing a capital structure, the objective of the firm should be to a) cho
When choosing a capital structure, the objective of the firm should be to a) choose the one that maximizes the firm's WACC b) choose any capital structure since capital structure …
When choosing a capital structure, the objective of the firm should be to a) cho
When choosing a capital structure, the objective of the firm should be to a) choose the one that maximizes the firm's WACC b) choose the one that results in the greatest possible …
When choosing between two mutually exclusive projects using the payback period m
When choosing between two mutually exclusive projects using the payback period method for evaluating capital projects, one would choose either project if they both are more than m…
When compared with other governments around the world, government spending in th
When compared with other governments around the world, government spending in the United States as a percentage of GDP_____. a. is generally lower than similar countries b. …
When comparing Q1 for 2013 and 2014, what items cause significant changes in sal
When comparing Q1 for 2013 and 2014, what items cause significant changes in sales and profitability, and what factors of business may be responsible for those changes? Please ela…
When comparing patterns of product and process innovation, what pattern is commo
When comparing patterns of product and process innovation, what pattern is commonly observed? Process innovation occurs randomly at any stage of product development, but product i…
When comparing two projects with different lives, why do you compute an annuity
When comparing two projects with different lives, why do you compute an annuity with an equivalent present value (PV) to the net present value (NPV)? Explain. A. to reduce the dan…
When computing the NPV of an investment opportunity, which of the following item
When computing the NPV of an investment opportunity, which of the following items should be treated as an incremental cash flow? Provide an explanation for each item. Dividend pay…
When considering a sole proprietorship, which of the following statements is cor
When considering a sole proprietorship, which of the following statements is correct? Select one: a. One of the benefits of a sole proprietorship is to protect the owner’s persona…
When considering including two pieces of equipment, a truck and an overhead pull
When considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects are independent. The cash outlay for the tru…
When considering stand-alone risk, the return distribution of a less risky inves
When considering stand-alone risk, the return distribution of a less risky investment is more placed ("tighter") than that of a riskier investment. What shape would the return dis…
When considering the impact of the information age on business, what are some is
When considering the impact of the information age on business, what are some issues business owners should address in deciding to use information technology. Would the type of bu…
When considering the impact of the information age on business, what are some is
When considering the impact of the information age on business, what are some issues business owners should address in deciding to use information technology. Would the type of bu…
When considering the results of an Altman Z-Score analysis a score of 2.20 would
When considering the results of an Altman Z-Score analysis a score of 2.20 would suggest? The company is exposed to some risk of bankruptcy The company is healthy and there is a l…
When creating a synthetic security, in order to successfully create the security
When creating a synthetic security, in order to successfully create the security, a number of assumptions or theories must be accepted or adhered to: a. One assumption is liquidit…
When deciding to fund a project, a financial manager considers the Net Present V
When deciding to fund a project, a financial manager considers the Net Present Value, the Internal Rate of Return, the Profitability Index, and the Payback Period. Yet there are o…
When deciding whether to invest in a Traditional IRA or a Roth IRA one would con
When deciding whether to invest in a Traditional IRA or a Roth IRA one would consider all except the amount of income you expect to make at retirement whether you are covered by a…
When defining the fix of the firm’s equity and debt financing, which one of the
When defining the fix of the firm’s equity and debt financing, which one of the following terms applies? Select one: a. Working capital management b. Cash management c. Cost analy…
When derivative market observes decrease in overall notional amount but increase
When derivative market observes decrease in overall notional amount but increase in market values of all outstanding contracts, this is an indication that : (A) Investors increase…
When doing your Benchmark Analysis, you would calculate the 5 financial ratios y
When doing your Benchmark Analysis, you would calculate the 5 financial ratios you chose for Bojangles then also calculate them for KFC (or Coca Cola and Pepsi). This is not a tre…
When equal payments are made at the end of each period for a certain time p ordi
When equal payments are made at the end of each period for a certain time p ordinary annuities. An ordinary annuity of equal time earns less interest than an annuity due. X When e…
When estimating the cost of equity by use of the CAPM, three potential problems
When estimating the cost of equity by use of the CAPM, three potential problems are (1) whether to use long-term or short-term rates for rRF, (2) whether or not the historical bet…
When estimating the cost of equity by use of the CAPM, three potential problems
When estimating the cost of equity by use of the CAPM, three potential problems are (1) whether to use long-term or short-term rates for rRF, (2) whether or not the historical bet…
When estimating the cost of equity by use of the CAPM, three potential problems
When estimating the cost of equity by use of the CAPM, three potential problems are (1) whether to use long-term or short-term rates for rRF, (2) whether or not the historical bet…
When evaluating a capital project, estimating \"incremental after-tax cash flows
When evaluating a capital project, estimating "incremental after-tax cash flows" is the most important, and most difficult, part of the financial analysis. "Incremental after-tax …
When evaluating a project, the portion of the variable expenses that would be al
When evaluating a project, the portion of the variable expenses that would be allocated to the project should be: included as a cash outflow on an after tax basis by multiplying t…
When evaluating a single alternative using annual cash flow analysis, the altern
When evaluating a single alternative using annual cash flow analysis, the alternative is recommended for investment if (EAB - EAC) is positive or zero at the MARR. Otherwise, reje…
When evaluating how much money you will net to keep if you take on a second (par
When evaluating how much money you will net to keep if you take on a second (part-time) job. which of the following should you consider? Your initial tax rate Your average tax rat…
When evaluating potential projects, which of the following factors should be inc
When evaluating potential projects, which of the following factors should be incorporated as part of a project’s estimated cash flows? Any sunk costs that were incurred in the pas…
When firms use multiple sources of capital, they need to calculate the appropria
When firms use multiple sources of capital, they need to calculate the appropriate discount rate for valuing their firm's cash flows as: a simple average of the capital components…
When forecasting balance sheet financials, an unusually high projected short-ter
When forecasting balance sheet financials, an unusually high projected short-term investment balance suggests which of the following? Sales are projected to increase in coming yea…
Subject
Financial literacy
Use Browse or pick another subject.