Financial literacy

Which of the following are imporatnt ways in which mortgage differ from the stoc

Which of the following are imporatnt ways in which mortgage differ from the stock and bond markets? The usual borrowers in the capital markets are government entities and business…

Which of the following are measures of liquidity? Chipotle traded at dollar 510

Which of the following are measures of liquidity? Chipotle traded at dollar 510 per share and has a beta of 0.48, T bills earn 1% and market risk is 99% you expect the return for …

Which of the following are motives for holding cash? a. cash needs arising in th

Which of the following are motives for holding cash? a. cash needs arising in the ordinary course of doingbusiness b. cash needs that may possibly arise but as of yet areunknown c…

Which of the following are negative covenants that might be found in an indentur

Which of the following are negative covenants that might be found in an indenture? I. The firm must maintain a debt-equity ratio of .55 or less. II. The firm cannot merge with ano…

Which of the following are not covered in a typical Homeowner\'s Insurance polic

Which of the following are not covered in a typical Homeowner's Insurance policy? The cost of staying in a hotel while your home is rebuilt after a fire Damage to your home from a…

Which of the following are regulations that are designed to reduce the moral haz

Which of the following are regulations that are designed to reduce the moral hazard created by deposit insurance? Instructions: You may select more than one answer. Click the box …

Which of the following are regulations that are designed to reduce the moral haz

Which of the following are regulations that are designed to reduce the moral hazard created by deposit insurance? Instructions: You may select more than one answer. Click the box …

Which of the following are regulations that are designed to reduce the moral haz

Which of the following are regulations that are designed to reduce the moral hazard created by deposit insurance? Instructions: In order to receive full credit, you must make a se…

Which of the following are relevant cash flows and what type of cost would you c

Which of the following are relevant cash flows and what type of cost would you categorize them as given all the cost terms covered in this chapter? The CEO will spend 20% of his t…

Which of the following are relevant cash flows? A cell-phone company losses $10,

Which of the following are relevant cash flows? A cell-phone company losses $10,000 of sales of an old phone model due to a new model hitting the market. You pay a lawyer $34,000 …

Which of the following are steps taken in applying the operating income approach

Which of the following are steps taken in applying the operating income approach in determining how much debt a firm can carry? Question 9 options: Assesses both current condition…

Which of the following are tax deductible items to a corporation? interest expen

Which of the following are tax deductible items to a corporation? interest expenses dividends to common stockholders dividends to preferred stockholders interest expenses and divi…

Which of the following are the fundamental factors defining the firm?s value? Ch

Which of the following are the fundamental factors defining the firm?s value? Check all that apply. The ratio of operating capital to sales The ratio of NOPAT to sales Operating c…

Which of the following are third-party beneficiaries? John, when John\'s uncle a

Which of the following are third-party beneficiaries? John, when John's uncle agrees to paint Bob's house. Jane agrees, in writing, to buy Susan's house for $300,000 as soon as Ja…

Which of the following are true about exchanges of property under section 1031 I

Which of the following are true about exchanges of property under section 1031 IRC? A. Gain is not recognized at the time the exchange is made unless there is "boot." B. The basis…

Which of the following are true about the relation between debt and equity finan

Which of the following are true about the relation between debt and equity financing? (choose all that apply) The cost of debt is always less than the cost of equity. The cost of …

Which of the following are true concerning a qualified domestic trust (QDOT)? 1.

Which of the following are true concerning a qualified domestic trust (QDOT)? 1. It is common for the surviving spouse to receive an income interest in the trust. 2. It is designe…

Which of the following are true regarding capital budgeting tools? (Can be multi

Which of the following are true regarding capital budgeting tools? (Can be multiple) I. NPV can provide the incorrect answer when faced with unconventional cash flows. II. The IRR…

Which of the following are true? For 10 year holding periods the worst U.S. stoc

Which of the following are true? For 10 year holding periods the worst U.S. stock (well diversified stock portfolio) performance had actually been better than for (U.S. Government…

Which of the following are ways that a firm can reduce cash flows in order to pr

Which of the following are ways that a firm can reduce cash flows in order to prevent managers from wastefully spending excess cash flows? Check all that apply ? Minimizing the am…

Which of the following are ways to proactively search for fraud symptoms? Questi

Which of the following are ways to proactively search for fraud symptoms? Question 15 options: Investigating anomalies noticed when sampling transactions for routine control testi…

Which of the following argues for extending credit? 1. an increase in both sales

Which of the following argues for extending credit? 1. an increase in both sales and inventory turnover 2. an increase in both carrying costs and in sales 3. an increase in bad de…

Which of the following assets held by a wholesale business is an ordinary asset?

Which of the following assets held by a wholesale business is an ordinary asset? Answer a. Inventory. b. A machine used in the business and held more than one year. c. A factory b…

Which of the following assets is worth the most? Which is worth the least? a) a

Which of the following assets is worth the most? Which is worth the least? a) a 25 year, $1,500,000 zero-coupon (no interest) bond b) a 40 year annuity paying $25,000 per year c) …

Which of the following assets likely has the highest level of risk? (Therefore t

Which of the following assets likely has the highest level of risk? (Therefore the highest expected rerun?) A. Long term corporate bonds B. Common stock of the small companies lis…

Which of the following bank accounts has the lowest effective annual return? An

Which of the following bank accounts has the lowest effective annual return? An account that pays 8% nominal interest with monthly compounding. An account that pays 8% nominal int…

Which of the following bes describes a typical Family Restaurant. Its inventory

Which of the following bes describes a typical Family Restaurant. Its inventory tumover is less than 2. Its collection period is more than 30 days. The majority of its assets are …

Which of the following best describes a franchise? Question 4 options: A retaile

Which of the following best describes a franchise? Question 4 options: A retailer pays a fee to operate a business using a particular name under a standardized general business pl…

Which of the following best describes a typical Family Restaurant? Its inventory

Which of the following best describes a typical Family Restaurant? Its inventory trun-over is less than 2. Its collection period is more than 30 days. The majority of its assets a…

Which of the following best describes how corporations are taxed on dividend inc

Which of the following best describes how corporations are taxed on dividend income? a. Like individuals, corporations are taxed on all dividends received. b. Seventy percent of d…

Which of the following best describes investment risk? A. The probability of ach

Which of the following best describes investment risk? A. The probability of achieving an improbable event B. the possibility of making a profit C. The potential variability in fu…

Which of the following best describes the reinvestment assumptions implicit in t

Which of the following best describes the reinvestment assumptions implicit in the internal rate of return (IRR) method and the net present value (NPV) method? Select one: a. Both…

Which of the following best explains why a firm that needs to borrow money would

Which of the following best explains why a firm that needs to borrow money would borrow at long-term rates when short-terms rates are lower than long-term rates? The use of short-…

Which of the following best explains why a firm that needs to borrow money would

Which of the following best explains why a firm that needs to borrow money would borrow at long-term rates when short-terms rates are lower than long-term rates? Short-term intere…

Which of the following best explains why a firm that needs to borrow money would

Which of the following best explains why a firm that needs to borrow money would borrow at long-term rates whern short-terms rates are lower than long-term rates? O The use of sho…

Which of the following best explains why a firm that needs to borrow money would

Which of the following best explains why a firm that needs to borrow money would borrow at long-term rates when short-terms rates are lower than long-term rates? O A firm will onl…

Which of the following best explains why is it sensible for a firm to use an acc

Which of the following best explains why is it sensible for a firm to use an accelerated depreciation schedule such as MACRS rather than straight-line depreciation? A) The firm wi…

Which of the following best explains why is it sensible for a firm to use an acc

Which of the following best explains why is it sensible for a firm to use an accelerated depreciation schedule such as MACRS rather than straight-line depreciation? A) The firm wi…

Which of the following best explains why is it sensible for a firm to use an acc

Which of the following best explains why is it sensible for a firm to use an accelerated depreciation schedule such as MACRS rather than straight-line depreciation? A) The firm wi…

Which of the following best shows the timeline for cash flows from a five-year b

Which of the following best shows the timeline for cash flows from a five-year bond with a face value of $5000 , a coupon rate of 5.4 % , and semiannual payments? A. Period 0 1 2 …

Which of the following bonds is trading at a premium? A) a five-year bond with a

Which of the following bonds is trading at a premium? A) a five-year bond with a $2000 face value whose yield to maturity is 7.0% and coupon rate is 7.2% APR paid semiannually B) …

Which of the following bonds is trading at a premium? Question 10 options: 1) a

Which of the following bonds is trading at a premium? Question 10 options: 1) a five-year bond with a $2000 face value whose yield to maturity is 7.0% and coupon rate is 7.2% APR …

Which of the following bonds is trading at a premium? Question 47 options: 1) a

Which of the following bonds is trading at a premium? Question 47 options: 1) a five-year bond with a $2000 face value whose yield to maturity is 7.0% and coupon rate is 7.2% APR …

Which of the following bonds is trading at a premium? Which of the following bon

Which of the following bonds is trading at a premium? Which of the following bonds is trading at a premium? a) a ten-year bond with a $4000 face value whose yield to maturity is 6…

Which of the following bonds offers the highest current yield? a. A 8.70%, 20-ye

Which of the following bonds offers the highest current yield? a. A 8.70%, 20-year bond quoted at 93.547 b. A 14.50%, 15-year bond quoted at 155.911. C. A 4.35%, 18-year bond quot…

Which of the following bonds offers the highest current? yield? a. A 12.18?%, ?2

Which of the following bonds offers the highest current? yield? a. A 12.18?%, ?20-year bond quoted at 95.057. b. A 20.30?%, ?15-year bond quoted at 158.429. c. A 6.09%, 18-year bo…

Which of the following bonds will be least sensitive to a change in interest rat

Which of the following bonds will be least sensitive to a change in interest rates? A. a tenminus year bond with a $2,000 face value whose yield to maturity is 5.8% and coupon rat…

Which of the following bonds will be most sensitive to a change in interest rate

Which of the following bonds will be most sensitive to a change in interest rates? A) a ten-year bond with a $2000 face value whose yield to maturity is 5.8% and coupon rate is 5.…

Which of the following bonds will be priced at par if the yield to maturity for

Which of the following bonds will be priced at par if the yield to maturity for all of the bonds is 7%? I) A 5-year maturity bond with a 7% coupon rate that makes annual coupon pa…

Which of the following bonds would be cheapest to deliver given a T-note futures

Which of the following bonds would be cheapest to deliver given a T-note futures price of 120.6773? (Assume that all bonds have semiannual coupon payments based on a par value of …