Financial literacy
81314 questions • Page 1399 / 1627
Which of the following is CORRECT? Assume that the project being considered has
Which of the following is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. A project's NPV is generally f…
Which of the following is CORRECT? a. a change in a company\'s target capital st
Which of the following is CORRECT? a. a change in a company's target capital structure cannot affect its WACC b. WACC calculations should be based on the before-tax costs of all t…
Which of the following is FALSE for a project whose NPV equals zero? A. The proj
Which of the following is FALSE for a project whose NPV equals zero? A. The projects cash outflows are equal to the present value of the cash inflows B. The project has an actual …
Which of the following is False? In comparison to mortgage pass-though securitie
Which of the following is False? In comparison to mortgage pass-though securities, CMOs attract a broader class of investors because, by prioritizing cash flows, they can offer mo…
Which of the following is Fasle? a. A S&L with high negative asset-liability GAP
Which of the following is Fasle? a. A S&L with high negative asset-liability GAP (i.e repricing gap) might actually do weill in a recession (Hint: Think about what happens to …
Which of the following is NEVER true? A.Quantity restrictions are equivalent to
Which of the following is NEVER true? A.Quantity restrictions are equivalent to using a corrective tax. B.Quantity restrictions with tradable p…
Which of the following is NOT CORRECT? Answer a. An investment that compounds in
Which of the following is NOT CORRECT? Answer a. An investment that compounds interest semiannually, and has a nominal rate of 10%, will have an effective rate less than 10%. b. I…
Which of the following is NOT TRUE about the Internal Rate of Return decision me
Which of the following is NOT TRUE about the Internal Rate of Return decision methodology? a. May result in multiple rate if cash flows are unconventional b. Closely related to NP…
Which of the following is NOT a benefit of participating in a 401(k) plan? Answe
Which of the following is NOT a benefit of participating in a 401(k) plan? Answer Your employer is required to match your contribution up to 6% Contributions are taxed up front, b…
Which of the following is NOT a component, of \'the drive to action\'. what is a
Which of the following is NOT a component, of 'the drive to action'. what is a key trait. of successful businessmen possess? Ambition Compassion High goals and standards Tenacity …
Which of the following is NOT a normal balance? a. a $6,000 credit balance in Di
Which of the following is NOT a normal balance? a. a $6,000 credit balance in Discount on Bonds Payable b. a $9,000 credit balance in Unearned Service Revenue c. a $1,200 debit ba…
Which of the following is NOT a potential problem when estimating and using beta
Which of the following is NOT a potential problem when estimating and using betas, i.e., which statement is FALSE? a. The beta of an "average stock," or "the market," can change o…
Which of the following is NOT a potential problem when estimating and using beta
Which of the following is NOT a potential problem when estimating and using betas, i.e., which statement is FALSE? a. The beta of an "average stock," or "the market," can change o…
Which of the following is NOT a potential problem when estimating and using beta
Which of the following is NOT a potential problem when estimating and using betas, i.e., which statement is FALSE? a. The beta of an "average stock," or "the market," can change o…
Which of the following is NOT a potential problem when estimating and using beta
Which of the following is NOT a potential problem when estimating and using betas, i.e., which statement is FALSE? The fact that a security or project may not have a past history …
Which of the following is NOT a potential problem when estimating and using beta
Which of the following is NOT a potential problem when estimating and using betas? a. Sometimes, during a period when the company is undergoing a change such as toward more leve…
Which of the following is NOT a relevant cash flow and thus should NOT be reflec
Which of the following is NOT a relevant cash flow and thus should NOT be reflected in the analysis of a capital budgeting project? a. Changes in net operating working capital. b.…
Which of the following is NOT a relevant cash flow and thus should NOT be reflec
Which of the following is NOT a relevant cash flow and thus should NOT be reflected in the analysis of a capital budgeting project? Cannibalization effects. Changes in net operati…
Which of the following is NOT a strength of NPV as a capital budgeting technique
Which of the following is NOT a strength of NPV as a capital budgeting technique? NPV is an absolute measure of profitability. NPV never makes a mistake between a good versus bad …
Which of the following is NOT a valid method of modifying cash flows to produce
Which of the following is NOT a valid method of modifying cash flows to produce a MIRR? A. Leave the initial cash flow alone and compound all of the remaining cash flows to the fi…
Which of the following is NOT among the differences between futures contracts an
Which of the following is NOT among the differences between futures contracts and options contracts? a. Futures give the obligation, while options give the right to buy or sell. b…
Which of the following is NOT an advantage of trade credit? Select one: a. Gener
Which of the following is NOT an advantage of trade credit? Select one: a. Generally no formal agreements are involved in the extension of trade credit. b. The cost of forgoing th…
Which of the following is NOT an example of primary data collection? Telephone s
Which of the following is NOT an example of primary data collection? Telephone survey of manufacturers. Computerized literature search of Google.com to learn about the U.S. trade …
Which of the following is NOT an example of tax preparation due diligence? Ensur
Which of the following is NOT an example of tax preparation due diligence? Ensure all income has been reported on tax return Ensure taxpayer meets all due diligence requirements P…
Which of the following is NOT associated with (or does not contribute to) busine
Which of the following is NOT associated with (or does not contribute to) business risk? Recall that business risk is affected by a firm's operations. Sales price variability. The…
Which of the following is NOT correct for a firm with seasonal sales and custome
Which of the following is NOT correct for a firm with seasonal sales and customers who all pay promptly at the end of 30 days? a. DSO will vary from month to month. b. The quarter…
Which of the following is NOT correct? Select one: A. Lease obligations do not a
Which of the following is NOT correct? Select one: A. Lease obligations do not affect the riskiness of the firm B. A sale-leaseback arrangement is a type of financial or capital l…
Which of the following is NOT correct? a) A more aggressive collection policy wi
Which of the following is NOT correct? a) A more aggressive collection policy will reduce bad debt expenses, but my also decrease sales b) Collection policy usually has little imp…
Which of the following is NOT one of the primary distinctions between U.S. and f
Which of the following is NOT one of the primary distinctions between U.S. and foreign labor laws? A.Many non-U.S. nations' laws require employee consultation or participation in …
Which of the following is NOT one of the steps taken in the financial planning p
Which of the following is NOT one of the steps taken in the financial planning process? Answer A. Forecast the funds that will be generated internally. If internal funds are insuf…
Which of the following is NOT one of the steps taken in the financial planning p
Which of the following is NOT one of the steps taken in the financial planning process? a. Assumptions are made about future levels of sales, costs, and interest rates for use in …
Which of the following is NOT true about American Depository Receipts (ADRs)? A.
Which of the following is NOT true about American Depository Receipts (ADRs)? A. ADRs are claims issued by U.S. financial intermediaries (FIs) against shares in foreign companies,…
Which of the following is NOT true about HELOCS? A. Borrowers have flexibility i
Which of the following is NOT true about HELOCS? A. Borrowers have flexibility in the amount of monthly payments made each month. B. The money from the HELOC is distributed as a l…
Which of the following is NOT true regarding common stock? Select one: a. Common
Which of the following is NOT true regarding common stock? Select one: a. Common stock, unlike bond principal, does not mature. b. Dividend payments, like interest payments, are f…
Which of the following is NOT true? a) Financial arrangements can affect sales p
Which of the following is NOT true? a) Financial arrangements can affect sales prices b) Considering its cost, a swimming pool may not contribute positively to the value of a prop…
Which of the following is a benefit of securitization to investors? A. Diversifi
Which of the following is a benefit of securitization to investors? A. Diversification into different asset classes otherwise not easily accessible B. Ability to tailor risk/retur…
Which of the following is a characteristic of beta? A - Beta measures only the v
Which of the following is a characteristic of beta? A - Beta measures only the volatility of returns on an individual bond relative to a bond market index B - A beta of 1.0 is of …
Which of the following is a conclusion of using the generational accounting meas
Which of the following is a conclusion of using the generational accounting measure? a) Males born in 1998 are projected to pay less in taxes than they will receive in benefits fr…
Which of the following is a contractual savings institution? a life insurance co
Which of the following is a contractual savings institution? a life insurance company a credit union a savings and loan association a mutual fund Economists group commercial banks…
Which of the following is a correct equation to solve for the NPV of the project
Which of the following is a correct equation to solve for the NPV of the project that has an initial outlay of $30,000, followed by incremental cash inflows in the next 3 years of…
Which of the following is a correct interpretation of an operating margin of 0.3
Which of the following is a correct interpretation of an operating margin of 0.35? For each $1 of sales the firm earns thirty five cents in net income. For each $1 of sales the fi…
Which of the following is a correct threshold for investment grade rating? O A.
Which of the following is a correct threshold for investment grade rating? O A. Moody's: ratings BB and better are investment grade; S&P ratings Ba and better are investment g…
Which of the following is a disadvantage of ETFs? Answer They cannot be bought o
Which of the following is a disadvantage of ETFs? Answer They cannot be bought on margin They have slippage due to bid/ask spreads They typically have higher annual expenses They …
Which of the following is a disadvantage of funding a designated Roth account? A
Which of the following is a disadvantage of funding a designated Roth account? A)Employer matching contributions cannot be made to the designated Roth account, but must be made to…
Which of the following is a false statement? When one writes a put option, he is
Which of the following is a false statement? When one writes a put option, he is taking a short position of the put option. When options are exercised, the company does not issue …
Which of the following is a firm\'s cash cycle? Select one: a. the average lengt
Which of the following is a firm's cash cycle? Select one: a. the average length of time between when a firm originally purchases its inventory and when it receives the cash back …
Which of the following is a limitation of the dividend-discount model? A) It can
Which of the following is a limitation of the dividend-discount model? A) It cannot handle negative growth rates. B) It requires accurate dividend forecasts, which is not possible…
Which of the following is a measure of accounting profit relative to book value?
Which of the following is a measure of accounting profit relative to book value? a)Net Present Value b)Profitability Index c)Internal Rate of Return d)Average Accounting Return qu…
Which of the following is a period cost: a. Selling expenses b. Prepaid rent c.
Which of the following is a period cost: a. Selling expenses b. Prepaid rent c. Direct labour d. Manufacturing overhead Which of the following is a product cost a. Commissions b. …
Which of the following is a primary market transaction? A. You sell 200 shares o
Which of the following is a primary market transaction? A. You sell 200 shares of Johnson & Johnson stock on the NYSE through your broker. B. Johnson & Johnson issues 2,00…
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