Financial literacy

Which of the following would offer the best return on investment? Assume that yo

Which of the following would offer the best return on investment? Assume that you buy $7,000 in stock in all three cases, and ignore interest and transaction costs in all your cal…

Which of the following would tend to reduce the weighted average cost of capital

Which of the following would tend to reduce the weighted average cost of capital for a firm? The expected return on the market portfolio decreases but the risk-free rate stays the…

Which of the following yields on a stock can be negative? The capital asset pric

Which of the following yields on a stock can be negative? The capital asset pricing model approach to equity valuation: The weighted average cost of capital for a firm can depend …

Which of the followingare relatedto profit sharing plans? Answer They are the ne

Which of the followingare relatedto profit sharing plans? Answer They are the newest form of a defined benefit plan Employers may contribute a maximum of 15% or $35,000 a year The…

Which of the followings are likely to increase the value of an asset? Question 1

Which of the followings are likely to increase the value of an asset? Question 14 options: An increase in the amount of expected cash flows from the asset A delay in the timing of…

Which of the followings is correct? Question 11 options: a) The slope of the SML

Which of the followings is correct? Question 11 options: a) The slope of the SML is determined by the value of beta. b) The capital market line is all linear combinations of the r…

Which of the statements below is FALSE? 1 Common stock\'s ownership claim on the

Which of the statements below is FALSE? 1 Common stock's ownership claim on the assets and cash flow of a company is often 2 Shareholders elect the board of directors, which ultim…

Which of the statements below is FALSE? A. To account for the time value of mone

Which of the statements below is FALSE? A. To account for the time value of money with the Payback Period Model, the future cash flow needs to be restated in current dollars. B. T…

Which of the statements below is FALSE? Question 14 options: 1) Common stock’s o

Which of the statements below is FALSE? Question 14 options: 1) Common stock’s ownership claim on the assets and cash flow of a company is often referred to as a residual claim. 2…

Which of the statements below is TRUE? A) If we realize that NPV is the present

Which of the statements below is TRUE? A) If we realize that NPV is the present value of the benefits minus the present value of the costs, then we simply need to subtract the cos…

Which of the statements below is TRUE? A. A problem with using the dividend grow

Which of the statements below is TRUE? A. A problem with using the dividend growth model is that it appears to underestimate the expected return for all stocks. B. A problem with …

Which of the statements below is TRUE? Decreases in accounts receivables constit

Which of the statements below is TRUE? Decreases in accounts receivables constitute a use of cash flow because you are helping your customers finance their purchases. Decreases in…

Which of the statements below is true? A. The hurdle rate is the cost of debt ne

Which of the statements below is true? A. The hurdle rate is the cost of debt needed to fund a project. B. If the IRR exceeds a project's hurdle rate, the project should be reject…

Which of the statements is true about the values recorded in the balance sheet o

Which of the statements is true about the values recorded in the balance sheet of a firm? a. The book values of a firm's assets will be equal to the market values of the firm's as…

Which of the tolhowing rales is CORRECT for capital bdgsting nays Tr a pshct is

Which of the tolhowing rales is CORRECT for capital bdgsting nays Tr a pshct is competitive with some of the fim's other peoducts, this fuct should be ncorporated into the estiena…

Which of the two projects, 7 or 8, is more attractive? How sensitive is our rank

Which of the two projects, 7 or 8, is more attractive? How sensitive is our ranking to the use of high discount rates? Why do NPV and IRR disagree? Project Number 1 2 3 4 5 6 7 8 …

Which of these are common characteristics of a tender offer? I. The offer can be

Which of these are common characteristics of a tender offer? I. The offer can be canceled if less than the desired number of shares are offered. II. Sellers are unaware that the b…

Which of these are reasons why some firms choose repurchases over dividends? I.

Which of these are reasons why some firms choose repurchases over dividends? I. To offset the dilution of ownership caused by the exercising of stock options. II. Repurchases offe…

Which of these is NOT a theory that explains the shape of the term structure of

Which of these is NOT a theory that explains the shape of the term structure of interest rates? liquidity theory market segmentation theory short term structure of interest rates …

Which of these is a characteristic of a pure command economy? Multiple Choice Al

Which of these is a characteristic of a pure command economy? Multiple Choice All businesses are owned by the state. There is free and fair competition between private producers T…

Which of these is correct concerning the difference between an operating and a f

Which of these is correct concerning the difference between an operating and a financial lease? A)        Under a financial lease, the customer takes immediate possession of the a…

Which of these is the basic intuition behind calculating the cost of capital? A.

Which of these is the basic intuition behind calculating the cost of capital? A. Firms need to know what the cost of all their current sources of capital cost them. B. When firms …

Which of these is true about the balance statement? Question 1 options: a) It ac

Which of these is true about the balance statement? Question 1 options: a) It accounts for uncollectable accounts receivable b) It lists assets in order of liquidity, from most li…

Which of these statements is true regarding calculating weights for WACC? A.) If

Which of these statements is true regarding calculating weights for WACC? A.) If we are calculating WACC for the firm, then equity, preferred stock and debt would be entire book v…

Which of these statements is true regarding divisional WACC? Using a simple firm

Which of these statements is true regarding divisional WACC? Using a simple firmwide WACC to evaluate new projects would give an unfair advantage to projects that present less ris…

Which of these statements is true? In general, the lower the total asset turnove

Which of these statements is true? In general, the lower the total asset turnover and the lower the capital intensity ratio, the more efficient the overall asset management of the…

Which of these statements is true? When people purchase a stock, they know exact

Which of these statements is true? When people purchase a stock, they know exactly what their dollar and percent return are going to be. When people purchase a stock, they do not …

Which of these statements is true? When people purchase a stock, they know the s

Which of these statements is true? When people purchase a stock, they know the short-term return, but not the long-term return. When people purchase a stock, they know exactly wha…

Which of these stocks are highly correlated, highly negatively correlated, or ha

Which of these stocks are highly correlated, highly negatively correlated, or have little to no correlation? 1 Which of these stocks are highly correlated, highly negatively corre…

Which of these three bonds offers the highest current yield? Which one has the h

Which of these three bonds offers the highest current yield? Which one has the highest yield to maturity? a. A 6%, 20-year bond quoted at 97.750 b. A 4%, 15-year bond quoted at 64…

Which one is better? Model1, 2 or 3 and why? Model 3 -1.6E-06 4.49E-06 Model 2 M

Which one is better? Model1, 2 or 3 and why? Model 3 -1.6E-06 4.49E-06 Model 2 Model 1 SUMMARY OUTPUT Regression Statistics Multiple R 0.946813 R Square 0.896454 Adjusted R Square…

Which one of Ifw folowdwt betf d#Kft the primary advantage of beinf a limited pa

Which one of Ifw folowdwt betf d#Kft the primary advantage of beinf a limited partner Instead of a general partner ? tax-free income active participation in the firm's activities …

Which one of statement is true about WACC? WACC can be used to any project in th

Which one of statement is true about WACC? WACC can be used to any project in the firm. If the financial manager uses firm wide WACC to evaluate a project that is much riskier tha…

Which one of the following actions is unlikely to help boost a company\'s market

Which one of the following actions is unlikely to help boost a company's market share of multi-featured camera sales in whatever geographic region its market share is lowest? a.In…

Which one of the following actions will tend to increase the systematic risk of

Which one of the following actions will tend to increase the systematic risk of a portfolio? the sale of U.S. Treasury bills and an offsetting purchase of a stock with a beta of 0…

Which one of the following activities best exemplify capital structure decisions

Which one of the following activities best exemplify capital structure decisions. For this exercise you will be choosing more than one option for your answer: (Points : 6) Determi…

Which one of the following activities best exemplify capital structure decisions

Which one of the following activities best exemplify capital structure decisions. For this exercise you will be choosing more than one option for your answer:(Points : 6) Determin…

Which one of the following activities is a source of cash? Answer Decreasing lon

Which one of the following activities is a source of cash? Answer Decreasing long-term debt Increasing inventory Repurchasing shares of stock Increasing fixed assets Decreasing ac…

Which one of the following assignments would probably be prohibited by a court?

Which one of the following assignments would probably be prohibited by a court? Answer A. John is a house painter. He is scheduled to paint Molly's house on Monday. John wakes up …

Which one of the following best defines the term credit scoring ? 1) Categorizin

Which one of the following best defines the term credit scoring? 1) Categorizing customers into groups depending on the length of time it takes each customer to pay for purchases …

Which one of the following best describes the conditions under which only P-40 a

Which one of the following best describes the conditions under which only P-40 and P-40a budget exhibits are required to be submitted? Answers are: 1. When the P-1 Line item for w…

Which one of the following best describes the primary purpose of the Programming

Which one of the following best describes the primary purpose of the Programming phase of the PPBE process?    Develop affordable resource packages identifying force levels, perso…

Which one of the following best illustrates that the management of a firm is adh

Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management? increase in the amount of the quarterly dividend decreas…

Which one of the following best illustrates that the management of a firm is adh

Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management? increase in the amount of the quarterly dividend decreas…

Which one of the following best illustrates that the management of a firm is adh

Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management? increase in the amount of the quarterly dividend decreas…

Which one of the following choice is capital budgeting decision? A) Avon spends

Which one of the following choice is capital budgeting decision? A) Avon spends 200 million to launch a new range of cosmetics in European markets. B) Pfizer issues new shares to …

Which one of the following combinations will always result in an increased divid

Which one of the following combinations will always result in an increased dividend yield? Select one: a. Decrease in the stock price combined with a higher dividend amount b. Dec…

Which one of the following constitutes a valid reason/condition for a company to

Which one of the following constitutes a valid reason/condition for a company to consider shifting away from pursuit of a differentiation strategy keyed to assembling and selling …

Which one of the following costs was incurred in the past and cannot be recouped

Which one of the following costs was incurred in the past and cannot be recouped? Incremental Sunk Opportunity Erosion A university converted the bottom 3 floors of an apartment b…

Which one of the following costs was incurred in the past and cannot be recouped

Which one of the following costs was incurred in the past and cannot be recouped? Incremental Sunk Opportunity Erosion A university converted the bottom 3 floors of an apartment b…