Financial literacy

Which one of the following statements is true? a. XYZ declared a dividend of $.8

Which one of the following statements is true? a. XYZ declared a dividend of $.80 a share. The ex-dividend date is tomorrow. All else constant, you would expect the opening price …

Which one of the following statements is wrong? A Pell Grant is a federally fund

Which one of the following statements is wrong?          A Pell Grant is a federally funded grant awarded to undergraduate students who have not earned a Bachelors or graduate deg…

Which one of the following statements is wrong? A student must submit a FAFSA (F

Which one of the following statements is wrong?            A student must submit a FAFSA (Free Application for Federal Student Aid) form to be eligible to receive federal financia…

Which one of the following statements related to futures contracts is correct? T

Which one of the following statements related to futures contracts is correct? The buyer of the contract has the right to either accept delivery or cancel the contract. Futures co…

Which one of the following statements related to futures contracts is correct? T

Which one of the following statements related to futures contracts is correct? The buyer of the contract has the right to either accept delivery or cancel the contract. Futures co…

Which one of the following statements related to taxes is correct? 1. The margin

Which one of the following statements related to taxes is correct? 1. The marginal tax rate must be equal to or lower than the average tax rate for a firm. 2. The tax for a firm i…

Which one of the following statements related to taxes is correct? Select one: a

Which one of the following statements related to taxes is correct? Select one: a. The marginal tax rate must be equal to or lower than the average tax rate for a firm. b. The tax …

Which one of the following statements related to the M&M Propositions is correct

Which one of the following statements related to the M&M Propositions is correct? a. M&M Proposition I, with taxes, implies that the capital structure of a tax-paying firm…

Which one of the following statements related to the Security Market Line approa

Which one of the following statements related to the Security Market Line approach to equity valuation is correct? Assume the firm includes debt in its capital structure. This mod…

Which one of the following statements related to the cash flow to creditors is c

Which one of the following statements related to the cash flow to creditors is correct? 1. If the cash flow to creditors is positive then the firm must have borrowed more money th…

Which one of the following statements related to the internal rate of return (IR

Which one of the following statements related to the internal rate of return (IRR) is correct? A. The IRR yields the same accept and reject decisions as the net   present value me…

Which one of the following statements related to the internal rate of return (IR

Which one of the following statements related to the internal rate of return (IRR) is correct? Question 1 options: A) The IRR yields the same accept and reject decisions as the ne…

Which one of the following statements related to the static theory of capital st

Which one of the following statements related to the static theory of capital structure is correct? Select one: a. The linear function of a firm's value has a constant positive sl…

Which one of the following statements would generally be considered as accurate

Which one of the following statements would generally be considered as accurate given independent projects with conventional cash flows? a. The internal rate of return decision ma…

Which one of the following statements, about the ability of retail producers who

Which one of the following statements, about the ability of retail producers who do not hold a surplus lines license to place surplus lines insurance with an insurance customer, i…

Which one of the following tends to be the primary attitude of firms\' towards t

Which one of the following tends to be the primary attitude of firms' towards their dividend policy? Select one: a. Dividends should be increased annually no matter what. b. Divid…

Which one of the following transactions will increase the liquidity of a firm? a

Which one of the following transactions will increase the liquidity of a firm? a. issuing long-term debt to repurchase shares of outstanding stock b. selling inventory on credit c…

Which one of the following will affect the capital structure weights used to com

Which one of the following will affect the capital structure weights used to compute a firm's weighted average cost of capital? Decrease in the book value of a firm's equity Incre…

Which one of the following will decrease the after tax cost of debt for a firm A

Which one of the following will decrease the after tax cost of debt for a firm A. Increase in tax rates B. Increase in the risk-free rate of return C. Decrease in the market price…

Which one of the following will decrease the net present value of a project? A.

Which one of the following will decrease the net present value of a project? A. increasing the value of each of the project's discounted cash inflows B. moving each of the cash in…

Which one of the following will decrease the net present value of a project? Opt

Which one of the following will decrease the net present value of a project?   Options: increasing the value of each of the project's discounted cash inflows moving each of the ca…

Which one of the following will decrease the risk of a portfolio that consists o

Which one of the following will decrease the risk of a portfolio that consists of stocks, U.S. Treasury bills, and gold? Select one: a. Selling stocks and replacing them with U.S.…

Which one of the following will increase the cash flow from assets, all else equ

Which one of the following will increase the cash flow from assets, all else equal? decrease in cash flow to stockholders decrease in operating cash flow increase in the change in…

Which one of the following will increase the cash flow from assets, all else equ

Which one of the following will increase the cash flow from assets, all else equal? decrease in cash flow to stockholders decrease in operating cash flow increase in the change in…

Which one of the following will increase the profit margin of a firm? a. decreas

Which one of the following will increase the profit margin of a firm? a. decreasing the tax rate b. increasing the cost of goods sold c. increasing the fixed costs d. increasing t…

Which one of the following will increase the value of a firm\'s net working capi

Which one of the following will increase the value of a firm's net working capital? Answer using cash to pay a supplier depreciating an asset collecting an accounts receivable pur…

Which one of the following will reduce the disbursement float of a firm? Mailing

Which one of the following will reduce the disbursement float of a firm? Mailing a check from a very remote location Mailing an unsigned check so that it must be returned for a si…

Which one of the following will tend to increase the length of time a company wi

Which one of the following will tend to increase the length of time a company will extend credit? Select one: a. Increase in product standardization b. Decrease in consumer demand…

Which one of the following would NOT result in incremental cash flows and thus s

Which one of the following would NOT result in incremental cash flows and thus should NOT be included in the capital budgeting analysis for a new product? a. A firm has a parcel o…

Which one of the following would NOT result in incremental cash flows and thus s

Which one of the following would NOT result in incremental cash flows and thus should NOT be included in the capital budgeting analysis for a new product? a. Revenues from an exis…

Which one of the following would NOT result in incremental cash flows and thus s

Which one of the following would NOT result in incremental cash flows and thus should NOT be included in the capital budgeting analysis for a new product? a. Revenues from an exis…

Which one of the following would NOT result in incremental cash flows and thus s

Which one of the following would NOT result in incremental cash flows and thus should NOT be included in the capital budgeting analysis for a new product? Answer Using some of the…

Which one of the following would be considered a capital budgeting decision? Pla

Which one of the following would be considered a capital budgeting decision? Planning to issue common stock rather than issuing preferred stock Deciding to expand into a new line …

Which one of the followings is not true about capital budgeting? It involves ide

Which one of the followings is not true about capital budgeting? It involves identifying projects that will add to the firm's value. It involves large capital investments. Capital…

Which one of these best describes the relationship between bondholders and stock

Which one of these best describes the relationship between bondholders and stockholders at a time when it appears the firm may be facing increased financial distress? Stockholders…

Which one of these is a finding of Ritter\'s study of initial public offerings (

Which one of these is a finding of Ritter's study of initial public offerings (IPOs)? - IPO firms tend to lose 10 percent or more of their market value in the 2 years following th…

Which one of these is considered to be the safest investment? A. U.S. Treasury b

Which one of these is considered to be the safest investment? A. U.S. Treasury bonds B. Common stock C. U.S. Treasury bill D. Preferred stock The idea that investors in a common s…

Which one of these is correct? If a project has “Normal “cash flows, then its IR

Which one of these is correct? If a project has “Normal “cash flows, then its IRR must be positive. If a project has “normal” cash flows, then its MIRR must be positive. If a proj…

Which one of these statements is correct regarding U.S. firms during the period

Which one of these statements is correct regarding U.S. firms during the period 1995-2012? A. Firms have rarely relied on debt financing. B. Internal funds have provided less than…

Which one of these statements is correct? Fixed stock repurchases allow managers

Which one of these statements is correct? Fixed stock repurchases allow managers to repurchase shares only when they feel those shares are undervalued Since the early 1980s, it ha…

Which one of these statements related to MACRS depreciation is correct? The MACR

Which one of these statements related to MACRS depreciation is correct? The MACRS percentages are specified by the FASB. The MACRS system of depreciation was eliminated in 2012. A…

Which one of these statements related to growing annuities and perpetuities is c

Which one of these statements related to growing annuities and perpetuities is correct? Question 7 options: 1) The cash flow used in the growing annuity formula is the initial cas…

Which one of these statements related to the foreign exchange market is correct?

Which one of these statements related to the foreign exchange market is correct? Currency trading floors are located in all the major financial centers of the world and operated b…

Which one of these statements related to the time value of money is correct? Ass

Which one of these statements related to the time value of money is correct? Assume a positive rate of interest. • A. A dollar increases in value the further into the future it is…

Which one of these statements related to the time value of money is correct? Ass

Which one of these statements related to the time value of money is correct? Assume a positive rate of interest. A. A dollar increases in value the further into the future it is r…

Which one of these would not be paid from free cash flow? A. Cash dividends B. R

Which one of these would not be paid from free cash flow? A. Cash dividends B. Repayment of principal on a long-term debt C. Repurchase of outstanding shares of common stock D. Ne…

Which one statement about the legal form of business is most consistent? Select

Which one statement about the legal form of business is most consistent? Select one: a. A disadvantage of the corporation is that it has relatively high organizational costs. b. A…

Which performance measure evaluates to what extent managers perform their primar

Which performance measure evaluates to what extent managers perform their primary task-that is, to create shareholder wealth? Economic value added Market value added Consider this…

Which problem listed is not associated with the correspondingmethod of measuring

Which problem listed is not associated with the correspondingmethod of measuring the common stockholder's required rate ofreturn? a. Estimation of the expected growth rate of futu…

Which project would you select if you needed your money returned ASAP? The Accou

Which project would you select if you needed your money returned ASAP? The Accounting Rate of Return 'Overstates' actual cash flow for which project? Which project would you selec…