Financial literacy
81314 questions • Page 49 / 1627
1. A firm is considering several mutually exclusive investment opportunities. Th
1. A firm is considering several mutually exclusive investment opportunities. The best way to choose between them is which of the following? net present value (NPV) profitability …
1. A firm reported working capital of $5.5 million and fixed assets of $20 milli
1. A firm reported working capital of $5.5 million and fixed assets of $20 million. Its fixed asset turnover was 1.2 times. What was the firm's sales to working capital ratio? 5.1…
1. A firm wants to strengthen its financial position. Which of the following act
1. A firm wants to strengthen its financial position. Which of the following actions would increase its quick ratio? a. Issue new common stock and use the proceeds t…
1. A firm\'s net income before tax, EBT [NIBT] (on the income statement) is affe
1. A firm's net income before tax, EBT [NIBT] (on the income statement) is affected by _____. a- taxes; b- interest; c-dividends 2.Larry wants to buy a house priced for $325,000. …
1. A firm’s current balancesheet is as follows: Assets $100 Debt $10 Equity $90
1. A firm’s current balancesheet is as follows: Assets $100 Debt $10 Equity $90 a. What is the firm’s weig…
1. A four-year project costs $125,000 and returns $42,025 at the end of each of
1. A four-year project costs $125,000 and returns $42,025 at the end of each of the next four years. What is the Internal Rate of Return (IRR) for this project? A: 11.5% B: 12.0% …
1. A fourteen-year bond, with par value equals $1,000, pays 12% annually. If sim
1. A fourteen-year bond, with par value equals $1,000, pays 12% annually. If similar bonds are currently yielding 10% annually, what is the market value of the bond? Use semi-annu…
1. A full-time (40 working hours) employee makes $15.00 an hour. What would the
1. A full-time (40 working hours) employee makes $15.00 an hour. What would the total annual compensation be if the base benefit was 30%? 2. The hospital paper filing system conta…
1. A guy borrows $7900 and wants to repay it $600 every sixmonths with the first
1. A guy borrows $7900 and wants to repay it $600 every sixmonths with the first payment in 6 months. If the loan terms are 6%APR with semiannual compounding, how many payments wi…
1. A health insurance policy pays 60 percent of physical therapy costs after a $
1. A health insurance policy pays 60 percent of physical therapy costs after a $100 deductible. In contrast, an HMO charges $19 per visit for physical therapy. How much would a pe…
1. A health system has forecast net patient revenue in the first 3 months of the
1. A health system has forecast net patient revenue in the first 3 months of the year as follows (figures in millions): January, $90; February, $20; March, $30. 70% of services ar…
1. A highly automated plant would generally have all fixed costs more fixed than
1. A highly automated plant would generally have all fixed costs more fixed than variable costs all variable costs more variable than fixed costs 2. If the price per unit decrease…
1. A highly risk-averse investor is considering adding one additional stock to a
1. A highly risk-averse investor is considering adding one additional stock to a 3-stock portfolio, to form a 4-stock portfolio. The three stocks currently held all have b = 1.0, …
1. A hospital outpatient clinic occupying a 60,000 foot building has an annual d
1. A hospital outpatient clinic occupying a 60,000 foot building has an annual depreciation expense for the structure of $1,000,000. The clinic laboratory occupies 20% of the stru…
1. A house with a total living area of 3,000 square feet would cost $80 per squa
1. A house with a total living area of 3,000 square feet would cost $80 per square foot to reproduce new. It has an expected economic life of 100 years and is estimated to have an…
1. A large hospital company purchased a miniature insulin pump system for childr
1. A large hospital company purchased a miniature insulin pump system for children with diabetes 9 years ago. It was purchased for $1.9 million and generated a net cash flow (befo…
1. A large mutual fund group such as Fidelity offers a variety of funds. They in
1. A large mutual fund group such as Fidelity offers a variety of funds. They include sector funds that specialize in particular industries and index funds that simply invest in t…
1. A limited liability company does not need to procure insurance to protect its
1. A limited liability company does not need to procure insurance to protect its assets since its members enjoy limited liability. True/False 2. An LLC must have an operating agre…
1. A loan is where cash is disbursed to suppliers and labor, inventory is sold,
1. A loan is where cash is disbursed to suppliers and labor, inventory is sold, receivables are collected, and the Bank is repaid over a short but fully understood schedule. 2. A …
1. A machine cost $60,200; it has an estimated residual value of $6,000 and an e
1. A machine cost $60,200; it has an estimated residual value of $6,000 and an expected life of 300,000 units. What would be the depreciation in year three if 60,000 units were pr…
1. A major disadvantage of the free cash flow valuation method is? a. The termin
1. A major disadvantage of the free cash flow valuation method is? a. The terminal value tends to dominate the total value in many cases. b. The projection of free cash flows depe…
1. A major purpose of the prospectus is to: Select one: a. advise investors of t
1. A major purpose of the prospectus is to: Select one: a. advise investors of the security's potential risk. b. list the security's dividend payment dates. c. increase the compan…
1. A manager at your company (Apple INC) is thinking about using a break-even an
1. A manager at your company (Apple INC) is thinking about using a break-even analysis. Of what shortcomings should this manager be aware? 2. The CFO of your company (Apple INC) s…
1. A manager must decide which type of machine to buy, A, B, or C. Machine costs
1. A manager must decide which type of machine to buy, A, B, or C. Machine costs are as follows: Machin Cost 50,000 $40,000 90,000 Product forecasts and processing times on the ma…
1. A manufacturer wants to introduce new factory equipment that requires machine
1. A manufacturer wants to introduce new factory equipment that requires machinery to be purchased today for $120 million. This new machine will last for five years, and will be d…
1. A market has only 2 sellers. They are both trying to decide on a pricing stra
1. A market has only 2 sellers. They are both trying to decide on a pricing strategy. If both firms charge a high price, then each firm will experience a 5% increase in profits. I…
1. A merchandiser\'s statement of retained earnings looks exactly like that of a
1. A merchandiser's statement of retained earnings looks exactly like that of a service business. Select one: True False 2. Which of the following line items will appear on the in…
1. A money machines that will pay $2,000 per year for 20 year is worth $ ____ to
1. A money machines that will pay $2,000 per year for 20 year is worth $ ____ today. Assume a 5% interest rate and that the first payment is made one year from today. 2. you will …
1. A mutual fund owns 500 shares of X currently trading at $ 12, and 300 shares
1. A mutual fund owns 500 shares of X currently trading at $ 12, and 300 shares of Y, currently trading at $ 24. The fund has 900 shares outstanding. a. What is the Net Asset Valu…
1. A numerical value used as a summary measure for a sample, such as sample mean
1. A numerical value used as a summary measure for a sample, such as sample mean, is known as a a. population parameter b. sample parameter c. sample statistic d. population mean …
1. A partnership agreement provides that, at sale, cash proceeds are distributed
1. A partnership agreement provides that, at sale, cash proceeds are distributed first to Mr. Smith in an amount equal to his original investment less any cash distributions pr…
1. A person with a spouse but no children should get enough insurance to _______
1. A person with a spouse but no children should get enough insurance to ________. Select one: a. Cover their debts b. Support the spouse for the rest of their lives c. Pay for po…
1. A piece of newly purchased industrial equipment costs $969,000 and is classif
1. A piece of newly purchased industrial equipment costs $969,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in Table 10.7. Cal…
1. A portfolio comprises two stocks, A and B, with eqaul amounts of money invest
1. A portfolio comprises two stocks, A and B, with eqaul amounts of money invested in each. If stock A's stock price increases and that of stock B decreases, the weight of stock A…
1. A portfolio consists of the following securities: Security Amount Invested St
1. A portfolio consists of the following securities: Security Amount Invested Std. Dev. i Beta i A $250,000 15.50 1.45 B $350,000 8.35 0.75 C $200,000 21.22 1.85 D $150,000 7.75 0…
1. A portfolio has an expected return of 10% and a standard deviation of 20%. As
1. A portfolio has an expected return of 10% and a standard deviation of 20%. Assume normal distribution, what is Value at Risk (VaR) at 5% for this stock? A. -40.21% B. -32.25% C…
1. A portfolio has an expected return of 10% and a standard deviation of 20%. As
1. A portfolio has an expected return of 10% and a standard deviation of 20%. Assume normal distribution, what is Value at Risk (VaR) at 5% for this stock? A. -40.21% B. -32.25% C…
1. A portfolio is formed with 50% of your money in Stock 1 and 50% of your money
1. A portfolio is formed with 50% of your money in Stock 1 and 50% of your money in stock 2. Stock 1 has a standard deviation of 0.03, and stock 2 has a standard deviation of 0.07…
1. A portfolio’s returns are forecasted to have the following distribution: Dema
1. A portfolio’s returns are forecasted to have the following distribution: Demand for the Prob of Demand occurring companys products …
1. A portfolio’s returns are forecasted to have the following distribution: Dema
1. A portfolio’s returns are forecasted to have the following distribution: Demand for the Prob of Demand occurring companys products …
1. A preferred stock is currently valued at $49 a share and pays an annual divid
1. A preferred stock is currently valued at $49 a share and pays an annual dividend of $4. The par value is $100 per share. What is the rate of return on this security? 2. Over th…
1. A professor would like to assign grades such that 7% of students receive F\'s
1. A professor would like to assign grades such that 7% of students receive F's. If the exam average is 62 with a standard deviation of 13, what grade should be the cutoff? 2. The…
1. A project has a first cost of $14,000, uniform annual benefits of $2400, and
1. A project has a first cost of $14,000, uniform annual benefits of $2400, and a salvage value of $3000 at the end of its 10-year useful life. What is the net present worth at an…
1. A project has an initial cost of $25,000 and cash inflows of $5,400, $5,200,
1. A project has an initial cost of $25,000 and cash inflows of $5,400, $5,200, $17,600, and $9,750 over the next 4 years, respectively. What is the payback period? 4.77 years 3.7…
1. A project has an initial outlay of $2,774. It has a single cash flow at the e
1. A project has an initial outlay of $2,774. It has a single cash flow at the end of year 4 of $4,755. What is the internal rate of return (IRR) for the project? Round the answer…
1. A project has an initial outlay of $2,774. It has a single cash flow at the e
1. A project has an initial outlay of $2,774. It has a single cash flow at the end of year 4 of $4,755. What is the internal rate of return (IRR) for the project? Round the answer…
1. A project has an initial outlay of $4,807. It has a single payoff at the end
1. A project has an initial outlay of $4,807. It has a single payoff at the end of year 4 of $6,636. What is the net present value (NPV) of the project if the company’s cost of ca…
1. A project has the following cash flows. Find the payback period. Type in your
1. A project has the following cash flows. Find the payback period. Type in your answer as a number only, and round to the nearest hundredth. For example, if the answer is 10.789 …
1. A project has the following estimated data: price = $53 per unit; variable co
1. A project has the following estimated data: price = $53 per unit; variable costs = $19.61 per unit; fixed costs = $5,200; required return = 11 percent; initial investment = $12…
1. A project manager for a large manufacturing company is working on a project t
1. A project manager for a large manufacturing company is working on a project that calls for a new building to be constructed to house a new clean system manufacturing proces…
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