Financial literacy
81314 questions • Page 85 / 1627
1. Which of the following represents an investment decision? A. Exxon Mobil spen
1. Which of the following represents an investment decision? A. Exxon Mobil spends $12 billion buying back shares. B. GlaxoSmithKline spends $4 billion on research and development…
1. Which of the following sample sizes will produce a sampling distribution of t
1. Which of the following sample sizes will produce a sampling distribution of the mean that is approximately normal? a. 10% b. 20% c.30% d. All of the above 2. Assume a normal di…
1. Which of the following should NOT be considered when calculating a firm\'s WA
1. Which of the following should NOT be considered when calculating a firm's WACC? Select one: a. cost of carrying inventory b. after-tax cost of bonds c. cost of preferred stock …
1. Which of the following should be treated as incremental cash flows when decid
1. Which of the following should be treated as incremental cash flows when deciding whether to invest in a new manufacturing plant? The site is already owned by the company but ex…
1. Which of the following statement is not correct regarding inventory pools? A.
1. Which of the following statement is not correct regarding inventory pools? A. One company can have several inventory pools at the same time. B. Pools of inventory can include i…
1. Which of the following statements about Multinational financial management is
1. Which of the following statements about Multinational financial management is FALSE: a. The effects of changing currency values must be included in financial analyses. …
1. Which of the following statements about an investment\'s financial risk is fa
1. Which of the following statements about an investment's financial risk is false? Select one: a. Stand-alone risk is relevant only for investments held in isolation b. Corporate…
1. Which of the following statements about capital investment project scoring is
1. Which of the following statements about capital investment project scoring is most correct? A. Project scoring is a technique that quantifies the social value of a p…
1. Which of the following statements about defined contribution plans is incorre
1. Which of the following statements about defined contribution plans is incorrect? a. In general, employees can choose the investment vehicle under a defined contribution plan. T…
1. Which of the following statements about diversification is correct? a. The sy
1. Which of the following statements about diversification is correct? a. The systematic risk of a stock with a beta of zero is equal to the market risk. b. A stock with a beta of…
1. Which of the following statements about dividend policies is CORRECT? a. Modi
1. Which of the following statements about dividend policies is CORRECT? a. Modigliani and Miller argue that investors prefer dividends to capital gains because dividends are more…
1. Which of the following statements about dividend policies is CORRECT? a. Modi
1. Which of the following statements about dividend policies is CORRECT? a. Modigliani and Miller argue that investors prefer dividends to capital gains because dividends are more…
1. Which of the following statements about recovery rate is false? A. Recovery r
1. Which of the following statements about recovery rate is false? A. Recovery rates for bonds of the same credit ratings are the same/ B. Recovery rates vary by industry. C. Reco…
1. Which of the following statements about the Arbitrage Pricing Theory (APT) ar
1. Which of the following statements about the Arbitrage Pricing Theory (APT) are correct? Check all that apply. a) The APT requires fewer assumptions than the Capital Asset Prici…
1. Which of the following statements about the qualitative approach to project r
1. Which of the following statements about the qualitative approach to project risk assessment is most correct? A. Typically, “yes” answers are assigned one point and “…
1. Which of the following statements about trading venues are correct? Select al
1. Which of the following statements about trading venues are correct? Select all that apply. Dark pools are ECNs operated by broker-dealers. Dark pool operators are required to d…
1. Which of the following statements are correct? I. the SML approach is depende
1. Which of the following statements are correct? I. the SML approach is dependent upon a reliable measure of a firm's unsystematic risk II. the SML apporahc can be applied to fir…
1. Which of the following statements best describes the optimal capital structur
1. Which of the following statements best describes the optimal capital structure? a. The optimal capital structure is the mix of debt, equity, and preferred stock that maximizes …
1. Which of the following statements concerning accumulated depreciation is most
1. Which of the following statements concerning accumulated depreciation is most correct? 2. What are the three major categories of assets (select 3) Current Assets 3. Consider th…
1. Which of the following statements concerning junk bonds is most correct? A. j
1. Which of the following statements concerning junk bonds is most correct? A. junk bonds may also be called low- yielding securities. B. Junk bonds have higher interest rates tha…
1. Which of the following statements is CORRECT? Answer a. The amount of debt in
1. Which of the following statements is CORRECT? Answer a. The amount of debt in its capital structure can under no circumstances affect a company's EBIT and business risk. b. A f…
1. Which of the following statements is CORRECT? Answer: The IRR method can neve
1. Which of the following statements is CORRECT? Answer: The IRR method can never be subject to the multiple IRR problem, while the MIRR method can be. One reason some people pref…
1. Which of the following statements is CORRECT? a. If you add enough randomly s
1. Which of the following statements is CORRECT? a. If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfol…
1. Which of the following statements is CORRECT? a. If you add enough randomly s
1. Which of the following statements is CORRECT? a. If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfol…
1. Which of the following statements is CORRECT? a. If you add enough randomly s
1. Which of the following statements is CORRECT? a. If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfol…
1. Which of the following statements is CORRECT? a. If you add enough randomly s
1. Which of the following statements is CORRECT? a. If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfol…
1. Which of the following statements is CORRECT? a. If you add enough randomly s
1. Which of the following statements is CORRECT? a. If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfol…
1. Which of the following statements is CORRECT? a. If you add enough randomly s
1. Which of the following statements is CORRECT? a. If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfol…
1. Which of the following statements is CORRECT? a. If you add enough randomly s
1. Which of the following statements is CORRECT? a. If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfol…
1. Which of the following statements is CORRECT? a. Put options give investors t
1. Which of the following statements is CORRECT? a. Put options give investors the right to buy a stock at a certain strike price before a specified date. b. Call options give inv…
1. Which of the following statements is CORRECT? a. Some of the cash flows shown
1. Which of the following statements is CORRECT? a. Some of the cash flows shown on a time line can be in the form of annuity payments, but none can be uneven amount…
1. Which of the following statements is CORRECT? a. The constant growth model ta
1. Which of the following statements is CORRECT? a. The constant growth model takes into consideration the capital gains investors expect to earn on a stock. b. Two firms with the…
1. Which of the following statements is CORRECT? a. The constant growth model ta
1. Which of the following statements is CORRECT? a. The constant growth model takes into consideration the capital gains investors expect to earn on a stock. b. Two firms with the…
1. Which of the following statements is CORRECT? a. The constant growth model ta
1. Which of the following statements is CORRECT? a. The constant growth model takes into consideration the capital gains investors expect to earn on a stock. b. Two firms with the…
1. Which of the following statements is CORRECT? a. The constant growth model ta
1. Which of the following statements is CORRECT? a. The constant growth model takes into consideration the capital gains investors expect to earn on a stock. b. Two firms with the…
1. Which of the following statements is CORRECT? a. The income statement for a g
1. Which of the following statements is CORRECT? a. The income statement for a given year, say 2005, is designed to give us an idea of how much the firm earned during that year. b…
1. Which of the following statements is CORRECT? a. The internal rate of return
1. Which of the following statements is CORRECT? a. The internal rate of return method (IRR) is generally regarded by academics as being the best single method for evaluating capi…
1. Which of the following statements is CORRECT? a. The ratio of long-term debt
1. Which of the following statements is CORRECT? a. The ratio of long-term debt to total capital is more likely to experience seasonal fluctuations than is either the DSO or the i…
1. Which of the following statements is CORRECT? a. The ratio of long-term debt
1. Which of the following statements is CORRECT? a. The ratio of long-term debt to total capital is more likely to experience seasonal fluctuations than is either the DSO or the i…
1. Which of the following statements is CORRECT? a. The retained earnings accoun
1. Which of the following statements is CORRECT? a. The retained earnings account as shown on the balance sheet is a source of cash that can be used to pay dividends. b. If a firm…
1. Which of the following statements is CORRECT? a.The constant growth model tak
1. Which of the following statements is CORRECT? a.The constant growth model takes into consideration the capital gains investors expect to earn on a stock. b.Two firms with the s…
1. Which of the following statements is FALSE? A) The more cash the firm uses to
1. Which of the following statements is FALSE? A) The more cash the firm uses to repurchase shares, the less it has available to pay dividends. B) Free cash flow measures the cash…
1. Which of the following statements is NOT true about a fragmented? industry? A
1. Which of the following statements is NOT true about a fragmented? industry? A. Companies use the experience curve to reduce costs faster than the competition. B. As new competi…
1. Which of the following statements is TRUE? A. Sunk costs increase a project’s
1. Which of the following statements is TRUE? A. Sunk costs increase a project’s incremental cash flows B. Whenever a new product reduces sales of the same company’s existing prod…
1. Which of the following statements is TRUE? A. The penalty for spending before
1. Which of the following statements is TRUE? A. The penalty for spending before earning represents the interest rate from the point of view of the creditors. B. Ceteris Paribus, …
1. Which of the following statements is correct? (Points : 1) The NPV method ass
1. Which of the following statements is correct? (Points : 1) The NPV method assumes that cash flows will be reinvested at the required rate of return while the IRR method assumes…
1. Which of the following statements is correct? 1. Shareholder wealth maximizat
1. Which of the following statements is correct? 1. Shareholder wealth maximization may actually be beneficial for society in the long run. 2.Shareholder wealth maximization is ac…
1. Which of the following statements is correct? A. The WACC measures the before
1. Which of the following statements is correct? A. The WACC measures the before-tax cost of capital. B. An increase in the firm's marginal corporate tax rate will decrease the we…
1. Which of the following statements is true ? Dividends paid by a corporation a
1. Which of the following statements is true? Dividends paid by a corporation are not deductible by that corporation and are a form of property income for the recipient. Dividends…
1. Which of the following statements is true about common stocks that do not pay
1. Which of the following statements is true about common stocks that do not pay dividends? a. they have a value that equals the book value of the firm's assets b. they have a val…
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