Financial literacy

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…

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…

1. Which of the following statements is true about secondary markets? A) In seco

1. Which of the following statements is true about secondary markets? A) In secondary markets, outstanding shares of stock are bought and sold among investors. B) Most secondary m…

1. Which of the following statements is true of the modified internal rate of re

1. Which of the following statements is true of the modified internal rate of return? a. The discount rate that forces the present value of the terminal value to equal the sum of …

1. Which of the following statements is true of time value of money? A) A dollar

1. Which of the following statements is true of time value of money? A) A dollar received today is worth more than a dollar to be received in the future because future dollars are…

1. Which of the following statements regarding corporate bonds is most correct?

1. Which of the following statements regarding corporate bonds is most correct? Select one: a. Debentures are riskier than subordinated debentures because they are paid last in th…

1. Which of the following statements regarding mortgage-backed securities (MBS)

1. Which of the following statements regarding mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs) is most correct: A. MBSs are created from CMOs. B. C…

1. Which of the following strategies will be necessary to address while conducti

1. Which of the following strategies will be necessary to address while conducting sustainable growth analysis? Decrease financial leverage Separate from a “cash cow” Add new marg…

1. Which of the following terms is defined as the length of time between the pur

1. Which of the following terms is defined as the length of time between the purchase of inventory and the date of receipt of cash from the sale of that inventory is called the: A…

1. Which of the following would NOT be considered a capital budgeting decision?

1. Which of the following would NOT be considered a capital budgeting decision? A. Caterpillar replaces manufacturing equipment with more efficient new equipment. B. Morgan Stanle…

1. Which of the following would be included among the investment numbers of a ca

1. Which of the following would be included among the investment numbers of a capital budget? A. Purchase price of the asset B. Trade- in value of an asset being replaced C. Inves…

1. Which of the following would be most helpful for predicting why a final consu

1. Which of the following would be most helpful for predicting why a final consumer selects one of several similar brands? A) population data B) consumer spending patterns C) beha…

1. Which of the following would be most helpful for predicting why a final consu

1. Which of the following would be most helpful for predicting why a final consumer selects one of several similar brands? A) population data B) consumer spending patterns C) beha…

1. Which of the following would be most likely to result in a decrease in nomina

1. Which of the following would be most likely to result in a decrease in nominal interest rates? - A recession - A recovery in the housing market coupled with a decrease in the u…

1. Which of the following would not be used in an aging schedule of accounts rec

1. Which of the following would not be used in an aging schedule of accounts receivable? a. customer b. days outstanding c. outstanding balance d. percentage outstanding e. percen…

1. Which of the following would result in a decrease in cash flow and a use of c

1. Which of the following would result in a decrease in cash flow and a use of cash? A. A decrease in notes payable B. An increase in long-term debt C. A decrease in inventory D. …

1. Which of the following would you expect to occur in the bond market during a

1.     Which of the following would you expect to occur in the bond market during a US recession? (There is just one correct answer.) a)     US government bonds to perform better …

1. Which of the followings reduce(s) credit risk in futures contracts? (1) Stand

1. Which of the followings reduce(s) credit risk in futures contracts? (1) Standardization of futures contracts (2) Trading in exchanges (3) Marking to market A. Only (1) B. Only …

1. Which of these is the measurement of risk for a collection of stocks for an i

1. Which of these is the measurement of risk for a collection of stocks for an investor? A. beta B. portfolio beta C. efficient market D. expected return 2. Which of the following…

1. Which one of the following characteristics applies to a limited liability com

1. Which one of the following characteristics applies to a limited liability company? A. available only to firms having a single owner B. limited liability for limited partners on…

1. Which one of the following financial markets is the largest in the world in t

1. Which one of the following financial markets is the largest in the world in terms of daily trading volume? a. equities b. corporate bonds c. options d. foreign exchange 2. Curr…

1. Which one of the following increases the cash account? A. Inventory is sold B

1. Which one of the following increases the cash account? A. Inventory is sold B. Buying a new equipment C. repayment of long-term debt D. The payment of a cash dividend E. An inc…

1. Which one of the following is a capital budgeting decision? A. determining ho

1. Which one of the following is a capital budgeting decision? A. determining how much debt should be borrowed from a particular lender *B. deciding whether or not to open a new s…

1. Which one of the following is a capital budgeting decision? A. determining ho

1. Which one of the following is a capital budgeting decision? A. determining how much debt should be borrowed from a particular lender *B. deciding whether or not to open a new s…

1. Which one of the following methods of project analysis is defined as computin

1. Which one of the following methods of project analysis is defined as computing the value of a project based upon the present value of the project's anticipated cash flows? A. c…

1. Which one of the following methods of project analysis is defined as computin

1. Which one of the following methods of project analysis is defined as computing the value of a project based upon the present value of the project's anticipated cash flows? A. c…

1. Which one of the following statements about business valuation is NOT true? A

1. Which one of the following statements about business valuation is NOT true? A. The value of a business changes over time. B. There is a single value for any business. C. There …

1. Which one of the following statements is NOT true? A) Prices in the corporate

1. Which one of the following statements is NOT true? A) Prices in the corporate bond market tend to be more volatile than the markets for stocks or money market securities. B) Co…

1. Which one of the following statements is most CORRECT? A) Real options change

1. Which one of the following statements is most CORRECT? A) Real options change the size, but not the risk, of projects' expected NPVs. B) Real options change the risk, but not t…

1. Which one of the following stä ermined at the end of the period and mut of fa

1. Which one of the following stä ermined at the end of the period and mut of fav he ion is described by ar are always higher than e a ist becausenvalud ealized returns are at the…

1. Which one of the following terms is defined as a conflict of interest between

1. Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers? A. articles of incorporation B. corporate b…

1. Which one of the following terms is defined as the management of a firm\'s lo

1. Which one of the following terms is defined as the management of a firm's long-term investments? A. working capital management B. financial allocation C. agency cost analysis D…

1. Which one of thefollowing is FALSE about Internal Control EvaluationChecklist

1. Which one of thefollowing is FALSE about Internal Control EvaluationChecklists (ICEC)? a. ICEC is developedto overcome the shortcomings of Internal Control Questionnaire b. The…

1. Which portfolio of stocks is riskier SPY or WMCR? Base your assessment of ris

1. Which portfolio of stocks is riskier SPY or WMCR? Base your assessment of risk on the Beta of each ETF that is supplied by Yahoo Finance. SPY WMCR Not possible to answer Equal …

1. Which risk does not affect the managers of a business? A. Stand-alone risk, B

1. Which risk does not affect the managers of a business? A. Stand-alone risk, B.) Market risk, C. Total risk, D. none of the above. 2. Which risk is measured by the standard devi…

1. Which statement is CORRECT? a) The IRR method assumes that Cash flows are rei

1. Which statement is CORRECT? a)      The IRR method assumes that Cash flows are reinvested at the firm’s WACC b)      The use of Accelerated Depreciation methods (instead of Str…

1. Which statement is FALSE about interest rate swaps. Select one: a. The counte

1. Which statement is FALSE about interest rate swaps. Select one: a. The counterparty who agrees to pay the swap rate is called the payer. The counterparty who agrees to pay the …

1. Which statement, if any, is false? a. An S corporation is subject to the corp

1. Which statement, if any, is false? a. An S corporation is subject to the corporate AMT. b. A high level of investment in assets (e.g., equipment or structures) is a reason a co…

1. Which, if any, of the following statements are false? A. For a given coupon r

1. Which, if any, of the following statements are false? A. For a given coupon rate, the sensitivity of bond prices to changes in interest rates increases at an increasing rate as…

1. Which, if any,ofthefollowingstatementsisnot accurate? a. Every Codesectionhas

1.          Which, if any,ofthefollowingstatementsisnot accurate? a.         Every Codesectionhas a treasury regulation. b.         The current Code is the 1986 Code, as amended. …

1. While Vietnam is one of the largest coffee producing countries in the world,

1. While Vietnam is one of the largest coffee producing countries in the world, the Vietnamese dong (VND) is not widely traded. The coffee industry involves middlemen exporters wh…

1. Who participates in the Capital Markets? Define capital market instruments an

1. Who participates in the Capital Markets? Define capital market instruments and list the major instruments. What is a STRIP and what is it used for? 2. There are plenty of reaso…

1. Why are many bonds callable? What is the disadvantage to the investor of a ca

1. Why are many bonds callable? What is the disadvantage to the investor of a callable bond? What does the investor receive in exchange for a bond being callable? How are bond val…

1. Why do firms have different capital structures and how does capital structure

1. Why do firms have different capital structures and how does capital structure influence a firm’s weighted average cost of capital? 2. What are the basic sources of financing in…

1. Why do think petrobra\'s cost of capital is so high, Are ther better ways or

1. Why do think petrobra's cost of capital is so high, Are ther better ways or other ways of calculating its weighted average cost of capital? 2. Does the method of using the seve…

1. Why do you think Fannie Mae waited more than six months after Freddie mac fil

1.   Why do you think Fannie Mae waited more than six months after Freddie mac filed a similar suit against more than dozen banks? 2.   Four of the banks-Rabobank, RBS, UBS and Ba…

1. Why is Six Sigma considered an important tool to improve process effectivenes

1.       Why is Six Sigma considered an important tool to improve process effectiveness in     healthcare? 2.       What is the meaning of the “sigma” term in Six Sigma?  What lev…

1. Why is ratio analysis a useful tool for a financial analyst? What are some li

1. Why is ratio analysis a useful tool for a financial analyst? What are some limitations or weaknesses of using ratios? 2. Explain why an analyst should always focus on after-tax…

1. Why is strategic planning important? How does it provide direction for the 2.

1. Why is strategic planning important? How does it provide direction for the 2. What is a SBU (strategic business unit), and what are its characteristics? 3. Look at Ansoff's Str…

1. Why is strategic planning important? How does it provide direction for the 2.

1. Why is strategic planning important? How does it provide direction for the 2. What is a SBU (strategic business unit), and what are its characteristics? 3. Look at Ansoff's Str…