Financial literacy

1.The Silver Spokes Bicycle Shop has decided to offer credit to its customers du

1.The Silver Spokes Bicycle Shop has decided to offer credit to its customers during the spring selling season. Sales are expected to be 600 bicycles. The average cost to the shop…

1.The Weighted Average Cost of Capital (WACC) for a firm can be calculated or fo

1.The Weighted Average Cost of Capital (WACC) for a firm can be calculated or found through research. Select two firms in the same industry. The industry may be that in which you …

1.The accumulated value of an annuity will exactly double if the amount of time

1.The accumulated value of an annuity will exactly double if the amount of time is exactly doubled, everything else equal. True False 2.At 5.95 percent compounded annually, how ma…

1.The anticipated impact of the Practice Standards is considered and presented w

1.The anticipated impact of the Practice Standards is considered and presented with the standards for all the following people, EXCEPT:    Public CFP Board Financial planning prac…

1.The cost of capital is a.the rate of return required by investors in the firm\

1.The cost of capital is a.the rate of return required by investors in the firm's securities b.the minimum rate of return required on new investments of high risk undertaken by th…

1.The current market value of the assets of Bigelow, Inc. is $91 million, with a

1.The current market value of the assets of Bigelow, Inc. is $91 million, with a standard deviation of 19 percent per year. The firm has zero-coupon bonds outstanding with a total…

1.The current price of Facebook stock(Ticker:FB) IS 75.10/Share.Suppose the risk

1.The current price of Facebook stock(Ticker:FB) IS 75.10/Share.Suppose the risk free rate is currently 2.4% at all maturities.FB does not pay a dividend and there is no expectati…

1.The firm\'s tax rate is 40%. 2.The current price of the 12% coupon, semiannual

1.The firm's tax rate is 40%. 2.The current price of the 12% coupon, semiannual payment, non-callable bonds with 15 years to maturity is $1,153.72. New bonds could be issued with …

1.The following information has been extracted from the financial statements of

1.The following information has been extracted from the financial statements of RMK International Limited for the year ended 31 December 2001: Equity shares of $1 each : $1,000,00…

1.The historical fact that, on average, mutual fund managers have not been able

1.The historical fact that, on average, mutual fund managers have not been able to beat the market supports ___________. Market competition. Strong form efficiency. Semi-strong fo…

1.The internal rate of return is often referred to as the yield on an investment

1.The internal rate of return is often referred to as the yield on an investment. Explain the analogy between the internal rate of return on an investment and the yield to maturit…

1.The just-in-time inventory system is designed to reduce the inventory period.

1.The just-in-time inventory system is designed to reduce the inventory period. In essence, companies pay their suppliers to carry the inventory for them. Reducing the inventory p…

1.The manufacturing overhead budget at Latronica Corporation is based on budgete

1.The manufacturing overhead budget at Latronica Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 6,400 direct labor-hours will be requi…

1.The present value of a single future sum: increases as the number of discount

1.The present value of a single future sum: increases as the number of discount periods increases. is generally larger than the future sum. depends upon the number of discount per…

1.The real risk-free rate is 4%. Inflation is expected to be 3% this year, 5% ne

1.The real risk-free rate is 4%. Inflation is expected to be 3% this year, 5% next year, and then 5% thereafter. The maturity risk premium is estimated to be 0.0003 x (t - 1), whe…

1.The risk-return trade-off in managing a firm\'s working capital involves which

1.The risk-return trade-off in managing a firm's working capital involves which of the following? a. A trade-off between liquidity and activity. b. A trade-off between debt and eq…

1.The term excess return refers to ______________. a. returns earned illegally b

1.The term excess return refers to ______________. a. returns earned illegally by means of insider trading b. the difference between the rate of return earned and the risk-free ra…

1.The yield curve… 2. Investment A will return to you $2018 in one year if you i

1.The yield curve… 2.  Investment A will return to you $2018 in one year if you invest $1750 today. Investment B will return to you $3125 in one year. What is the most you will pa…

1.Thirsty Cactus Corp. just paid a dividend of $2.60 per share. The dividends ar

1.Thirsty Cactus Corp. just paid a dividend of $2.60 per share. The dividends are expected to grow at 18 percent for the next eight years and then level off to a growth rate of 7 …

1.Today, you sold 200 shares of Indian River Produce stock. Your total return on

1.Today, you sold 200 shares of Indian River Produce stock. Your total return on these shares is 6.2%. You purchased the shares one year ago at a price of $31.10 a share. You have…

1.Travel Coaches currently sells 14,000 motor homes per year at $94,000 each, an

1.Travel Coaches currently sells 14,000 motor homes per year at $94,000 each, and 1,500 luxury motor coaches per year at $159,000 each. The company wants to introduce a low-range …

1.Tulloch Manufacturing has a target debt–equity ratio of .62. Its cost of equit

1.Tulloch Manufacturing has a target debt–equity ratio of .62. Its cost of equity is 13.3 percent, and its pretax cost of debt is 8.3 percent. If the tax rate is 38 percent, what …

1.Use financial statements that are in the attached document to calculate the fi

1.Use financial statements that are in the attached document to calculate the financial ratios presented. 2. Prepare and interpret an analysis of the financial ratios showing the …

1.Use the following table of states of the economy and stock returns to calculat

1.Use the following table of states of the economy and stock returns to calculate the percentage standard deviation of a portfolio of a portfolio of 22 percent Roten and the rest …

1.Washington Mutual offers a 2-year certificate of deposit (CD) that pays 10% co

1.Washington Mutual offers a 2-year certificate of deposit (CD) that pays 10% compounded annually. Wells Fargo offers a 2-year CD that is compounded semi-annually. The CD's have i…

1.What advantages does a sole proprietorship offer? What is a major drawback of

1.What advantages does a sole proprietorship offer? What is a major drawback of this type of organization? 2.What form of partnership allows some investors to limit their liabilit…

1.What are some of the main components of personal financial planning? 2.What fa

1.What are some of the main components of personal financial planning? 2.What factors influence the level of interest rates? 3.Use time value of money tables to calculate the foll…

1.What are the differences between sales and operations planning and budgeting?

1.What are the differences between sales and operations planning and budgeting? 2.A gear manufacturer schedules production of one of the gears in batches of 200 units whenever the…

1.What does the calculation of each ratio represent? 2.How does year one compare

1.What does the calculation of each ratio represent? 2.How does year one compare with year two, and what trend can be seen when you compare the two years? 3.Is the trend from year…

1.What is a static budget? What is a flexible budget? Which is more useful, and

1.What is a static budget? What is a flexible budget? Which is more useful, and why? 2. Consider your current position, or consider a job that you might like to have in the future…

1.What is capital market? 2. Name a few major stock indices in the U.S. Describe

1.What is capital market? 2. Name a few major stock indices in the U.S. Describe what they represent and what type of weights they use in estimation of the index. What are their E…

1.What is the breakeven in units for a company with $6.4 million in sales, $2.4

1.What is the breakeven in units for a company with $6.4 million in sales, $2.4 million in fixed costs, a selling price of $1,400 per unit and variable costs of $800 per unit? Doe…

1.What is the discounted payback statistic for a project with yearly cash flows

1.What is the discounted payback statistic for a project with yearly cash flows of -10,000; 2,500; 3,500; 4,000; 2,000 when the company faces a zero percent cost of capital? a.2.8…

1.What\'s the (EAR) effective annual rate of 16 percent APR compounded quarterly

1.What's the (EAR) effective annual rate of 16 percent APR compounded quarterly? 2. What is the total PRESENT VALUE now of two future cash flows if discounted at an 8% annual rate…

1.When Coca-Cola traded their soft drink for wine in Slovenia, the company was e

1.When Coca-Cola traded their soft drink for wine in Slovenia, the company was engaged in: A.Exchange control. B.Countertrade. C.Tariff trading. D.Quota trade. E.Global bargaining…

1.Which financial statement is divided into two important parts: operating and n

1.Which financial statement is divided into two important parts: operating and nonoperating sections. It is also known as the profit and loss statement. a.Statement of Retained Ea…

1.Which of the following credit and collections decisions would typically not in

1.Which of the following credit and collections decisions would typically not increase the accounts receivable balance? a. extending credit to less creditworthy customers b. incre…

1.Which of the following is NOT an accurate statement specific to a fiduciary? a

1.Which of the following is NOT an accurate statement specific to a fiduciary? a.Financial planners are themselves fiduciaries when working in certain capacities with clients. b.T…

1.Which of the following is not one of the six basic questions that a forecast m

1.Which of the following is not one of the six basic questions that a forecast must answer? a. How much profit will the firm be able to make? b. How much time do I have to develop…

1.Which of the following major financial institutions are not considered to be p

1.Which of the following major financial institutions are not considered to be part of the securities industry? a. investment companies b. investment banks c.securities brokers an…

1.Which of the following standards is inapplicable when conducting an attestatio

1.Which of the following standards is inapplicable when conducting an attestation examination engagement?        Assertion        Independence        Subject matter        Suitabl…

1.Which of the following statement represent a common purpose of estate planning

1.Which of the following statement represent a common purpose of estate planning? I. The best estate plan is always one that minimized taxes. II. Intestate successon laws generall…

1.Which of the following statements about conversion of income is correct? conve

1.Which of the following statements about conversion of income is correct? converting ordinary income into capital gain is a beneficial tax planning strategy converting capital ga…

1.Which of the following statements is FALSE? a.Only aggressive investors will c

1.Which of the following statements is FALSE? a.Only aggressive investors will choose to hold the portfolio of risky assets, the tangent or efficient portfolio. b.An investor's pr…

1.Which of the following statements is false? Explain why. A.the imperfections i

1.Which of the following statements is false? Explain why. A.the imperfections in the CAPM may be critical in the context of capital budgeting and corporate finance, where errors …

1.Which of the following statements is most correct? Diversifiable risk is cause

1.Which of the following statements is most correct?    Diversifiable risk is caused by events unique to a single business. Portfolio risk is caused by events unique to a single b…

1.Which of the following will increase if the coupon rate increases? I. face val

1.Which of the following will increase if the coupon rate increases? I. face value II. market value III. yield-to-maturity IV. current yield A. I and II only B. III and IV only C.…

1.Which one of the following categories of securities had the most volatile annu

1.Which one of the following categories of securities had the most volatile annual returns over the period 1926–2016? a ,Long-term corporate bonds b,Large-company stock c,Intermed…

1.Which one of these statements related to forward contracts is correct? The buy

1.Which one of these statements related to forward contracts is correct? The buyer of a forward contract on corn benefits if the price of corn increases during the contract period…

1.Whole Foods Donuts , Ltd has generated profits of $2 per share for many years

1.Whole Foods Donuts , Ltd has generated profits of $2 per share for many years and has consistently paid 100% of those profits to shareholders via a dividend . Investors do not e…