Question 1
Bonds are bought and sold in ________ markets.
equity
debt
derivatives
foreign exchange
Question 2
_______ addresses the question of where money is raised to finance business activities.
Capital budgeting
Capital structure
working capital management
Accounts receivable management
Question 3
The fundamental starting point of all the accounting statements is the________ identity.
| accounting |
| computing |
| investing |
| financing |
Question 4
Net income is:
the accounting profit from the company's operations during a certain period.
cash flow.
the accounting profit from the non-operating assets of the company during a certain period.
always the dividends paid shareholders.
Question 5
You need $32,000 at the end of 6 years. If you can earn 0.625% per month, how much would you need to invest today to meet your objective?
17600
18319
20735
20433
Question 6
Each of the following methods produce the same future value, because they all use the same equation, EXCEPT:
using the TMV values.
using the calculator.
using the equation.
using a spreadsheet.
Question 7
To determine the interest paid each compounding period, we take the advertised annual percentage rate and simply divide it by the ________ to get the appropriate periodic interest rate.
number of compounding periods for the length of an investment
number of discounting periods for the length of an investment
number of compounding periods per year
number of compounding periods per month
Question 8
The ________ is the face value of the bond.
price rate
maturity date
par value
coupon rate
Question 9
You want to invest in a stock that pays $5 annual cash dividends for the next four years. At the end of the four years, you will sell the stock for $20. If you want to earn 12% on this investment, what is a fair price for this stock if you buy it today?
40
43.9
27.9
25.42
Question 10
A riskier stock has a higher:
expected return.
standard deviation.
variance.
B and C
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