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FIN 370 - FINAL - SET 1 - 1),whichofthe , A...

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1) In terms of organizational costs, which of the  following sequences is correct, moving from lowest to highest cost?  A. Sole proprietorship,  general partnership,  corporation, limited  partnership B. General partnership,  sole proprietorship,  limited partnership,  corporation C. Sole proprietorship,  general partnership,  limited partnership,  corporation D. Corporation, limited  partnership, general  partnership, sole  proprietorship 2) The true owners of the corporation are the:  3) Which of the following categories of owners have limited liability?  4) Money market instruments include: 
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5) When public corporations decide to raise cash in the capital markets, what  type of financing vehicle is most favored?  6) Which of the following would increase the need for external equity?  7) Difficulty in finding profitable projects is due to:  8) Which of the following is NOT a principle of basic financial management? 
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9) According to the agency problem, _________ represent the principals of a  corporation.  10) Marshall Networks, Inc. has a total asset turnover of 2.5% and a net profit  margin of 3.5%. The firm has a return on equity of 17.5%. Calculate Marshall’s  debt ratio.  11) Which of the following financial ratios is the best measure of the operating  effectiveness of a firm’s management?  12) Another name for the acid test ratio is the:  13) Northwest Bank pays a quoted annual (nominal) interest rate of 4.75%.  However, it pays interest (compouned) daily using a 365-day year. What is the  effective annual rate of return (APY)? 
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A. 4.86% B. 3.61% C. 5.02% D. 4.75% 14) If you are an investor, which of the following would you prefer?  15) Suppose that you wish to save for your child's college education by opening  up an educational IRA. You plan to deposit $100 per month into the IRA for the  next 18 years. Assume that you will be able to earn 10%, compounded monthly, 
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