QUIZ+1+SU+09 (1) - MGT 3062 QUIZ 1 SUMMER 2009MGT 3062 QUIZ...

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MGT 3062 QUIZ 1 SUMMER 2009 MGT 3062 QUIZ 1 SUMMER 2009 Student: ___________________________________________________________________________ ___________________________________________________________________________________ Choose the BEST answer to each question. Bubble in your answer on the form provided. For computational questions, show your work (for possible partial credit). If you feel that the answer is not provided, show your work, explain your assumptions, and write your answer on the exam. Questions are worth 3 points each. Remove all hats and dark glasses. If you have to go to the restroom, go now. No electronic devices allowed. You may not use your cell phone as a calculator. As a courtesy to your classmates, no questions are allowed after initial instructions are given. Ethics Challenge: I swear by everything I hold sacred and my family honor that: the work on this exam is my own without any outside assistance; that I did not provide assistance to another classmate; that I used no electronic devices for information storage, retrieval, or communications; that I have abided by the Georgia Tech honor code in the preparation and execution of this exam. Signature:________________________________________________________________ ___________________________________________________________________________________ 1. Net working capital is defined as: A. total liabilities minus shareholders' equity. B. current liabilities minus shareholders' equity. C. fixed assets minus long-term liabilities. D. total assets minus total liabilities. E. current assets minus current liabilities. 2. Your firm has total assets of $1,400, fixed assets of $600, long-term debt of $700, and short-term debt of $100. What is the amount of net working capital? A. $0 B. $100 C. $600 D. $700 E. $800 3. What is the present value of $36,800 to be received 6 years from today if the discount rate is 12 percent? A. $18,644.03 B. $19,407.18 C. $19,414.14 D. $20,211.08 E. $20,390.14
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4. You just inherited $12,000 and you have the opportunity to invest in a "growth mutual fund" that has a track record of averaging 12% compound growth per year. You also have two credit cards (and no other debts). One card has a $2,000 balance with a 15% APR (annual percentage rate). The other credit card has a $6,000 balance with a 0% APR (for the next 12 months). According to Dave Ramsey and the Motley Fool, how much of your inheritance should you invest in the growth mutual fund? A. $12,000 B. $10,000 C. $6,000 D. $8,000 E. $4,000 5. A current asset is best defined as: A. an asset, such as equipment, that is currently owned by a firm. B. an asset the firm expects to own within the next year. C. an asset which is expected to be converted into cash within the next year.
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This note was uploaded on 02/09/2012 for the course MGT 3078 taught by Professor Marchman during the Spring '12 term at Georgia Institute of Technology.

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QUIZ+1+SU+09 (1) - MGT 3062 QUIZ 1 SUMMER 2009MGT 3062 QUIZ...

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