Exam2 FIN370 A Key (1)

Exam2 FIN370 A Key (1) - Exam2 FIN370-02 Winter 2011 Key...

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Exam2 FIN370-02 Winter 2011 Key Version A 1. If I grant another individual the right to vote on my behalf for the directors of a corporation, I am voting by: A. the straight method. B. preference. C. proxy. D. consent. E. the cumulative method. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 007 #7 SECTION: 7.2 TOPIC: PROXY TYPE: DEFINITIONS 2. You plan to save $20 every week for the next five years. You expect to earn 6 percent for the first year and 7.5 percent for the last four years. How much do you expect to have saved at the end of the five years? A. $3,401.67 B. $4,547.33 C. $5,388.21 D. $6,292.99 E. $7,127.42 BLOOMS TAXONOMY QUESTION TYPE: ANALYSIS LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: CHALLENGE Ross - Chapter 005 #79 SECTION: 5.1 TOPIC: ANNUITY WITH CHANGING INTEREST RATES TYPE: PROBLEMS
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3. An 8 percent semiannual coupon bond is priced at $1,204.60. The bond has a $1,000 face value and a yield to maturity of 4.88 percent. How many years will it be until this bond matures? A. 17.29 years B. 16.00 years C. 8.00 years D. 8.65 years E. 15.91 years BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 006 #84 SECTION: 6.1 TOPIC: TIME TO MATURITY TYPE: PROBLEMS 4. A business organization owned by two or more individuals or entities, each of whom has unlimited liability for the firm's debts, is called a: A. joint stock company. B. general partnership. C. limited partnership. D. dual company. E. limited liability company. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 3 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 001 #5 SECTION: 1.3 TOPIC: GENERAL PARTNERSHIP TYPE: DEFINITIONS 5. Which of the following are advantages of the corporate form of organization? I. ability to raise large sums of capital II. ease of ownership transfer III. corporate taxation IV. unlimited firm life A. III and IV only B. I, II, III, and IV C. II, III, and IV only D. I, II, and IV only E. I and II only BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 3 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 001 #32 SECTION: 1.3 TOPIC: CORPORATION TYPE: CONCEPTS
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6. You are comparing two savings accounts. Account A has an APR of 4.65 percent and an EAR of 4.75 percent. Account B has an APR of 4.70 percent and an EAR of 4.70 percent. Given this, you should invest in account: A. B because it has the higher APR. B. B because its APR is equal to its EAR. C. A because it has the lower APR. D. B because it has the lower EAR. E. A because it has the higher EAR. BLOOMS TAXONOMY QUESTION TYPE: COMPREHENSION LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 005 #28 SECTION: 5.3 TOPIC: EFFECTIVE ANNUAL RATE TYPE: CONCEPTS 7. A firm has a return on equity of 14 percent, a return on assets of 9.5 percent, and a 30 percent dividend payout ratio. What is the sustainable growth rate? A.
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Exam2 FIN370 A Key (1) - Exam2 FIN370-02 Winter 2011 Key...

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