Exam3 FIN370 A Key (1)

Exam3 FIN370 A Key (1) - Exam3 FIN370-02 Winter 2011 Key...

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Exam3 FIN370-02 Winter 2011 Key Version A 1. Auction markets: I. match sellers with buyers. II. have a physical location. III. consist solely of electronic trades. IV. are based on dealers. A. I, III, and IV only B. III and IV only C. II only D. I and II only E. III only BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 001 #58 SECTION: 1.6 TOPIC: AUCTION MARKET TYPE: CONCEPTS 2. The profit margin is the amount of net profit earned for every $1 of: A. total assets. B. sales. C. external financing. D. equity. E. long-term debt. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 003 #21 SECTION: 3.2 TOPIC: PROFIT MARGIN TYPE: CONCEPTS
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3. Portman's is considering adding a new product to its lineup. This product is expected to generate sales for three years after which time the product will be discontinued. What is the project's net present value if the firm wants to earn a 12 percent rate of return? A. $4,862.07 B. $7,611.08 C. $6,795.61 D. $9,682.26 E. $1,084.41 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 008 #51 SECTION: 8.1 TOPIC: NET PRESENT VALUE TYPE: PROBLEMS 4. Over the past six years, a stock had annual returns of 2 percent, 10 percent, 14 percent, 8 percent, -6 percent, and 8 percent, respectively. What is the standard deviation of these returns? A. 7.04 percent B. 8.38 percent C. 12.27 percent D. 11.97 percent E. 7.19 percent BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 010 #65 SECTION: 10.4 TOPIC: STANDARD DEVIATION TYPE: PROBLEMS 5. Given an interest rate of zero percent, the future value of a lump sum invested today will always: A. decrease if the investment time period is shortened. B. be greater than the initial investment amount. C. decrease if the investment time period is lengthened. D. remain constant, regardless of the investment time period. E. be equal to $0. BLOOMS TAXONOMY QUESTION TYPE: COMPREHENSION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 004 #15 SECTION: 4.1 TOPIC: FUTURE VALUE TYPE: CONCEPTS
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6. Which one of the following best exemplifies the concept of a marginal tax? A. As the result of opening a new store, Northern Lights owed an additional $1.1 million in taxes. B. Jefferson-Knight paid $2.1 million in taxes last year on revenue of $6.8 million. C. High Water Adventures paid $0.18 in tax for every $1 in taxable income last year. D. Alpha Industries received a tax refund due to an error in its tax return that the IRS discovered. E. Southern Mills paid $3.2 million more in taxes last year than its competitor, Eastern Mills. BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE
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This note was uploaded on 03/01/2012 for the course ACCOUTNING 550 taught by Professor Abner during the Spring '11 term at DeVry Houston.

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Exam3 FIN370 A Key (1) - Exam3 FIN370-02 Winter 2011 Key...

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