Exam3 FIN370 B Key (1)

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

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Exam3 FIN370-02 Winter 2011 Key Version B 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. II only B. III only C. III and IV only D. I and II only E. I, III, and IV only BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 001 #58 SECTION: 1.6 TOPIC: AUCTION MARKET TYPE: CONCEPTS 2. The Town Talker has a printing press that is not being used at the present time. In fact, this press has not been used for over a year. The press has no market value because it utilizes old technology. The firm could get $150 for the press as scrap metal. The press is five years old and originally cost $97,000. The current book value is $1,450. The president of the firm is considering a new project and feels he can use this press for that project. What value should be assigned to the press and included in the initial project cost? A. $1,450 B. $1,300 C. $150 D. $0 E. $1,600 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 009 #51 SECTION: 9.2 TOPIC: OPPORTUNITY COST TYPE: PROBLEMS
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3. Which one of the following correctly defines the average accounting return? A. average cash flow divided by average book value B. average net income divided by average book value C. average book value divided by average net income D. average book value divided by average cash flow E. average book value divided by average market value BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 008 #4 SECTION: 8.3 TOPIC: AVERAGE ACCOUNTING RETURN TYPE: DEFINITIONS 4. Percentage returns: I. easily convey the return for each dollar invested. II. relay information about a security more easily than dollar returns do. III. are not affected by the amount of the investment. IV. can be easily separated into dividend and capital gain yields. A. I, II, and IV only B. I and III only C. II and III only D. II and IV only E. I, II, III, and IV BLOOMS TAXONOMY QUESTION TYPE: COMPREHENSION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 010 #11 SECTION: 10.1 TOPIC: PERCENTAGE RETURNS TYPE: CONCEPTS 5. Which one of the following ignores the time value of money? A. profitability index B. payback C. discounted cash flow analysis D. internal rate of return E. net present value BLOOMS TAXONOMY QUESTION TYPE: BASIC LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 008 #22 SECTION: 8.2 TOPIC: PAYBACK TYPE: CONCEPTS
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6. The stock of Uptown Men's Wear is expected to produce the following returns given the various states of the economy. What is the expected return on this stock?
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Exam3 FIN370 B Key (1) - Exam3 FIN370-02 Winter 2011 Key...

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