CHAPTER 16 QUIZ - a) Cash b) Temporary investments c)...

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CHAPTER 16 QUIZ 1.The 52 Week high and low are the highest and lowest prices, respectively, paid for a stock in the last Answer: Year 2.What is the sign of a successful capital budgeting progam? Answer: Higher than normal profits and increasing sales 3.Plants, offices, and equipment are considered Answer: Long-term assests 4.Securities markets provide a) A mechanism for buying and selling stocks and bonds b) The primary market where firms raise capital c) A secondary market d) Liquidity e) All of the above (Answer) 5.Which of the following is a sequence of small bond issues of progressively longer maturity? Answer: Serial Bonds 6.A firm may increase its return to the business through improved management of
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Unformatted text preview: a) Cash b) Temporary investments c) Inventory d) Accounts receivable e) All of the above (Answer) 7.Stockholders who may receive dividens but cannot vote are called Answer: Preferred stockholders 8.When a company invests a lot of money in a particular project, it is concerned about the amount of risk involved. In general, the longer the expected life of a project or asset, the potential risk is Answer: Greater 9.Of the following, which would not be a fixed asset for the Tops Manufacturing Company? Answer: $10,000 in T-bills 10.Which of the following is the most risky? Answer: Introducing a new product in a foreign market...
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