Which one of the following has the lowest effective

This preview shows page 18 - 21 out of 22 pages.

45. Which one of the following has the lowest effective annual rate? A. 7 percent compounded semi-annually B. 7 percent compounded daily C. 7 percent compounded quarterly D. 7 percent compounded monthly E. 7 percent compounded annually BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 005 #24 SECTION: 5.3 TOPIC: EFFECTIVE ANNUAL RATE TYPE: CONCEPTS 46. The National Bank offers personal loans at 8 percent compounded monthly. The Global Bank offers similar loans at 8.25 percent compounded quarterly. Which one of the following statements is correct concerning these two banks? BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 005 #85 SECTION: 5.3 TOPIC: EFFECTIVE ANNUAL RATE TYPE: PROBLEMS 47. Conway & Sons had $26,500 in net fixed assets at the beginning of the year. During the year, the company purchased $5,700 in new equipment. It also sold, at a price of $1,000, some old equipment with a book value of $850. The depreciation expense for the year was $4,300. What is the net fixed asset balance at the end of the year? BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 002 #57 SECTION: 2.1 TOPIC: NET FIXED ASSETS TYPE: PROBLEMS
Image of page 18

Subscribe to view the full document.

48. A firm is reviewing a project that has an initial cost of $85,000. The project will produce cash inflows, starting with year 1, of $10,000, $15,500, $23,600, $30,100, and finally in year five, $38,700. What is the profitability index if the discount rate is 14 percent? BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 6 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 008 #95 SECTION: 8.5 TOPIC: PROFITABILITY INDEX TYPE: PROBLEMS 49. The dividend yield is computed as: A. (D t+1 D t ) / P t . B. D t+1 / P t . C. (P t+1 + D t+1 ) / P t D. P t+1 / D t . E. (D t+1 D t ) / P t+1 . BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 010 #8 SECTION: 10.1 TOPIC: DIVIDEND YIELD TYPE: CONCEPTS 50. The amount by which a firm's tax bill is reduced as a result of the depreciation expense is referred to as the depreciation: BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 009 #7 SECTION: 9.3 TOPIC: DEPRECIATION TAX SHIELD TYPE: DEFINITIONS
Image of page 19
Image of page 20

Subscribe to view the full document.

Image of page 21
You've reached the end of this preview.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern