It means there are taxes on corporate profits
AND interest.
It means there are taxes on corporate profits
AND losses.
Question 26
3 out of 3 points
The conventional way of preparing a balance sheet is to list all assets in the order of
their
Selected
Answer:
liquidity
Answers:
market
value
risk
liquidity
historical
cost
Question 27
3 out of 3 points
When analysts and investors determine the value of a firm's stock, they should
consider
Selected
Answer:
all of the above
Answers:
the size of the expected cash flows from owning
the stock
the timing of the expected cash flows from

owning the stock
the riskiness of the expected cash flows from
owning the stock
all of the above
Question 28
4 out of 4 points
Tre-Bien Bakeries generated net income of $233,412 this year. At year end, the
company had accounts receivables of $47,199, inventory of $63,781, and cash of
$21,461. It also had accounts payables of $51,369, short-term notes payables of
$11,417, and accrued taxes of $6,145. The net working capital of the firm is
Selected
Answer:
63,510
Correct
Answer:
63,510
Answer range
+/-
0.5 (63509.5 -
63510.5)
Question 29
4 out of 4 points
Sorenstam Corp has total equity of $1,928,588, total assets of $4,512,895, a ROE of
17.5 percent, and a total assets turnover of 3.1 times. Calculate the firm's ROA (in
percent).
Selected
Answer:
7.48
Correct
Answer:
7.48
Answer range
+/-
0.08 (7.40 -
7.56)
Question 30
4 out of 4 points
Zidane Enterprises has a current ratio of 1.92, current liabilities of $272,934, and
inventory of 197,333. What is the firm's quick ratio?
Selected
Answer:
1.2
Correct
Answer:
1.2
Answer range
+/-
0.05 (1.15 -
1.25)
Friday, May 8, 2015 9:43:42 AM MST
EXAM 2

Carlos Menendez is planning to invest $3,500 every year for the next six years in an
investment that pays 12 percent annually. How much money will he have at the end
of the six years (round to the nearest dollar)?
Selected
Answer:
$28,4
03
Answers:
$21,0
00
$24,6
70
$26,1
24
$28,4
03
Question 2
3 out of 3 points
The present value of a zero coupon bond is less than the face value if the yield to
maturity is positive.
Selected
Answer:
Tru
e
Answers:
Tru
e
False
Question 3
3 out of 3 points
The yield to maturity of a bond is the discount rate that makes the present value of
the coupon and principal payments equal to the price of the bond.
Selected
Answer:
Tru
e
Answers:
Tru
e
False
Question 4
3 out of 3 points
Which of the following investment classes had the greatest variability in returns
based on recent historical data?
Selected
Answer:
Small US stocks
Answers:
Small US stocks

Large US stocks
Short-term US
governement bonds
Long-term US government
bonds
Question 5
5 out of 5 points
You would like to retire in 40 years at which time you would like to have $500,000. If
you think you can earn 10 percent per year on your investments, how much do you
need to save at the end of each year to achieve your goal?
Selected
Answer:
1129.71
Correct
Answer:
1,130
Answer range
+/-
1 (1129.0 -
1131.0)
Question 6
3 out of 3 points
Robert paid $100 for a stock one year ago. If he receives a $5 dividend and his
TOTAL return is 10 percent, then the stock must be worth $115 today.

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