Lisa has $1,000 in cash today. Which one of the following investment options is most apt to double
Answer: 8 percent interest for 9 years
Tom earned $120 in interest on his savings account last year. Tom has decided to leave the $120
If a firms sales are growing at 5% per year, how long will it take for the firms sales to triple?
Assume sales are $1. Use the financial calculator to solve for how long it will take sales to
grow to $3 at 5%. PV=-1/Y=5,FV=3, solve for N.
Later this week, you are traveling from the U.S. to Canada for a week's vacation. This morning, you
exchanged some U.S. dollars for Canadian dollars in preparation for that trip. Which one of the following
best describes this exchange?
Portfolio as of date: 11/11/2016
Portfolio Market Value as of this date: $10,039.08
Cash remaining as of this date: $116.32
Percentage Gain: 0.3908%
Introduction and Investment Rationale
The stock market lets investors participate in the financial a
Which one of the following generally pays a fixed dividend, receives first priority in dividend payment,
and maintains the right to a dividend payment, even if that payment is deferred?
A registered form bond is defined as a bond that:
is a bearer bond.
is held in street name.
pays coupon payments directly to the owner of record.
is listed with the Securities and Exchange Commission (SEC).
Bond ratings measur
An investment has conventional cash flows and a profitability index of 1.0. Given this, which one of the
following must be true?
a. The internal rate of return exceeds the required rate of return.
b. The investment never pays back.
c. The net present valu
On which one of the following dates are dividend checks mailed?
Date of record
Public announcement date
Chelsie Enterprises declared a dividend to shareholders of record on Monday, February 8,
Which one of the following is most apt to align management's priorities with shareholders' interests?
a. Increasing employee retirement benefits
b. Compensating managers with shares of stock that must be held for three years before the
shares can be sold
Which one of the following transactions will increase the liquidity of a firm?
Cash purchase of new production equipment
Payment of an account payable
Cash purchase of inventory
Credit sale of inventory at cost
Cash payment of employee wage
Delivery trucks are classified as:
tangible fixed assets.
intangible fixed assets.
The accounting statement which measures the revenues, expenses, and net income of a firm over a
You are comparing two annuities. Annuity A pays $100 at the end of each month for 10 years. Annuity B
pays $100 at the beginning of each month for 10 years. The rate of return on both annuities is 8 percent.
Which one of the following statements is correc
Tom earned $120 in interest on his savings account last year. Tom has decided to leave the $120 in his
account so that he can earn interest on the $120 this year. This process of earning interest on prior
interest earnings is called:
Introductions & Investment Rationale
My decision to purchase shares in all of my stocks: Proctor & Gamble Co (PG),
Lowes Companies, Inc. (LOW), AT&T Inc. (T), Facebook, Inc. (FB), Caterpillar Inc.
(CAT), Wal-Mart Stores, Inc. (WMT), and Starbucks Corporat
1. What is the debt-equity ratio for a company with 3.5 million in total assets and 1.4 million in
Total Debt= Assets-Equity
(3.5 mil 1.4 mil) = 2.1 mil
Debt/Equity= 2.1m/1.4mil= 1.50
2. Alpha Manufacturing has interest expense of $12mil
Assume 100 earns a stated 10 percent compounded quarterly. What will the value of 100 be
after 1 year?
FV= 100x(1+.10/404 = 110.38
If the quoted interest rate is 2% per month (12 months in a year), what is the APR?
2%/monthx 12 months= 24%
Quiz Problems for Financial MG
1. Benson's Trucking has sales for the year of $428,900 and costs of $263,700. The tax rate is 34
percent. For the year, the firm paid $29,600 in dividends and added $34,200 to retained earnings.
What is the amount
in BUSINESS ETHICS - MORAL RESPONSIBILITY OF THE
Conference Proceedings: International Conference of the Faculty ;2012, p507