CHAPTER 2: FINANCIAL STATEMENTS, CASH FLOWS, AND TAXES
' Sample Questions with Solutions
1. A bond issued by the State of Pennsylvania provides a 9 percent yield.
What yield on a Synthetic Chemical Company bond would cause the two
Chapter 5: Assignment
1. American Fortunes is preparing a bond offering with an 8% coupon rate. The bonds will be
repaid in 10 years. The company plans to issue the bonds at par value and pay interest
semiannually. Given this, which of the following state
CHAPTER 3:ANALYSIS OF FINANCIAL STATEMENTS
ADDITIONAL PROBLEMS AND SOLUTIONS
Market price per share
The Charleston Company is a relatively small, privately owned firm. Last
year the company had after-tax income of $15,000, and 10,000 shares were
Chapter 1 Assignment
1. Which of the following could explain why a business might choose to organize as a
corporation rather as a sole proprietorship or a partnership?
a. Corporations generally face fewer regulations.
b. Corporations generally face lower
Chapter 1: Sample Questions with Answers
1. The New York Stock Exchange is primarily
a. A secondary market.
b. An organized auction market.
c. An capital market market.
d. Answers a and b are correct.
e. All of the above.
2. Which of the following stateme
‘ CHAPTER 9: SAMPLE QUESTIONS WITH ANSWERS
Hettenhouse Company’s perpetual preferred stock sells for $102.50 per
share, and it pays a $9.50 annual dividend. If the company were to sell
a new preferred issue, it would incur a flotation