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TIME VALUE OF MONEY: THE BUY VERSUS RENT DECISION
Sean Cleary and Stephen Foerster wrote this case solely to provide material for class discussion. The authors do not intend to
illustrate either effectiv
More Exam Prep Problems
1. You are considering investing $3,000 today for a period of 8 years. At the end of that period you
expect to have $5,000. What is the annual interest rate on your investment if interest is compounded
2. You have decide
1B 2C 3A 4D 5B 6B 7C 8B 9C 10C 11C 12D
1. GDP is the:
A. national income minus all non-income charges against output.
B. monetary value of all final goods and services produced within the borders of a nation in
a particular year.
C. monetary value
Answers: 1A 2A 3C 4B 5B 6A 7B 8B 9C 10A 11C 12A 13B 14A 15B
1. The law of demand states that, other things equal:
A price and quantity demanded are inversely related.
B the larger the number of buyers in a market, the lower will be product price.
1. Well-functioning financial markets
A) cause inflation.
B) eliminate the need for indirect finance.
C) cause financial crises.
D) produce an efficient allocation of capital.
2. Which of the following can be described as direct finance?
A) You take out a
Web Ads & Advertising
385E Information Architecture
What is Web Advertising?
Web advertising is the action of promoting your
website using online advertising tools,
techniques and methods proven to get the
Claritas PRISM NE:
PRIZM NE (New Evolution) is a leading segmentation system by Claritas that classifies every America
household based on a host of demographic factors such as age, education level, income, occupation,
family composition, ethnicity, housin
The Balance Sheet
An accountants snapshot of the firms
accounting value at a specific point in time
The Balance Sheet Identity is:
Assets Liabilities + Stockholders Equity
U.S. Composite Corporation Balance Sheet
Cash and equival
1. You expect to receive $8,000 5 years from now. If the appropriate discount rate is 6%, what is the
value of this today?
FV= C (1+r)n
2. You have $2,000 that you have agreed
Financial Management Foundations FIN 599
I. Financial System Overview:
1. Capital market instruments include
a. commercial paper.
b. corporate bonds.
d. all of the above.
e. only b and c.
2. The financial market in which buyers