Review for Chapter 22 (2008)
The lack of correlation between an investment's return and the firm's other investments
45. suggests
a. the investment has little risk
b. portfolio effects may exist
c. the investment's beta coefficient is low
d. the investmen
Cardillo Travel System Case
Cardillo Travel System Case
Taniesha Maxwell
Professor Anthony Matias
ACC 562 Advanced Auditing
11/24/2014
Cardillo Travel System Case
In October, 1986, a well-known Los Angeles travel agency suddenly closed its doors.
Arnold W
The time value of money suggests
5. a. that the present is less attractive than the future
b. individuals prefer a dollar in the present to a dollar in the future
c. the present value of an annuity is negative
d. annuities are worth less than lump sums
Pr
Finance 3155 Exam 1
Summer Semester 2006
Dr. William A. Dowling
KEY
Instructions: You are to provide answers for each of the following questions. In order to receive
credit for any answer, you must appropriately demonstrate how you arrived at your solutio
No load mutual funds
80. a. have no selling fees
b. pay no cash dividends
c. have no administrative expenses
d. have a fixed portfolio
Problem
Quiz 3 - Preview - Spring 2008
What is the expected return on a stock if the firm will earn 24% during a period
A firm should not make an investment if the internal rate of return is
25. a. greater than the cost of capital
b. less than the cost of capital
c. greater than the interest rate
d. less than the interest rate
Problem
Quiz 3 - Review - Chapters 8 -18,28 &2
Make-up Review - Spring 2008
Small standard deviations for cash inflows
75. a. reduces an investment's net present value
b. increases an investment's internal rate of return
c. increases the firm's cost of capital
d. implies more certainty
Problem
You bou
Review for Exam 2 - Chapters 6 - 11
An increase in investors' required return should cause the value of a common stock to
70. a. rise
b. fall
c. remain unchanged
d. remain stable or rise slightly
Problem
If you open an individual retirement account (IRA)
Practice Quiz for Chapters 1 - 6
Which of the following causes a currency inflow?
35.
1.
2.
3.
4.
a.
b.
c.
d.
foreign travel and foreign investments
domestic travel by foreigners
dividend payments from foreign corporations
dividend payments to foreign inv
The marginal cost of capital
28. a. is the firm's cost of debt and equity finance
b. is constant given an optimal capital structure
c. declines as flotation costs alter equity financing
d. refers to the cost of additional financing
Problem
a.
Given the fo
Chapter 6 Review
True/False
Indicate whether the statement is true or false.
Typically, debentures have higher interest rates than mortgage bonds primarily
1. because the mortgage bonds are backed by assets while debentures are unsecured.
T
ANSWER:
0/1
PO
Chapter 3 Review
True/False
Indicate whether the statement is true or false.
The existence of financial intermediaries greatly increases the efficiency of
1. financial markets because, without them, savers would have to provide funds
directly to borrowers
Chapter 12 Review
True/False
Indicate whether the statement is true or false.
The optimal capital structure is that capital structure which strikes a balance
1. between risk and return such that the firm's stock price is maximized.
T
ANSWER:
0/1
POINTS:
F
Chapter 14 Review
True/False
Indicate whether the statement is true or false.
The fact that no explicit interest cost is paid on accruals and that the firm can
1. exercise considerable control over their level makes accruals an attractive source of
additi
Taniesha Maxwell
Homework Assignment Set #4
1. (a) What is each projects IRR? (b) If each projects cost of capital were 10%, which project, if
either, should be selected? If the cost of capital were 17%, what would be the proper choice?
Project A IRR = 21
Chapter 15 Review
True/False
Indicate whether the statement is true or false.
Firms hold cash balances in order to complete transactions that are necessary in
1. business operations and as compensation to banks for providing loans and services.
T
ANSWER:
Q4 Review - Spring 2008
The use of certainty equivalents means
50. a. the investment's cash inflows are certain
b. an investment's cash inflows are expressed as if they were certain
c. the cost of capital is known
d. the probability of occurrence is certa
Chapter 5 Review
True/False
Indicate whether the statement is true or false.
The nominal rate of interest is defined as the sum of the nominal risk-free rate of
1. return and the expected inflation rate.
ANSWER:
F
rNom = rRF + DRP + LP + MRP.
0/1
POINTS:
Chapter 2 - Review
True/False
Indicate whether the statement is true or false.
The balance sheet is a financial statement measuring the flow of funds into and out
1. of various accounts over time while the income statement measures the progress of
the fir
Chapter 7 Review
True/False
Indicate whether the statement is true or false.
A firm cannot change its beta through any managerial decision because betas are
1. completely market determined.
F
ANSWER:
0/1
POINTS:
FEEDBACK:
REF:
In the real world, the type
Chapter 1 - Review
True/False
Indicate whether the statement is true or false.
A hostile takeover involves an attempt by one group of stockholders to solicit votes
1. from other stockholders in order to put a new management team into place and is
usually
Quiz 3 - Summer 2011
True/False
Indicate whether the statement is true or false.
If we develop a weighted average of the possible return outcomes, multiplying each
1. outcome or "state" by its respective probability of occurrence for a particular stock,
w
Chapter 13 Review
True/False
Indicate whether the statement is true or false.
The dividend irrelevance theory, proposed by Miller and Modigliani, says that as
1. long as a firm pays a dividend, how much it pays does not affect either its cost of
capital o
Chapter 16 Review
True/False
Indicate whether the statement is true or false.
The calculated cost of trade credit is reduced by paying late.
1.
T
ANSWER:
0/1
POINTS:
FEEDBACK:
REF:
When a firm has accounts payable that are greater than the level of its re
Quiz 2 - Review - Chapters 1 - 6
During a period of recession the Federal Reserve
49.
1.
2.
3.
4.
a.
b.
c.
d.
increases the federal funds rate
buys government securities
sells government securities
lowers the federal funds are
1 and 2
1 and 3
2 and 4
3 an
Chapter 17 Review
True/False
Indicate whether the statement is true or false.
As a firm's sales grow its current asset accounts tend to increase. For instance, as
1. sales increase the firm's purchases increase and its level of accounts payable will
incre
Chapter 9 Review
True/False
Indicate whether the statement is true or false.
One advantage of the payback period method of evaluating fixed asset investment
1. possibilities is that it provides a rough measure of a project's liquidity and risk.
T
ANSWER:
Treveon Hicks
Professor Martin
African American Literature
5 December 2016
For Colored Girls Homework
1.
What is the meaning of the title of the play, "For Colored Girls who have Considered Suicide When
the Rainbow is Enuf," in your opinion?
a. To me my o