Submitted By Laynebaril

Words 926

Pages 4

Words 926

Pages 4

Question 1 of 20 5.0 Points

As interest rates fall, the prices of existing bonds will:

A.rise B.stay the same C.fall D.either a or b, depending on the state of the economy E.none of the above Question 2 of 20 5.0 Points

You need to have $35,000 on hand to buy a new Lexus five years from today. To achieve that goal, you want to know how much you must invest today in a certificate of deposit guaranteed to return you 3% per year. To help determine how much to investment today, you will use:

A.present value factors B.annuity value factors C.present value factors of an annuity D.future value factors of an annuity Question 3 of 20 5.0 Points

If you expect the inflation premium to be 2%, the default risk premium to be 1% and the real interest rate to be 4%, what interest would you expect to observe in the marketplace under the simplest form of market interest rates?

A.4% B.7% C.2% D.1% Question 4 of 20 5.0 Points

The price level of goods and services may be expressed as the ratio of _____________.

A.GDP to GNP B.real output to GDP C.Velocity to GDP D.real output to velocity E.none of the above

Question 5 of 20 5.0 Points

John deposits $2,000 per year at the end of the year for the next 20 years into an IRA account that pays 6%. How much will John have on deposit at the end of 20 years?

A.$67,520 B.$73,572 C.$81,990 D.$75,686 Question 6 of 20 5.0 Points

The most important savings surplus unit in the economy is:

A.the savings of individuals B.corporate savings C.U.S.…...

...FIN 515 Midterm Exam Devry - Midterm Exam CLICK below link for Answer http://workbank247.com/q/fin-515-midterm-exam-fin515-midterm-exam/11199 http://workbank247.com/q/fin-515-midterm-exam-fin515-midterm-exam/11199 (TCO G) The firm's asset turnover measures | | | Student Answer: | | the value of assets held per dollar of shareholder equity. | | | | the return the firm has earned on its past investments. | | | | the firm's ability to sell a product for more than the cost of producing it. | | | | how efficiently the firm is utilizing its assets to generate sales. | | (TCO G) If Moon Corporation has an increase in sales, which of the following would result in no change in its EBIT margin? | | | | | A proportional increase in its net income. | | | | A proportional decrease in its EBIT. | | | | A proportional increase in its EBIT. | | | | An increase in its operating expenses. (TCO B) If today you put $10,000 into an account paying 10% annually, how much will there be in the account after 5 years? Show your work. (TCO B) You take out a 5 year car loan for $20,000. The loan has a 5% annual interest rate. The payments are made monthly. What are the monthly payments? Show your work. (TCO B) A grandfather sets up a trust for his only grandchild. The trust consists of an annuity that will pay $5,000 monthly to the grandchild for 18 years. The annuity pays an annual return of 5% and makes the......

Words: 688 - Pages: 3

...FIN 515 Midterm Exam Devry - Midterm Exam CLICK below link for Answer http://workbank247.com/q/fin-515-midterm-exam-fin515-midterm-exam/11199 http://workbank247.com/q/fin-515-midterm-exam-fin515-midterm-exam/11199 (TCO G) The firm's asset turnover measures Student Answer: the value of assets held per dollar of shareholder equity. the return the firm has earned on its past investments. the firm's ability to sell a product for more than the cost of producing it. how efficiently the firm is utilizing its assets to generate sales. (TCO G) If Moon Corporation has an increase in sales, which of the following would result in no change in its EBIT margin? A proportional increase in its net income. A proportional decrease in its EBIT. A proportional increase in its EBIT. An increase in its operating expenses. (TCO B) If today you put $10,000 into an account paying 10% annually, how much will there be in the account after 5 years? Show your work. (TCO B) You take out a 5 year car loan for $20,000. The loan has a 5% annual interest rate. The payments are made monthly. What are the monthly payments? Show your work. (TCO B) A grandfather sets up a trust for his only grandchild. The trust consists of an annuity that will pay $5,000 monthly to the grandchild for 18 years. The annuity pays an annual return of 5% and makes the payments monthly at the end of the month. Return on the annuity is 5%......

Words: 1376 - Pages: 6

...BUSN602 Final Exam Click Link Below To Buy: http://hwcampus.com/shop/busn602-final-exam/ Part 1 of 1 - 100.0 Points Question 1 of 25 4.0 Points The security market line can be used to determine the expected return on a security if we know the: A.risk-free rate B.systematic risk of that security C.market risk premium D.all of the above Question 2 of 25 4.0 Points The constant dividend growth model assumes: A.a constant annual dividend B.a constant dividend growth rate for no more than the first 10 years C.that the discount rate must be greater than the dividend growth rate D.two of above are true assumptions Question 3 of 25 4.0 Points The ________ is the discount rate that equates the present value of the cash inflows with the initial investment. A.payback period B.average rate of return C.cost of capital D.internal rate of return Question 4 of 25 4.0 Points Which one of the following types of ratios indicates the ability to meet short-term obligations to creditors as they come due? A.liquidity ratios B.asset management ratios C.capital structure ratios D.profitability ratios E.market value ratios Question 5 of 25 4.0 Points A business organization that receives the limited liability of a corporation but is taxed as a proprietorship or partnership is called a: ......

Words: 1104 - Pages: 5

...BUSN602 Final Exam Set 2 Click Link Below To Buy: http://hwcampus.com/shop/busn602-final-exam-2/ Return to Assessment List Part 1 of 1 - 100.0 Points Question 1 of 25 4.0 Points As a general rule, the capital structure that maximizes stock price also: A.minimizes the weighted average cost of capital B.maximizes the weighted average cost of capital C.minimizes the required rate of return on equity D.maximizes the cost of debt Question 2 of 25 4.0 Points The constant dividend growth model assumes: A.a constant annual dividend B.a constant dividend growth rate for no more than the first 10 years C.that the discount rate must be greater than the dividend growth rate D.two of above are true assumptions Question 3 of 25 4.0 Points As a general rule, the capital structure that: A.minimizes the cost of equity also maximizes the stock price B.maximizes the stock price also minimizes the weighted average cost of capital C.minimizes the cost of debt also maximizes the expected earnings per share D.none of the above is a true statement Question 4 of 25 4.0 Points The financial statement that provides a snapshot view of the financial condition of a business at a point in time is the: A.balance sheet B.income statement C.statement of cash flows D.statement of retained earnings Question 5 of 25 4.0......

Words: 1159 - Pages: 5

...BUSN602 Midterm Exam Click Link Below To Buy: http://hwcampus.com/shop/busn602-midterm-exam/ Part 1 of 1 - 100.0 Points Question 1 of 20 5.0 Points As interest rates fall, the prices of existing bonds will: A.rise B.stay the same C.fall D.either a or b, depending on the state of the economy E.none of the above Question 2 of 20 5.0 Points You need to have $35,000 on hand to buy a new Lexus five years from today. To achieve that goal, you want to know how much you must invest today in a certificate of deposit guaranteed to return you 3% per year. To help determine how much to investment today, you will use: A.present value factors B.annuity value factors C.present value factors of an annuity D.future value factors of an annuity Question 3 of 20 5.0 Points If you expect the inflation premium to be 2%, the default risk premium to be 1% and the real interest rate to be 4%, what interest would you expect to observe in the marketplace under the simplest form of market interest rates? A.4% B.7% C.2% D.1% Question 4 of 20 5.0 Points The price level of goods and services may be expressed as the ratio of _____________. A.GDP to GNP B.real output to GDP C.Velocity to GDP D.real output to velocity E.none of the above Question 5 of 20 5.0 Points John deposits $2,000 per year...

Words: 926 - Pages: 4

...BUSN602 Midterm Exam Set 2 Click Link Below To Buy: http://hwcampus.com/shop/busn602-midterm-exam-2/ Return to Assessment List Part 1 of 1 - 100.0 Points Question 1 of 20 5.0 Points Jill Clinton puts $1,000 in a savings passbook that pays 4% compounded quarterly. How much will she have in her account after five years? A.$1,200.50 B.$1,220.20 C.$1,174.80 D.$1,217.50 Question 2 of 20 5.0 Points An increase in inflation should: A.increase the demand for loanable funds B.decrease the interest rate on loans C.increase the interest rate on loans D.none of the above Question 3 of 20 5.0 Points Economists use a ___________________ framework to explain how the prices and quantities of goods and services are determined in a free-market economic system. A.opportunity B.marginal cost C.supply-and-demand D.anti-monopoly E.none of the above Question 4 of 20 5.0 Points The future value of $100 received today and deposited at 6 percent for four years is A.$126. B.$ 79. C.$124. D.$116. Question 5 of 20 5.0 Points All of the following are important components of a financial system except: A.government and private policy makers B.a monetary system C.the international monetary fund D.financial institutions and markets Question 6 of 20 5.0 Points In general, the......

Words: 910 - Pages: 4

...BUSN602 Final Exam Click Link Below To Buy: http://hwcampus.com/shop/busn602-final-exam/ Part 1 of 1 - 100.0 Points Question 1 of 25 4.0 Points The security market line can be used to determine the expected return on a security if we know the: A.risk-free rate B.systematic risk of that security C.market risk premium D.all of the above Question 2 of 25 4.0 Points The constant dividend growth model assumes: A.a constant annual dividend B.a constant dividend growth rate for no more than the first 10 years C.that the discount rate must be greater than the dividend growth rate D.two of above are true assumptions Question 3 of 25 4.0 Points The ________ is the discount rate that equates the present value of the cash inflows with the initial investment. A.payback period B.average rate of return C.cost of capital D.internal rate of return Question 4 of 25 4.0 Points Which one of the following types of ratios indicates the ability to meet short-term obligations to creditors as they come due? A.liquidity ratios B.asset management ratios C.capital structure ratios D.profitability ratios E.market value ratios Question 5 of 25 4.0 Points A business organization that receives the limited liability of a corporation but is taxed as a proprietorship or partnership is called a: ......

Words: 1104 - Pages: 5

...BUSN602 Final Exam Set 2 Click Link Below To Buy: http://hwcampus.com/shop/busn602-final-exam-2/ Return to Assessment List Part 1 of 1 - 100.0 Points Question 1 of 25 4.0 Points As a general rule, the capital structure that maximizes stock price also: A.minimizes the weighted average cost of capital B.maximizes the weighted average cost of capital C.minimizes the required rate of return on equity D.maximizes the cost of debt Question 2 of 25 4.0 Points The constant dividend growth model assumes: A.a constant annual dividend B.a constant dividend growth rate for no more than the first 10 years C.that the discount rate must be greater than the dividend growth rate D.two of above are true assumptions Question 3 of 25 4.0 Points As a general rule, the capital structure that: A.minimizes the cost of equity also maximizes the stock price B.maximizes the stock price also minimizes the weighted average cost of capital C.minimizes the cost of debt also maximizes the expected earnings per share D.none of the above is a true statement Question 4 of 25 4.0 Points The financial statement that provides a snapshot view of the financial condition of a business at a point in time is the: A.balance sheet B.income statement C.statement of cash flows D.statement of retained earnings Question 5 of 25 4.0......

Words: 1159 - Pages: 5

...BUSN602 Midterm Exam Set 2 Click Link Below To Buy: http://hwcampus.com/shop/busn602-midterm-exam-2/ Return to Assessment List Part 1 of 1 - 100.0 Points Question 1 of 20 5.0 Points Jill Clinton puts $1,000 in a savings passbook that pays 4% compounded quarterly. How much will she have in her account after five years? A.$1,200.50 B.$1,220.20 C.$1,174.80 D.$1,217.50 Question 2 of 20 5.0 Points An increase in inflation should: A.increase the demand for loanable funds B.decrease the interest rate on loans C.increase the interest rate on loans D.none of the above Question 3 of 20 5.0 Points Economists use a ___________________ framework to explain how the prices and quantities of goods and services are determined in a free-market economic system. A.opportunity B.marginal cost C.supply-and-demand D.anti-monopoly E.none of the above Question 4 of 20 5.0 Points The future value of $100 received today and deposited at 6 percent for four years is A.$126. B.$ 79. C.$124. D.$116. Question 5 of 20 5.0 Points All of the following are important components of a financial system except: A.government and private policy makers B.a monetary system C.the international monetary fund D.financial institutions and markets Question 6 of 20 5.0 Points In general, the......

Words: 910 - Pages: 4

...BUSN 602 Midterm Exam Answers http://homeworklance.com/downloads/busn-602-midterm-exam-answers/ BUSN602 Midterm Exam Part 1 of 1 – 100.0 Points Question 1 of 20 5.0 Points Jill Clinton puts $1,000 in a savings passbook that pays 4% compounded quarterly. How much will she have in her account after five years? A.$1,200.50 B.$1,220.20 C.$1,174.80 D.$1,217.50 Question 2 of 20 5.0 Points An increase in inflation should: A.increase the demand for loanable funds B.decrease the interest rate on loans C.increase the interest rate on loans D.none of the above Question 3 of 20 5.0 Points Economists use a ___________________ framework to explain how the prices and quantities of goods and services are determined in a free-market economic system. A.opportunity B.marginal cost C.supply-and-demand D.anti-monopoly E.none of the above Question 4 of 20 5.0 Points The future value of $100 received today and deposited at 6 percent for four years is A.$126. B.$ 79. C.$124. D.$116. Question 5 of 20 5.0 Points All of the following are important components of a financial system except: A.government and private policy makers B.a monetary system C.the international monetary fund D.financial institutions and markets Question 6 of 20 5.0 Points In general, the effective rate of interest on a discount loan A.is lower than that on standard......

Words: 1009 - Pages: 5

...BUSN 602 Midterm Exam Answers http://homeworklance.com/downloads/busn-602-midterm-exam-answers/ BUSN602 Midterm Exam Part 1 of 1 – 100.0 Points Question 1 of 20 5.0 Points Jill Clinton puts $1,000 in a savings passbook that pays 4% compounded quarterly. How much will she have in her account after five years? A.$1,200.50 B.$1,220.20 C.$1,174.80 D.$1,217.50 Question 2 of 20 5.0 Points An increase in inflation should: A.increase the demand for loanable funds B.decrease the interest rate on loans C.increase the interest rate on loans D.none of the above Question 3 of 20 5.0 Points Economists use a ___________________ framework to explain how the prices and quantities of goods and services are determined in a free-market economic system. A.opportunity B.marginal cost C.supply-and-demand D.anti-monopoly E.none of the above Question 4 of 20 5.0 Points The future value of $100 received today and deposited at 6 percent for four years is A.$126. B.$ 79. C.$124. D.$116. Question 5 of 20 5.0 Points All of the following are important components of a financial system except: A.government and private policy makers B.a monetary system C.the international monetary fund D.financial institutions and markets Question 6 of 20 5.0 Points In general, the effective rate of interest on a discount loan A.is lower than that on standard......

Words: 1009 - Pages: 5

...BUSN602 Final Exam Click Link Below To Buy: http://hwcampus.com/shop/busn602-final-exam/ Part 1 of 1 - 100.0 Points Question 1 of 25 4.0 Points The security market line can be used to determine the expected return on a security if we know the: A.risk-free rate B.systematic risk of that security C.market risk premium D.all of the above Question 2 of 25 4.0 Points The constant dividend growth model assumes: A.a constant annual dividend B.a constant dividend growth rate for no more than the first 10 years C.that the discount rate must be greater than the dividend growth rate D.two of above are true assumptions Question 3 of 25 4.0 Points The ________ is the discount rate that equates the present value of the cash inflows with the initial investment. A.payback period B.average rate of return C.cost of capital D.internal rate of return Question 4 of 25 4.0 Points Which one of the following types of ratios indicates the ability to meet short-term obligations to creditors as they come due? A.liquidity ratios B.asset management ratios C.capital structure ratios D.profitability ratios E.market value ratios Question 5 of 25 4.0 Points A business organization that receives the limited liability of a corporation but is taxed as a proprietorship or partnership is called a: ......

Words: 1104 - Pages: 5

...BUSN602 Final Exam Set 2 Click Link Below To Buy: http://hwcampus.com/shop/busn602-final-exam-2/ Return to Assessment List Part 1 of 1 - 100.0 Points Question 1 of 25 4.0 Points As a general rule, the capital structure that maximizes stock price also: A.minimizes the weighted average cost of capital B.maximizes the weighted average cost of capital C.minimizes the required rate of return on equity D.maximizes the cost of debt Question 2 of 25 4.0 Points The constant dividend growth model assumes: A.a constant annual dividend B.a constant dividend growth rate for no more than the first 10 years C.that the discount rate must be greater than the dividend growth rate D.two of above are true assumptions Question 3 of 25 4.0 Points As a general rule, the capital structure that: A.minimizes the cost of equity also maximizes the stock price B.maximizes the stock price also minimizes the weighted average cost of capital C.minimizes the cost of debt also maximizes the expected earnings per share D.none of the above is a true statement Question 4 of 25 4.0 Points The financial statement that provides a snapshot view of the financial condition of a business at a point in time is the: A.balance sheet B.income statement C.statement of cash flows D.statement of retained earnings Question 5 of 25 4.0......

Words: 1159 - Pages: 5

...BUSN602 Midterm Exam Click Link Below To Buy: http://hwcampus.com/shop/busn602-midterm-exam/ Part 1 of 1 - 100.0 Points Question 1 of 20 5.0 Points As interest rates fall, the prices of existing bonds will: A.rise B.stay the same C.fall D.either a or b, depending on the state of the economy E.none of the above Question 2 of 20 5.0 Points You need to have $35,000 on hand to buy a new Lexus five years from today. To achieve that goal, you want to know how much you must invest today in a certificate of deposit guaranteed to return you 3% per year. To help determine how much to investment today, you will use: A.present value factors B.annuity value factors C.present value factors of an annuity D.future value factors of an annuity Question 3 of 20 5.0 Points If you expect the inflation premium to be 2%, the default risk premium to be 1% and the real interest rate to be 4%, what interest would you expect to observe in the marketplace under the simplest form of market interest rates? A.4% B.7% C.2% D.1% Question 4 of 20 5.0 Points The price level of goods and services may be expressed as the ratio of _____________. A.GDP to GNP B.real output to GDP C.Velocity to GDP D.real output to velocity E.none of the above Question 5 of 20 5.0 Points John deposits $2,000 per year...

Words: 926 - Pages: 4

...BUSN602 Midterm Exam Set 2 Click Link Below To Buy: http://hwcampus.com/shop/busn602-midterm-exam-2/ Return to Assessment List Part 1 of 1 - 100.0 Points Question 1 of 20 5.0 Points Jill Clinton puts $1,000 in a savings passbook that pays 4% compounded quarterly. How much will she have in her account after five years? A.$1,200.50 B.$1,220.20 C.$1,174.80 D.$1,217.50 Question 2 of 20 5.0 Points An increase in inflation should: A.increase the demand for loanable funds B.decrease the interest rate on loans C.increase the interest rate on loans D.none of the above Question 3 of 20 5.0 Points Economists use a ___________________ framework to explain how the prices and quantities of goods and services are determined in a free-market economic system. A.opportunity B.marginal cost C.supply-and-demand D.anti-monopoly E.none of the above Question 4 of 20 5.0 Points The future value of $100 received today and deposited at 6 percent for four years is A.$126. B.$ 79. C.$124. D.$116. Question 5 of 20 5.0 Points All of the following are important components of a financial system except: A.government and private policy makers B.a monetary system C.the international monetary fund D.financial institutions and markets Question 6 of 20 5.0 Points In general, the......

Words: 910 - Pages: 4