Finance

Have finance questions? Ask a financial expert online.

Ask an Expert,
Get an Answer ASAP!

1) Which of the following categories of owners have limited…

Customer Question
1) Which of the following...
1) Which of the following categories of owners have limited liability?
A. General partners
B. Sole proprietors
C. Shareholders of a corporation
D. Both a and b

2) Which of the following best describes the goal of the firm?
A. The maximization of the total market value of the firm’s common stock]
B. Profit maximization
C. Risk minimization
D. None of the above

3) The true owners of the corporation are the:
A. preferred stockholders.
B. common stockholders.
C. board of directors of the firm.
D. holders of debt issues of the firm.

4) Which of the following does NOT involve underwriting by an investment banker?
A. Negotiated purchases
B. Commission basis purchases
C. Syndicated purchases
D. Competitive bid purchases

5) Money market instruments include:
A. common stock.
B. corporate bonds.
C. bankers’ acceptances.
D. preferred stock.

6) __________ is a method of offering securities to a limited number of investors.
A. Syndicated underwriting
B. Public offering
C. Initial public offering
D. Private placement

7) According to the agency problem, _________ represent the principals of a corporation.
A. suppliers
B. employees
C. shareholders
D. managers

8) Difficulty in finding profitable projects is due to:
A. opportunity costs.
B. ethical dilemmas.
C. social responsibility.
D. competitive markets.

9) Which of the following is NOT a principle of basic financial management?
A. Profit is king
B. Efficient capital markets
C. Risk/return tradeoff
D. Incremental cash flow counts

10) The accounting rate of return on stockholders’ investments is measured by:
A. realized rate of inflation.
B. operating income return on investment.
C. return on assets.
D. return on equity.

11) Another name for the acid test ratio is the:
A. quick ratio.
B. current ratio.
C. average collection period.
D. inventory turnover ratio.

12) Which of the following financial ratios is the best measure of the operating effectiveness of a firm’s management?
A. Gross profit margin
B. Current ratio
C. Return on investment
D. Quick ratio

13) You have $10,000 to invest. You do not want to take any risk, so you will put the funds in a savings account at the local bank. Of the following choices, which one will produce the largest sum at the end of 22 years?
A. An account that compounds interest daily
B. An account that compounds interest annually
C. An account that compounds interest monthly
D. An account that compounds interest quarterly

14) Northwest Bank pays a quoted annual (nominal) interest rate of 4.75%. However, it pays interest (compouned) daily using a 365-day year. What is the effective annual rate of return (APY)?
A. 5.02%
B. 4.75%
C. 4.86%
D. 3.61%

15) Suppose that you wish to save for your child's college education by opening up an educational IRA. You plan to deposit $100 per month into the IRA for the next 18 years. Assume that you will be able to earn 10%, compounded monthly, on your investment. How much will you have accumulated at the end of 18 years?
A. $33,548
B. $21,600
C. $85,920
D. $60,056
E. $54,719

16) Which of the following is NOT a basic function of a budget?
A. Budgets provide the basis for corrective action when actual figures differ from the budgeted figures.
B. Budgets indicate the need for future financing.
C. Budgets allow for performance evaluation.
D. Budgets compare historical costs of the firm with its current cost performance.

17) Which of the following statements about the percent-of-sales method of financial forecasting is true?
A. It projects all liabilities as a fixed percentage of sales.
B. It is the least commonly used method of financial forecasting.
C. It involves estimating the level of an expense, asset, or liability for a future period as a percent of the forecast for sales revenues.
D. It is a much more precise method of financial forecasting than a cash budget would be.

18) The primary purpose of a cash budget is to:
A. determine the estimated income tax for the year.
B. determine the level of investment in current and fixed assets.
C. provide a detailed plan of future cash flows.
D. determine accounts payable.

19) Which of the following is a non-cash expense?
A. Administrative salaries
B. Depreciation expenses
C. Packaging costs
D. Interest expense

20) A plant can remain operating when sales are depressed:
A. unless variable costs are zero when production is zero.
B. if the selling price per unit exceeds the variable cost per unit.
C. in an effort to cover at least some of the variable cost.
D. to help the local economy.

21) The break-even model enables the manager of a firm to:
A. determine the optimal amount of debt financing to use.
B. calculate the minimum price of common stock for certain situations.
C. determine the quantity of output that must be sold to cover all operating costs.
D. set appropriate equilibrium thresholds.

22) At what rate must $400 be compounded annually for it to grow to $716.40 in 10 years?
A. 8%
B. 6%
C. 7%
D. 5%

23) Which of the following is the formula for compound value?
A. FVn = P(1+i)-n
B. FVn = P(1+i)n
C. FVn = P/(1+i)n
D. FVn = (1+i)/P

24) If you have $20,000 in an account earning 8% annually, what constant amount could you withdraw each year and have nothing remaining at the end of five years?
A. $5,008.76
B. $3,525.62
C. $3,408.88
D. $2,465.78
37) PepsiCo uses 30-year Treasury bonds to measure the risk-free rate because:
A. these bonds are essentially free of business risk.
B. they capture the long-term inflation expectations of investors associated with investments in long-term assets.
C. these bonds are essentially free of interest rate risk.
D. none of the above.

38) The most expensive source of capital is:
A. preferred stock.
B. new common stock.
C. retained earnings.
D. debt.

39) The marginal cost of preferred stock is equal to:
A. (1 - tax rate) times the preferred stock dividend divided by net price.
B. the preferred stock dividend divided by market price.
C. the preferred stock dividend divided by its par value.
D. the preferred stock dividend divided by the net market price.

40) The expected dividend is $2.50 for a share of stock priced at $25. What is the cost of retained earnings if the long-term growth in dividends is projected to be 8%?
A. 25%
B. 10%
C. 8%
D. 18%

41) The XYZ Company is planning a $50 million expansion. The expansion is to be financed by selling $20 million in new debt and $30 million in new common stock. The before-tax required rate of return on debt is 9%, and the required rate of return on equity is 14%. If the company is in the 40% tax bracket, what is the marginal cost of capital?
A. 10.6%
B. 14.0%
C. 9.0%
D. 11.5%

42) Shawhan Supply plans to maintain its optimal capital structure of 30% debt, 20% preferred stock, and 50% common stock far into the future. The required return on each component is: debt–10%; preferred stock–11%; and common stock–18%. Assuming a 40% marginal tax rate, what after-tax rate of return must Shawhan Supply earn on its investments if the value of the firm is to remain unchanged?
A. 10.0%
B. 18.0%
C. 13.0%
D. 14.2%

43) Zybeck Corp. projects operating income of $4 million next year. The firm’s income tax rate is 40%. Zybeck presently has 750,000 shares of common stock which have a market value of $10 per share, no preferred stock, and no debt. The firm is considering two alternatives to finance a new product: (a) the issuance of $6 million of 10% bonds, or (b) the issuance of 60,000 new shares of common stock. If Zybeck issues common stock this year, what will projected EPS be next year?
A. $2.33
B. $2.10
C. $2.96
D. $1.67

44) Lever Brothers has a debt ratio (debt to assets) of 40%. Management is wondering if its current capital structure is too conservative. Lever Brothers’s present EBIT is $3 million, and profits available to common shareholders are $1,560,000, with 342,857 shares of common stock outstanding. If the firm were to instead have a debt ratio of 60%, additional interest expense would cause profits available to stockholders to decline to $1,440,000, but only 228,571 common shares would be outstanding. What is the difference in EPS at a debt ratio of 60% versus 40%?
A. $3.25
B. $1.75
C. $2.00
D. $4.50

45) Lever Brothers has a debt ratio (debt to assets) of 20%. Management is wondering if its current capital structure is too conservative. Lever Brothers’s present EBIT is $3 million, and profits available to common shareholders are $1,680,000, with 457,143 shares of common stock outstanding. If the firm were to instead have a debt ratio of 40%, additional interest expense would cause profits available to stockholders to decline to $1,560,000, but only 342,857 common shares would be outstanding. What is the difference in EPS at a debt ratio of 40% versus 20%?
A. $2.12
B. $1.95
C. $0.88
D. $1.16


46) A bond sold simultaneously in several different foreign capital markets, but denominated in a currency different from the country in which the bond is issued, is called a(n):
A. world bond.
B. international capital bond.
C. Eurobond.
D. floating bond.

47) Which of the following statements about exchange rates is true?
A. Exchange rates were fixed prior to establishing a floating-rate international currency system, and all countries set a specific parity rate for their currency relative either to the Canadian or to the U.S. dollar.
B. Day-to-day fluctuations in exchange rates currently are caused by changes in parity rates.
C. A floating-rate international currency system has been operating since 1973.
D. All of the choices.

48) _________ risk is generally considered only a paper gain or loss.
A. Transaction
B. Translation
C. Financial
D. Economic

49) The interplay between interest rate differentials and exchange rates such that both adjust until the foreign exchange market and the money market reach equilibrium is called the:
A. purchasing power parity theory.
B. balance of payments quantum theory.
C. arbitrage markets theory.
D. interest rate parity theory.

50) A spot transaction occurs when one currency is:
A. deposited in a foreign bank.
B. immediately exchanged for another currency.
C. traded for another at an agreed-upon future price.
D. exchanged for another currency at a specified price.

51) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
A. overvalued.
B. undervalued.
C. at equilibrium.
D. a good buy.

52) Buying and selling in more than one market to make a riskless profit is called:
A. profit maximization.
B. arbitrage.
C. cannot be determined from the above information.
D. international trading.

53) An important (additional) consideration for a direct foreign investment is:
A. political risk.
B. maximizing the firm’s profits.
C. attaining a high international P/E ratio.
D. all of the above.

54) One reason for international investment is to reduce:
A. advantages in a foreign country.
B. portfolio risk.
C. price-earnings (P/E) ratios.
D. beta risk.
Submitted: 8 years ago.Category: Finance
Show More
Show Less
Ask Your Own Finance Question
Answered in 6 hours by:
6/30/2010
Financial Professional: Manal Elkhoshkhany, Tutor replied 8 years ago
Manal Elkhoshkhany
Category: Finance
Satisfied Customers: 9,999
Experience: More than 5000 online tutoring sessions.
Verified

Hello and welcome to Just Answer

 

Please advise your deadline. I have also sent you a message through management, please check your email

 

Thank you

Ask Your Own Finance Question
Customer reply replied 8 years ago
What else do you need?
Financial Professional: Manal Elkhoshkhany, Tutor replied 8 years ago

As I have advised above, I need to know your deadline, and you will also get an email from management

 

Thank you

Ask Your Own Finance Question
Customer reply replied 8 years ago
I dont see a green accept button
Customer reply replied 8 years ago
My deadline is midnight tonight
Financial Professional: Manal Elkhoshkhany, Tutor replied 8 years ago
Have you received a message from management? It would say "Action required" in the subject
Ask Your Own Finance Question
Customer reply replied 8 years ago
yes but there is no accept button
Customer reply replied 8 years ago
admin told me you have to post it before i can accept it
Customer reply replied 8 years ago
i am more than happy to give you 25 dollars for this
Customer reply replied 8 years ago
please post the homework so i can review it and accept
Financial Professional: Manal Elkhoshkhany, Tutor replied 8 years ago

Please note that I have answered your questions on the other post. Here is the link:

 

http://www.justanswer.com/questions/3owts-i-got-an-extension-on-that-homework-please-hurry

 

 

For future posts, please make sure you take the length of the questions into consideration when making your offer to avoid delays in providing solutions.

Ask Your Own Finance Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a financial professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Rakhi Vasavada Your Own Question
Rakhi Vasavada
Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2,612
2,612 Satisfied Customers
Experience: Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Rakhi Vasavada is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,612 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,222 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

9,999 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
1) Which of the following categories of owners have limited
1) Which of the following categories of owners have limited liability? A. General partners B. Sole proprietors C. Shareholders of a corporation D. Both a and b 2) Which of the following best describes… read more
Haseeb
Haseeb
Cost and Management Accountant
46 satisfied customers
10 Short Questions - Principle of Finance Class - due date
10 Short Questions - Principle of Finance Class - due date 5/27 at 23:59. Good Tip for rapid response. 1. The risk free rate of return is 2.5% and the market risk premium is 8%. Penn Trucking has a be… read more
Finley
Finley
Master's Degree
57 satisfied customers
I have 1 hour to complete these questions. Can you HELP?
1) Which of the following statements is true? A. A security is a claim issued by a firm that pays owners interest, not dividends. B. A call option analyzes conflicts of interest and behavior in a prin… read more
Manal Elkhoshkhany
Manal Elkhoshkhany
Tutor
9,999 satisfied customers
I have a FIN/571 exam 30 questions, I observed you posted the
I have a FIN/571 exam 30 questions, I observed you posted the same questions for the last person. Are you able to help?… read more
Manal Elkhoshkhany
Manal Elkhoshkhany
Tutor
9,999 satisfied customers
A. General partners B. Sole proprietors C. Shareholders
A. General partners B. Sole proprietors C. Shareholders of a corporation D. Both a and b 2) Which of the following best describes the goal of the firm? A. The maximization of the total market value of… read more
Manal Elkhoshkhany
Manal Elkhoshkhany
Tutor
9,999 satisfied customers
whihch of the following reasons is most responsible for corp
whihch of the following reasons is most responsible for corporations being the most important form of busine organization in the united states?… read more
JKCPA
JKCPA
CPA
Bachelor's Degree
844 satisfied customers
1) Which of the following categories of owners have limited
1) Which of the following categories of owners have limited liability? A. General partners B. Sole proprietors C. Shareholders of a corporation D. Both a and b 2) Which of the following best describes… read more
Manal Elkhoshkhany
Manal Elkhoshkhany
Tutor
9,999 satisfied customers
1) In terms of organizational costs, which of the following
1) In terms of organizational costs, which of the following sequences is correct, moving from lowest to highest cost? A. Sole proprietorship, general partnership, limited partnership, corporation B. C… read more
Manal Elkhoshkhany
Manal Elkhoshkhany
Tutor
9,999 satisfied customers
Buying and selling in more than one market to make a
Which of the following is NOT a basic function of a budget? A. Budgets compare historical costs of the firm with its current cost performance. B. Budgets allow for performance evaluation. C. Budgets i… read more
Johnmark1900
Johnmark1900
Finance Manager
Chartered Accountant
24 satisfied customers
1) In terms of organizational costs, which of the following
1) In terms of organizational costs, which of the following sequences is correct, moving from lowest to highest cost? A. Sole proprietorship, general partnership, limited partnership, corporation B. C… read more
Johnmark1900
Johnmark1900
Finance Manager
Chartered Accountant
24 satisfied customers
13) XXXXXX XXXXXXX decided to open up a Roth IRA. He will invest
13) XXXXXX XXXXXXX decided to open up a Roth IRA. He will invest $1,800 per year for the next 35 years. Deposits to the Roth IRA will be made via a $150 payroll deduction at the end of each month. Ass… read more
Johnmark1900
Johnmark1900
Finance Manager
Chartered Accountant
24 satisfied customers
1) In terms of organizational costs, which of the following
1) In terms of organizational costs, which of the following sequences is correct, moving from lowest to highest cost? A. Sole proprietorship, general partnership, limited partnership, corporation B. C… read more
Johnmark1900
Johnmark1900
Finance Manager
Chartered Accountant
24 satisfied customers
FOR BUSINESSTUTOR PepsiCo uses 30-year Treasury bonds
FOR "BUSINESSTUTOR" PepsiCo uses 30-year Treasury bonds to measure the risk-free rate because: A. these bonds are essentially free of business risk. B. they capture the long-term inflation expectation… read more
Manal Elkhoshkhany
Manal Elkhoshkhany
Tutor
9,999 satisfied customers
FOR BUSINESS TUTOR 46) A bond sold simultaneously in several
"FOR BUSINESS TUTOR" 46) A bond sold simultaneously in several different foreign capital markets, but denominated in a currency different from the country in which the bond is issued, is called a(n): … read more
Manal Elkhoshkhany
Manal Elkhoshkhany
Tutor
9,999 satisfied customers
These were just a few of the questions asked (64) in all. I
These were just a few of the questions asked (64) in all. I need them As soon as possible. Thanks. I think you have already answer them two days ago. In terms of organizational costs, which of the fol… read more
Falak Naz
Falak Naz
Master's Degree
324 satisfied customers
Shawhan Supply plans to maintain its optimal capital structure
Shawhan Supply plans to maintain its optimal capital structure of 30% debt, 20% preferred stock, and 50% common stock far into the future. The required return on each component is: debt–10%; preferred… read more
Falak Naz
Falak Naz
Master's Degree
324 satisfied customers
1) The true owners of the corporation are the A. holders
1) The true owners of the corporation are the: A. holders of debt issues of the firm. B. common stockholders. C. board of directors of the firm. D. preferred stockholders. 2) In terms of organizationa… read more
Expert
Expert
I was talking to Mr. Rahul Jain but he is offline and didnt
Really need help with financial management questions need questions answered by tuesday night or wednesday afternoon. I was talking to Mr. Rahul Jain but he is offline and didn't get back with me to s… read more
Amol Srivastava
Amol Srivastava
Master's Degree
446 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x