A. The capital gains yield includes only realized capital gains.
B. An increase in an unrealized capital gain will increase the capital gains yield.
C. The capital gains yield must be either positive or equal to zero.
D. The capital gains yield is expressed as a percentage of the sales price.
The basic factors to be evaluated in the credit evaluation process, the five Cs of credit,
A. conditions, control, cessation, capital, and capacity.
B. conditions, character, capital, control, and capacity.
C. capital, collateral, control, character, and capacity.
D. character, capacity, control, cessation, and collateral.
E. character, capacity, capital, collateral, and conditions.
The Purple Martin has annual sales of $687,400, total debt of $210,000, total equity of
$365,000, and a profit margin of 5.20 percent. What is the return on assets?
A. 6.22 percent
B. 6.48 percent
C. 7.02 percent
D. 7.78 percent
E. 9.79 percent
Exports Unlimited is an unlevered firm with an aftertax net income of $47,800. The
unlevered cost of capital is 14.1 percent and the tax rate is 32 percent. What is the value
of this firm?