Archives: Quiz
978-0134730417 Test Bank Chapter 15 Part 2
7) National Trucking, Inc., will issue 20-year, semiannual bonds with a 6.0% coupon rate and a $1,000 par value. Bonds of similar risk and maturity are currently selling to yield 5.20% in the market place. What is the market price […]
978-0134730417 Test Bank Chapter 15 Part 1
Financial Management: Core Concepts, 4e (Brooks) Chapter 15 Raising Capital 15.1 The Business Life Cycle 1) ________ employer businesses (businesses that employ others besides the owners) will close within the first six years. A) Two out of every five B) […]
978-0134730417 Test Bank Chapter 14 Part 2
12) Profit margin is equal to ________. A) net income divided by total assets B) net income divided by total owners’ equity C) net income divided by sales D) none of these Answer: C Diff: 1 Topic: 14.2 Financial Ratios […]
978-0134730417 Test Bank Chapter 14 Part 1
Financial Management: Core Concepts, 4e (Brooks) Chapter 14 Financial Ratios and Firm Performance 14.1 Financial Statements 1) In the business world we need to be able to measure ________ performance and predict ________ performance if we want to deliver positive […]
978-0134730417 Test Bank Chapter 13 Part 3
6) The optimal order quantity as determined by the EOQ occurs when ________. A) ordering costs equal carrying costs B) ordering costs are exactly 1/2 of carrying costs C) ordering costs are exactly twice as much as carrying costs D) […]
978-0134730417 Test Bank Chapter 13 Part 2
19) ACME Inc., has credit terms of 2/10 net 60. Customers should take the discount and pay in 10 days if they CANNOT earn more than ________ (APR) or ________ (EAR) on their investments. A) 14.90% APR or 15.89% EAR […]
978-0134730417 Test Bank Chapter 13 Part 1
Financial Management: Core Concepts, 4e (Brooks) Chapter 13 Working Capital Management 13.1 The Cash Conversion Cycle 1) Managing the relationship between current assets and current liabilities of the firm in order to improve the flow of funds is called ________. […]
978-0134730417 Test Bank Chapter 12 Part 2
12) Which of the statements below is TRUE? A) Cash collections are closely tied to the sales forecast as the sales forecasts are typically used for scheduling production. B) Financing costs include the wages paid to workers, the raw materials […]
978-0134730417 Test Bank Chapter 12 Part 1
Financial Management: Core Concepts, 4e (Brooks) Chapter 12 Forecasting and Short-Term Financial Planning 12.1 Sources and Uses of Cash 1) One of the functions of a finance manager is ________. A) to forecast for the coming period B) to forecast […]
978-0134730417 Test Bank Chapter 11 Part 3
9) Takelmer Industries has a different WACC for each of three types of projects. Low-risk projects have a WACC of 8.00%, average-risk projects a WACC of 10.00%, and high-risk projects a WACC of 12%. Which of the following projects do […]
978-0134730417 Test Bank Chapter 11 Part 2
3) Rogue Rotors has debt with a market value of $350,000, preferred stock with a market value of $100,000, and common stock with a market value of $650,000. If debt has a cost of 7%, preferred stock a cost of […]
978-0134730417 Test Bank Chapter 11 Part 1
Financial Management: Core Concepts, 4e (Brooks) Chapter 11 The Cost of Capital 11.1 The Cost of Capital: A Starting Point 1) The ________ is the cost of each financing component multiplied by that component’s percent of the total funding amount. […]
978-0134730417 Test Bank Chapter 10 Part 2
14) The advantage of MACRS over straight-line depreciation is that you can write off more of your capital costs in the ________ years. A) middle B) last C) later D) earlier Answer: D Diff: 2 Topic: 10.3 Capital Spending and […]
978-0134730417 Test Bank Chapter 10 Part 1
Financial Management: Core Concepts, 4e (Brooks) Chapter 10 Cash Flow Estimation 10.1 The Importance of Cash Flow 1) A major metric of a company’s health and its prospects for a long life is how much ________ it can generate. A) […]
978-0134730417 Test Bank Chapter 9 Part 3
18) Suppose you have an investment that costs $80,000 at the beginning of the project, and it generates $30,000 a year for four years in positive cash flows. The cost of capital is 12%. The IRR of the project is […]
978-0134730417 Test Bank Chapter 9 Part 2
18) Heartland, Inc. is considering an eight-year project that has an initial after-tax outlay or after- tax cost of $180,000. The future after-tax cash inflows from its project for years 1 through 8 are the same at $38,000. Heartland uses […]
978-0134730417 Test Bank Chapter 9 Part 1
Financial Management: Core Concepts, 4e (Brooks) Chapter 9 Capital Budgeting Decision Models 9.1 Short-Term and Long-Term Decisions 1) ________ is at the heart of corporate finance, because it is concerned with making the best choices about project selection. A) Capital […]
978-0134730417 Test Bank Chapter 8 Part 3
25) What is the possible range for a correlation coefficient? For purposes of diversification, what type of correlation coefficient among asset returns is preferred by investors? Explain why. Answer: The range for a correlation coefficient is from a perfectly negative […]
978-0134730417 Test Bank Chapter 8 Part 2
12) Use the information in the table to calculate the expected return and standard deviation of an equally-weighted portfolio. Answer: Expected Return = 7.00%; standard deviation = 0.33% To find the expected return for an equally-weighted portfolio, first find the […]
978-0134730417 Test Bank Chapter 8 Part 1
Financial Management: Core Concepts, 4e (Brooks) Chapter 8 Risk and Return 8.1 Returns 1) Which of the statements below is TRUE? A) Investors want to maximize return and maximize risk. B) Investors want to maximize return and minimize risk. C) […]
978-0134730417 Test Bank Chapter 7 Part 2
18) When estimating the annual growth rate of a dividend stream, we can use a short-cut to determining the average growth rate by ________. A) using just the first dividend in the stream and the time-value of money equation B) […]
978-0134730417 Test Bank Chapter 7 Part 1
Financial Management: Core Concepts, 4e (Brooks) Chapter 7 Stocks and Stock Valuation 7.1 Characteristics of Common Stock 1) Stocks are different from bonds because ________. A) stocks, unlike bonds, are major sources of funds B) stocks, unlike bonds, represent residual […]
978-0134730417 Test Bank Chapter 6 Part 2
4) The National Insurance Corporation has $1,000 par value bonds with a coupon rate of 8% per year making semiannual coupon payments. If there are twelve years remaining prior to maturity and these bonds are selling for $876.40, what is […]
978-0134730417 Test Bank Chapter 6 Part 1
Financial Management: Core Concepts, 4e (Brooks) Chapter 6 Bonds and Bond Valuation 6.1 Application of the Time Value of Money Tool: Bond Pricing 1) A bond may be issued by ________. A) companies B) state governments C) the federal government […]
978-0134730417 Test Bank Chapter 5 Part 2
16) Consider a $30,000 car loan over six years at 7% APR. Assume an option where the car loan offers 0% financing for the first two years of the loan or 7% financing over six years. What are the payment […]
978-0134730417 Test Bank Chapter 5 Part 1
Financial Management: Core Concepts, 4e (Brooks) Chapter 5 Interest Rates 5.1 How Financial Institutions Quote Interest Rates: Annual and Periodic Interest Rates 1) If you take out a loan from a bank, you will be charged ________. A) for principal […]
978-0134730417 Test Bank Chapter 4 Part 3
5) Amortization tables are useful for each of the following reasons EXCEPT ________. A) determining the principal balance due if the loan is being paid off early B) determining how much of a total payment is interest and how much […]
978-0134730417 Test Bank Chapter 4 Part 2
2) The present value of a $100 three-year annuity due (first cash flow occurs today) discounted at a rate of 10% is equal to ________. A) $248.69 B) $273.55 C) $135.17 D) $300.00 Answer: B Explanation: PV = PMT × […]
978-0134730417 Test Bank Chapter 4 Part 1
Financial Management: Core Concepts, 4e (Brooks) Chapter 4 The Time Value of Money (Part 2) 4.1 Future Value of Multiple Payment Streams 1) Your employer has agreed to place year-end deposits of $1,000, $2,000 and $3,000 into your retirement account. […]
978-0134730417 Test Bank Chapter 3 Part 3
8) Kirby Puckett became the first $3,000,000 man in major league baseball in 1990. By 2008, A- Rod was bringing in $27,500,000 per year. Did the annual change in the highest annual baseball salary rise more rapidly over this time […]
978-0134730417 Test Bank Chapter 3 Part 2
20) Given an interest rate of 0%, the present value of $1,500 to be received 5 years in the future is less than $1,500. Answer: FALSE Explanation: PV = = = $1,500. Diff: 2 Topic: 3.2 Present Value and Discounting […]
978-0134730417 Test Bank Chapter 3 Part 1
Financial Management: Core Concepts, 4e (Brooks) Chapter 3 The Time Value of Money (Part 1) 3.1 Future Value and Compounding Interest 1) Your grandmother places $13,000 into an account earning an interest rate of 7% per year. After 5 years […]
978-0134730417 Test Bank Chapter 2 Part 2
43) Why is an understanding of cash flow so important in the study of finance? Answer: A firm may show robust accounting profits, yet still get into serious financial trouble or even go bankrupt. It is only cash flow that […]
978-0134730417 Test Bank Chapter 2 Part 1
Financial Management: Core Concepts, 4e (Brooks) Chapter 2 Financial Statements 2.1 Financial Statements 1) The purpose of studying financial statements is ________. A) to mechanically build portfolio analysis B) to understand those portions of the statements that have relevance for […]
978-0134730417 Test Bank Chapter 1 Part 2
16) Working capital management is the day-to-day management of the operating needs of the company via current assets and current liabilities. Answer: TRUE Diff: 1 Topic: 1.4 The Finance Manager and Financial Management AACSB: Analytical Thinking LO: 1.4 Discuss the […]
978-0134730417 Test Bank Chapter 1 Part 1
Financial Management: Core Concepts, 4e (Brooks) Chapter 1 Financial Management 1.1 The Cycle of Money 1) At its most basic level, the function of financial intermediaries is to ________. A) track and report interest rates B) move money from lenders […]
978-1305958678 Test Bank Chapter 20
Name: Class: Date: chapter 20 Copyright Cengage Learning. Powered by Cognero. Page 1 Indicate whether the statement is true or false. 1. Farm subsidies in the United States were originally intended to help farmers hurt by the Great Depression. a. […]
978-1305958678 Test Bank Chapter 19
Name: Class: Date: chapter 19 Copyright Cengage Learning. Powered by Cognero. Page 1 Indicate whether the statement is true or false. 1. War crimes are defined differently by various nations who each have their own doctrine of universal human rights. […]
978-1305958678 Test Bank Chapter 18
Name: Class: Date: chapter 18 Copyright Cengage Learning. Powered by Cognero. Page 1 Indicate whether the statement is true or false. 1. The Human Genome Project was designed to alter and perfect the human genetic code. a. True b. False […]
978-1305958678 Test Bank Chapter 17
Name: Class: Date: chapter 17 Copyright Cengage Learning. Powered by Cognero. Page 1 Indicate whether the statement is true or false. 1. A prudential argument for vegetarianism would be that it is a healthier diet for humans. a. True b. […]
978-1305958678 Test Bank Chapter 16
Name: Class: Date: chapter 16 Copyright Cengage Learning. Powered by Cognero. Page 1 Indicate whether the statement is true or false. 1. The view known as deep ecology is most essentially concerned with the idea that people depend on their […]
978-1305958678 Test Bank Chapter 15
Name: Class: Date: chapter 15 Copyright Cengage Learning. Powered by Cognero. Page 1 Indicate whether the statement is true or false. 1. A utilitarian would necessarily be opposed to the restorative justice approach to criminal justice. a. True b. False […]
978-1305958678 Test Bank Chapter 14
Name: Class: Date: chapter 14 Copyright Cengage Learning. Powered by Cognero. Page 1 Indicate whether the statement is true or false. 1. The people in the original position of choosing behind a “veil of ignorance” do not know any biasing […]
978-1305958678 Test Bank Chapter 13
Name: Class: Date: chapter 13 Copyright Cengage Learning. Powered by Cognero. Page 1 Indicate whether the statement is true or false. 1. According to the principle of equality, in order to treat people differently in ways that deny them significant […]
978-1305958678 Test Bank Chapter 12
Name: Class: Date: chapter 12 Copyright Cengage Learning. Powered by Cognero. Page 1 Indicate whether the statement is true or false. 1. Whether or not sex is appropriate only within a married or committed relation according to a natural law […]
978-1305958678 Test Bank Chapter 11
Name: Class: Date: chapter 11 Copyright Cengage Learning. Powered by Cognero. Page 1 Indicate whether the statement is true or false. 1. Your text distinguishes “Method II” approaches to questions about the moral status of a fetus as focused on […]
978-1305958678 Test Bank Chapter 10
Name: Class: Date: chapter 10 Copyright Cengage Learning. Powered by Cognero. Page 1 Indicate whether the statement is true or false. 1. Relatively common or standard measures of life support are always to be considered ordinary means of life support. […]
978-1305958678 Test Bank Chapter 9
Name: Class: Date: chapter 9 Copyright Cengage Learning. Powered by Cognero. Page 1 Indicate whether the statement is true or false. 1. Today feminist ethics is distinguished from an ethics of care that is sometimes called feminine ethics. a. True […]
978-1305958678 Test Bank Chapter 8
Name: Class: Date: chapter 8 Copyright Cengage Learning. Powered by Cognero. Page 1 Indicate whether the statement is true or false. 1. The opposite of virtue is weakness. a. True b. False 2. Virtue ethics emphasizes how we should determine […]
978-1305958678 Test Bank Chapter 7
Name: Class: Date: chapter 7 Copyright Cengage Learning. Powered by Cognero. Page 1 Indicate whether the statement is true or false. 1. For Thomas Aquinas all laws created by humans are derived from natural law. a. True b. False 2. […]