Archives: Quiz

20) Which of the following would you NOT consider when making a capital budgeting decision? A) the additional taxes a irm would have to pay in the next year B) the cost of a marketing study completed last year C) […]

Fundamentals of Corporate Finance, 3e (Berk/DeMarzo/Harford) Chapter 9 Fundamentals of Capital Budgeting 9.1 The Capital Budgeting Process 1) A capital budget lists the potential projects a company may undertake in future years. AACSB Objective: Analytic Skills Author: DS Question Status: […]

19) Assuming that your capital is constrained, so that you only have $600,000 available to invest in projects, which project should you invest in and in what order? A) CBFH B) CBGF C) BCFG D) CBFG AACSB Objective: Analytic Skills […]

6) The owner of a number of gas stations is considering installing cofee machines in his gas stations. It will cost $270,000 to install the cofee machines, and they are expected to boost cash lows by $120,536 per year for […]

Time: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5Discount Rate Investment A: -$1.5 million $300,000 $300,000 $300,000 $500,000 $500,000 8% Investment B: -$1.3 million $500,000 $400,000 $300,000 $200,000 $100,000 7% 13) An investor is considering the […]

14) A mining company plans to mine a beach for rutile. To do so will cost $14 million up front and then produce cash lows of $7 million per year for ive years. At the end of the sixth year […]

10) Which of the following statements is FALSE? A) In general, the diference between the cost of capital and the internal rate of return (IRR) is the maximum amount of estimation error in the cost of capital estimate that can […]

Fundamentals of Corporate Finance, 3e (Berk/DeMarzo/Harford) Chapter 8 Investment Decision Rules 8.1 The NPV Decision Rule 1) Preference for cash today versus cash in the future in part determines net present value (NPV). AACSB Objective: Analytic Skills Author: DS Question […]

A) $6.46 B) $6.92 C) $9.23 D) $10.15 Answer: C Explanation: C) P0 = $1.20 / (0.16 – 0.03) = $9.23 Dif: 1 Var: 50+ Skill: Analytical AACSB Objective: Analytic Skills Author: DS Question Status: Revised 19) Spacefood Products will […]

10) Valorous Corporation will pay a dividend of $1.75 per share at this year’s end and a dividend of $2.35 per share at the end of next year. It is expected that the price of Valorous’ stock will be $41 […]

Fundamentals of Corporate Finance, 3e (Berk/DeMarzo/Harford) Chapter 7 Stock Valuation 7.1 Stock Basics 1) The ownership in a corporation is divided into shares of stock, which carry rights to a share in the proits of the irm through future dividend […]

16) Consider the following yields to maturity on various one-year, zero-coupon securities: Security Yield (%) Treasury 5.0 AAA Corporate 5.2 BBB Corporate 5.8 B Corporate 6.6 The credit spread of the BBB corporate bond is closest to ________. A) 0.8% […]

20) A 20-year bond with a $1,000 face value was issued with a yield to maturity of 4.3% and pays coupons semi-annually. After ten years, the yield to maturity is still 4.3% and the clean price of the bond is […]

18) The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in ive years. The bond certiicate indicates that the stated coupon rate for this bond is 8.5% and that the coupon payments are […]

17) Which of the following statements regarding bonds and their terms is FALSE? A) Zero-coupon bonds are also called pure discount bonds. B) The internal rate of return (IRR) of an investment opportunity is the discount rate at which the […]

Fundamentals of Corporate Finance, 3e (Berk/DeMarzo/Harford) Chapter 6 Bonds 6.1 Bond Terminology 1) The coupon value of a bond is the face value of the bond. AACSB Objective: Analytic Skills Author: DS Question Status: Previous Edition 2) A bond is […]

23) Suppose the term structure of interest rates is shown below: Term 1 year 2 years 3 years 5 years 10 years 20 years Rate (EAR%) 5.00% 4.80% 4.60% 4.50% 4.25% 4.15% The present value (PV) of receiving $1100 per […]

82) Which of the following is a type of system documentation? A) Data-flow diagrams B) Quick reference guide C) Release description D) System administrator’s guide E) Acceptance sign-off Classification: Concept 83) All of the following are types of user documentation […]

8) Historically, why were high inlation rates associated with high nominal interest rates? A) Individuals will spend more when they expect their investments to increase in value. B) Growth in investment and savings is encouraged when consumers are judged to […]

58) The deliverables from the coding, testing, and installation processes include: A) the creation of a document that will consolidate the information that must be considered when implementing a physically distributed systems design. B) structured descriptions and diagrams that outline […]

21) Corey buys 10 Tulift 4-post, 4.5-ton car hoists for his parking garage at a total cost of $432,000. He inances this with a ive-year loan at 7.80% APR with monthly payments. After he has made the irst 20 payments, […]

Essentials of Systems Analysis and Design, 6e (Valacich) Chapter 10 Systems Implementation and Operation 1) The implementation and operation phase of the systems development life cycle is the most expensive and time-consuming phase of the entire life cycle. Classification: Concept […]

29) When computing a present value, which of the following is TRUE? A) You should adjust the discount rate to match the interval between cash lows. B) You should adjust the future value to match the present value. C) You […]

84) The relation state specifying that nonprimary key attributes do not depend on other nonprimary key attributes is: A) first normal form. B) second normal form. C) Boyce-Codd normal form. D) third normal form. E) fifth normal form. Classification: Concept […]

60) Multiple key retrieval is possible with sequential file organization. Classification: Concept 61) File restoration can be achieved through backup copies of a file, audit trails, and row image files. Answer: TRUE Explanation: When a file is damaged, it must […]

Fundamentals of Corporate Finance, 3e (Berk/DeMarzo/Harford) Chapter 5 Interest Rates 5.1 Interest Rate Quotes and Adjustments 1) When you borrow money, the interest rate on the borrowed money is the price you pay to be able to convert your future […]

Essentials of Systems Analysis and Design, 6e (Valacich) Chapter 9 Designing Databases 1) One of the purposes of logical and physical database design is to choose data-storage technologies that will efficiently, accurately, and securely process database activities. Classification: Concept 2) […]

C) $250,000 D) This problem cannot be solved. Answer: A Explanation: A) Dif: 3 Var: 44 Skill: Analytical AACSB Objective: Analytic Skills Author: JN Question Status: Previous Edition 13) Deine the following terms: (a) perpetuity (b) annuity (c) growing perpetuity […]

80) The way a user can move from one display to another best describes: A) dialogue sequence. B) transition plan. C) menu-driven interface. D) screen sequence. E) computer interface. Classification: Concept 81) When designing the navigation procedures within your system, […]

2) An annuity is set up that will pay $1500 per year for ten years. What is the present value (PV) of this annuity given that the discount rate is 9%? A) $5776 B) $9626 C) $11,551 D) $13,476 AACSB […]

56) Which of the following is an example of a form? A) Invoice B) Pie chart C) Mailing labels D) Weekly sales summaries by region and salesperson E) Automated teller machine transaction layout Classification: Application 57) Which of the following […]

Fundamentals of Corporate Finance, 3e (Berk/DeMarzo/Harford) Chapter 4 Time Value of Money: Valuing Cash Flow Streams 4.1 Valuing a Stream of Cash Flows 1) The present value (PV) of a stream of cash lows is just the sum of the […]

Essentials of Systems Analysis and Design, 6e (Valacich) Chapter 8 Designing the Human Interface 1) The contents of a form or report correspond to the data elements contained in an associated data flow located on a data-flow diagram. Classification: Concept […]

7) What is the future value (FV) of $50,000 in thirty years, assuming the interest rate is 12% per year? A) $32,500.00 B) $1,273,296.69 C) $1,348,196.50 D) $1,497,996.11 AACSB Objective: Analytic Skills Author: DS Question Status: Previous Edition 8) What […]

82) If entity B is a mandatory participant, then: A) the minimum cardinality of the relationship is two. B) the minimum cardinality of the relationship cannot be defined. C) the minimum cardinality of the relationship is one. D) the minimum […]

9) Why should you approach every problem by drawing a timeline? A) A timeline allows you to quickly sum cash lows over time. B) A timeline eliminates the majority of lawed inancial decisions. C) A timeline can be used to […]

54) The data modeling perspective that derives the business rules for a data model from an intimate understanding of the nature of the business, rather than from any specific information requirements in screens, reports, or business forms, is referred to […]

14) Walgreens Company (NYSE: WAG) is currently trading at $48.75 on the NYSE. Walgreens Company is also listed on NASDAQ and assume it is currently trading on NASDAQ at $48.50. Does an arbitrage opportunity exist and, if so, how would […]

Essentials of Systems Analysis and Design, 6e (Valacich) Chapter 7 Structuring System Requirements: Conceptual Data Modeling 1) The characteristics of data captured during data modeling are crucial in the design of databases, programs, computer screens, and printed reports. Classification: Concept […]

19) In a trade with the government of an oil producing nation, a manufacturer will deliver 13 Caterpillar D9 tractors, with a value of $320,000 per tractor, and receive 45,000 barrels of oil, valued at $120 per barrel. What is […]

82) Which of the following is a true statement regarding data flows? A) A data flow to a data store means retrieve or use. B) A data flow from a data store means update. C) A data flow may have […]

55) Which of the following is NOT a process modeling deliverable? A) A context data-flow diagram B) Thorough descriptions of each DFD component C) DFDs of the current physical system D) An entity relationship diagram E) DFDs of the new […]

Fundamentals of Corporate Finance, 3e (Berk/DeMarzo/Harford) Chapter 3 Time Value of Money: An Introduction 3.1 Cost-Beneit Analysis 1) In general, if an action increases a irm’s value by providing beneits with a value greater than any costs involved, then that […]

Essentials of Systems Analysis and Design, 6e (Valacich) Chapter 6 Structuring System Requirements: Process Modeling 1) A data-flow diagram (DFD) is a graphical tool that allows analysts to illustrate the flow of data in an information system. Classification: Concept 2) […]

8) AOS Industries Statement of Cash Flows for 2008 Operating activities Net Income 3.2 Depreciation and amortization 1.4 Cash efect of changes in Accounts receivable -1.9 Accounts payable 1.0 Inventory -0.6 Cash from operating activities 3.1 Investment activities Capital expenditures […]

77) If your analysis of several written procedures reveals a duplication of effort in two jobs, you should: A) indicate that one job be deleted from the new system. B) call the duplication to the attention of management as an […]

Use the table for the question(s) below. Income Statement for Xenon Manufacturing: 2008 2009 Total sales 202 212 Cost of sales -148 -172 Gross Proit 54 40 Selling, general, and administrative expenses -22 -20 Research and development -8 -7 Depreciation […]

49) Induction refers to the process of first identifying problems and then formulating solutions. projects Classification: Concept 50) Decision support tools aiding nonmanagers is an example of a disruptive technology. Answer: TRUE Explanation: Decision support tools are an example of […]

6) Income Statement for CharmCorp: 2008 2009 Total sales 600 540 Cost of sales -532 -488 Gross Proit 68 52 Selling, general, and administrative expenses -36 -21 Research and development -4 -5 Depreciation and amortization -5 -5 Operating Income 23 […]

Essentials of Systems Analysis and Design, 6e (Valacich) Chapter 5 Determining System Requirements 1) The two parts to systems analysis are determining requirements and structuring requirements. projects Classification: Concept 2) During requirements determination, information can be gathered from users of […]