Bus 379

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1. (TCO 1) Which one of the following actions best matches the primary goal of financial management? increasing the net working capital while lowering the long-term asset requirements improving the operating efficiency, thereby increasing the market value of the stock increasing the firm’s market share reducing fixed costs and increasing variable costs increasing the liquidity of the firm by transferring short-term debt into long-term debt

2. (TCO 1) Which of the these activities is not a capital budgeting task? determining the amount of cash needed on a daily basis to operate a firm identifying assets that
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Which bank should you choose and why? South Bank because its effective rate is higher. North Bank because the APR is lower. South Bank because its effective rate is lower. North Bank because its effective rate is lower. |
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1. (TCO 3) Tim needs to borrow $5,000 for two years. The loan will be repaid in one lump sum at the end of the loan term. Which one of the following interest rates is best for Tim? 7.5 percent simple interest 7.5 percent interest, compounded monthly 8.0 percent simple interest 8.0 percent interest, compounded annually 8.0 percent interest, compounded monthly

2. (TCO 3) The difference between an ordinary annuity and an annuity due is the: number of payments to be made amount to be paid each time the timing of the payments frequency of the payments interest rate applied to the first payment

3. (TCO 3) Fanta Cola has $1,000 par value bonds outstanding at 12 percent interest. The bonds mature in 25 years. What is the current price of the bond if the YTM is 11 percent? Assume annual payments. $1080 $1085 $925 $1000

4. (TCO 6 and 8) A bond's debenture will include which of the following? description of any loan collateral call
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