Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 Which one of the following is the primary difference between operating cash flow and net income? interest expense indirect costs taxes fixed costs depreciation

1
  1. Which one of the following is the primary difference between operating cash flow and net income?
    interest expense
    indirect costs
    taxes
    fixed costs
    depreciation

0.5 points

QUESTION 2
  1. A firm has a price-cash flow ratio of 12.5 and a price-book value ratio of 7.6. If the cash flow per share is $4.67, what is the book value per share?
    $2.84
    $3.55
    $4.44
    $6.45
    $7.68

0.5 points

QUESTION 3
  1. What is the investment cash flow, given the following information?
    -$20
    -$10
    $10
    $20
    $100

0.5 points

QUESTION 4
  1. Which one of the following represents the amounts owed by a firm to other parties?
    assets
    cash inflows
    equities
    liabilities
    expenses

0.5 points

QUESTION 5
  1. Which one of the following is most apt to vary directly with sales?
    current assets
    long-term debt
    shareholders' equity
    paid-in capital
    retained earnings

0.5 points

QUESTION 6
  1. What is the investment cash flow?
    -$220
    -$140
    -$120
    -$20
    -$10
QUESTION 1
  1. Which one of the following is a mortgage-backed security that has first priority to scheduled principal payments?
    priority strip bond
    principal strip
    amortized principal strip
    protected amortization class bond
    principal priority tranche

0.5 points

QUESTION 2
  1. How are the cash flows allocated when actual prepayments fall below a PAC collar's lower bound?
    The entire cash flow is paid to the non-PAC support bonds until those bonds are paid in full.
    The cash flows are divided between PAC and non-PAC bonds on a pro-rata basis.
    PAC payments are recomputed to a reduced fixed amount.
    The entire cash flow is paid to the PAC bondholders.
    The interest income is paid to the non-PAC bondholders with all principal amounts paid to the PAC bondholders.

0.5 points

QUESTION 3
  1. Which one of the following correctly applies to a mortgage passthrough bond?
    The primary collateral for the bond is the underlying pool of mortgages.
    All interest received is immediately passed through while principal payments are held until the bond matures.
    Each bond represents one home mortgage.
    These bonds are created via a process known as mortgage collaring.
    All of these bonds are guaranteed by the full faith and credit of the U.S. government.

0.5 points

QUESTION 4
  1. You just purchased a GNMA mortgage-backed security. Which one of the following should you expect to receive?
    fixed monthly payments
    fixed quarterly payments
    variable monthly payments
    variable quarterly payments
    quarterly payments that decrease at a constant rate

0.5 points

QUESTION 5
  1. Which one of the following is the measure of interest rate risk for fixed-income securities?
    standard deviation
    Macaulay duration
    variance
    Jensen's alpha
    beta

0.5 points

QUESTION 6
  1. Which one of the following set of mortgage terms will cause the borrower to pay the most interest, assuming the mortgage is paid according to the amortization schedule?
    10-year, 6.5 percent
    10-year, 7.0 percent
    15-year, 7.0 percent
    30-year, 6.5 percent
    30-year, 7.0 percent

0.5 points

Click Save and Submit to save and submit. Click Save All Answers to save all answers.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investing In Financial Research A Decision Making System For Better Results

Authors: Cheryl Strauss Einhorn, Tony Blair

1st Edition

1501732757, 9781501732751

More Books

Students also viewed these Finance questions

Question

An improvement in the exchange of information in negotiations.

Answered: 1 week ago

Question

1. Effort is important.

Answered: 1 week ago