11) In which of the following relationships is an agency ennflict problem LEAST Fikely so atise? A) the relationshlp between a driver and the passengers in a car regarding the suft drivise of that car B) the relationship between high-lovel military officen and the soldient who serve under them regarding the willingens of the soldiery to sake riska C) te relationship between a hire-ear company and the pernons who hire that congary's cars regarling the trentment of those cars D) the reiationstip betwsen a retasurariter and the suppliess of prodose to that reitiras rogarding the frestiness of the produce mupplied E) None of the above 3 12) Which oil tur A) Zero-coupon boeds always trade aq a discount B) Tresyery bills are zero-coupon bonds C) Bond traders fypically qooke boed prices suther than bond yielde. D) The yield io maturity is toplcally stated as an annual rate ty multiplying the calcelented YTM by the number of coupon payment per yea, thereby eonverting it be an APR. E) none of the above. 13) Dan bays a property for $250,000. He is offered a 20-year loan by the bank, at an interts eate of 6% per year. What is the antual loan payment Dan must make? A) $21,796.14 B) 524.364 .98 C) 532.644 .66 D) 564,486.34 E) aone of the sbove 14) Which of the following are unique for an 5 sompuratica? A) The firm's profits and losses are boh taxed aa the porporate level, but shareboldors mast A) The tirns profts and profits and losses ce the ie individual tax returns. B) The tharebolders of an $ corpoeation must include the firn's profit and looses in theit individual inoome twoes even if no money is distributed so them. C) There is a maximum limit on the number of ahareholders for an $ coupoemation. D) all of the above B) none of the above. 15) Which of the following statements reganding the inctint statement is DNCORRECT? A) The last of "botsom" lite of the income sevitenent thows the fimi's net income. B) The incoene statement shows the flow of earnings and copenses poncrated by the firm betwech 5 wo dates. C) The income statement abows the earnings and expenses at a given peint in timar. C) The income statement a The firs line of an inoome statement lists the revenues frotn the sales of product of D) servieses. E) none of the above. 16) Do eorporate decisions that increave the valee of the firm' efuily benefis soeicty as a whole? A) Yes, as long as the value of the firm's equity increases, society is better off. A) Yes, as loog as the vatue of long as the increase in the value of the firm's equity does not come at the expesve of octere. C) Now any gab in the value of the firm's cquity is always less than the sent so sociery. D) No, any gains in the value of the firm's equity are perlectly offeet by societal ceite- B) none of the above. 17) Which of the follywing statements is FALSE? A) The amownt of each ceupoe poyment is determined by the coepon rate of the bend. B) The simpled bye of bond is a acro-coupoe bond. C) Proor to its maturity date, the price of a zero-coupoe boed ss always greader than its face value. D) Treavury bells are U.S. Bovenameat bonds with a miturity of ap to one year. E. nose of the above
