13. Francine owns 150 bonds. Each bond has a face value of $1000. The bonds pay interest semi- annually. Her last interest payment was $6,375. What is the coupon rate? (0.5 Points) 12.7596 7.75% 6.375% 8.50% 20. Explain why investors do not receive compensation for all the risks associated with an individual share (2 points) Enter your answer 21. A firm has an ROA of 14%, a debt/equity ratio of 0.8, a tax rate of 35%, and the interest rate on the debt is 10%. The firm's ROE is 10.5 Points 8.97 23. Which of the following would be consistent with a more aggressive approach to financing working capital? (0.5 Points) O Financing short-term needs with short-term funds. Financing permanent inventory buildup with long-term debt Financing some long-term needs with short-term funds. Financing seasonal needs with short-term funds. 24. In deciding the appropriate level of current asts for the firm mana 28. What types of companies can use commercial paper to meet their short-term financing needs? How does the cost of commercial paper compare with the cost of short-term bank loans? With the cost of Treasury bills? (3 Points) Enter your answer 29. Which one of the following is true concerning the capital asset pricing model? (0.5 Points) O A graph of the CAPM is a downward-sloping function 31. Which one of the following is an example of portfolio risk? (0.5 Points) The return on all of an individual's invested assets unexpectedly declines. The quantity of units sold unexpectedly increases. The cost of goods sold rises unexpectedly in relation to sales. The interest expense as a percentage of sales rises unexpectedly. 29. Which one of the following is true concerning the capital asset pricing model? (0.5 Points) O A graph of the CAPM is a downward-sloping function. O A security with a beta of zero has an expected return also equal to zero. A rate of return that falls above the CAPM line on a graph, indicates a firm that is producing a rate of return in excess of the required rate based on the firm's level of non-diversifiable risk. The market risk premium is equal to beta multiplied by the market rate of return minus the risk-free rate. 30. Mathematically, what are the two main differences between bonds and shares? (0.5 Points) initial payment and potential annual payments annual payments and risk maturity and payment growth risk and payment growth 34. Which one of the following would be the best option for a financial manager to improve the cash flow of a business? (0.5 Points) decrease the sales of their profitable products give customers additional time to pay their bills implement a lockbox system delay the payment of debts until 30 days after the due date 13. Francine owns 150 bonds. Each bond has a face value of $1000. The bonds pay interest semi- annually. Her last interest payment was $6,375. What is the coupon rate? (0.5 Points) 12.75% 7.75% 6.37596 8.5096 39. Which of the following is not a method for speeding up cash inflows? (0.5 Points) O offering a trade discount lookbox o applying a less restrictive credit policy O electronic transfer 40. A firm has a lower quick (or acid test) ratio than the industry average, which implies. (0.5 Points) O A the firm has a lower P/E ratio than other firms in the industry. O B. the firm is less likely to avoid insolvency in short run than other firms in the industry. O the firm may be more profitable than other firms in the industry. O D. A and B. O E B and C