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4. Which of the following are financial assets? 1. Debt securities II. Equity securities HII, Land IV. Options and futures A. Ionly B. All except
4. Which of the following are financial assets? 1. Debt securities II. Equity securities HII, Land IV. Options and futures A. Ionly B. All except II C. II and III only D. All except III 5. Which one of the following should be the goal of financial management? A. decrease in the production costs B. maximize shareholders' book value C. maximize shareholders' value D. maximize creditors' value 6. Which of the following represents ownership of a company? A. A call option B. A bond of a company C. Common stock D. All of above 7. The preferred stock of a company pays a quarterly dividend of $5 forever. The discount rate is 3.5% per quarter. What is the present value of all dividends? A. $100.00 B. $138.36 C. $142.86 D. $150.00 8. What is the future value of $5,000 invested for 3 years at 12 percent compounded annually? A. $5,184.84 B. $7,024.64 C. $8,432.12 D. $9,865.71
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