7. All firms daily transaction is included in

a. Working Capital

b. Capital Budgeting

c. Capital Structure

d. Net present value of investment

e. Investment Efficiency

8. Jackson Imports issued 17-year bonds 2 years ago at a coupon rate of 10.3 percent. The bonds make semiannual payments. These bonds currently sell for 102 percent of par value. What is the yield-to-maturity?

a. 9.98 percent

b. 10.42 percent

c. 10.27 percent

d. 10.13 percent

e. 10.04 percent

9. Magnet corp. 2014 balance sheet showed a long-term debt of 2 million, common stock of 1,350 million and 1 million of paid in surplus account. The 2015 balance sheet showed 2,5 million long term debt and 1 million common stock and 3 million paid in surplus. If company paid out 135,000 interest and 550,000 dividend. What was the cash flow from asset?

a. 965,000

b. No correct answer

c. -965,000

d. -2.015 million

e. 2.015 million

10. Why should we add depreciation when calculating operating cash flow?

a. All are true

b. Its a non-cash expense

c. Its a non-taxable expense

d. Its not an important expense

e. Sometimes when we buy new assets, depreciation will also increase

11. Below are the determinants of cash flow from assets, except:

a. Current liabilities

b. Bonds and other long-term debt

c. Current asset

d. Net capital spending

e. Operating cash flow