A EZjETs quick ratio of 0.89 suggests that the firm:

A) Has a low level of current liabilities.

B) Has been overstating the value of its inventory.

C) Faces a potentially serious liquidity crisis.

D) Should reduce its holdings of cash and/or marketable securities.

A capital lease is known as:

An operating lease.

A financial lease.

A direct lease.

A leveraged lease.

Assets leased under ______ leases generally have a usable life longer than the term of the lease.

financial

operating

capital

direct

Which of the following is correct for a bond investor whose bond offers a 5% current interest rate is 8%?

A) The bond is selling at a discount to par value.

B) The bond has a high default premium.

C) The promised yield is not likely to materialize.

D) The bond must be a Treasury Inflation-Protected Security.

Assume that a bond has been owned by four different investors during its 20-year history. Which of the following is not likely to have been shared by these different owners?

A) Coupon rate

B) Cash flows

C) Par value

D) Actual return (Yield)

How much should you be prepared to pay for a 10-year bond with a 6% coupon and current discount rate is 7.5%?

A) $411.84

B) $897.04

C) $985.00

D) $1,000.00

What dividend yield would be reported in the financial press for a stock that currently pays a $1 dividend per quarter and the most recent stock price was $40?

A) 2.5%

B) 4.0%

C) 10.0%

D) 15.0%