a. For investors, "financing" is the term used to describe the...

	A.	amount of money that must be raised to fund a new investment.
	B.	methods utilized to obtain the money needed to invest.
	C.	estimated returns (ROI) to be generated by a specific investment.
	D.	length of time borrowed money is invested.

b. For any profitable business investment, it is generally true that...

	A.	the greater the financial leverage, the smaller the ROI achieved by the investor.
	B.	projects funded with more equity than debt will yield greater investment returns.
	C.	projects funded with more debt than equity will yield smaller investment returns.
	D.	the greater the financial leverage, the greater the ROI achieved by the investor.

c. An investor finances a $4,000,000 project with 80% debt and 20% equity. The interest payment due on the debt in year one is 8%. The investor achieves a net operating income of $600,000 from the project in year one. What is this investor's equity ROI on the project in year one?

	A.	39%
	B.	43%
	C.	45%
	D.	41%

d. When accounting for an operating lease, each lease payment is listed on the...

	A.	income statement as an operating expense.
	B.	balance sheet as a liability.
	C.	balance sheet as a credit to owner's equity.
	D.	balance sheet as a debit to owner's equity.