b. A hospitality business owner pays $50,000 per year in interest on loans to her business. The annual net operating income from her business is $220,000. What is this owner's debt coverage ratio?

	A.	2.0 times
	B.	4.0 times
	C.	2.4 times
	D.	4.4 times

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

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

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

g. Which purpose of capital budgeting is LEAST controlled directly by a business' owners?

	A.	Establishment of a business
	B.	Increasing business efficiency
	C.	Compliance with the law
	D.	Expansion of a business

h. A restaurant manager has a capital lease. The lease calls for a $2,000 per month lease payment, which includes $1,800 in principal and $200 in interest. Prior to entering any information about the lease payments, the manager's operating income line on the USAR formatted income statement for this month shows a positive $20,000. What will be the lease is entered into the income statement?

	A.	$19,800
	B.	$18,000
	C.	$18,200
	D.	$20,000