Earnings available to common shareholders are defined as net grotts

1. before taxes,
2. after taxes minus common dividends.
3. after taxes minus preferred dividends,
4. after taxes.

2) The statement of cash flows provides a summary of the fisals

1. cash inflows from financing activities.
2. cash flows from investment activities.
3. cash flows from operating activties.
4. all of the above.

3) Calculate the future value of $60.00 per year at 7% per year for eight years.

A) $615.5

B) $715.5

C) $655.5

D) $651.5

4) What is the value of $100,000 after five years deposited in saving account that pays 4% interest rate compounded annually

A) $84,196.28

B) $121,70029

C) $82,196.28

D) $121,665.29

5) What is the Present value of the series of cash flows received by year-end, assuming the interest rate is 8% for all of the following cash flows.

Ist year cash flow

2nd year cash flow 3rd year cash flow

4th year cash flow

$700

$1000

$ 300

$500

A) $1000

B) $1997.16

C) $555.68

D) $735.03

6) Which of the following is a current liability?

1. cash
2. accounts receivable
3. inventory
4. notes payable

7) Find the value of $10,000 in 10 years. if the investment earns 5% per year.

A) 15,289

B) 14.289

C) $17,214.53

D) $16,289

8) How much do I need to invest at 8% per year, in order to have $10,000 in Ten years

A) $4,232

B) $4,532

C) $4,632

D) $4,432

9) An investment of $3000 per quarter for 6 years at annual interest rate of 8%, compounded quarterly, will accumulate by the end of year 6 to:

A) $93,266.

B) $90,266.

C) $91,266.

D) $92,266.

10) You make equal $400 monthly payments on a loan. The annual percentage rate(APR) equals 15%, compounded monthly. The loan is for 12 years. What is the amount of the loan?

A) $29,651

B) $26,651

C) $28,651

D) SI6,651

11) Calculate the present value of a $10,000 perpetuity at a 6% discount rate.

A) $177,667

B) $I66,667

C) $167,667

D) $176,667

12) What is the future value of a 4-year annuity, if the annual interest is 5%, and the annual payment is $1,000?

A) $4,310.1

B) $4,210.1

C) $4,510.1

D) $4,410.1

13) Which of the following represents a cash flow from operating activities?

1. repurchasing stock
2. increase or decrease in current liabilities
3. dividends paid
4. increase or decrease in fixed assets