Financial planning covers the accomplishment of a firm's goal(s) on ___________.

I. analysis of funding options

II. determination of labor requirements

III. development in recruiting employees

IV. establishment of employee health insurance

The bond market is currently requiring a return of 7 percent on the 20-year bonds issued by Walmart. Thus, the ___________ of the bonds is 7%.

Chase JP Morgan, Inc. has an outstanding bond with the market price less than its par (or face) value. Which of the following features currently apply to this bond?

I. sells at par value

II. sells at premium price

III. sells at discounted price

IV. yield-to-maturity that exceeds the coupon rate

V. yield-to-maturity that is equal to the coupon rate

VI. yield-to-maturity that is less than the coupon rate

All else equal, the cash flow from assets can be increased by a/an

I. decrease in operating cash flow II. decrease in net capital spending III. decrease in cash flow to creditors IV. increase in cash flow to stockholders V. increase in current assets

Which one of the following statements related to annuities and perpetuities is/are correct?

I. Most loans are a form of a perpetuity.

II. Both perpetuities and annuities are not finite.

III. The future value of an ordinary annuity can be computed but not the future value of an annuity due.

IV. An ordinary annuity is worth less than an annuity due given equal annual cash flows for five years at 10 percent interest, compounded annually.

V. A perpetuity comprised of $200 quarterly payments is worth more than a 10-year annuity comprised of $200 quarterly payments, given an interest rate of 12 percent, compounded quarterly

The sustainable growth rate of a firm is

I. calculated as (ROE x b )/(1 - ROE x b)

II. calculated as (ROA x b)/(1 - ROA x b)

III. maximum growth rate achievable with unlimited debt financing.

IV. defined as maximum growth rate achievable excluding external financing of any kind.

V. defined as the maximum growth rate achievable excluding any external equity financing while maintaining a constant debt-equity ratio.