If you just purchased one share of Facebook stock on a the NASDAQ stock exchange, you participated in __________. a futures market transaction a secondary market transaction a primary market transaction a commodity market transaction

QUESTION 3 Junkman's Warehouse and Storage Company has an unusual bond outstanding with exactly 10 years remaining until maturity and a face value of $1,000. The bond is unusual because the annual coupon payments remaining are $50 for the next five years and $100 thereafter until maturity. What is the value of this bond when there are exactly four years remaining until maturity if the yield to maturity at that time is 5 percent?

QUESTION 4 Which of the following forms of business is "double taxed", once on their profits and once again on their dividends? a sole proprietorship a regular corporation a general partnership a limited liability company (LLC) 3 points

QUESTION 5 Mears Corporation just paid a dividend of $4.45. The company forecasts a constant growth rate in dividends of 8 percent. If the appropriate discount rate is 14 percent, what is the current price of this stock (rounded to the nearest dollar)? $40 $60 $80 $100 3 points

QUESTION 6 Use the information in the Table below to calculate the expected return for Stock A. Probability Return % 0.30 60 0.50 20 0.20 10

QUESTION 7 Ben Tallmadge invests a one-time payment of $5,000 in a retirement account that will earn 15 percent annually. How much money will Ben have in the account at the end of 30 years if the interest is continuously compounded? $450,086 $550,068 $912,334 $2,173,726

QUESTION 8 What is the theory that security prices reflect all public information and all historical information, but not all private information? strong-form market efficiency weak-form market efficiency semi-strong-form market efficiency nominal-form market efficiency

QUESTION 9 Which of the following SHOULD be included in a project's free cash flow calculations? investment in working capital sunk costs allocated overhead expenses noncash revenues of the company's nearest competitor

The yield to maturity of a bond is the discount rate that makes the present value of the coupon and principal payments __________. less than the price of the bond greater than the price of the bond equal to the price of the bond equal to zero

QUESTION 11 Last year, Kowalski Bearings Company had total net sales of $9,000,000, inventories of $2,250,000, cash and equivalents of $750,000, and days sales outstanding (DSO) of 73 days. What is the company's accounts receivable balance if there are 365 days in a year?

QUESTION 12 If the supply of loanable funds decreases then all else equal __________. interest rates will increase, decrease, or remain the same interest rates will increase interest rates will remain unchanged interest rates will decrease

QUESTION 13 Provo Corporation had cash revenues of $14,000,000, cash operating expenses of $5,000,000, and depreciation and amortization of $1,000,000 during 2015. The firm purchased $650,000 of equipment during the year while increasing its inventory by $300,000 (with no corresponding increase in current liabilities). The corporate income tax rate for Provo is 40 percent. What is Provo's free cash flow for 2015?

QUESTION 14 Samuel Culper purchased a stock for $50 one year ago. That stock is now worth $75. During the year, the stock paid a dividend of $2.50. What was Samuel's total return from holding the stock? 35% 45% 55% 65%

QUESTION 15 Petra, Inc. has $400,000 in current assets, $1.25 million in plant and equipment, and $250,000 in goodwill. In what order should these assets be reported on the balance sheet? there is no correct ordering of these assets on the balance sheet plant and equipment, currents assets, goodwill goodwill, plant and equipment, current assets current assets, plant and equipment, goodwill

QUESTION 16 A higher discount rate will __________. decrease the present value of a future cash flow not affect the present value of a future cash flow decrease the future value of a future cash flow increase the present value of a future cash flow

QUESTION 17 Which of the following business owners are protected by limited liability? a sole proprietor a bondholder a stockholder a general partner

QUESTION 18 Caleb Brewster did an excellent job saving for retirement. He was able to save $1,000,000 in an account that pays 12 percent per year. His plan was to eventually withdraw all his money by paying himself in equal installments every month during his 20 years of retirement, which he did for exactly 10 years. However, poor Mr. Brewster died exactly 10 years after he retired before receiving the remaining monthly payments he was due. How much money was left in Mr. Brewster's account on the day he died?

QUESTION 19 Benson Bakeries generated net income of $250,000 on total revenues of $525,000 this year. At year end, the company had accounts receivable of $15,000, accounts payable of $52,500, inventory of $58,000, cash of $50,000, and short-term notes payable of $25,500. What is the net working capital for Benson Bakeries?

QUESTION 20 An investment that pays the same amount at the beginning of each year for a fixed amount of time is called __________. an annuity due an excess cash flow an ordinary annuity a perpetuity

QUESTION 21 If a bond's coupon rate is less than its yield to maturity, the the bond will sell __________. at a price greater than its face value at a price equal to the number of payments remaining at a price equal to its face value at a price less than its face value

QUESTION 22 Use the information in the Table below to calculate the standard deviation for Stock A. Probability Return % 0.30 60 0.50 20 0.20 10

QUESTION 23 Which of the following is the goal of the firm? shareholder wealth maximization revenue maximization profit maximization tax payment maximization

QUESTION 24 If you borrow $250,000 to buy a house and the interest rate is 5 percent per year, what is the amount of the MONTHLY payment if it takes you 30 years to pay off the loan? $1,045 $1,088 $1,342 $1,509

QUESTION 25 Zapata Corporation will pay dividends of $5.00, $6.00, and $7.00 in the next three years. Thereafter, the company expects its dividend growth rate to be a constant 10 percent. If the required rate of return is 15 percent, what is the current market price of Zapata stock?

QUESTION 26 Which of the following investment classes had the greatest average return and greatest volatility based on historical data from 1926 to the present? Small US stocks Large US stocks Short-term government bonds Long-term government bonds

QUESTION 27 Why is the quick ratio considered by some to be a better measure of liquidity than the current ratio? The quick ratio more accurately reflects a firm's profitability. The quick ratio omits the least liquid current asset from the numerator of the ratio. The current ratio does not include accounts receivable. The quick ratio measures how "quickly" cash flows through the firm.

QUESTION 28 Which of the following is true of a firm that has no debt in its capital structure? Its return on equity (ROE) will be greater than its return on assets (ROA). Its return on equity (ROE) will be less than its return on assets (ROA). Its return on equity (ROE) will be equal to its return on assets (ROA). Its return on equity (ROE) will be equal to its days sales outstanding (DSO).

QUESTION 29 Crazee Enterprises Corporation just paid a dividend and it expects that dividend to grow by 10 percent for the next three years. After that, the dividend is expected to grow at a constant rate of 5 percent in perpetuity. If the company's stock is currently selling for $72 per share and the required return is 10 percent, what is the amount of the NEXT dividend, i.e., D1?

QUESTION 30 Terry Malloy is trying to decide whether his shipping company should invest in a new boat. The new boat will cost $200,000 and it will be fully-depreciated on a straight-line basis over its 10-year useful life. The new boat will have no salvage value. The new boat is expected to increase EBITDA by $50,000 per year for 10 years. What is the NPV of this investment if the corporate income tax rate is 50 percent and the cost of capital is 10 percent?