In its most recent financial statements, ABC reported $66,978 million of net income and $564,440 million of retained earnings. The previous retained earnings were 761,168 million. How much in dividends was paid to shareholders during the year?

	a.	200,000
	b.	63,006.31
	c.	263,706.00
	d.	209,706.94

If you receive $392 at the end of each year for the first three years and $744 at the end of each year for the next three years. What is the present value? Assume interest rate is 10%.

	a.	2,364.94
	b.	364
	c.	3,364
	d.	1,264.98

ABC, Inc. has total equity of $356,716, long-term debt of $116,400, net working capital of $1,600, and total assets of $785,949. What is the total debt ratio?

	a.	18.38
	b.	75.38
	c.	36.41
	d.	54.61

Interest paid to a firms debt-holders is tax-deductible to the paying company.

True

False

Suppose an investment offers to triple your money in 27 years. What annual rate of return are you being offered if interest is compounded monthly?

	a.	1.42
	b.	2
	c.	4.08
	d.	5.62

The primary goal of corporate financial management is to maximize the:

	a.	total revenue of the firm.
	b.	number of shares of common stock outstanding.
	c.	market value of the existing stock.
	d.	current net income of the firm.
	e.	market share for the firm.

A firm has net working capital of $2,176 and current assets of $7,530. What is the current ratio?

	a.	1.41
	b.	2.46
	c.	4
	d.	6

If you receive $2,590 at the end of each year for the first three years and $627 at the end of each year for the next two years. What is the future value of this cash flow stream? Assume interest rate is 6%.

	a.	10,556.29
	b.	32,466.17
	c.	15,000
	d.	17,315.92

1 points

QUESTION 15

ABC Company offers a perpetuity which pays annual payments of $12,843. This contract sells for $336,952 today. What is the interest rate?

	a.	5.21
	b.	3.81
	c.	2.34
	d.	10

QUESTION 16

How many years will it take to double your money at 6% compounded semi-annually?

	a.	8.7
	b.	11.72
	c.	15
	d.	20

1 points

QUESTION 17

What is the effective rate of 18% compounded monthly?

	a.	19.56
	b.	21
	c.	27.21
	d.	9.39

1 points

QUESTION 18

What is the net present value of the following cash flows? Assume an interest rate of 5.73%

Year	CF
0	-$14,504
1	$6,549
2	$6,797
3	$7,106

	a.	3,702.
	b.	3,782.48
	c.	7,782.23
	d.	782

Jack Miller, an employee of ABC Company was recently promoted and he is now is charge of managing the company's long-term investments. This means, he is in charge of the company's:

	a.	working capital management decisions.
	b.	capital structure decisions.
	c.	capital budgeting decisions.
	d.	risk management decisions.
	e.	cash management decisions.

1 points

QUESTION 21

You have $7,863 you want to invest for the next 34 years. You are offered an investment plan that will pay you 11.8 percent per year for the next 9 years and 19.2 percent per year for the remaining years. How much will you have at the end of the 34 years?

	a.	171,690
	b.	31,692.23
	c.	731,692
	d.	1,731,692.97

1 points

QUESTION 22

ABC Company has net income of $90,182, return on assets of 9.4 percent, and debt-equity ratio of 0.53. What is the return on equity?

	a.	12
	b.	15.63
	c.	14.38
	d.	10

Which one of the following transactions occurred in the primary market?

	a.	The president of J.C. Penny, Inc. sold some of her shares to her daughter on the NYSE.
	b.	Delta, Inc offered newly issued shares to the general public.
	c.	Emma instructs her broker to sell all of her shares in General Electric, Inc.
	d.	Anthony purchased 50 shares of RIM stock from his best friend, Edward.
	e.	Mona gifted 100 shares of Apple stock to her son-in-law on his birthday.