Microsoft currently has an annual coupon bond outstanding. A decrease in the market rate of interest will of the bond. Multiple Choice decrease the coupon rate increase the coupon rate increase the market price increase the time period decrease the market price Which of the following statements related to payback and discounted payback is/are correct? I. Payback is a better method of analysis than is discounted payback. II. Discounted payback is used more frequently in business than is payback III. Payback is used more frequently even though discounted payback is a better method. IV. Both discounted payback and payback require a cutoff point to determine project for acceptance. V. Discounted payback is biased towards long-term projects while payback is biased towards short-term projects. Multiple Choice Ill only IIl and IV only I only I,Il and Ill only V only Project A and Project B will require using the same floor space at the main street store of Macy's. If the store accepts Project A, it will not be able to take on Project B. projects So, Project A and Project B are Multiple Choice interdependent operationally distinct independent economically scaled mutually exclusive The higher the degree of financial leverage employed by a firm, the I. lower the amount of debt incurred. II. lower the balance in accounts payable. III. more debt a firm has per dollar of total assets. IV. higher the number of outstanding shares of stock. v. lower the probability that the firm will encounter financial distress. Multiple Choice I and Ill only Ill only I only I, II, IIl and V only I, II, II, IV and v Susan has deposited $500 today in a savings account at the Chase Bank. This account will pay her back $555 in total in two years. Which one of the following terms refers to the $555? Multiple Choice future value invested principal present value discounted value principal amount