Multiple Choice:

1) The breakeven point for a company reached when : a) Revenue equal variable cost. b) Revenue equal fixed cost. c) Revenue equal total cost. d) Fixed cost equal variable cost.

2) The balance sheet describe a) The financial position of the company b) The operation of the company c) The sources of finance of the company d) All of the above

3) In order to calculate the weighted average cost of capital, we obtain a) Cost of debt b) Cost of equity c) Cost of both (debt and equity) d) None of above

4) The income statement describe a) The financial position of the company b) The operation of the company c) The sources of finance of the company d) All of the above

5) If the ROA of a company is 17.5% , profit margin is 12.5% and ROE is 30% and the interest on deposits is 18%. It would be better for the investors to invest in: a) the company b) the bank c) divided the money into both d) need more information