o working capital management O maximizing market share O capital structure Question 37 1 pts Which of the following are correct concerning ordinary annuities and annuities due? Select one or more correct answers. An ordinary annuity is one where the payment occurs at the beginning of the period, such as rent and leases. Home mortgages and car loans are common annuities due. For a given point of time in the future, an annuity due will have a larger future value than an ordinary annuity given that the annuities are otherwise identical. An annuity due applies only to equal payments made in annual increments. None of these statements about ordinary annuities and annuities due is correct. An ordinary annuity will have a larger present value than an annuity due given that the annuities are otherwise identical. statements about ordinary annuities and annuities due is correct. An ordinary annuity will have a larger present value than an annuity due given that the annuities are otherwise identical Question 38 Which of the following statements concerning the effective annual rate are correct? Select one or more correct answers. None of these statements is correct. The higher the compounding frequency, the smaller the difference between the EAR and APR. When borrowing money you should select the loan which offers the highest effective annual rate. When making financial decisions, you should compare EARs rather than APRs. Given an APR, the more frequently interest is compounded the higher is the effective annual rate. A quoted rate of 8% per year compounded continuously has a higher effective annual rate than if the rate were compounded daily. Question 39 U Given an APR, the more frequently interest is compounded the higher is the effective annual rate. A quoted rate of 8% per year compounded continuously has a higher effective annual rate than if the rate were compounded daily. Question 39 Which of the following help convince managers to work in the best interest of the stockholders? Select one or more correct answers. The threat of a company takeover. The labor market for executive talent. Regulation such as Sarbanes-Oxley. Having the CEO on the board of directors. None of these choices helps convince managers to work in the best interest of the stockholders. Compensation based on the value of the stock. Question 40 Which of the following statements are correct concerning interest rate risk? work in the best interest of the stockholders. O Compensation based on the value of the stock. Question 40 1 Which of the following statements are correct concerning interest rate risk? Select one or more correct answers. The longer the time to maturity, the greater the interest rate risk. None of these statements concerning interest rate risk is correct. O Treasury bonds have it. The shorter the term, the greater the interest rate risk. O Municipal and corporate bonds have it. It is the risk that once you receive payments from a bond you may have to reinvest the proceeds at a lower interest rate. Question 41 It is the risk that once you receive payments from a bond you may have to reinvest the proceeds at a lower interest rate. Question 41 1 pts A loan where the borrower pays the same payment each period, but the proportion that goes to interest and principle varies over time is called loan. Select one or more correct answers. O a balloon O a pure discount an amortized O a continuous zero coupon None of these choices correctly completes the sentence. O a Treasury bill Question 42