ONE:

If the bonds coupon rate is greater than the general interest rates in the market, the Bond will sell at a

A)Premium

B) Discount

C) Neither A nor B

If the bonds coupon rate is equal to the general interest rates in the market, the Bond will sell at a

a.Premium

b.Discount

c.Neither A nor B

Compound rates, not discount rates, are used in an attempt to:

a.Screen out weak investments

b.Quantify the firms opportunity costs

c.Quantify the firms risk

d.A & B

e. None of the above

The ______ matches revenues with expenses for the entire accounting period.

a.Balance Sheet

b.Cash Flow Statement

c.Statement of retained Earnings

d.Income Statement

e.None of the above

Breakeven EBIT analysis leads to

a.Issuance of debt

b.Issuance of stock

c.Both A and B

d. Either A or B

e.None of the above

For every financing alternative, a breakeven point exists where

a.the dilutive effect on EPS from issuing new shares is located

b.Interest payments on new debt is found

c.A equals B

d.none of the above

Which of the following elements is a part of relevant cash flow?

a.Net income

b.Deprecation

c. Change in working capital