Question 21

A firm's gross margin is a measure of its pricing power. As such, we may expect Dell to have a higher gross margin than Apple.

Group of answer choices

True

False

Question 22

Tesla has a PE ratio of 120 while GM and Ford have a PE ratio of 6 and 9, respectively. As such, Tesla stock would be considered cheap.

Group of answer choices

True

False

Question 23

When comparing a company's ratios, it is common to compare them temporally as well as with the company's peers.

Group of answer choices

True

False

Question 24

Trend analysis is commonly used to assess a management team's performance.

Group of answer choices

True

False

Question 25

Which of the following would be used in Microsoft Excel when attempting to calculate the price of something, using time value of money.

Group of answer choices

VLUE

PV

CALC

PRCE

Question 26

Interest rates are always quoted in annual terms, although they may be adjusted for calculation purposes.

Group of answer choices

True

False

Question 27

Timelines should not be used in time value of money calculation due to the likelihood that they will induce temporal distortions.

Group of answer choices

True

False

Question 28

Compound interest occurs when interest is earned on ________________________ .

Group of answer choices

principal amounts only

prior period's interest

none of the above

periodic payments

Question 29

Spreadsheets are _____________________________ used to make time value of money calculations.

Group of answer choices

commonly

rarely

not often

never