QUESTION 26 Say you owe $10,000 on your credit card with a 1% monthly interest rate. Further, say you make $90 monthly payments. Assuming you make no further purchases, you will pay off your credit card balance in: 33.12 months 33.67 months 33.99 months you will never pay off your balance. It will grow every month. QUESTION 27 If the agency problem (costs) become too large, then it is increasingly likely that: nothing will happen. the company is acquired and the management replaced. the company's bond values will increase. the company's foreign exchange risk will increase QUESTION 28 You bought a stock 10 years ago for $55 per share. Today it is worth $200 per share. What was your annual rate of return from investing in this stock? 5.79% 13.78% 62.81% 150.88% QUESTION 29 The present value of a cash flow is $400, and its future value is $1000. The interest rate per period is 8%. How many periods did it take for the present value become the future value? 4.5278 5.3341 7.1102 11.9059 QUESTION 30 A financial plan is accompanied with forecast financial statements (balance sheet, income statement, statement of cash flows). These forecast financial statements are called: bona fide statements pro forma statements aurea mediocritas statements sans souci statements QUESTION 31 Which of the following financial ratios would you use to measure a firms profitability? Profit Margin Equity Multiplier Time Interest Earned ratio Quick Ratio