question 3 :

A- Which of the following is not included in the computation of operating cash flow?

Multiple Choice

Interest paid

All of these are included

Current taxes

Depreciation

Earnings before interest and taxes

B - _____ refers to the cash flow that results from the firm's ongoing, normal business activities.

Multiple Choice

Cash flow from operating activities

Cash flow to creditors

Cash flow from assets

Net working capital

Capital spending

C - In a limited partnership:

each limited partner's liability is limited to his net worth.

there is no limitation on liability; only a limitation on what the partner can earn.

each limited partner's liability is limited to his annual salary.

each limited partner's liability is limited to the amount he put into the partnership.

None of these.

D - Which form of business structure faces the greatest agency problems?

sole proprietorship

limited partnership

corporation

general partnership

limited liability company

E - The interest rate expressed as if it were compounded once per year is called the _____ rate.

Multiple Choice

stated interest

effective annual

daily interest

periodic interest

compound interest

F - An annuity stream where the payments occur forever is called a(n):

Multiple Choice

amortized cash flow stream.

amortization table.

indemnity.

annuity due.

perpetuity.

G - our grandmother invested one lump sum 17 years ago at 4.25% interest. Today, she gave you the proceeds of that investment which totaled $5,539.92. How much did your grandmother originally invest?

Multiple Choice

$2,768.40

$2,750.00

$2,730.30

$2,700.00

$2,774.90