question 3

Your firm seeks to obtain a short-term loan from a local bank. The banker quotes you a rate of 3%. This is an inflation rate.

Select one:

True

False

question 6

The pure play approach:

Select one:

a. Is most useful when each division makes a multitude of different products.

b. Is easier to implement than the subjective approach.

c. Can be used to find the cost of capital for a division.

d. Should be used only if a firm has more than three divisions.

e. Cannot be used if the firm has preferred stock outstanding.

question 8

Generally speaking, financial markets are less efficient than real asset markets.

Select one:

True

False

question 11

The market value of a firms equity is frequently called: