Question 6

1. 2 - 2: Cash flow from assets is also known as the firm's ______________.

   	A.	capital structure
   	B.	equity structure
   	C.	hidden cash flow
   	D.	free cash flow
   	E.	historical cash flow

Question 7

1. 2 - 3: Which of the following asset account items is generally considered the least liquid?

   	A.	Inventory
   	B.	Net fixed assets
   	C.	Short-term investments
   	D.	Patents and trademarks
   	E.	Accounts receivable

Question 8

1. 2 - 4: Financial leverage refers to:

   A.

   The amount of debt used in a firm's capital structure.

   B.

   The ratio of retained earnings to shareholders' equity.

   C.

   The ratio of paid-in surplus to shareholders' equity.

   D.

   The ratio of cost-of-goods-sold to total sales.

   E.

   The amount of receivables present in the firm's asset structure.

Question 9

1. 3- 1: You just won the lottery. You and your heirs will receive $40,000 per year forever, beginning one year from now. What is the present value of your winnings at an 10% discount rate?

   	A.	$ 44,000
   	B.	$300,000
   	C.	$387,500
   	D.	$400,000
   	E.	$437,500

Question 10

1. 3 - 2: A "Name That Tune" contest has a grand prize of $500,000. However, the contest stipulates that the winner will receive just $200,000 immediately, and $30,000 at the end of each of the next 10 years. Assuming that one can earn 8% on their money, how much has the contest winner actually won?

   	A.	$250,000.00
   	B.	$309,225.11
   	C.	$365,826.00
   	D.	$401,302.44
   	E.	$500,000.00