QUESTION 6

The________ is found by multiplying the firm s cost of capital by its investments.

Cost of funds

NPV

IRR

ROI

QUESTION 7

Unsecured loans have specific assets pledged as collateral.

True

False

QUESTION 8

ROI measures the firm s overall effectiveness in using its assets to generate returns to common stockholders.

True

False

QUESTION 9

A bond with a face value of $1,000 with a 10% coupon rate is typically callable by an amount equal to 1 years interest, at a price of _______, with a call premium of______.

$1,100 - $100

$1,000 - $100

$900 - $200

$1,100 - $0

QUESTION 10

The key items of a Lease Contract are all of these, EXCEPT.

Lease payment amount

Free gas for 1 year

Provision for maintenance

Purchase options