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QUESTION 8 Assume that the interest rate (1) is positive, and that the future valueis greater than the present value. As you increase i, the
QUESTION 8 Assume that the interest rate (1) is positive, and that the future valueis greater than the present value. As you increase i, the number of periods required for your initial investment to become a given future value will: increase decrease QUESTION 9 Assume that the interest rate (i) is positive, and that the future valueis greater than the present value. As you increase the number of periods, the Present Value will: Increase decrease QUESTION 10 Assuming a tax rate of 35%, depreciation expenses of $400,000 will: reduce income by $140,000 reduce taxes by $140,000 reduce taxes by $400,000. QUESTION 11 Du Pont Identity: A firm has a profit margin of 10%, total asset turnover of 2, and a Debt-to-Equity ratio of 40%. What is the fim's Return on Equity? 5% 14% 28% 97% QUESTION 12 Du Pont Identity: A firm has a profit margin of 13%, total asset turnover of 1.2, and ROE of 30%. What is the firm's equity multiplier? 1.0578 1.1758 1.2267 1.9231 QUESTION 13 Financial Leverage refers to: the liquidity of a firm's assets. the use of debt in a firm's capital structure. the amount of agency costs incurred by a firm. how much a firm has contributed to political campaigns
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