SIX:

Earl Jason is saving for a pair of jet skis. How much money must Earl put aside now to receive $14,000 six years from now if the money is compounding at an 8% annual compound rate?

a.$8847

b.$8800

c.$8822

d.$8810

e.None of the above

Which of the following is not a qualitative factor?

a.Product users

b.Industry maturity

c.Sales growth

d.Barriers to entry

e.None of the above

A bond which is valued at par has a yield to maturity which is _____to its coupon rate

a.Equal to

b.Greater than

c.Less than

d.None of the above

Which of the following ratios is not a liquidity ratio?

a.ROE

b.Current

c.Quick

d.Receivables turnover

e.None of the above

The bonds yield to maturity calculation is similar to a ______ calculation

a.NPV

b.IRR

c.Payback

d.Discounted payback

e.None of the above

Most bonds pay interest

a.Monthly

b.Quarterly

c.Semiannually

d.Annually

e.None of the above

The DuPont formula combines three ratios to yield

a.Debt to equity

b.ROA

c.ROE

d.Debt to assets

e.None of the above