The purchase of a machine financed by the issuance of stock.

	a.	Increases assets and increases owner's equity.
	b.	Increases assets and increases liabilities.
	c.	Increases liabilities and increases owner's equity.
	d.	Increases accounts receivable and lowers accounts payable.

You are a financial manager at a company and you would like to increase the profit margin (NI/Sales) of your business. Which of the following would NOT improve the profit margin?

	a.	Increasing sales while holding costs constant.
	b.	Reducing costs while holding sales constant.
	c.	raising costs such selling and administrative costs while holding sales constant.
	d.	The government lowers corporate tax rates across the board

You are planning to put $1,000 in the bank today and leave it there for 1 year. If you can earn 5% interest on your savings, what will you have at the end of 1 year?

	a.	$1,000
	b.	$1,050
	c.	$1,346
	d.	$1,005

The bond investor's required rate of return is:

	a.	the yield to maturity.
	b.	the current (cash) yield
	c.	always greater than the coupon rate
	d.	always less than the coupon rate