Which of the following is a characteristic of an operating lease?

Group of answer choices

The term of the lease is at least 75% of the asset's estimated useful life.

At the end of the lease, the lessee obtains ownership of the asset.

At the end of the lease, the company has the opportunity to purchase the asset at its market value.

The present value off the lease payments equals or exceeds 90% of the original cost of the asset.

Which of the following is a characteristic of an operating lease?

Group of answer choices

The term of the lease is at least 75% of the asset's estimated useful life.

At the end of the lease, the lessee obtains ownership of the asset.

At the end of the lease, the company has the opportunity to purchase the asset at its market value.

The present value off the lease payments equals or exceeds 90% of the original cost of the asset.

A company issues preferred stock that gives the shareholders rights to dividends. If the company does not pay any dividends in a given year, the preferred shareholders cannot claim those unpaid dividends in the future. What type of stock is this?

Group of answer choices

Cumulative preferred stock.

Convertible preferred stock.

Non-cumulative preferred stock.

Participating preferred stock.

What are some of the tasks investment banks undertake when they advise companies?

Group of answer choices

All of these answers.

Negotiate the terms of the acquisition between the acquiring and acquired business.

Prepare the company's pitch book.

Find companies that might be interested in acquiring the business.

Which of the following statements regarding shelf registration is true?

Group of answer choices

Shelf registration is for new issues, must be prepared up to five years in advance.

Shelf registration is available to any business, but are examined rigorously.

Shelf registration allows a company to sell securities without a separate prospectus for each offering.

Once the application is filed, a business does not make any additional filings prior to the sale.

A company is analyzing a variety of potential investments using different capital budgeting methods. Which of the following represents the most profitable choice based on the information provided?

Group of answer choices

The company picks a project with an NPV of $250,000 over one with an NPV of $300,000.

The company picks a project with an accounting rate of return 5% over one with an ARR of 3%.

The company picks a project with a 5 year payback period over one with a 3 year payback period.

The company picks a project with profitability index of 1.25 over a project with a PI of -.25.