Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods? O a Ordinary annuity ab Annuity Due oc None of the above Od Perpetuity Clear my choice USIVE RITA Time left 0:0 Suppose Maxxes Corporation is dealing in the Automobile industry. Based on projected costs and sales, it expects that the cash flo over the 3-year life of the project will be GHC5,000,000 in the first year, GHC7,000,000 in the next year, and GHC8,000,000 in the la year. If the project's costs are GHC15,000,000. The payback period for this investment would be? 1.5 years Ob 2.9 years OG 2.0 years d. 24 years Clear my choice Next Decisions about "how to raise money" and "what to do with it" are part of which of the following O a Cost accounting O b. Change management Oc. All of the answer given below od Business Finance Clear choice In how many years, an amount will be doubled at a discount rate of 8 percent? a 9 years ob Cannot be determined without more information . 3 years Od 6 years Clear my choice Which of the following investment rules does not use the time value of the money concept? a. The payback period Ob All of the above use the time value concept OC Net present value Od Internal rate of return Clear my choice Tir The agency costs of ABC Brewery Company Limited will include: Costs incurred resulting in conflicts of interest between the shareholders and the managers of a corporation ob. Both A and B Costs of monitoring the managers' actions C. Od. None of the above Clear my choice Which of the following firms will pay the highest retums based on their respective standard deviations: Standard deviations: Bank A 20% Bank B 25% Bank C 12.5% Bank D 18% . a, Bank B Ob. Bank A Oc Bank O d. Bank D Clear my choice Retained earnings refer to 02. The difference between the market price of the stock and the book value ob The amount of directly contributed equity capital in excess of par value @ The difference between the net income earned and the dividenos paid during a year Od The amount of cash that the firm has saved up Clear my choice Time left 0:01:18 ed of The present value of GHC115,000 expected to be received by Thomas, one year from today at an interest rate (discount rate) of 10% per year is: O GHC 100,500 b. GHC121.000 C GHC 110,000 O d. GHC 104,545 Clear my choice s page Next page What is the net present value of the following cash flow at a discount rate of 15%? t=0 = t=1 = 2 - 120,000 -100,000 300,000 2. GHC 80,000 Ob. None of the above OG GHC 26,300 Od GHC 19,887 Clear my choice The following are advantages of separation of ownership and management of corporations except 3. Facilitate transfer of ownership without affecting the operations of the firm. ob Corporations can exist forever. Hire professional managers Incur agency costs Clear my choice Od You would like to have enough money saved to receive a GHC 100,000 per year perpetuity after retirement so that you and your family can lead a good life. How much would you need to save in your retirement fund to achieve this goal (assume that the perpetuity payments start one year from the date of your retirement. The Interest rate is 10%)? 2. GHC 100,000 Ob None of the above OG GHC 1,000,000 . d. GHC 10,000,000 Clear my choice Suppose the total cost of a college education will be $50,000 in 12 years for a child. The Parents have $5,000 to invest today. What rate of interest must they earn on investment to cover the cost of child's education? O a 21.159 b 129 OC 25.1% O d. 19.29 Clear my choice In Current Ratio, Current Assets are compared with: a Fixed asset Oh. Current Profit OC Equity Share Capital od Current Liabilities Clear my choice If a firm uses cash to purchase inventory, its quick ratio will: O & Decrease ob Remain unaffected . Increase d. Become zero Clear my choice Guinness Ghana Limited's investment decision is also called the: O a Liquidity decision Ob Financing decision @G Capital budgeting decision od Working capital decision Clear my choice Which of the following is an example of liquidity ratios? 02. Tobin's ob. Return on equity Oc Times interest earned (TIE) ad Quick ratio Clear my choice Based on the information below, calculate the return on Allos Inc. States of the economy Probability Allos Int. Returns (R , Orangus Inc Return (RB) Depression 0.25 -20% 5% Recession 0.25 1094 20% Normal 0.25 3096 -129 Boom 0.25 5096 99 a 119 Ob 17.59 OC 25,496 O d. 15.5% Clear my choice