Which of the following is NOT a function of financial markets? Multiple Choice Provide information Transport Cash across time Mitigate agency problem O Risk transfer and diversification Which of the following is NOT correct? Multiple Choice Cash flows occuring in different periods should not be compared unless the flows have been discounted to a common date. The arguement that 900 dollars today worth more than 900 dollars one year from now is correct only when interest rate is positive. O Other things being equal, the more frequent the compouding period, the higher the EAR. O Other things being equal, the more frequent the compouding period, the higher the APR. Assume BDS acquired its main supplier, ABC. As a result of the acquisition, BDS finds that its operating profit margin increased but its ROA remained constant. A decrease in which one of these ratios is most apt to be the reason why the ROA did not increase with the increase in the operating profit margin? Multiple Choice Asset turnover Leverage ratio Market-to-book ratio Debt burden If the EAR of interest is known to be 18% on a debt that has semi-annually payments, what is the annual percentage rate? Multiple Choice 17.82% O 18.98% O 17% 17.26% O