Which of the following statements is CORRECT?

a.

If a series of unequal cash flows occurs at regular intervals, such as once a year, then the series is by definition an annuity.

b.

If some cash flows occur at the beginning of the periods while others occur at the ends, then we have what the textbook defines as a variable annuity.

c.

The cash flows for an annuity may vary from period to period, but they must occur at regular intervals, such as once a year or once a month.

d.

The cash flows for an annuity due must all occur at the beginning of the periods.

e.

The cash flows for an ordinary (or deferred) annuity all occur at the beginning of the periods.

Amram Company's current ratio is 2.0. Considered alone, which of the following actions would lower the current ratio?

a.

Borrow using short-term notes payable and use the proceeds to reduce long-term debt.

b.

Use cash to reduce accounts payable.

c.

Borrow using short-term notes payable and use the proceeds to reduce accruals.

d.

Use cash to reduce short-term notes payable

e.

Use cash to reduce accruals.

Which of the following statements is CORRECT?

a.

If a firm increases its sales while holding its inventories constant, then, other things held constant, its fixed assets turnover ratio will decline.

b.

A reduction in the inventory turnover ratio will generally lead to an increase in the ROE.

c.

If a firm increases its sales while holding its inventories constant, then, other things held constant, its inventory turnover ratio will increase.

d.

A reduction in inventories would have no effect on the current ratio.

e.

An increase in inventories would have no effect on the current ratio.

The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to

a.

Maximize its expected EPS

b.

Maximize its expected total corporate income

c.

Maximize the stock price on a specific target date

d.

Maximize the stock price per share over the long run, which is the stock's intrinsic value

e.

Minimize the chances of losses