Why did I get the questions with zero score wrong?

1 The- is a weighted average of the cost of funds which reflects the interrelationship of financing decisions. sunk cost risk-free rate cost of capital internal rate of return Question Points: 3.75 / 3.75 2 Although a firm's existing mix of financing sources may reflect its target capital structure, it is ultimately the internal rate of return that is relevant for evaluating the firm's future investment opportunities the risk-free rate of return that is relevant for evaluating the firm's future investment opportunities the risk-free rate of return that is relevant for evaluating the firm's future financing opportunities the marginal cost of capital that is relevant for evaluating the firm's future investment opportunities Question Points: 0.0 / 3.75 3 If an investor prefers investments with greater risk even if they have lower expected returns, then he is following a strategy. risk-neutral risk-indifferent risk-averse risk-seeking Question Points: 3.75 / 3.75 An investment advisor has recommended a $50,000 portfolio containing assets R, J, and K; $25,000 will be invested in asset R, with an expected annual return of 12 percent; $10,000 will be invested in asset J, with an expected annual return of 18 percent; and $15,000 will be invested in asset K, with an expected annual return of 8 percent. The expected annual return of this portfolio is 10.00% 12.67% 12.00% 11.78% Question Points: 3.75 / 3.75 The minimum return that must be earned on a project in order to leave the firm's value unchanged is_ the internal rate of return the interest rate the cost of capital the compound rate Question Points: 3.75 / 3.75 8 A firm is evaluating a proposal which has an initial investment of $50,000 and has cash flows of $15,000 per year for five years. The payback period of the project is 3.3 years 4 years I 1.5 years 2 years Question Points: 3.75 / 3.75 9 A firm can accept a project with a net present value of zero because w the project would maintain the wealth of the firm's owners the project would enhance the wealth of the firm's owners the project would maintain the earnings of the firm the project would enhance the earnings of the firm Question Points: 3.75 / 3.75 10 Which capital budgeting method is most useful for evaluating a project that has an initial after-tax cost of $5,000,000 and is expected to provide after-tax operating cash flows of $1,800,000 in year 1, ($2,900,000) in year 2, $2,700,000 in year 3, and $2,300,000 in year 4? internal rate of return payback net present value accounting rate of return Question Points: 3.75 / 3.75 11 Commercial paper is issued in multiples of - 0 0 $10,000 or more $100,000 or more $1,000,000 or more $1,000 or more 0 Question Points: 0.0 / 3.75 14 Delaying the payment of accounts payable in order to improve cash management is known as I lockbox system stretching payables credit scoring ACH transfers Question Points: 3.75 / 3.75 15 A corporation has $5,000,000 of 8 percent preferred stock outstanding and a 21 percent tax rate. The after-tax cost of the preferred stock is $666,667 $506,329 $400,000 $1,904,762 Question Points: 0.0 / 3.75 16 if a firm's variable costs per unit increase the firm's financial breakeven point will decrease fixed costs per unit will increase sale price per unit will decrease operating breakeven point will increase Question Points: 3.75 / 3.75 23 Which of the following is a source of long-term funds? factoring money market instruments commercial paper retained earnings Question Points: 3.75 / 3.75 24 A firm has a cash conversion cycle of 80 days, an average collection period of 25 days, and an average age of inventory of 70 days. Its operating cycle is -days. 105 60 130 95 Question Points: 3.75 / 3.75 25 A firm's financing requirements can be separated into I current assets and fixed assets current liabilities and long-term debt seasonal and permanent I current liabilities and short-term funds Question Points: 3.75 / 3.75 1 The- is a weighted average of the cost of funds which reflects the interrelationship of financing decisions. sunk cost risk-free rate cost of capital internal rate of return Question Points: 3.75 / 3.75 2 Although a firm's existing mix of financing sources may reflect its target capital structure, it is ultimately the internal rate of return that is relevant for evaluating the firm's future investment opportunities the risk-free rate of return that is relevant for evaluating the firm's future investment opportunities the risk-free rate of return that is relevant for evaluating the firm's future financing opportunities the marginal cost of capital that is relevant for evaluating the firm's future investment opportunities Question Points: 0.0 / 3.75 3 If an investor prefers investments with greater risk even if they have lower expected returns, then he is following a strategy. risk-neutral risk-indifferent risk-averse risk-seeking Question Points: 3.75 / 3.75 An investment advisor has recommended a $50,000 portfolio containing assets R, J, and K; $25,000 will be invested in asset R, with an expected annual return of 12 percent; $10,000 will be invested in asset J, with an expected annual return of 18 percent; and $15,000 will be invested in asset K, with an expected annual return of 8 percent. The expected annual return of this portfolio is 10.00% 12.67% 12.00% 11.78% Question Points: 3.75 / 3.75 The minimum return that must be earned on a project in order to leave the firm's value unchanged is_ the internal rate of return the interest rate the cost of capital the compound rate Question Points: 3.75 / 3.75 8 A firm is evaluating a proposal which has an initial investment of $50,000 and has cash flows of $15,000 per year for five years. The payback period of the project is 3.3 years 4 years I 1.5 years 2 years Question Points: 3.75 / 3.75 9 A firm can accept a project with a net present value of zero because w the project would maintain the wealth of the firm's owners the project would enhance the wealth of the firm's owners the project would maintain the earnings of the firm the project would enhance the earnings of the firm Question Points: 3.75 / 3.75 10 Which capital budgeting method is most useful for evaluating a project that has an initial after-tax cost of $5,000,000 and is expected to provide after-tax operating cash flows of $1,800,000 in year 1, ($2,900,000) in year 2, $2,700,000 in year 3, and $2,300,000 in year 4? internal rate of return payback net present value accounting rate of return Question Points: 3.75 / 3.75 11 Commercial paper is issued in multiples of - 0 0 $10,000 or more $100,000 or more $1,000,000 or more $1,000 or more 0 Question Points: 0.0 / 3.75 14 Delaying the payment of accounts payable in order to improve cash management is known as I lockbox system stretching payables credit scoring ACH transfers Question Points: 3.75 / 3.75 15 A corporation has $5,000,000 of 8 percent preferred stock outstanding and a 21 percent tax rate. The after-tax cost of the preferred stock is $666,667 $506,329 $400,000 $1,904,762 Question Points: 0.0 / 3.75 16 if a firm's variable costs per unit increase the firm's financial breakeven point will decrease fixed costs per unit will increase sale price per unit will decrease operating breakeven point will increase Question Points: 3.75 / 3.75 23 Which of the following is a source of long-term funds? factoring money market instruments commercial paper retained earnings Question Points: 3.75 / 3.75 24 A firm has a cash conversion cycle of 80 days, an average collection period of 25 days, and an average age of inventory of 70 days. Its operating cycle is -days. 105 60 130 95 Question Points: 3.75 / 3.75 25 A firm's financing requirements can be separated into I current assets and fixed assets current liabilities and long-term debt seasonal and permanent I current liabilities and short-term funds Question Points: 3.75 / 3.75