UGA FINA 3000 Final T/F Questions and answers

UGA FINA 3000 Final T/F Questions and answers

A non-profit is an example of a firm that does not maximize monetary wealth - answersTrue
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$1,000 in my wallet today is worth more than $1,000 in my wallet on December 1st. - answersTrue
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An investor is considering purchasing shares of Uber stock or Apple stock. We tend to think of Uber as riskier
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than Apple, so an investor would need a smaller expected return to buy Uber Stock. - answersFalse
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Suppose that Zaxby's decides to add more debt to their balance sheet and reduce the amount of equity. We
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would say that Zaxby's has increased their leverage. - answersTrue
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An example of diversification would be only applying to ONE job when you graduate from college. -
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answersFalse
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The cash ratio is a more conservative measure of liquidity than the quick ratio. - answersTrue
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Suppose that you and a few friends decide to lease an apartment at the Mark. The lease calls for 12 equal
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payments of $3,000 per month, with the first payment being made TODAY. From our finance terms, we would
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call this an annuity due. - answersTrue
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The balance of a loan is the future value of all remaining loan payments. - answersFalse
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APR stands for Annual Percentage Ratio. - answersFalse
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The gross profit margin includes the impact of cost of goods, overhead, and administrative costs. -
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answersFalse
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The EAR describes the compounded annual interest rate for an investment. - answersTrue
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If we increase the interest rate, the present value of a perpetuity increases. - answersFalse
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Walmart sued Tesla because the company did not deliver all the promised solar panels to their stores. -
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answersFalse
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Currently, Uber is trading below its IPO offer price. - answersTrue ji ji ji ji ji ji ji ji ji ji




Toys R Us was publicly traded before the private equity buyout. - answersTrue
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In the GE current event, Harry Markopolos is accused of being funded by a hedge fund. The hedge fund is
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"shorting" GE stock which is basically gambling that the price of GE will increase in the near future. -
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answersFalse
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A 1% increase in Apple stock price would have a smaller impact than a 1% increase in Pfizer on the Dow Jones
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Industrial Average. - answersFalse
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