UGA FINA 3000 FINAL T/F PRACTICE
LATEST UPDATE QUESTIONS AND
ANSWERS 100% LATEST UPDATE.
An apartment lease is typically set up as an annuity due. - ANSWERTrue
If we increase the interest rate, the present value of an investment decreases. -
ANSWERTrue
Preferred stock is considered riskier than debt, but less risky than common stock. -
ANSWERTrue
A dollar today is worth more than a dollar tomorrow. - ANSWERTrue
If a firm increases leverage, we can say that the firm is increasing shareholder risk. -
ANSWERTrue
In our finite stock pricing model, it is a weakness to assume a future selling price. -
ANSWERTrue
The formula to find the selling price of the stock in phase 2 is really a growing annuity
formula. - ANSWERFalse
If a bond is trading at a price above face value, we say the bond is trading at a discount.
- ANSWERFalse
In the event of a bankruptcy, common shareholders have a claim on assets before
debtholders. - ANSWERFalse
The quick ratio is favored for firms that have liquid inventory. - ANSWERFalse
When a project increases the sales of the rest of the firm, we say that the project
creates synergy. - ANSWERTrue
The slope of the security market line is beta. - ANSWERFalse
The beta of a risk-free asset equals zero. - ANSWERTrue
LATEST UPDATE QUESTIONS AND
ANSWERS 100% LATEST UPDATE.
An apartment lease is typically set up as an annuity due. - ANSWERTrue
If we increase the interest rate, the present value of an investment decreases. -
ANSWERTrue
Preferred stock is considered riskier than debt, but less risky than common stock. -
ANSWERTrue
A dollar today is worth more than a dollar tomorrow. - ANSWERTrue
If a firm increases leverage, we can say that the firm is increasing shareholder risk. -
ANSWERTrue
In our finite stock pricing model, it is a weakness to assume a future selling price. -
ANSWERTrue
The formula to find the selling price of the stock in phase 2 is really a growing annuity
formula. - ANSWERFalse
If a bond is trading at a price above face value, we say the bond is trading at a discount.
- ANSWERFalse
In the event of a bankruptcy, common shareholders have a claim on assets before
debtholders. - ANSWERFalse
The quick ratio is favored for firms that have liquid inventory. - ANSWERFalse
When a project increases the sales of the rest of the firm, we say that the project
creates synergy. - ANSWERTrue
The slope of the security market line is beta. - ANSWERFalse
The beta of a risk-free asset equals zero. - ANSWERTrue
