A benefit of a callable bond is the issuer can call the bonds at the call price and
refinance with a new bond issued at the lower rate of interest.
A benefit of a callable bond is the: - Answer-issuer may replace it with a bond that has a
lower coupon rate
/.A bond will sell at a premium when its coupon interest rate - Answer-exceeds the
market interest rate on similar bonds
/.A director who is not an employee of the firm is called - Answer-an independent
director
/.A financial system's primary concern is funneling money from - Answer-lender-savers
to borrower-spenders
/.According to the realization principle, revenue from a sale of a firm's products are
recognized? - Answer-at the time of the sale whether or not cash is actually received
/.Albend Holmes wants to deposit $4,500 in a bank account that pays 8.25 percent
annually. How many years will it take for his investment to grow to $10,000? (Round off
to the nearest year.) - Answer-10 years
/.All else being equal, which of the following will decrease a firm's current ratio? -
Answer-An increase in accounts payable
/.Assume that you are considering the purchase of a stock which will pay dividends of
$4.50 during the next year. Further assume that you will be able to sell the stock for
$85.00 one year from today and that your required rate of return is 15 percent. How
much would you be willing to pay for the stock today? (Round off to the nearest $0.01) -
Answer-$77.83
/.BioSci, Inc., a biotech firm has forecast the following growth rates for the next three
years: 30 percent, 25 percent, and 20 percent. The company then expects to grow at a
constant rate of 7 percent for the next several years. The company paid a dividend of
$2.00 last week. If the required rate of return is 16 percent, what is the market value of
this stock?(Do not round intermediate calculations. Round final answer to two decimal
places.) - Answer-$36.86
/.Bonds sell at a discount when the market rate of interest is - Answer-greater than the
bond's coupon rate
, /.Braniff Ground Services stock has an expected return of 9 percent and a variance of
0.25 percent. What is the coefficient of variation for Braniff? (Round your final answer to
four decimal places.) - Answer-0.5556
/.Briar Corp is issuing a 10-year bond with a coupon rate of 7 percent. The interest rate
for similar bonds is currently 9 percent. Assuming annual payments, what is the present
value of the bond? (Do not round intermediate computations. Round your final answer
to the nearest dollar.) - Answer-$872
/.Celesta Frank wants to go on a cruise in three years. She could earn 8.2 percent
compounded monthly in an account if she were to deposit the money today. She needs
to have $10,000 in three years. How much will she have to deposit today? (Round to
the nearest dollar.) - Answer-$7,826
/.Centennial Brewery produced revenues of $1,145,227 in 2008. It has expenses
(excluding depreciation) of $812,640, depreciation of $131,335, and interest expense of
$81,112. It pays an average tax rate of 34 percent. What is the firm's net income after
taxes? Round your final answer to the nearest dollar. - Answer-$79,292
/.Chandler Sporting Goods produces baseball and football equipment and lines of
clothing. This year the company had cash and marketable securities worth $335,485,
accounts payables worth $1,159,357, inventory of $1,651,599, accounts receivables of
$1,488,121, short-term notes payable worth $313,663, and other current assets of
$121,427. What is the company's net working capital? - Answer-2,123,612
/.Common-size analysis is used in financial analysis to - Answer-compare companies of
different sizes or compare a company with itself over time.
/.Corruption in business - Answer-creates inefficiencies in an economy,inhibits growth in
an economy,slows the rate of economic growth in a country
/.Dreisen Traders has total debt of $1,233,837 and total assets of $2,178,990. What are
the firm's equity multiplier and debt-to-equity ratio? Round your final answers to two
decimal places. - Answer-2.31; 1.31
/.DuPont analysis involves breaking return-on-assets ratios into their - Answer-profit
margin and turnover components
/.During an economic expansion, we would expect? - Answer-interest rates to increase
/.Finor Traps manufactures an innovative mouse trap. Total sales for the current year
are $325,000. The company expects its sales to go up to $500,000 in five years. What
is the expected growth rate in sales for this firm? (Round to the nearest percent.) -
Answer-9%
refinance with a new bond issued at the lower rate of interest.
A benefit of a callable bond is the: - Answer-issuer may replace it with a bond that has a
lower coupon rate
/.A bond will sell at a premium when its coupon interest rate - Answer-exceeds the
market interest rate on similar bonds
/.A director who is not an employee of the firm is called - Answer-an independent
director
/.A financial system's primary concern is funneling money from - Answer-lender-savers
to borrower-spenders
/.According to the realization principle, revenue from a sale of a firm's products are
recognized? - Answer-at the time of the sale whether or not cash is actually received
/.Albend Holmes wants to deposit $4,500 in a bank account that pays 8.25 percent
annually. How many years will it take for his investment to grow to $10,000? (Round off
to the nearest year.) - Answer-10 years
/.All else being equal, which of the following will decrease a firm's current ratio? -
Answer-An increase in accounts payable
/.Assume that you are considering the purchase of a stock which will pay dividends of
$4.50 during the next year. Further assume that you will be able to sell the stock for
$85.00 one year from today and that your required rate of return is 15 percent. How
much would you be willing to pay for the stock today? (Round off to the nearest $0.01) -
Answer-$77.83
/.BioSci, Inc., a biotech firm has forecast the following growth rates for the next three
years: 30 percent, 25 percent, and 20 percent. The company then expects to grow at a
constant rate of 7 percent for the next several years. The company paid a dividend of
$2.00 last week. If the required rate of return is 16 percent, what is the market value of
this stock?(Do not round intermediate calculations. Round final answer to two decimal
places.) - Answer-$36.86
/.Bonds sell at a discount when the market rate of interest is - Answer-greater than the
bond's coupon rate
, /.Braniff Ground Services stock has an expected return of 9 percent and a variance of
0.25 percent. What is the coefficient of variation for Braniff? (Round your final answer to
four decimal places.) - Answer-0.5556
/.Briar Corp is issuing a 10-year bond with a coupon rate of 7 percent. The interest rate
for similar bonds is currently 9 percent. Assuming annual payments, what is the present
value of the bond? (Do not round intermediate computations. Round your final answer
to the nearest dollar.) - Answer-$872
/.Celesta Frank wants to go on a cruise in three years. She could earn 8.2 percent
compounded monthly in an account if she were to deposit the money today. She needs
to have $10,000 in three years. How much will she have to deposit today? (Round to
the nearest dollar.) - Answer-$7,826
/.Centennial Brewery produced revenues of $1,145,227 in 2008. It has expenses
(excluding depreciation) of $812,640, depreciation of $131,335, and interest expense of
$81,112. It pays an average tax rate of 34 percent. What is the firm's net income after
taxes? Round your final answer to the nearest dollar. - Answer-$79,292
/.Chandler Sporting Goods produces baseball and football equipment and lines of
clothing. This year the company had cash and marketable securities worth $335,485,
accounts payables worth $1,159,357, inventory of $1,651,599, accounts receivables of
$1,488,121, short-term notes payable worth $313,663, and other current assets of
$121,427. What is the company's net working capital? - Answer-2,123,612
/.Common-size analysis is used in financial analysis to - Answer-compare companies of
different sizes or compare a company with itself over time.
/.Corruption in business - Answer-creates inefficiencies in an economy,inhibits growth in
an economy,slows the rate of economic growth in a country
/.Dreisen Traders has total debt of $1,233,837 and total assets of $2,178,990. What are
the firm's equity multiplier and debt-to-equity ratio? Round your final answers to two
decimal places. - Answer-2.31; 1.31
/.DuPont analysis involves breaking return-on-assets ratios into their - Answer-profit
margin and turnover components
/.During an economic expansion, we would expect? - Answer-interest rates to increase
/.Finor Traps manufactures an innovative mouse trap. Total sales for the current year
are $325,000. The company expects its sales to go up to $500,000 in five years. What
is the expected growth rate in sales for this firm? (Round to the nearest percent.) -
Answer-9%
