Homework Answers
True:
Cost of capital is the opportunity cost of the investment that has been given up by the company to invest in the current capital investment. So, it is the minimum acceptable rate of return from the capital investment
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The cost of capital Is the minimum acceptable rate of return for capltal Investment True or...
Question 29 (4 points) The marginal cost of capital is The minimum acceptable rate of return...
Question 29 (4 points) The marginal cost of capital is The minimum acceptable rate of return on new investments of average risk The cost of the next dollar of new financing expected to be raised. The hurdle rate that must be met when the internal rate of return method is used All of the above Previous Page Next Page Page 29 of
True or False (1 point each) mi + w 1. T The key function of financial...
True or False (1 point each) mi + w 1. T The key function of financial markets is facilitating the flow of capital from savers to potentially productive users of savers' capital. 2. T Exchange Traded funds share features of both open end and closed end mutual funds. _ _Income taxes on mutual fund returns are collected from the mutual fund shareholders. Open end mutual funds represent the largest class of professionally managed "pooled investment" vehicles. The 2008 Financial Crisis...
Multiple Choice: Choose the “best” answer. Please Answer all Money center banks rely more heavily on...
Multiple Choice: Choose the “best” answer. Please Answer all Money center banks rely more heavily on wholesale and borrowed funds as sources of liability funding than do community banks. True False Commercial paper is an alternative (competitive product) for large established companies that otherwise would need a business loan from a commercial bank. True False There is only one regulatory agency for commercial banks in the U.S.. True False 4. Customer deposits are classified on a DI's (depository banks) balance...
bould wouk indiviualy Working wish es o sharing your wwes with the cratement is true and...
bould wouk indiviualy Working wish es o sharing your wwes with the cratement is true and ) Buying on eredit is almost always cheaper than p 2) Parents or family members are often the source of the least expensive losns 3) The first step to creating an investment plan is to establih investment gonls. )T 4) Investors less than 35 years old are less likely to invest in mutual funds than any other age group the statement is false 5)...
Multiple choice? Select all that apply? 2. Foreign investment Aa Aa E Which of the following...
Multiple choice?
Select all that apply?
2. Foreign investment Aa Aa E Which of the following is an example of portfolio investment? O A loan made at the market rate of interest from an American banking syndicate to an entrepreneur in a developing country The purchase by an individual German investor of securities in companies based in a developing nation The purchase of a factory in a developing country by a foreign investor An American company allowing a firm in...
1. Safety and soundness regulations include all of the following layers of protection EXCEPT a) the provision of guara...
1. Safety and soundness regulations include all of the following layers of protection EXCEPT a) the provision of guarantee funds. b) requirements encouraging diversification of assets. c) the creation of money for those FIs in financial trouble. d) requiring minimum levels of capital. e) monitoring and surveillance. 2. Which of the following would be a key area of activity for an investment bank specializing in the commercial side of the business? a) Purchase of existing securities. b) Sale of securities...
Ending liabilities are 69,250, beginning equity was $88,500, common stock issued during year totaled $32,500, expenses...
Ending liabilities are 69,250, beginning equity was $88,500, common stock issued during year totaled $32,500, expenses for the year were $23,500, dividends declared totaled $14,500, ending equity for the year is $184,700, and beginning assets for the year were $225,100. What was beginning liabilities for the year? Multiple Choice $217,200 $155,850 $136,600 $157750 $253,950 Return on assets is: Computed by multiplying net income by average total assets. Computed by dividing net income by average total assets. Used in helping evaluate...
The federal reserve conducts fiscal policy to manage inflation and maximize employment true, false How many federal...
The federal reserve conducts fiscal policy to manage inflation and maximize employment true, false How many federal reserve banks are there across the united states 12 The federal reserve has various tools to impact the economy, which one(s) are listed below Raising or lowering the prime lending rates Raising or lowering the discount rate Conducts open market operations Both A and C Both B and C The fed reserve chairman is chosen by the president and is responsible for carrying out...
True/False (T/F) _____1) The primary advantage of equity capital is that it does not have to...
True/False (T/F) _____1) The primary advantage of equity capital is that it does not have to be repaid with interest. _____2) The most common source of equity funds used to start a small business is an SBA loan. _____3) If an entrepreneur is not willing to risk funds in a business venture, other potential investors and lenders are not likely to provide capital either. _____4) Venture capital companies reject 90% of the proposals they receive because they don't meet the...
Mastery Problem: Net Present Value and Internal Rate of Return Part One Companies use capital investment...
Mastery Problem: Net Present Value and Internal Rate of Return Part One Companies use capital investment analysis to evaluate long-term investments. Capital investment evaluation methods that use present values are (1) Net present value method (NPV) and (2) Internal rate of return (IRR) method. Methods That Use Present Values Of the two capital investment evaluation methods, a defining characteristic NPV and IRR is that they consider the time value of money. This means that money tomorrow is worth less than money today....
Question 29 (4 points) The marginal cost of capital is The minimum acceptable rate of return on new investments of average risk The cost of the next dollar of new financing expected to be raised. The hurdle rate that must be met when the internal rate of return method is used All of the above Previous Page Next Page Page 29 of
True or False (1 point each) mi + w 1. T The key function of financial markets is facilitating the flow of capital from savers to potentially productive users of savers' capital. 2. T Exchange Traded funds share features of both open end and closed end mutual funds. _ _Income taxes on mutual fund returns are collected from the mutual fund shareholders. Open end mutual funds represent the largest class of professionally managed "pooled investment" vehicles. The 2008 Financial Crisis...
bould wouk indiviualy Working wish es o sharing your wwes with the cratement is true and ) Buying on eredit is almost always cheaper than p 2) Parents or family members are often the source of the least expensive losns 3) The first step to creating an investment plan is to establih investment gonls. )T 4) Investors less than 35 years old are less likely to invest in mutual funds than any other age group the statement is false 5)...
Multiple choice?
Select all that apply?
2. Foreign investment Aa Aa E Which of the following is an example of portfolio investment? O A loan made at the market rate of interest from an American banking syndicate to an entrepreneur in a developing country The purchase by an individual German investor of securities in companies based in a developing nation The purchase of a factory in a developing country by a foreign investor An American company allowing a firm in...
Ending liabilities are 69,250, beginning equity was $88,500, common stock issued during year totaled $32,500, expenses for the year were $23,500, dividends declared totaled $14,500, ending equity for the year is $184,700, and beginning assets for the year were $225,100. What was beginning liabilities for the year? Multiple Choice $217,200 $155,850 $136,600 $157750 $253,950 Return on assets is: Computed by multiplying net income by average total assets. Computed by dividing net income by average total assets. Used in helping evaluate...
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