What is your monthly mortgage payment on a loan for ...



1) What is your monthly mortgage payment on a loan for $150,000, at 6% for 20 years? (Points : 2) ??????$899.33??????$1,265.79??????$1,074.65??????$1,089.912) The retained earnings of the firm belongs to (Points : 2) ??????creditors.??????preferred stockholders.??????common stockholders.??????bondholders.3) Assuming a tax rate of 50%, the after-tax cost of a $200,000 dividend payment is (Re-read the question as this is not as simple as it first may appear.....) (Points : 2) ??????$200,000??????$100,000??????$-100,000??????none of the above.The after-tax cost is the same as the before-tax cost for dividends4) The major limitation of financial statements is (Points : 2) ??????in their complexity.??????in their lack of comparability.??????in their use of historical cost accounting.??????in their lack of detail.5) When can the reported?book value of a specific asset exceed the market value of that asset? (Points : 1) ??????When MARCs is used??????never??????Using any/every type of accelerated depreciation methods??????Always and at any time such an event happens (trick question)??????With approval from third party auditors (public accountants) only.6) In issuing stock, the term "spread" refers to (Points : 1) ??????the profit the managing investment banker gets for an issue of stock.??????the disparity between the initial asking price and the average price for the stock issued some months later.??????the difference between what the corporation gets for new issues of stock and what the public pays for the stock.??????the total cost to the corporation for issuing new stock.7) Which of the following techniques allows explicit consideration of more than one possible outcome? (Points : 1) ??????Operating leverage??????Present value??????Least-squares regression??????Expected value8) As the interest rate increases, the present value of an amount to be received at the end of a fixed period (Points : 1) ??????increases.??????decreases.??????remains the same.??????Not enough information to tell.9) LIBOR is (Points : 1) ??????a resource used in production.??????an interest rate paid on Eurodollar deposits in the London market.??????an interest rate paid by European firms when they borrow Eurodollar deposits from U.S. banks.??????the interest rate paid by the British government on its long-term bonds.10) All of the following are advantages of going public except (Points : 1) ??????more funds are available to publicly traded firms??????the fact a company is public helps in bank negotiations and marketing.??????publicly-traded stocks afford the stockholders more liquidity.??????the firm disseminates more information to the public on corporate affairs.11) Assuming a tax rate of 45%, the after-tax cost of interest expense of $200,000 is (Points : 1) ??????$110,000??????$140,000??????$200,000??????$90,00012) The pre-tax cost of debt for a new issue of debt is determined by (Points : 1) ??????the investor's required rate of return on issued stock.??????the coupon rate of existing debt.??????the yield to maturity of outstanding bonds.??????all of the above.13) At age 5, how much would you have to save per month to have $1 million in your account at age 65, if your investment rate was 10% per year? Assume no taxes and compounding on a monthly basis. (Points : 1) ??????$213.30??????$21.23??????$274.60??????can't be done with these assumptions.14) As mergers, acquisitions, and restructuring have increased in importance in the 1980s, agency theory has become more important in assessing whether (Points : 1) ??????a stock repurchase should be undertaken.??????shareholder goals are truly being achieved by managers in the long run.??????managers are actually agents or only employees of the firm.??????managers and owners are actually the same people with the same interests.15) Depreciation tends to (Points : 1) ??????increase cash flow and decrease income??????decrease cash flow and increase income??????affect only cash flow??????affect only income16) The term structure of interest rates, more specifically, the US Treasury Yield Curve, (Points : 1) ??????changes daily to reflect current competitive conditions in the money and capital markets.??????plots returns for all securities of different risk.??????shows the relative interest spread between bonds with different risk ratings such as AAA, AA, A, BBB, etc.??????depicts interest rates for T-bills over the last year.17) The cost of capital for common stock is ke=(D1/Po)+g. What are the assumptions of the model? (Points : 1) ??????Growth (g) is constant to infinity.??????The price earnings ratio stays the same.??????The firm must pay a dividend to use this model.??????All of the above are assumptions of the model.18) The belief that investors require a higher return to entice them into holding long-term securities is the viewpoint of the (Points : 1) ??????the expectations hypothesis.??????segmentation theory.??????the liquidity premium theory.??????market credit crunch theory.19) The purpose of secondary trading is to (Points : 1) ??????provide liquidity and competition between investments.??????provide a place for securities not successful?in issuing in the?primary market.??????provide jobs for brokers and dealers.??????provide lower commissions than on the organized exchanges.20) The payback method has several disadvantages, among them: (Points : 1) ??????payback fails to choose the optimum or most economic solution to a capital budgeting problem.??????payback ignores cash inflows after the payback period.??????a and b.??????none of the above.21) If you only had an extra $225 per month, what is the largest car payment you could pay if "i" = 8% per year and you had 5 years to pay? (Points : 1) ??????$13,495.00??????$13,500.00??????$10,780.00??????$11,090.00 ................
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