The financial pages of the local newspaper helped Mary in identifying that she can buy a bond ($1,000 par) for $800. If the coupon rate is 10 percent, the annual interest payments equal $80
a true
b false
Assuming everything else equal, one of the concepts to consider to make sound financial decisions is that _____.
a the riskier assets always have lower market value
b the riskier assets are more valuable than (preferred to) less risky assets
c the sooner cash is received, the more valuable it is
d investors always achieve higher returns from less risky assets
Dwayne invests $4,700 in a savings account at the beginning of each of the next twelve years. If his opportunity cost rate is 7 percent compounded annually, how much will his investment be worth after the last annuity payment is made?
a $89,817.00
b $95,157.85
c $91,250.52
d $87,542.29
When the payment for an annuity is made at the end of each period, such an annuity is referred to as a(n) _____.
a ordinary annuity
b deferred annuity
c discounted annuity
d annuity due
The balance sheet is a financial statement measuring the flow of funds into and out of various accounts over time while the income statement measures the progress of the firm at a point in time.
true
false
Which of the following mathematical expressions computes earnings per share?
a Earnings per share = Net Income ÷ Number of outstanding shares of common stock
b Earnings per share = (Net Income + Dividend Paid) ÷ Number of outstanding shares of common stock
c Earnings per share = Net Income à Number of outstanding shares of common stock
Primary markets are markets _____.
a where loans are traded
b where financial assets that have previously been issued by various organizations are traded among investors
c in which various organizations raise funds by issuing new securities
d where the instruments traded have original maturities equal to one year or less
