1. Which of the following is correct about the variables in the Fisher equation? (1 mark)...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Which of the following is correct about the variables in the Fisher equation? (1 mark) A. The real interest rate measures the percentage change in purchasing power. B. The nominal interest rate measures the percentage change in the prices for goods and services. C. There is always a positive relationship between the inflation rate and the real interest rate. D. The real interest rate in the Fisher equation is the same as the effective interest rate used to find the future value of cash flows. 2. Which of the following is NOT a method for venture capitalists to reduce the risk of investments? (1 mark) A. Stage funding B. Syndication C. Requiring higher returns on their investments D. Requesting the entrepreneur make a personal investment 3. Which of the following is the best example of a systematic risk in Australia? (1 mark) A. Residential property prices keep moving up. B. The government sets travel restrictions during the COVID-19 pandemic. C. RBA plans to raise the interest rate after reviewing the inflation rate. D. Renewable energy replaces fossil fuel. 4. Which of the following statements is NOT correct for public companies? (1 mark) A. SEO (Seasoned Equity Offerings) take place in the secondary market. B. Going public refers to a company's IPO (Initial public offering). C. An advantage of going public is to get greater access to funds in the capital market. D. A disadvantage of going public is management's short-term focus on profit. 5. Which of the following is NOT a main difference between preference shares and ordinary shares? (1 mark) A. Whether or not the shareholder has voting rights. B. Whether or not the shareholder is guaranteed a fixed dividend income. C. Whether or not the shareholder has residual claim on assets in the case of liquidation. D. Whether or not the shareholder has limited liability in the case of liquidation. 1. Which of the following is correct about the variables in the Fisher equation? (1 mark) A. The real interest rate measures the percentage change in purchasing power. B. The nominal interest rate measures the percentage change in the prices for goods and services. C. There is always a positive relationship between the inflation rate and the real interest rate. D. The real interest rate in the Fisher equation is the same as the effective interest rate used to find the future value of cash flows. 2. Which of the following is NOT a method for venture capitalists to reduce the risk of investments? (1 mark) A. Stage funding B. Syndication C. Requiring higher returns on their investments D. Requesting the entrepreneur make a personal investment 3. Which of the following is the best example of a systematic risk in Australia? (1 mark) A. Residential property prices keep moving up. B. The government sets travel restrictions during the COVID-19 pandemic. C. RBA plans to raise the interest rate after reviewing the inflation rate. D. Renewable energy replaces fossil fuel. 4. Which of the following statements is NOT correct for public companies? (1 mark) A. SEO (Seasoned Equity Offerings) take place in the secondary market. B. Going public refers to a company's IPO (Initial public offering). C. An advantage of going public is to get greater access to funds in the capital market. D. A disadvantage of going public is management's short-term focus on profit. 5. Which of the following is NOT a main difference between preference shares and ordinary shares? (1 mark) A. Whether or not the shareholder has voting rights. B. Whether or not the shareholder is guaranteed a fixed dividend income. C. Whether or not the shareholder has residual claim on assets in the case of liquidation. D. Whether or not the shareholder has limited liability in the case of liquidation.
Expert Answer:
Answer rating: 100% (QA)
1 A the real interest rate measures the percentage change in purchasing power Explanation Th... View the full answer
Related Book For
Financial and managerial accounting
ISBN: 978-1118016114
1st edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
A manager of a store that sells and installs spas wants to prepare a forecast for January, February, and March of next year. Her forecasts are a combination of trend and seasonality. She uses the...
-
Suppose you own a number of wine shops selling mid-level as well as expensive bottled wine. You have been experiencing significant losses from theft at your stores. You suspect that it is a...
-
Suppose you own a small company that manufactures baseball equipment. You are aware that Russia is a large market, and you are considering exporting your products there. However, you know you need to...
-
Linking every transport stakeholder together and ensuring seamless travel across Europe is a dream. With this objective, Amadeus, a leading global travel technology player, initiated a novel idea of...
-
Using the library or Internet sources, write an update on the status of FDA legislation surrounding RFID packaging on drugs. Are there any privacy concerns?
-
The Centennial Chemical Corp. announced that, for the period ending March 31, 2013, it had earned income after taxes worth $2,768,028.25 on revenues of $13,144,680. The company's costs (excluding...
-
In performing analytical procedures in the expenditure/disbursement cycle, an auditor detects that payables divided by current liabilities appears low in comparison with prior years. Which of the...
-
The County of Maxnell decides to create a sanitation department and offer its services to the public for a fee. As a result, county officials plan to account for this activity within the enterprise...
-
Sue receives a yearly salary of $32000 She is paid bi-weekly and her regular workweek is 37.5 hours. What is the hourly rate of pay?
-
Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information...
-
A 3-phase, 2-pole, 60 Hz, induction motor operates at 3546 rpm while delivering 20 kW to a load. Neglect all losses. Determine (a) The slip of the motor.
-
8 areas that make up the revenue cycle of a health service provider (in this case, hospitals). 2. What is the Office of the Inspector General? What is its importance for the revenue cycle of a health...
-
Elon Musk decided to take over Twitter. Twitter has 50 million stocks outstanding with a current price of $40 per share. On 1/07/2022 Musk offered $48 per share conditioned on buying at least 50% of...
-
= 2. (a): XYZ Inc. just paid out a dividend (Do) of $4.50. The firm anticipates that its annual dividends will grow at g 15% a year over the next 5 years. From t=5 onwards, the management expects...
-
During 2021, Albert redeems Series EE savings bonds for $6,000 - - consisting of $2,000 interest and $4,000 principal. Albert has net qualifying education expenses of $5,000 in 2021. Albert, a single...
-
Sing Ltd is investing $600 million in a new manufacturing facility which will increase their capacity by 75%. The resultant present value of future net cash flows is estimated to be $850 million....
-
identify a historical figure or fictional figure that you associate with authenticity. You will describe who they were before they discovered and affirmed their personal talents and creativity. You...
-
Experiment: Tossing four coins Event: Getting three heads Identify the sample space of the probability experiment and determine the number of outcomes in the event. Draw a tree diagram when...
-
Ogleby Industries has sales in 2013 of $5,600,000 (800,000 units) and gross profit of $1,344,000. Management is considering two alternative budget plans to increase its gross profit in 2014. Plan A...
-
Harris Furniture Company manufactures living room furniture through two departments: Framing and Upholstering. Materials are entered at the beginning of each process. For May, the following cost data...
-
Ortiz Companys manufacturing overhead budget shows total variable costs of $198,000 and total fixed costs of $162,000. Total production in units is expected to be 150,000. It takes 20 minutes to make...
-
Stephen Wernet has claimed that resources are the crucial link between operation and survival and that organizations change only when they experience a significant shift in resources. Do you agree or...
-
If you could interview any historical figure who contributed to the development of the U.S. nonprofit sector, who would you choose, and why? What three questions would you most like to ask this...
-
A social agency based in a midwestern city that provides mental health services has an annual budget of $80 million, funded almost exclusively by government contracts. Is an organization of this...
Study smarter with the SolutionInn App