1.) Which statement is true?

• A. A stock with a beta of 1.00 has the total risk of the market portfolio.
• B. NOPAT does not include interest expense.
• C. Financial statements reflect economic costs.
• D. Year-over-year decreases in current operating liabilities are sources of cash.
• E. Shareholders have the prior claim to the cash flows of a corporation.v

2.) The market price of a share of common stock often differs from its intrinsic value.

A. True

B. False

3.)

Which statement is false?

• A.

  Ask Bid

• B.

  You buy gas for your car at spot.

• C.

  A company must reinvest all earnings back into the company.

• D.

  Stocks in the S&P 500 are all mid- to large-cap.

• E.

  A high P/E ratio generally indicates that a stock is riskier than if the P/E ratio were low.

4.) Funds available to corporate issuers of bonds come from which market?

• A. capital
• B. equity
• C. federal funds
• D. money
• E. secondary

5.) Which of the following is included in the risk-free rate?

• A. the default premium
• B. the expected inflation premium
• C. the liquidity premium
• D. the maturity premium
• E. All of the above are included in the risk-free rate.

PLEASE HELP ANSWER, THANK YOU!