A fixed asset by definition:

Select one:

a.Has a relatively long life

b.Converts to cash within one year

c.Has a life of one year or more and is a tangible asset

d.Includes both highly liquid assets and intangible assets

e.Is equal to total assets minus net working capital

Today is your twenty-first birthday and you just decided to start saving money so you can retire early. Thus, you are going to save $500 a month starting one month from now. You plan to retire as soon as you can accumulate $1 million. If you can earn an average of 8% on your savings, how old will you be when you retire?

Select one:

a.63.87 years old

b.64.71 years old

c.54.39 years old

d.33.39 years old

e.42.87 years old

VBC Ltd has just paid a $3.25 dividend today. If you expect VBC's dividend to grow by 6.5% per year forever and VBC's cost of equity is 12.5%, then the value of a share of VBC is closest to:

Select one:

a.$54.17

b.$50

c.$26

d.$57.69

e.$58.32

The amount of debt and equity used by a firm to finance its operations is called the firm's:

Select one:

a.Financial position.

b.Working capital ratio.

c.Capital structure.

d.Cash position.

e.Debt ratio.\

The most important function of a financial market is:

Select one:

a.To provide a market for shares.

b.To secure profits for brokers and agents.

c.To provide information about shares.

d.To facilitate the flow of funds between lenders and borrowers.

e.To provide information about an issuing company's financial situation.

Which of the following is NOT an operating expense?

Select one:

a.Interest expense

b.Tax liability

c.Depreciation and amortisation

d.Cost of goods sold

e.General, and administrative expenses

Marble Books Inc. is expected to pay an annual dividend of $1.80 per share next year. The required return is 16% and the constant growth rate is 4 per cent. What is the expected value of this stock five years from now?

Select one:

a.$15.00

b.$15.60

c.$16.80

d.$18.25

e.$18.98