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1. The point in time when ownership of a

compensation-related option or share of stock passes to the manager

refers to....... A. The agency date, B. The compensation

payment date, C. granting, D. Vesting?

2. When prices are falling, valuing inventory using the

LIFO method rather than FIFO gives...A. inventory a higher

value but lowers net income., B. inventory a lower value and also

lowers net income., C. both inventory and net income a higher

value., D. inventory a lower value and net income a higher

value.?

3. Cash flows from financing activities include all but

one of the following: A. not affect the present

value of the future cash flow. B. increase the present value of any

future cash flow. C. decrease the present value of any future cash

flow. D. None of the above?

4. Which one of the following statements is NOT true?

A. The realized yield is the return earned on a bond given the cash flows actually received by the investor. B. The realized yield is equal to the yield to maturity even if the bond is sold prior to maturity.

C. It is the interest rate at which the present value of the actual cash flows generated by the investment equals the bonds price at the time of sale of the bond. D. All of the above

5. Bond price: Your friend recommends that you invest in a three-year bond issued by Trimer, Inc., that will pay annual coupons of 10 percent. Similar investments today will yield 6 percent. How much should you pay for the bond? (Round to the nearest dollar.)

A. $1,024 B. $979 C. $886 D. $1, 107