Choose correct or incorrect If an analyst compares the net present value of several projects, sf he will know which project: _____ a) will yield the most profit. _____ b) has cash flows that will exceed the initial investment by the greatest amount. a) will yield the most profit. _ c) will recover the initial investment by the hurdle date. Correct e b) has cash flows that will exceed the initial investment by the greatest amount. Choose... : a) will yield a return on investment equal to the hurdle rote. CHOOSE... : Match each market player with a description of higher role ir'. Match each market player with a description of his,' her role. Write the letter of the role next to the title of the market player. Market Plgy Roles ___ _ Investor a) Financial intermediary that buys and sells securities ____ Issuer b] Entity with more money than it needs ____ Broker c) Entity in need of money __ Dealer cl) Financial intermediary that facilitates the buying and selling of securities Select two basic market characteristics that influence the level of interest rates. a) Investors' expected rate of return b) Fees charged by brokers and dealers c) Government intervention and regulation d) Preference of potential investors for consumption versus savings e) Efficiency of the capital allocation price system Select one or more: Ja. investors' expected rate of return b. preference of potential investors for consumption versus savings O c. fees charged by brokers and dealers D d. government intervention and regulation De. efficiency of the capital allocation price system Match each of the valuation methodologies in Column A with Its definition in Column B. Column B -__ _Dividend value a) Amount Investors are paying for each dollar of income generated by the firm _ Market / book ratio b) Amount left for shareholders after assets are sold and creditors are paid () Amount investors are paying relative to value of the company cocording to accounting methods _ Liquidation value a) value of equity based on value of perpetuity Liquidation value Choose. Market, book ratio Choose-.. Price earnings ratio Choose Dividend value Choose. Choose correct or incorrect An investor who one-year bond is interested in the number of compounding periods in the your because: d) the more frequently the nominal interest rate is compounded the greater wil be the effective interest rate. Choose. : b) the present value of the bond equals the face value plus the compounded quoted interest rate. Choose: # cl the nominal fate is a floating rate that may change from period to parioct Choose. : o) if the effect we interest rate is compounded more frequently than on an annual bass, the nominal interest rate will exceed the quoted interest rate Choose