File Edit View History Bookmarks Profiles Tab Window Help Question 16 - FINAL Exam - / X New Tab getproctorio.com/secured#lockdown NAL Exam - April 16, 2025 i Saved What is the annually compounded rate of interest on an account with an APR of 10% and monthly compounding? 16 Multiple Choice 8 01:05:11 10.00% 10.47% () 10.52% O 11.05% Graw APR 16 tv1 2 Which one of the following will increase the present value of an annuity, other things equal? = 01:07:01 | Multiple Choice (eee @ Increasing the interest rate Decreasing the interest rate Decreasing the number of payments oe) CO Decreasing the amount of the payment 33 How much should you pay for a share of stock that offers a constant growth rate of 10 percent, requires a 16 percent rate of return, and is expected to sell for $50 one year from now? 00:58:22 Multiple Choice O $42.00 O $45.00 $45.45 O $47.00 Mc Graw % 01:09:34 Multiple Choice oe coy Converting marketable securities to cash , J Paying accounts payable with cash cod Buying inventory on credit C) Selling inventory at cost Prev 7TOfhoo If market interest rates have increased since a company last borrowed long-term funds, the market value of these already borrowed long-term funds will likely be: 01:14:00 Multiple Choice O greater than their book value. O less than their book value. O equal to their book value. O unknown without knowing the maturity of the debt.@ Question 25-FINALExam-. xX @ New Tab [er \"> getproctorio.com/secured#lockdown FINAL Exam - April 16,2025 @ Save: 3, 5 The expected return on a common stock is composed of: Multiple Choice x 01:01:23 ) dividend yield. ) capital appreciation. &S both dividend yield and capital appreciation. capital appreciation minus the dividend yield. APR 16 O astv32 Assume an investor purchased a fixed-coupon bond at a time when the bond's yield to maturity was 6.9%. Further assume the investor sold the bond prior to maturity and realized a total return of 7.1%. Which of these most likely occurred while the investor owned the bond? 00:58:47 Multiple Choice O The bond's current yield increased above the bond's coupon rate. O The inflation rate increased. O New bonds with similar characteristics have coupon rates of 6.5%. O Market interest rates increased. Mc Graw Hill APR 16 atv AFINAL Exam - April 16, 2025 @ Saved 2 2 This pattern of bond price changes relative to interest rate changes is also called bond convexity. (B eroa42) Multiple Choice asymmetric normal OC a= O es) uniform What will be the monthly payment on a home mortgage of $75,000 at 12% interest compounded monthly, to be amortized over 30 years? IS Multiple Choice t= & 01:05:42 | SY $771.46 $775.90 $1,028.61 $1,034.53 fa If a firm's net income is positive and its noncash expenses are positive, which of the following could account for a negative amount of cash provided by operations? 8 01:11:20 Multiple Choice O Current assets decrease more than current liabilities decrease. O Current assets increase more than current liabilities increase. O Current assets decrease more than current liabilities increase. O A large addition is made to plant and equipment. Mc Graw 30 What is the expected dividend to Be paid in three years if yesterday's dividend was $6.00, dividends are expected to grow at a constant 6 percent annual rate, and the firm has a 10 percent expected return? 00:59:58 Multiple Choice O $6.75 O $7.15 $7.80 O $9.37 Mc Graw Hill 16 "tv 414 If the future value of an annuity due is $25,000 and $24,000 is the future value of an ordinary annuity that is otherwise similar to the annuity due, what is the implied discount rate? 01:06:14 Multiple Choice 1.04% 4.17% O 5.00% 8.19% Mc Graw Hill TFile Edit View History Bookmarks Profiles Tab Window' Help @ Question 29-FINALExam- xX New Tab a o= \"> getproctorio.com/secured#lockdown FINAL Exam - April 16,2025 @ Saved 2 9 The terminal value of a share of a stock: ( S See Multiple Choice > & is similar to the maturity value of a bond. =.) refers to the share value at the end of the investor's holding period. fs) is the value received by investors upon liquidation of the firm. C) is the price for shares traded through a dealers' market. eat ; 2 Last year's return on equity was 30%. This year the ROE has decreased to 20% even though the firm's earnings equaled last year's earnings. The firm has no preferred stock. What caused the decrease? 8 01:12:49 Multiple Choice O Equity decreased by 10%. O Equity decreased by 50%. O Equity increased by 10%. O Equity increased by 50%. Mc Graw 10 Assume BDS acquired its main supplier, ABC. As a result of the acquisition, BDS finds that its profit margin increased but its ROA remained constant. A decrease in which one of these ratios is most apt to be the reason why the ROA did not increase with the increase in the profit margin? 01:08:10 Multiple Choice Leverage ratio O Market-to-book ratio O Asset turnover O Debt burden Mc Graw APR 16INAL Exam - April 16, 2025 i Saved Help Save & Ex Balsco's balance sheet shows total assets of $238,000 and total liabilities of $107,000. The firm has 55,000 shares of stock outstanding that sell for $11 a 11 share. What is amount of market value added? 01:07:33 Multiple Choice $389,000 O $474,000 O $1,073,000 $123,712 Mc Graw APR 16 m astv w 8FINAL Exam - April 16, 2025 Saved Help Save & Exit 24 A bond has an ask quote of 99.5625 and a bid quote of 99.5475. How much will the bond dealer make on the purchase and resell of a $100,000 bond if they earn a 10% commission? 01:01:48 Multiple Choice $150 O $1,500 $15 $1.50 Mc Graw Hill 162 getproctorio.com/secured#lockdown AL Exam - April 16, 2025 i Saved Help Save & Exit Three thousand dollars is deposited into an account paying 10% annually to provide three annual withdrawals of $1,206.34 beginning in one year. How much 18 remains in the account after the second payment has been withdrawn? 01:04:17 Multiple Choice O $1,326.97 O $1,206.34 O $1,096.69 O $587.32 Mc Graw 1619 Which one of the following is included in the yield of a bond with a low credit rating but not included in a Canadian Treasury bond yield? 8 01:03:47 Multiple Choice Real rate of return Inflation premium O Default premium O Loss of premium Mc Graw Hill APR 16 AFile Edit View History Bookmarks Profiles Tab Window Help Question 26 - FINAL Exam - / X New Tab 2% getproctorio.com/secured#lockdown FINAL Exam - April 16, 2025 i Saved A firm's liquidation value is the amount: 26 Multiple Choice 801:01:10 O necessary to repurchase all shares of common stock. O realized from selling all assets and repaying debts. O a purchaser would pay for the firm in bankruptcy. O equal to the book value of equity. Mc Graw Hill APR 16 atv27 If a stock's price decreased during the past week, what is the most likely prediction about this week's price change? 01:00:53 Multiple Choice O Price will reverse last week's loss and go up. O Price will continue last week's decline. O Price will stand still until new information is released. O Either direction of price change is equally likely. Mc APR 16 tv 431 Look Good, Inc. has just announced the bad news that its earnings have dropped by 30 percent. In fact, its investors had anticipated even worse results (a decrease of 40 percent). As a result, Look Good's stock price is most likely to: 00:59:28 Multiple Choice O increase. O remain the same. decrease. O follow a random walk as usual. Mc Graw Hill APR 16 Arome File Edit View History Bookmarks Profiles Tab Window Help Question 28 - FINAL Exam - / X New Tab G getproctorio.com/secured#lockdown FINAL Exam - April 16, 2025 Saved 28 Given the efficiency of our financial markets, 8 01:00:28 Multiple Choice O there is no justification for technical analysis. O there is no justification for fundamental analysis. O both technical and fundamental analyses serve a useful function. O all investors should index their portfolio. Mc Graw Hill 0 9 16