Just mcq so answer as much as u can

Underline the correct choices from the following (10*2=20)

1. The cost of capital is also known as the appropriate discount rate

True

False

2. Rex Corporation had beginning fixed assets of $3,500 an ending fixed asset balance of $4,800 invested and depreciation expense of $200. Given this information, determine the net investment in fixed assets.

$1,200

$1,300

$1,400

$1,500

$1,600

3. A loan where the borrower receives money today and repays a single lump sum at some time in the future is called a(n) ___________ loan.

Amortized.

Continuous.

Balloon.

Pure discount.

interest-only

4. The weighted average of the firm's costs of equity, preferred stock, and after tax debt is the:

A. Reward to risk ratio for the firm.

B. Expected capital gains yield for the stock.

C. Expected capital gains yield for the firm.

D. Portfolio beta for the firm.

E. Weighted average cost of capital (WACC)

5.If investors require a 7% nominal return and the expected inflation rate is 3%, what is the expected real return?

1.04%

3.00%

3.88%

4.00%

10.21%

6. The key inputs into a discounted cash flow analysis are the projected:

A. Net income amounts for each year of the project.

B. Sales and opportunity costs for each year of the project.

C. Initial costs and related depreciation expenses.

D. Cash flows for each period.

E. Changes in net income resulting from accepting a project.

7.A zero-coupon bond with a face value of $1,000 is issued with an initial price of $387.50. The bond matures in 30 years. What is the implicit interest, in dollars, for the first year of the bond's life?

$10.38

$12.44

$14.42

$18.79

$22.50

8. The yield to maturity will be greater than the coupon rate when a bond is selling at a premium

True

False

9. Cantrell Industries spent $386,000 to purchase equipment three years ago. This equipment is currently valued at $276,000 on today's statement of financial position but could be sold for $298,000. Net working capital is $56,000 and long-term debt is $171,000. What is the book value of shareholders' equity?

$49,000

$71,000

$105,000

$161,000

$183,000

10. Risk premium = Expected return - Risk-free rate

TRUE

FALSE