Question 10 (1 point)

Ratios can be categorized as

Question 10 options:

	liquidity and solvency.
	price multiples.
	efficiency.
	profitability.
	Ratios can be categorized in all of these ways.

Question 11 (1 point)

A company has Total Assets of $100 million and Total Equity of $62 million. What is the debt ratio?

Question 11 options:

	0.62
	1.36
	1.61
	2.63
	0.38

Question 12 (1 point)

A firm has total assets of $150 million, liabilities of $90 million, and a return on assets of 8%. What is the return on equity?

Question 12 options:

	13.3%
	50.0%
	20.0%
	66.6%
	4.8%

Annuities assume cash flows increase at a steady rate.

Question 13 options:

	True
	False

Question 14 (1 point)

Rates of returns on annuities cannot be calculated with a formula.

Question 14 options:

	True
	False

Question 15 (1 point)

The present value of a lump sum

Question 15 options:

	is the inverse of the future value of a lump sum.
	increases with maturity.
	varies directly with the future value.
	varies directly with the discount rate.
	none of these statements are true.

Question 16 (1 point)

Deposits from a variable annuity are invested in sub-accounts chosen by the investor.

Question 16 options:

	True
	False

Once interest is credited to a fixed rate annuity, the cash value will not decline.

Question 17 options:

	True
	False

Question 18 (1 point)

Some form of annuity would be indicated when

Question 18 options:

	investors want a retirement income that they can never outlive.
	as a supplement to an IRA.
	when investors want more control over their investment and are willing to bear the risk associated with the selection.
	when investors want a monthly income equal to or higher than could be generated by other conservative investments.
	all of the above.