risky and will have required return than a BBB-rated bond 48. A bond with AA-rating is a. more; higher b. more; lower c. less; higher d. less; lower I so. Important limitations of the Dow Jones Industrial Average (DJLA) as a market average are that a. the sample size is too small b. it gives variable weights to each stock price based on its size c. it gives equal weight to each stock price d. Both (a) and (b) are correct e. Both (a) and (c) are correct 53. Maximization of profit is not a good goal for a firm because a. it ignores risk b. it is a short term goal c. profit is not uniquely defined d. all of the above 54. The NPV profile of a project shows that as the project's required rate increases, its NPV a. increases b. decreases c. Remains the same 55. In a common size balance sheet, each item is expressed as a percentage of the firms a. sales b. total assets c. total liabilities d. total equity 56. Debt ratio of a firms is 60%. This means that the company borrowed 60 cents of every dollar of _ a. sales b. total assets c. equity 57. When a bond sells at a "premium" (i.c., for more than $1,000), the yield to maturity (YTM) on the bond would be a. the same as the coupon rate b. higher than the coupon rate c. lower than the coupon rate