(Write only correct option , dont describe it)

QUESTION 17

1. Index Laboratories is considering leasing a thermoplastic molder. The lease would require 7 beginning-of-the-year payments of $122,000 each. If Index capitalizes this lease for financial reporting purposes at a 12% rate, what asset amount will be reported initially on its balance sheet?

   	a.	$623,625
   	b.	$854,000
   	c.	$969,046
   	d.	$556,808

1 points

QUESTION 18

1. A beta value of 0.5 for a security indicates that the security has ____.

   	a.	above-average systematic risk
   	b.	average systematic risk
   	c.	no unsystematic risk
   	d.	below-average systematic risk

1 points

QUESTION 19

1. Which of the following factors affect the firm's level of investment in working capital?

   	a.	the length of the firm's operating cycle
   	b.	the firm's sales level
   	c.	the firm's inventory and credit policies
   	d.	All of these choices are correct.

1 points

QUESTION 20

1. The rate of return on fixed assets is normally assumed to be ____ the rate of return on current assets (especially cash and marketable securities).

   	a.	less than
   	b.	greater than
   	c.	equal to
   	d.	half