Quiz
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Please Note: It is recommended that you save your response as you complete each question.| Question 1 (2 points)

Read the following two statements and determine whether they are correct or incorrect. A. For a given interest rate and cash flow - the longer the time period, the smaller the future value. B. For a given time period and cash flow - the higher the interest rate, the smaller the present value Question 1 options:

| A)| Both statements are incorrect|
| B)| A is incorrect but B is correct|
| C)| A is correct but B is incorrect|
| D)| Both statements are correct|
Save
Question 2 (2 points)

Would you be willing to receive $600 today in exchange for receiving $1000 in 7 periods, if your discount rate was 10% per period? Question 2 options:
| A)| Yes|
| B)| No, the number of periods would have to be less than 5.36| | C)| No, the interest rate would have to be less than 7.57%| | D)| There is not enough information to answer this question.| Save

Question 3 (2 points)

A single cash flow of $932.47 is available now (in period 0). For this cash flow, the appropriate discount rate per period is 3.9%. What is the period 4 future value of this single cash flow? Question 3 options:

You will receive $800 in 3 periods and $1200 in 4 periods. How much are those two cash flows worth today, if your discount rate is 6% per period? Question 4 options:
| A)| $1475.67|
| B)| $1504.78|
| C)| $1568.90|
| D)| $1599.97|
| E)| $1622.21|
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Question 5 (2 points)

A single cash flow of $1673.48 will be received in 4 periods. For this cash flow, the appropriate discount rate per period is 7.8%. What is the present value of this single cash flow? Question 5 options:

...Question 1
2 / 2 pts
What is a capital investment?
What is a capital investment?
using money to buy goods or services
issuing shares of stock of the corporation
authorizing and issuing shares of common stock by a multinational corporation
committing resources to projects that have costs and benefits well into the future
Correct!
Question 2
2 / 2 pts
Estimating the expected cash inflows and outflows from proposed projects is performed in what step of the capital budgeting process?
Estimating the expected cash inflows and outflows from proposed projects is performed in what step of the capital budgeting process?
project identification
project evaluation
Correct!
project monitoring
project review
Question 3
2 / 2 pts
Which capital budgeting technique is preferred in all major industrialized countries?
Which capital budgeting technique is preferred in all major industrialized countries?
net present value
internal rate of return
payback period
none of the above
Correct!
Question 4
2 / 2 pts
Why is it believed that Japanese companies prefer the payback period over the discounted cash flow methods for evaluating capital investment alternatives?
Why is it believed that Japanese companies prefer the payback period over the discounted cash flow methods for evaluating capital investment alternatives?
It is consistent with their...

...* Question 1
2 out of 2 points
| |
| Which of the following statements is CORRECT?Answer | | | |
| Selected Answer: | If CF0
is positive and all the other CFs are negative, then you can still solve for I. |
Correct Answer: | If CF0
is positive and all the other CFs are negative, then you can still solve for I. |
| | | |
* Question 2
2 out of 2 points
| |
| You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would lower the calculated value of the investment?Answer | | | |
| Selected Answer: | The discount rate increases. |
Correct Answer: | The discount rate increases. |
| | | |
* Question 3
2 out of 2 points
| |
| Which of the following statements is CORRECT?Answer | | | |
| Selected Answer: | Time lines can be constructed to deal with situations where some of the cash flows occur annually but others occur quarterly. |
Correct Answer: | Time lines can be constructed to deal with situations where some of the cash flows occur annually but others occur quarterly. |
| | | |
* Question 4
2 out of 2 points
| |
| Which of the following investments would have the highest future value at the end of 10 years? Assume that the effective annual rate for all investments is the same and is greater than zero.Answer | | | |
| Selected Answer: | ...

...FP 120
Quiz for Week 4
1. What is the most important contributor to successful retirement planning?
a. Time: the sooner you start the better
b. The kind of retirement account that you use – i.e., tax free versus tax deferred
c. A company match
d. The professional you hire to manage your money
2. A retirement plan that allows you to withdraw the money that you originally put in at any time regardless of age without incurring taxes or a tax penalty is:
a. A 401k plan
b. A Roth IRA
c. A 403b plan
d. A deductible IRA
3. With a Roth IRA, at what age are you required to begin withdrawing money?
a. At age 70 ½
b. Never. You can die without ever having withdrawn a penny from it and pass it income tax free to our heirs
c. When you begin receiving Social Security payments
d. At age 59 ½
4. If you leave your job and you have a 401k plan with your old employer, you should:
a. Leave it where it is as long as you have under $5000 in the plan and are comfortable with the investments
b. Cash out the account and use the money to pay down credit card debt
c. Have the money sent directly to you and then put that money in an IRA rollover
d. Have the money transferred directly from your old plan custodian to a new IRA rollover custodian
5. What happens to the money in your retirement account if you re-marry and forget to change the beneficiary before you die?
a. It will go to your new spouse as long as you have designated him as...

...How to Create an Interactive Quiz in Excel
http://college.cengage.com/accounting/resources/instructors/air/fall_2006...
Creating Interactive Quizzes in Excel
J.A. (Jim) Connell University of Montevallo Michael E. Stephens College of Business Station 6551 Montevallo, AL 35115 Elizabeth Mulig USF St. Petersburg 140 Seventh Avenue South St. Petersburg Florida 33701-5016 727-553-4154 mulig@stpt.usf.edu
Introduction Have you ever received a spreadsheet file that asked you questions and then magically told you whether your answers were correct? They can be more than e-mail pastimes. Once you understand how those spreadsheet files list questions and check your answers, you can create spreadsheet files that ask your students accounting questions. All it takes is an understanding of a few simple functions within the spreadsheet, and we’re about to reveal those secrets. They’re a lot easier to create than most people think and it only takes one simple formula to produce a scoring system that makes your quiz interactive. This means that your answers will be included in the spreadsheet, but it’s easy to hide the answers and password protect the spreadsheet so your students have to work to find the correct answer. To illustrate how it works, we’ve created an interactive quiz based for a principles-level accounting class. Once you understand the function, you can adapt this to your own needs by changing the...

...Fin 3322
Cost of Capital Homework
1. Suppose Garageband.com has a 28% cost of equity capital and a 10% cost of debt capital. The firm’s debt-to-equity ratio is 1.5. Garageband is interested in investing in a telecomm project that will cost $1,000,000 and will provide $600,000 annually for the next 4 years. Given the project is an extension of their current operations, what is the net present value of the this project if the corporate tax rate is 35.
D/E = 1.5, D/V = 1.5/2.5, E/V = 1/2.5, re = 28%, rd = 10%
WACC = (1.5/2.5)*0.10*(1-0.35) + (1/2.5) *0.28 = 15.1%
FV = 0, PMT = 600,000, n =4, r = 15.1% → PV = 1,709,527.73
NPV = 1,709,527.73-1,000,000.00 = 709,527.73
Take the project
2. Suppose the market value of a firm’s equity is worth $100m and the market value of its debt is worth $50m. Also, assume equity beta and debt beta to be 1.2 and 0.3 respectively. Return on debt is 6%. If the market risk premium is 10% and the risk free rate is 3%, calculate:
a) Expected return on equity
0.03 + 1.2(0.10) = 15%
b) WACC using the return on equity from above and the return on debt.
(100/150)*0.15 + (50/150)*0.06 = 12%
c) Asset beta using the equity beta and debt beta.
(100/150)*1.2 + (50/150)*0.3 = 0.9
Suppose the firm discussed above decides to alter its capital structure by repurchasing $20m in equity. It repurchases the $20m in equity by raising $20m in debt. Assume that the debt...

...CLICK TO DOWNLOAD
ECON 312 Week 1Quiz1. (TCO 1) The general concern of economics is with the study of the
2. (TCO 1) The term scarcity in economics refers to the fact that
3. (TCO 1) Are the goods that businesses offer for "free" to consumers also free to society?
4. (TCO 1) Which is considered to be an economic resource by economists?
5. (TCO 1) If an economy is producing at a point inside a production possibilities curve, then
6. (TCO 1) Which would not be characteristic of a capitalist economy?
7. (TCO 1) The term dollar votes means
8. (TCO 1) The circular flow model
9. (TCO 1) In a market system, well-defined property rights are important because they
10. (TCO 1) Which is necessary to make a trade in a barter economy?
11. (TCO 1) Tammie makes $150 a day as a bank clerk. She takes off two days of work without pay to fly to another city to attend the concert of her favorite music group. The cost of transportation for the trip is $250. The cost of the concert ticket is $50. What is the opportunity cost of Tammie’s trip to the concert? Show your calculations
12. (TCO 1) Identify some intrinsic qualities of capitalist and command economic systems. Identify two countries that practice each.
1 (TCO 2) A demand curve
2 (TCO 2) In the past...

...Question 1
(5 points) $100 today is worth the SAME as $100 tomorrow.
Your Answer
Score
Explanation
True
False
Correct
5.00
Correct.
Total
5.00 / 5.00
Question Explanation
We have assumed time value of money is positive.
Question 2
(5 points) At an interest rate of 10% it is better to have $200 today than $200 in 2 years.
Your Answer
Score
Explanation
False
True
Correct
5.00
Correct.
Total
5.00 / 5.00
Question Explanation
All about compounding.
Question 3
(5 points) Shawn wants to buy a new telescope. He estimates that it will take him one year to save the money and that the telescope will cost $250. At an interest rate of 5%, how much does Shawn need to set aside today to purchase the telescope in one year? (Enter just the number in dollars without the $ sign or a comma and round off decimals.)
Answer for Question 3
You entered:
Your Answer
Score
Explanation
238
Correct
5.00
Correct.
Total
5.00 / 5.00
Question Explanation
Simple PV calculation.
Question 4
(10 points) Jeff has $1,200 that he invests in a safe financial instrument expected to return 4% annually. Marge has $600 and invests in a more risky venture that is expected to return 8% annually. Who has more after 28 years? And how much does he/she have in FV terms?
Your Answer
Score
Explanation
Marge; $57,203.3
Marge; $5,176.26
Correct
10.00
Correct.
Jeff; $3,598.44
Jeff; $59,961.10
Total
10.00 / 10.00
Question Explanation
FV calculations of simple one-shot cash flows....

...
Quiz #1 BSAD131 Fall 2013
1. Businesses differ from nonprofit organizations in that a business's focus is on
A. Price
B. Plans
C. Goods
D. Profit
E. Organization
2. What is the primary lesson to be learned from the economic scandals of the early 21st century?
A. Businesses' reputations depend on their profits
B. Public confidence in corporate America depends on companies' bottom lines
C. Most businesses can focus on their bottoms lines to the exclusion of other factors
D. Ethical conduct and corporate social responsibility are very important
E. Executives who engage in misconduct are likely to get away with it if it enhances their firms' profits
3. Customers, employees, and investors are examples of
A. Entrepreneurs
B. Stockholders
C. Stakeholders
D. Entities
E. Organizations
4. _________________ is the study of how resources are distributed for the production of goods and services within a social system.
A. Financial resources
B. Human resources
C. Economic systems
D. Communism
E. Economics
5. In a socialist economic system, people are free to choose an occupation of their choice, but many people work in ___ jobs.
A. Self-employed
B. Government
C. High-paying
D. Poverty-wage
E. Part-time
6. The American economic system is best described as _______ because the government regulates business to preserve competition and protect consumers and employees.
A....