Kimanichelsea20

Sophia Principles of Finance Milestone 2 1 Select the best definition of an ordinary annuity. An annuity whose payments can be made at any point during the period An annuity whose payments are made at the beginning of the period An annuity whose payments are made at the end of the period An annuity that makes payments forever CONCEPT Annuities 2 Bill wants to buy a bond whose face value is substantially higher than its market price. What kind of bond should he buy?

Sophia Principles of Finance Milestone 2 1 Determine the value of a stock with the following variables using the constant growth model: Current annual dividend: $2.75 per share Required return rate: 8.5% Constant growth rate: 6% $110.00 $116.60 $119.35 $114.70 CONCEPT Stock Valuation 2 You would like to have $8,000 in an account after four years' time

Sophia Principles of Finance Milestone 3 1 Anais purchased stock with an initial share price of $52, and sold it when the share price was $60. While she owned the stock, she earned $7 in dividends. What was her total percentage return on the investment? 13.33% 25.00% 28.85% 19.83% CONCEPT Understanding Returns 2 Which of the following is true of systematic risk? It is affected by the level of diversification within a portfolio. Research shows that investors can best mitigate this ...

Sophia Principles of Finance Milestone 3 1 Which of the following is true of portfolio diversification? A diversified portfolio containing positively correlated investments has a higher variance than a portfolio containing a single asset type. A diversified portfolio containing negatively correlated investments has a lower variance than a portfolio containing a single asset type. A diversified portfolio containing positively correlated investments has a lower variance than a portfolio con...

Sophia Principles of Finance Milestone 4 1 What is one disadvantage of NPV as a capital budget method? It can be misleading if inputs like cash flow turn out to be wrong. It is rarely used, so there is disagreement as to what an adequate NPV is. It cannot be used to compare investments with different upfront costs. It does not deliver an overall picture of the gain or loss of implementing a project. CONCEPT Net Present Value 2 Select a reason why a company would want to go public. T...

Sophia Principles of Finance Milestone 4 1 Which of the following is an example of an operational risk for a company that manufactures automobiles? Rising interest rates that affect the terms of car loans, thereby decreasing demand Damage to completed cars held on a storage lot A state tax increase that makes buying and registering a car more expensive A national car rental agency backing out of a contract to buy a certain volume of new cars CONCEPT Risk and Capital Budgeting 2 Which...

Sophia Principles of Finance Milestone Final 1 Ratios that measure a company's ability to manage its long-term debt are _________. efficiency ratios leverage ratios profitability ratios liquidity ratios CONCEPT Overview of Ratio Analysis 2 Georgia is interested in selling her company. Before seeking a buyer, she wants her income statements to show a trend of increasing gross profits. How can she achieve her goal?

Sophia Principles of Finance Milestone Final 1 Mason is a financial analyst who specializes in securities. When providing an analysis of securities to which he has a personal connection, he discloses his conflict of interest. By doing so, which federal regulation is he complying with? Securities Act Amendments of 1975 Securities Act of 1933 Sarbanes-Oxley Act of 2002 Securities Exchange Act of 1934 CONCEPT Market Regulation 2 You deposit $7,000 in a bank account that earns 2% compou...

Sophia Principles of Finance Unit 1 Challenge 3 1 — Standardizing Financial Statements Select the correct order for the parts of an income statement. 1. Revenue 2. Expenses 3. Net income 2 — Overview of Ratio Analysis Ratios that measure how well a company controls expenses are __________. profitability ratios 3 — Profitability Ratios If total revenue is $400,000 and operating income is $250,000, then the operating margin is __________. 62.50% 4 — Asset Management Ratios W...

Sophia Principles of Finance Unit 1 Challenge 3 1 — Standardizing Financial Statements Select the correct order for the parts of an income statement. 1. Revenue 2. Expenses 3. Net income 2 — Overview of Ratio Analysis Ratios that measure how well a company controls expenses are __________. profitability ratios 3 — Profitability Ratios If total revenue is $400,000 and operating income is $250,000, then the operating margin is __________. 62.50% 4 — Asset Management Ratios W...