# The ________ Method Provides The Number Of Years Required For A Project To Repay Its Initial Investment. A. Modified Internal Rate Of Return B. Internal Rate Of Return C. Net Present Value D. Payback 2.) Crater Lake Diagnostics Inc. Is Considering The

1.) The ________ method provides the number of years required for a project to repay its initial investment. a. modified internal rate of return b. internal rate of return c. net present value d. payback

2.) Crater Lake Diagnostics Inc. is considering the purchase of a new piece of equipment that has an initial investment of \$75,000, has annual expenses associated with its operation of \$10,000 per year and has a six year life. What is the equivalent annual cost of this investment if the firms considers the appropriate discount rate to be 11%? a. \$17,728 b. \$19,551 c. \$22,500 d. \$27,728

Don't use plagiarized sources. Get Your Custom Essay on
The ________ Method Provides The Number Of Years Required For A Project To Repay Its Initial Investment. A. Modified Internal Rate Of Return B. Internal Rate Of Return C. Net Present Value D. Payback 2.) Crater Lake Diagnostics Inc. Is Considering The
Just from \$5/Page

3.) The ________ method is a capital budgeting technique for evaluating projects of unequal lives. a. equivalent annual cost b. equal amortization c. straight-line annuity d. none of the above

4.) The profitability index method of project evaluation provides an answer that is a ______. a. rate of interest b. dollar value. c. time period d. ratio

5.) Which of the following statements regarding the MIRR and how it solves problems with the IRR is not accurate? a. The MIRR eliminates the problem of multiple IRRs. b. The MIRR eliminates the problem of the assumption of always reinvesting at the IRR. c.The MIRR eliminates the problem of arbitrarily choosing a required rate of return (AKA the hurdle rate). d. all of the above are accurate

6.) If a project has a ________ NPV, it should also have an IRR ________ the hurdle rate. a. positive; greater than b. positive; less than c. negative; greater than d. negative; equal to

7.) The ________ measure is similar to the yield to maturity measure for bonds. a. NPV b. IRR c. MIRR d. payback

8.) The decision rule for net present value declares that a project is acceptable if ______. a. it pays back within a specified time period b. the rate of return is greater than the firm’s cost of capital c. the present value of the cash inflows exceeds the initial cash outflow d. all of the statements above are true

9.) Corporate bond yields are higher than similar maturity government bond yields due to ______. a. higher overall tax rates on corporate bonds than on government bonds b. Interest rates are deductible as expenses for tax purposes c. they include a sinking fund feature d. greater risk on the part of corporate bonds

10.) Empirical evidence supports the notion that U.S. stock markets are generally _________ form efficient. a. weak b. semi-strong c. strong d. The studies have shown mixed results.

11.) The ________ is a regulatory document filed with the SEC that describes the details of the IPO and is meant to help investors make informed decisions. a. red herring b. prospectus c. indenture d. debenture

12.) Which of the following interest rates would be inappropriate for use as a base rate for a variable rate bond? a. the prime rate b. LIBOR c. a rate determined by the bond issuer’s board of directors d. the 10-year Treasury bond rate

13.) Which of the following statements is NOT true? a. Investments rated below BBB- are known as high quality bonds. b. Investment grade securities should include those with a bond rating of AA. c.

A “fallen angel” is a bond that at one time was an investment grade security, but whose bond ratings has subsequently dropped. d. Another colorful term for non-investment grade bonds is “junk bonds.”

14.) The least frequently issued capital financial instruments listed herein are ______. a. preferred shares b. common shares c. bonds d. all these instruments are issued in similar magnitude

15.) The ________ feature found with many issues of preferred stock requires that all current and past due preferred dividends must be paid prior to any dividend payout to common shareholders.

a. cumulative b. participating c. convertible d. historical

16.) Firms must make regular payments to ________ but are under no contractual obligation to pay dividends to ________. a. common stockholders; preferred stockholders b. preferred stockholders; bondholders c. bondholders; common stockholders d. common stockholders, bondholders

17.) ________ is a measure of dispersion and is one way of measuring the risk of securities and portfolios. a. Diversification b. Expected return c. Standard deviation d. Statistics

18.) Another name for market risk is ______. a. systematic risk b. standard deviation c. unsystematic risk d. total risk

19.) If a firm has publicly traded debt then the yield to maturity is approximately the same as ______.

a. the after-tax cost of debt b. the before-tax cost of debt c. the 10-year Treasury bond rate d. the WACC 20.) If a firm increases the amount of debt that it has this could lead to an increase in ______. a. financial risk b. the cost of equity c. both the cost of equity and the financial risk d. none of the above

21.) ________ represent current investor expectations about a firm whereas ________ are representations of historical costs. a. Book values; market values b. Market values; book values c. Regulators; investment bankers d. Common equity holders; bondholders

22.) A firm with a beta of 1.0 and when held in a well-diversified portfolio should be considered to have ________ risk than the market portfolio. a. less b. neither more nor less c. more d. There is not enough information to answer this question.

23.) Transit Design Inc. recently paid a \$1.00 dividend, has a beta of 0.75, has determined that the market risk premium is 10% and the current risk-free rate is 4%. What is the firm’s required return on equity? a. 14.00% b. 14.50% c. 11.50% d. 8.50%

24.) If a firm does not have publicly traded debt and therefore does not have a yield to maturity as an estimate for its cost of debt, a common practice is to estimate the cost of debt by adding a premium to the rate on ______. a. the cost of accounts payable b. equity c. long-term government bonds d. collateralized debt obligations

25.) All else being equal, investors “like” ________ and “dislike” ________. a. risk; return b. return; risk c. standard deviation; risk d. diversification; return

Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

## Our guarantees

We are committed to making our customer experience enjoyable and that we are keen on creating conditions where our customers feel secured and respected in their interactions with us.
With our qualified expert team who are available 24/7, we ensure that all our customer needs and concerns are met..

### Money Payback-back guarantee

Our refund policy allows you to get your money back when you are eligible for a refund. In such a case, we guarantee that you will be paid back to your credit card. Another alternative we offer you is saving this money with us as a credit. Instead of processing the money back, keeping it with us would be an easier way to pay for next the orders you place

### Zero-plagiarism guarantee

All orders you place on our website are written from scratch. Our expert team ensures that they exercise professionalism, the laid down guidelines and ethical considerations which only allows crediting or acknowledging any information borrowed from scholarly sources by citing. In cases where plagiarism is confirmed, then the costumier to a full refund or a free paper revision depending on the customer’s request..

### Free-revision policy

Quality is all our company is about and we make sure we hire the most qualified writers with outstanding academic qualifications in every field. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

We understand that students are not allowed to seek help on their projects, papers and assignments from online writing services. We therefore strive to uphold the confidentiality that every student is entitled to. We will not share your personal information elsewhere. You are further guaranteed the full rights of originality and ownership for your paper once its finished.

### Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors: