Reference no: EM131386374
Finance
1. Financial Crisis occur about every ...
a. 3-5 years
b. 7-10 years
c. 15-20 years
2. The common cause of all financial crisis is
a. CEO salaries
b. Greed
c. Leverage
d. Housing bubbles
3. Who's actions contributed to the Financial Crisis
a. banks
b. consumers
c. government
d. all of the above
4. Marking-to-market as it relates to the Financial Crisis is defined as
a. An adjustment of Futures account margin at the close of trading
b. Valuation of asset accounts on the balance sheet to reflect the current market price
c. Valuation of long term asset values to reflect the current market price in lieu of book value
d. Valuation of a security based on a price that would be received in an orderly market rather than a forced liquidation to reflect fair value
5. Lesson not learned. One of the causes of the Asian financial crisis of 1997/8 that contributed to the fall of Bear Stern in 2008 was
a. Lack of transparency in the mortgage market
b. Financing longer term investments with short term debt
c. Extensive use of Credit Default Swaps (CDS)
d. The repeal of the Glass-Steagall Act
6. You can trace back the inception of the 2008 Financial Crisis to
a. 1999
b. 2001
c. 2007
d. 2008
7. What you should take away from the financial crisis
a. Don't borrow money
b. Establish an emergency account
c. Stocks are not a good investment
8. Which of the following is the driver for dividend growth in the constant growth Dividend Discount Model (DDM)?
a. GDP growth
b. Capital gains
c. Stock price appreciation
d. Growth in EPS
9. A firm that has a competitive advantage over its competitors will have
a. An ROE > ROE of competitors
b. An ROE > g
c. An ROE > k
d. An ROE >EPS
10. Which of the following is not an assumption of DDM
a. The firm pays a dividend
b. The dividends are stable
c. The dividends are growing at a constant rate
d. The dividend payout ratio is constant
11. Which of the following statements is INCORRECT
a. The Gordon model is a perpetuity
b. The Gordon Model is an intrinsic value model
c. ROE is a component of growth
d. The required return can never exceed EPS growth rate
12. When a security is over-priced
a. Its required return (K) exceeds its expected return
b. Its return on equity exceeds its required return
c. Its expected return exceeds its required return
d. None of the above
13. When the firm takes on additional debt, all else being equal, FCFF will
a. Increase
b. Decrease
c. Not change
d. Increase initially and decrease in future periods
14. When a firm does not pay a dividend, investors will demand earnings grow at
a. The firm's required Rate of Return
b. a constant growth rate
c. the firm's Return on Invested Capital
d. the firm's Return on Equity.
|
Can debbie recover from grant
: Later, without cause, Debbie refuses to allow Clarence to proceed with the work, though Clarence is ready to do so, and makes demand on Grant that Grant perform. Grant refuses. Can Clarence recover damages from Debbie? Can Debbie recover from Gran..
|
|
Aggregate supply and aggregate demand curves
: Illustrate each of the following situations with a graph showing aggregate supply and aggregate demand curves, and explain what happens to the equilibrium values of the price level and aggregate output; An Increase In G with the money supply held con..
|
|
What are the rights and obligations of rebecca and lewis
: Wayne gives Rebecca notice of the assignment on August 30. What are the rights and obligations of Rebecca, Lewis, Julia, and Wayne?
|
|
Explain difference between value creators-value harvesters
: Explain the difference between value creators, value harvesters, and value destroyers. What values and behaviors characterize companies in each category?
|
|
What you should take away from the financial crisis
: What you should take away from the financial crisis? Which of the following is the driver for dividend growth in the constant growth Dividend Discount Model (DDM)?
|
|
May lisa recover damages from curtis
: Because he did not operate Lisa's automatic watering system properly, everything set out by Curtis had died of water rot. May Lisa recover damages from Curtis? May Lisa recover damages from Jay, and, if so, does Jay have an action against Curtis?
|
|
What are the rights of the parties
: Caleb washed the windows during the time stated and demanded payment to him of $8,200 (2,000 windows at $4.10 each), informing Apartments, Inc., that he had changed his mind about having the money paid to Bernie. What are the rights of the parties..
|
|
Create a table of the printer attributes
: Open printers.dwg from "Applying AutoCAD Skills" problem 3 in Chapter 36. Extract the attribute data from the printer blocks you created and create a table of the printer attributes. Display the table and all of the blocks in the drawing.
|
|
Are the members of the class action suit entitled to recover
: Therefore, they are in the class of persons for whose benefit the union has promised to provide dependable transportation service. Are the members of the class action suit entitled to recover? Explain.
|