Multiple choice

1. Calculate the monthly lease payment of a $25,000 car lease for 3 years. The APR is 6%, compounded monthly. HINT: leases are considered an annuity due.

No leaders are mentioned for Homework categories.
756.76
760.55
635.55
632.39
None of the above

2. How much money will you have in 10 years if you deposit $5000 at the end of every year in your bank account and earn 5% APR, compounded annually?
66,033.94
50,947.99
87,743.68
62,889.46
None of the above


3. Holding all other things constant, additional debt financing needed would be reduced with an INCREASE in the firm's
Dividend payout
Return on Sales
Cost Ratio
Tax Rate


4. Management wishes to reduce next year's external funding needs. Which of the following will accomplish this task?
decrease profit margins
decrease the dividend payout ratio
increase the assets/sales ratio
none of the above


5. Firms raise capital by issuing various types of ____ such as ____.
securities, stocks and bonds
consumer products, goods and services
securities, interest and dividends
taxes, bonds and savings accounts
none of the above


6. The "yield curve"
always has a positive slope.
shows the relationship between default risk and the return on securities.
has constant slope and height over time.
a and b
none of the above