Finance Questions

Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $7.50 per share. If the required return on this preferred stock is 6.5%, at what price should the stock sell?

Primary markets are large and important, while secondary markets are smaller and less important.

The primary goal of a publicly-owned firm interested in serving its stockholders shou be to:

In the years ahead the market risk premium, (KM - KRF), is expected to fall, while the risk-free rate, KRF, is expected to remain at current levels. Given this forecast, which of the following statements is most correct?

Your family recently obtained a 30-year (360 month) $100,000 fixed-rate mortgage. Which of the following statements is most correct? (Ignore all taxes and transactions costs.)

Frank Lewis has a 30-year, $100,000 mortgage with a nominal interest rate of 10 percent and monthly compounding. Which of the following statements regarding his mortgage is most correct?

There is _______ relationship between interest rate and bond price.

A 10-year Treasury bond has an 8 percent coupon. An 8-year Treasury bond has a 10 percent coupon. Both bonds have the same yield to maturity. If the yields to maturity of the bond increases by the same amount, which of the following statements is most correct?

Which of the following items is NOT included as part of a company's current assets?

Which of the following statements best describes what would be expected to happen as you randomly add stocks to your portfolio?

A financial intermediary is a corporation that takes funds from investors and then provides those funds to those who need capital. A bank that takes in demand deposits and then uses that money to make long-term mortgage loans is one example of a financial intermediary.

Which of the following item CANNOT be found on a firm's income statement?

Difference between the amount earned and amount spent-Loss-Assets-Profit-Revenue

Balance sheets provide a company's position at a specific moment in time-True-False

Which is not owners equity-Stock-Jewelry-Profits-Earnings

Which is not an accounting document -Check Register-Balance Sheet-Cash Flow statement-Income statement

Income statements are records for a period of time, month, quarter, year-True-False

Income statements are known as the profit and loss statement-True -False

Cash flow statements track the inflow and outflow of cash within the business-True-False

Which of these is not a Liability-Health insurance-Invoice-Lease-Loan