Reference no: EM132910296

Problem 1: Which of the following is a source of funds?

Select one:

a. An increase in inventory
b. An increase in investments
c. An increase in account receivable
d. An increase in account payable

Problem 2: Which of the following is an example of a capital market instrument?

Select one:

a. Commercial Paper.
b. Preferred stock.
c. Treasury bills.
d. Banker's acceptances.

Problem 3: Which of the following ratios will increase as a firm uses more financial leverage?

Select one:

a. The debt-to-equity ratio
b. The inventory turnover
c. The time-interest-earned ratio

Problem 4: You need RM2,000 to buy a new stereo for your car. If you have RM800 to invest at 5 percent compounded annually, how long will you have to wait to buy the stereo?

Select one:

a. 8.42 years.
b. 6.58 years.
c. 14.58 years.
d. 18.78 years.