Reference no: EM133001091

Which of the following is the most accurate measure of how much interest you accrue on an investment?

1. EAR

2. NPV

3. Nominal APR

4. APR

Internet platforms have allowed for the greatest increase of what recent trend in finance?

1. Impact investing

2. Microfinancing

3. Peer-to-peer lending

4. Algorithmic trading

Which of the following is a goal of working capital management?

1. To ensure liquidity and increase cash holding costs

2. To balance adequate cash flow against maximal returns

3. To minimize free working capital and maximize opportunity costs

4. To lengthen the span of time between payment of accounts payable and collection of accounts receivable

Which of the following is a tenet of strong-form efficiency?

1. Share prices respond immediately to all information, whether public or private.

2. Investors can use the past prices of securities to predict their future prices.

3. Future prices cannot be predicted based on past prices.

4. Some forms of technical analysis techniques can be useful for producing excess returns.

A company is considering a new plan for its capital structure.

Which of the following is true if, under the new plan, the company's weighted average cost of capital exceeds the expected return?

1. The company is over-leveraged.

2. The company's cost of capital is still at a comfortable level.

3. The company's proposed capital structure may put it at risk for bankruptcy.

4. The company's value will increase

What does the residual dividend model mean for a company?

1. It prioritizes the company's growth over shareholder dividends.

2. It helps a company attract investors who seek a high dividend payout ratio.

3. It helps a company attract investors who seek a low dividend payout ratio.

4. It allows a company to maintain a consistent dividend yield.