Net working capital can be described

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1. A stock with a Beta > 1 would be considered to be less risky than the overall stock market.

True

False

2. Net Working Capital can be described as:

Current assets - current liabilities

Total Equity - retained earnings

Fixed assets - accumulated depreciation

Total liabilities - current liabilities

3. All of the below are considered to be 'major' currencies except:

The Swiss Franc

The Chinese Yuan

The Great Britain Pound

The Australian Dollar

4. Bond ratings are broken down into two fundamental categories. These are:

Speculative Grade and Junk Bonds

Corporate Bonds and Treasury Bonds

A Grade and B grade

Investment grade and Speculative grade

5. You invest $5280 in a savings account earning 2.60% with annual compounding. How many years will it take for that amount to grow to $19500. Round your answer to the nearest whole number.

6. An increase in NWC will increase cash flow from assets.

True

False

7. All of the below are organizations that have their roots in the Bretton Woods Conference except:

The International Monetary Fund

The World Trade Organization

The European Union

The World Bank

8. You invested $9300 and in 8 years it grew to $11200. What annual rate of return (APR) must you have earned. Assume quarterly compounding.

Reference no: EM131932961

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