Reference no: EM132813978
1) A financial lease
a)Usually requires the lessor to maintain the leased asset.
b)Is generally cancelable without penalty if the lessee provides 30 days advance notice.
c)Is generally a partially amortized lease.
d)Is generally a short-term lease.
e)May also be classified as a tax-oriented lease.
2) A project has an accounting break-even quantity of26,500 units, a cash break-even quantity of17,120 units, life of 10 years, fixed costs of $178,000, variable costs of $18.40 per unit, and are quired return of 14 percent. Depreciation is straight-line to zero over the project life. Ignoring taxes, what is the financial break-even quantity?
a)32,723 units
b)39,201 units
c)39,458 units
d)39,624 units
e)35,102 units
3)A project has expected sales of 15,000 units, plus or minus 4 percent, variable cost per unit of $120 plus or minus 3 percent, fixed costs of $311,000plus or minus 2 percent, and a sales price per unit of $168 plus or minus 2 percent. The depreciation expense is $74,000 and the tax rate is 35 percent. What is the contribution margin per unit for a sensitivity analysis using a variable cost per unit of $122?
a)$43.43
b)$46.00
c)$49.36
d)$44.00
e)$42.64
4) A security with yield to maturity of 5.50% maturing is selling at par. What is the price of the 1 year bond?
a)$1,000.00
b)$ 1,157.6
c)$ 1,230.2
d)$950.40
5)Calculate the beta of a portfolio that consists of 25% Ford, 25% Boeing, and 50% McDonalds.
Company Beta Weight
Ford 1.2 25%
Boeing 1.7 25%
McDonald. 0.2 50%