Which Of The Following Statements Is False

1.Which of the following statements is FALSE?A.If XYZ Corp’s \$1,000 8% bond with 10 years to maturity is selling at \$960, the yield is less than 8%.B.Prices of longer maturity bonds are more sensitive to interest rate changes.C.Simple interest is charged on bank bills while compound interest is applied on bonds.D.A bond with a coupon rate of 10% and yield of 12% will sell at a discount.2.AA Co. has just paid a dividend of \$0.52. Next year’s dividend is expected to be 15% higher, after which the dividend will remain the same indefinitely. Assuming shareholders require a rate of return of 20%, what is the price of the stock today?A.\$11.96B.\$2.60C.\$2.99D.\$10.403.Which of the following statements is FALSE?A.The perpetuity formula gives the present value of an infinite stream of dividends is valued at the same point in time as the first dividend.B.If all earnings are paid out as dividends, DPR is 1.C.The usefulness of a vaulation multiple will depend on the nature of the differences between firms and the sensitivity of the multiples to these differences.D.(V0)/(EBITDA1) is an Enterprise Value Multiple.4.Growing Real Fast Company (GRF) is expected to have a 25 percent growth rate for the next four years (affecting D1, D2, D3, and D4). Beginning in year five, the growth rate is expected to drop to 1.2 percent per year and last indefinitely. If GRF just paid a \$4.00 dividend and the appropriate discount rate is 18.5 percent, then what is the value of a share of GRF? Enter your answer to two decimal places.5.Calculate the price of a 5-year \$100,000 8% government bond that pays interest semi-annually, if the required market yield is 6% p.a. compounding semi-annually.A.\$105,428.20B.\$98,542.90C.\$103,586.85D.\$108,530.20

Which Of The Following Statements Is False

Which of the following statements is false?A.M1, M2, and M3 include demand deposits and other checkable deposits.B.Term repurchase agreements are included in M3, but not in M1 and M2.C.U.S. savings bonds are included in M3, but not in M1 and M2.D.Travelers’ checks are included in M1, M2, and M3.2. Because of the financial crisis that began in 2008, by the end of 2009:A.unemployment was in excess of 10 percentB.many homeowners owed more money on their mortgage loans than the their homes were worthC.home mortgage foreclosure rates and personal and business bankruptcies were increasingD.over 100 banks in the U.S. had already failed with over 500 more being considered financially weakE.all of the above are true3. If the interest rate is greater than 0%, then a dollar today is worthA.more than a dollar tomorrowB.the same as a dollar tomorrowC.less than a dollar tomorrowD.there is not sufficient information to tell4. If the nominal interest rate is 8% and the risk-free rate is 3%, the expected inflation rate must be:A.3%B.5%C.11%D.cannot be determined without additional information5. Jill Clinton puts \$1,000 in a savings passbook that pays 4% compounded quarterly. How much will she have in her account after five years?A.\$1,200.50B.\$1,220.20C.\$1,174.80D.\$1,217.506. is a short-term unsecured promissory note issued by a high credit–quality corporation with maturities of one to three months in length with an active secondary money.A.A negotiable certificate of deposit (NCD)B.A repurchase agreementC.Commercial paperD.Government bondE.none of the above7. Which of the following is not an asset of depository institutions?A.cashB.unsecured loansC.time depositsD.U.S. government securities8. ___________________ provide the record-keeping mechanism for showing ownership of the financial instruments used in the flow of financial funds between savers and borrowers and record revenues, expenses, and profitability of organizations that produce and exchange goods and services.A.Financial ManagersB.AccountantsC.Operations ManagersD.StatisticiansE.none of the above9. Define the term annuity due10. Identify the objectives of the national economic policy.11. Which of the following institutions is not part of the modern banking system?A.credit unionsB.savings and loan associationsC.mutual fundsD.mutual savings banks12. In response to the financial crisis of 2007-2009, the yield spread between Aaa corporate bonds and treasury bonds:A.widenedB.narrowedC.remained the sameD.none of the above13. An increase in inflation should:A.increase the demand for loanable fundsB.decrease the interest rate on loansC.increase the interest rate on loansD.none of the above14. If you expect the inflation premium to be 2%, the default risk premium to be 1% and the real interest rate to be 4%, what interest would you expect to observe in the marketplace on short term treasury securities?A.8%B.7%C.6%D.5%15. If the stated or nominal interest rate is 10 percent and the inflation rate is 5 percent, the net or differential compounding rate would be ________ percentA.tenB.fiveC.twoD.fifteen16. Automatic stabilizers include all of the following except:A.unemployment insuranceB.social securityC.welfareD.pay-as-you-go tax system17. You need to have \$35,000 on hand to buy a new Lexus five years from today. To achieve that goal, you want to know how much you must invest today in a certificate of deposit guaranteed to return you 3% per year. To help determine how much to investment today, you will use:A.present value factorsB.annuity value factorsC.present value factors of an annuityD.future value factors of an annuity18. An organization that sells or markets new securities issued by businesses to individuals and institutional investors is called a (n)A.mutual fundB.investment bankC.insurance companyD.brokerage firm19. Gross Private Domestic Investment (GPDI) measures fixed investment in:A.residential and non-residential structuresB.individual expenditures for nondurable goodsC.individual expenditures for servicesD.none of the above20. Which of the following statements is most correct?A.Capital markets include short-term and long-term debt securities such as Treasury bills, notes, and bonds.B.Money market instruments include commercial paper, federal funds, repurchase agreements, and Treasury notes.C.Real estate mortgages are money market instruments.D.Federal agencies, and state and local governments, generally issue longer-term financial claims which trade in the capital market.I NEED COMPLETED BY 01/02/2016. THANK YOU.

Which of the following statements is FALSE

Question
5) Which of the following statements is FALSE?

A) It is possible that an IRR does not exist for an investment opportunity.

B) If the payback period is less than a pre-specified length of time you accept the project.

C) The internal rate of return (IRR) investment rule is based upon the notion that if the return on other alternatives is greater than the return on the investment opportunity you should undertake the investment opportunity.

D) It is possible that there is no discount rate that will set the NPV equal to zero.

Which of the following statements is False

Which of the following statements is False?
A) Patent and copyright costs are expensed when incurred.
B) Software development costs may be capitalized.
C) Research and development costs are expensed when incurred.
D) None of the above