FN2 Module 1 Multiple Choice Questions MULTIPLE CHOICE: Choose the one alternative that best completes the statement or answers the question. a) Which of the following is least likely to increase market efficiency? 1) Governments relax restrictions on foreign investment 2) Corporations disseminate more information to investors 3) More new investors choose to invest in individual stocks on their own rather than invest in mutual funds 4) More stock transactions are conducted online than
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1. Differentiate between big business and small business Big Business Small Business Big businesses are internally focused and constrained by corporate strategy. Smaller business generally has fewer layers of management and fewer managers in general‚ than larger businesses. Small business organizational charts are often flat; they look like two or three stacked rows of bricks with one or two bricks on top. Small businesses tend to be responsive to external factors‚ and tactical. Tall organizational
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Suppose Manij needs $ 138‚000 to buy a new kitchen at the end of 2017. Assume that Manij uses an account earning 2.45% yearly. What does Manij have to deposit at the beginning of 2012‚ assuming monthly compounding? a. 119‚152.42 b. 119‚162.42 c. 119‚172.42 d. 119‚182.42 e. None of the above Solution: The answer is A. FV=-138‚000; I/Y=2.45; N=72; C/Y=P/Y=12; CPT PV 2. First Bank of Midesto Medeque pays a 9.45% nominal rate of interest compounded weekly. What is the effective rate of interest
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Institutional Shareholders A business‚ such as a mutual fund‚ bank or insurance company‚ that holds shares in a publicly-traded company. Institutional shareholders are important to placing new issues of stocks and bonds‚ as they can afford to buy more of an issue than individual investors. If an institutional shareholder owns a majority of the shares in a company‚ the company is said to be under institutional ownership. Institutional investors are organizations which pool large sums of money and
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1. There are two identical firms EQT Corp and DBT Corp except for their capital structure. For example none of the firms pay taxes‚ and EBIT is $22‚000 per year for both firms. There is no growth for any of the firms. EQT is an all equity firm with 1‚000 shares outstanding and expected return of 22%. Since there is no growth‚ EQT will pay out all earnings to shareholders as dividends. In contrast‚ DBT has $40‚000 worth of debt outstanding with interest rate of 5%. There are 500 shares of equity
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My problems as a new college student I have a few faint memories of the fear I faced my first day of kindergarten. I remember my first day of sixth grade because it was the first time I had ever been to catholic school. It took some time getting used to learning religion as a regular school subject. The following year I started junior high school and that was also filled with new problems. I had more teachers‚ a locker‚ and one of the biggest obstacles for me was the showers. Two years later
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Money is a huge problem for students now a days going to college. Tuition costs are rising at alarmingly rates. Add that with eating out‚ shopping trips‚ gas for the car‚ the price of textbooks‚ not to mention dorm rooms for on campus students‚ and forget about out of state students you have a college student’s worst nightmare. College students drop out of school each year because they cannot afford it. Others are forced to juggle full schedules with full time jobs to make ends meet. It is becoming
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October 10‚ 2012 The Correlation Between Financial Power And College Students Efficiency Students in our society are greatly influenced by their financial status. There are three different types of social classes: the low class (those who are financially poor)‚ the high class (those who are financially rich) and the middle class (those who lay in between the rich and the poor). The learning behavior of college students in our society is connected to financial power in that the high class tends to
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set at my financial situation because I do with what I can with what I have. I do not have a lot of secure financial support besides my parents who can no longer help but I am hopeful of this once in lifetime opportunity. I only have allocated financial resources to my higher education because education cannot be erased and get land one a career instead of a simple job. My financial situation does not let me purchase an onyx ring because I can barely afford tuition. An onyx ring is a luxury I cannot
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Volume 28 Number 7 2002 35 Financial Planning‚ Managers‚ and College Students by Joe James‚ W. Hadley Leavell‚ and Balasundram Maniam‚ Sam Houston State University‚ P.O. Box 2056‚ Huntsville‚ TX 77341 Abstract Prior research indicated workers including many college students were ignorant regarding their own finances‚ future wealth‚ and retirement planning although in their business courses they learn the importance of managing and maximizing other peoples’ wealth. To obtain an idea of
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