1. A graph of a project's NPV as a function of possible capital costs is called the _______ profile.

A. IRR

B. NPV

C. standard deviation

D. beta

2. The time necessary to acquire raw materials, turn them into finished goods, sell them, and receive payment for them is referred to as the _______ cycle.

A. cash

B. operating

C. manufacturing

D. sales

3. A theory stating that a company's stock price changes according to changes in the company's policies is known as the

A. information effect.

B. clientele effect.

C. dividend irrelevance theorem.

D. bird-in-the-hand theory.

4. The hypothesis that, with a well-functioning capital market, a firm's capital budgeting decisions are separate from its capital structure decisions is called the

A. separation principle.

B. Baumol theorem.

C. efficient market hypothesis.

D. Modigliani-Miller theorem.

4. Credit analysis relating to a borrower generally involves examining which one of the following?

A. The "five C's"

B. The "four C's"

C. The "two C's"

D. The "three C's"