1. At its most basic level, the function of financial intermediaries is to ________.
2. Which of the following is NOT an example of a financial transaction?
3. The movement of money from lender to borrower and back again is known as ________.
4. The fundamental starting point of all the accounting statements is the ________.
5. Which of the statements below is TRUE?
6. To determine the interest paid each compounding period, we take the advertised annual percentage rate and simply divide it by the ________ to get the appropriate periodic interest rate.
7. Suppose you invest $1,000 today, compounded quarterly, with the annual interest rate of 5.00%. What is your investment worth in one year?
8. Suppose you invest $2,000 today, compounded monthly, with an annual interest rate of 7.50%. What is your investment worth in one year?
9. The four steps to determining the price of a bond are:
10. Blackburn Inc. has issued 30-year $1,000 face value, 10% annual coupon bonds, with a yield to maturity of 9.0%. The annual interest payment for the bond is ________.
11. Stocks are different from bonds because ________.
12. Stocks differ from bonds because:
13. Bonds are different from stocks because ________.
14. Jarvis bought a share of stock for $15.75 that paid a dividend of $.45 and sold three months later for $18.65. What was his dollar profit or loss and holding period return?
15. Amy bought a share of stock for $64.50 that paid a dividend of $.50 and sold nine months later for $64.00. What was her dollar profit or loss and holding period return?
16. ________ is at the heart of corporate finance, because it is concerned with making the best choices about project selection.
17. The ________ model is usually considered the best of the capital budgeting decision-making models.
18. A major metric of a company’s health and its prospects for a long life is how much ________ it can generate.
19. Most businesses fail because their ________ dries up.
20. The ________ are critical to business decisions, business growth, and ultimately business success.
21. There are two primary tools used to forecast and set in action a company plan. Which of the tools below is one of these?
22. As with a lot of planning, the financial forecast begins with ________ estimates and ________ schedules.
23. The ________ starts at the time production begins and ends with the collection of cash from the sale of the product.
24. The ________ begins at the time a firm first starts to make a product and lasts until the time the customer buys the product.
25. Which of the statements below is FALSE?