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12. What will happen to retained earnings when a corporation issues 1,000 shares of $1 par stock for $10 per share?
a. It will increase by $1000
b. It will increase by $9000
c. It will decrease by $9000
d. It will remain unchanged

13. Which of the following bonds is likely to be viewed by investors as the most risky?
a. Subordinated debt
b. Indexed bond
c. Secured bond
d. Asset-back bonds

14. Which of the following statements is correct for a project with a positive NPV?
a. IRR exceeds the cost of capital
b. Accepting the project has an indeterminate effect on the shareholders
c. The discount rate exceeds the cost of capital
d. The profitability index equals one

15. If the IRR for a project is 15%, then the project's NPV would be:
a. Negative at a discount rate of 10%
b. Positive at a discount rate of 20%
c. Negative at a discount rate of 20%
d. Positive at a discount rate of 15%

16. Which of the following investment criteria does not take the time value of money into consideration?
a. Book rate of return
b. Net present value
c. Profitability
d. Internal rate of return for borrowing projects

17. Projects that are calculated as having negative NPV's should be:
a. Decpreciated over a longer time period
b. Charged less in overhead costs
c. Discounted using lower rates
d. Rejected or abandoned

18. In what manner does depreciation expense affect investment projects?
a. It reduces cash flows by the amount of the depreciation expense
b. It increases cash flows by the amount of the depreciation expense
c. It reduces taxable income by the amount of the depreciation expense
d. It reduces taxes by the amount of the depreciation expense

19. The purpose of sensitivity analysis is to show:
a. The optimal level of the capital budget
b. How price changes affect break-even volume
c. Seasonal variation in product demand
d. How variables in a project affect profitability

20. Which of the following techniques may be more appropriate to analyze projects with interrelated variables?
a. Sensitivity analysis
b. Scenario analysis
c. Break even analysis
d. DOL analysis

21. The appropriate opportunity cost of capital is the return that investors give up on alternative investments with
a. The same risk
b. The risk-free return
c. The expected return on the S&P 500 index
d. The normal, common stock risk premium

22. The major benefit of diversification is to
a. Increase the expected return
b. Remove negative risk assets from the portfolio
c. Reduce the portfolio's systematic risk
d. Reduce the expected risk

23. If you were willing to bet that the overall stock market was heading up on a sustained basis, it would be logical to invest in:
a. High beta stocks
b. Low beta stocks
c. Stocks with large amounts of unique risk
d. Stocks that plot below the security market line

24. Financial plans will rarely succeed unless the forecasts are perfect
a. True
b. False

25. Financial planning models routinely adjust for present value and risk
a. True
b. False

26. On average, stockholders in target firms earn higher returns from mergers than stockholders from acquiring firms

a. True
b. false

27. The value of the target firm's bonds go down when a leveraged buy-out is announced
a. True
b. False

28. The difference in interest rates between countries is believed to be equal to the expected change in spot exchange rates
a. True
b. False

29. History has shown a positive relationship between higher interest rates and higher subsequent rates of inflation.
a. True
b. False

30. A dividend does NOT accompany stocks that are purchased on the ex-dividend date
a. True
b. False

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https://brainmass.com/business/capital-budgeting/multiple-choice-150536

Solution Preview

12. What will happen to retained earnings when a corporation issues 1,000 shares of $1 par stock for $10 per share?
a. It will increase by $1000
b. It will increase by $9000
c. It will decrease by $9000
d. It will remain unchanged

When common stock is issued, it increases the common stock account and the additional paid in capital account, if issued above par. There is no impact on the retained earnings.
Answer d.

13. Which of the following bonds is likely to be viewed by investors as the most risky?
a. Subordinated debt
b. Indexed bond
c. Secured bond
d. Asset-back bonds

The subordinated debt will be most risky since it will be paid after the senior debt is paid.
Answer a.

14. Which of the following statements is correct for a project with a positive NPV?
a. IRR exceeds the cost of capital
b. Accepting the project has an indeterminate effect on the shareholders
c. The discount rate exceeds the cost of capital
d. The profitability index equals one

If the NPV is positive, the IRR will be higher than the cost of capital.
Answer a.

15. If the IRR for a project is 15%, then the project's NPV would be:
a. Negative at a discount rate of 10%
b. Positive at a discount rate of 20%
c. Negative at a discount rate of 20%
d. Positive at ...

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Amino acids multiple choice questions

Which statement is incorrect about the classification of amino acids?
a. Alanine and valine are neutral, nonpolar amino acids.
b. Lysine and arginine are basic amino acids.
c. Tryptophan and phenylalanine are aromatic amino acids.
d. Aspartic acid and aspargine are acidic amino acids.

Which of the following amino acids is the least water soluble at pH 7.0?
a. Tryptophan
b. Glutamic acid
c. Cysteine
d. Histidine

Which amino acid would migrate the furthest toward the anode (positive electrode) during paper electrophoresis at pH 7.0?
a. Aspartic acid
b. Alanine
c. Lysin
d. Glutamine

Which of the following functional groups, attached to an inert matrix, could function as a cation exchanger?
a. Diethylaminoethyl-
b. p-aminobenzyl-
c. Carboxymethyl-
d. Trimethylammonium-

Which of the following amino acids would make the best buffer at pH 4.5?
a. Histidine
b. Alanine
c. Glutamine
d. Aspartic acid

Which fact is incorrect about stereoisomers?
a. A diastereomer is a nonsuperimposable non-mirror image.
b. An enantiomer is a nonsuperimposible mirror image.
c. Diastereomers have different melting points.
d. Diastereomers rotate plane polarized light in equal but opposite direction.

Which statement is incorrect about L-isoleucine?
a. Its enantiomer is named O-isoleucine.
b. It contains a total of two asymmetric or chiral carbons.
c. It can also be named as (28, 38)-isoleucine using the (R,8) system.
d. Its diastereomer would be named O-alloisoleucine.

An isoelectric amino acid was dissolved in water and the resulting pH was approximately 7.6. What amino acid would possess this property?
a. Alanine
b. Glutamic acid
c. Histidine
d. Lysine

What volume of NaOH is required to adjust the solution of monosodium aspartate to pH 9.8?
a. 1 ml
b. 2 ml
c. 3 ml
d. 6 ml or more

What volume of 2 N Hel is required to completely titrate the 4 mmol of monosodium aspartate?
a. 2 ml
b. 3ml
c. Aml
d. 6 ml or more

Which statement is correct about the peptide ala-ser?
a. Alanine is at the N-terminal of the peptide.
b. There are a total six atoms that lie in the plane of the peptide bond linking alanine to serine.
c. The alpha-carbon of alanine is sp3 hybridized d All the above are correct statements.

What is the product formed from the acid hydrolysis of a simple amide?
a. Acid & base
b. Aldehyde & alcohol
c. Acid & amine
d. Ester & alcohol

The complete acid hydrolysis of the peptide ala-gln-trp-ser would yield:
a. Ala, gin, trp, ser
b. Ala, glu, ser
c. Ala, glu, trp, ser
d. Ala. ser

Fibrous proteins, such as collagen, have which of the following properties?
a. Highly soluble in water
b. Their hydrophilic residues are directed into the interior of the protein
c. Exhibit enzymatic activity
d. Serve structural roles in the cell

Quaternary structure is associated with:
a. The overall shape of a polypeptide chain
b. The sum of the secondary and tertiary interactions
c. Simple proteins with only one subunit
d. The relative orientation of one polypeptide to another polypeptide in a multi-subunit protein.

The information needed to define the structure of a protein is essentially contained in:
a. Amino acid composition
b. Amino acid sequence
c. Secondary structure
d. Tertiary structure.

Insulin is a polypeptide hormone that contains two short polypeptide chains linked by two interstrand disulfide bonds. The most logical order of events to perform in order to sequence this protein would be:
A: The peptides are reduced with mercaptoethanol.
B: The peptides are sequenced using Edman chemistry .
C: The peptides are separated by chromatography techniques. 0: The peptides are alkylated with iodoacetamide.
a. A, D,C, B b.C,A, 0, B
c. C, B, A, 0
d. A, B, C, 0

Which statement is incorrect about the peptide val-asp-trp-asn-ser?
a. This peptide would show a strong absorption band at 280 nm.
b. Reaction with chymotrypsin would yield two peptides.
c. To synthesize this peptide using the solid phase method of Merrifield, the amino acid directly attached to the resin would be serine.
d. After the second round of Edman chemistry using the reagent PITC, the PTH -amino acid residue released would be PTH-asn.

Which statement is incorrect about the reaction of the peptide ser-Iys-asp-trp-cys-metasn-phe-ala with the following reagents?
a. Reaction with cyanogens bromide would yield two peptides.
b. Reaction with trypsin would result in three peptides. The smallest of three peptides would have the highest pi of the three.
c. Reaciton with chymotrypsin would result in the peptides ser-Iys-asp & try-cys-met-Iysasn-phe-ala .
d. Reaction with chymotrypsin would yield a different set of peptides that overlap those obtained with tryspsin

Determine the amino acid sequence of the following oligopeptide from the experimental data below:
The amino acid composition is found the be ala, Iys, phe, met, cys plus some
decompsition products.
2. The peptide has a molecular weight around 700 Da and absorbs at 280 nm.
3. Treatment with carboxypeptidase results in tryptophan and a peptide.
4. CNBr treatment yields a tetrapeptide and a dipeptide.
5. Trypsine digestion produces an amino acid and a pentapeptide with met on the amino end.
6. Chymotrypsin digestion yields a dipeptide and a tetrapeptide.
a. trp-Iys-met-cys-met-ala
b. Iys-met-cys-phe-ala-trp
c. trp-ala-phe-cys-met-Iys
d. Iys-ala-cys-phe-met -trp

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