Strayer FIN 100 FINAL EXAM Set

• Question 1 When the amount earned on a deposit has become part of the principal at the end of a specified time period the concept is called • Question 2 When compounding more than once a year, the true opportunity costs measure of the interest rate is indicated by the: • Question 3 The future value of a dollar ________ as the interest rate increases and ________ the farther in the future an initial deposit is to be received. • Question 4 For positive interest rates, the present value interest factor is • Question 5 The future value of $200 received today and deposited at 8 percent for three years is • Question 6 A current yield on a corporate bond is calculated as: • Question 7 A bond’s value is the same as its principal amount when the coupon rate is: • Question 8 A bond that can be changed into a specified number of shares of the issuer’s common stock is called a: • Question 9 To accurately compare the rate of return on one investment with another, they should be: • Question 10 An individual or organization that represents the bondholders to ensure the indenture’s provisions are respected by the bond issuer is called a (n): • Question 11 If the value of the securities that you borrowed money from your broker to purchase falls, you may receive a: • Question 12 The maximum buying price or the minimum selling price specified by the investor is called a: • Question 13 The regulation of new security sales by individual states is referred to as: • Question 14 An over-the-counter market trade occurs in the: • Question 15 A stop-loss order:• Question 16 Which one of the following is not considered to be a generally recognized type of market efficiency? • Question 17 The linear relation between the returns on a stock and the returns on the market portfolio is called the: • Question 18 Variations in a firm’s tax rate and tax-related charges over time due to changing tax laws and regulations is called: • Question 19 Variations in operating income over time because of variations in unit sales, price, cost margins, and/or fixed expenses are called:• Question 20 The Security Market Line describes the relationship between the: • Question 21 The actual disbursement of cash is recorded in which of the following financial statements? • Question 22 For corporations, the principal-agent relationship usually refers to the relationship between: • Question 23 A business organization that receives the limited liability of a corporation but is taxed as a proprietorship or partnership is called a: • Question 24 Of the following forms of business organization, which have stockholders with limited liability? • Question 25 If a firm issues 10,000 shares of common stock with a par value of $5 and for a sales price of $15, what amount would be recorded in the paid-in capital account?