FINC 3331 EXAM 2
You want to buy a house, and a mortgage company will lend you $205,000. The loan would be fully amortized over 20 years (240 months), and the nominal interest rate would be fixed at 6.5 percent, compounded monthly. What would be the monthly mortgage payment?
$1,528.42
What is the present value of an ordinary annuity that pays $2,400 per year for 5 years, assuming the annual discount rate is 5 percent?
$10,390.74
If you deposit $10,000 in an account that pays 9 percent annually, how much would you have after 6 years?
$16,771.00
What is the future value of an ordinary annuity that pays $1,400 per year for 10 years? The appropriate interest rate is 4 percent.
$16,808.55
Suppose you invest $1,900 today in an account that earns a nominal annual rate (i nom) of 16 percent, with interest compounded semiannually. How much money will you have after 12 years?
$12,048.24
What is the present value of a security that will pay $17,000 in 5 years if securities of equal risk pay 5 percent annually?
$13,319.94
Hansen's Auto Supply has $1,515,500 in current assets and $585,000 in current liabilities. Its initial inventory level is $425,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can its short-term debt (notes payable) increase without pushing its current ratio below 2.3?
$130,769 Solve for △NP: (CA + △NP) / (CL + △NP) = 2.3
What is the present value of an ordinary annuity that pays $4,000 per year for 5 years, assuming the annual discount rate is 9 percent?
$15,558.61
You want to buy a house, and a mortgage company will lend you $215,000. The loan would be fully amortized over 20 years (240 months), and the nominal interest rate would be fixed at 9.75 percent, compounded monthly. What would be the monthly mortgage payment?
$2,039.31
You want to buy a house, and a mortgage company will lend you $260,000. The loan would be fully amortized over 30 years (360 months), and the nominal interest rate would be fixed at 9 percent, compounded monthly. What would be the monthly mortgage payment?
$2,092.02
An investment will pay $500 at the end of each of the next 4 years, $700 at the end of Year 5, and $900 at the end of Year 6. What is its present value if other investments of equal risk earn 11 percent annually?
$2,447.82
An investment will pay $700 at the end of each of the next 3 years, $800 at the end of Year 4, and $900 at the end of Year 5. What is its present value if other investments of equal risk earn 11 percent annually?
$2,771.69
Suppose you invest $3,700 today in an account that earns a nominal annual rate (i nom) of 16 percent, with interest compounded semiannually. How much money will you have after 11 years?
$20,115.20
Sheffield's Furniture has $1,386,500 in current assets and $635,000 in current liabilities. Its initial inventory level is $460,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can its short-term debt (notes payable) increase without pushing its current ratio below 1.9?
$200,000 Solve for △NP: (CA + △NP) / (CL + △NP) = 1.9
Suppose you invest $4,100 today in an account that earns a nominal annual rate (i nom) of 16 percent, with interest compounded semiannually. How much money will you have after 12 years?
$25,998.84
What is the future value of an ordinary annuity that pays $3,400 per year for 6 years? The appropriate interest rate is 11 percent.
$26,903.72
If you deposit $15,000 in an account that pays 9.5 percent annually, how much would you have after 7 years?
$28,313.27
You are given the following information about a company: Shareholders' equity (from balance sheet) $1,369,000 Price / earnings ratio 7.1 Common shares outstanding 78,000 Market / book ratio 1.6 Calculate the price of a share of the company's common stock.
$28.08 M/B = price/BVPS BVPS = equity / #shares
The Venetian Corporation recently reported net income of $3,000,000. It has 1,500,000 shares of common stock, which currently trades at $30 a share. Venetian continues to expand and expects that 1 year from now its net income will be $3,750,000. Over the next year it also anticipates issuing an additional 450,000 shares of stock, so that 1 year from now it will have 1,950,000 shares of common stock. Assuming its price/earnings ratio remains at its current level, what will be its stock price 1 year from now?
$28.85
What is the present value of a perpetuity that pays $2,500 per year if the discount rate is 8.5 percent?
$29,411.76
What is the present value of an annuity due that pays $800 per year for 5 years, assuming the annual discount rate is 5 percent?
$3,636.76
If you deposit $20,000 in an account that pays 5 percent annually, how much would you have after 10 years?
$32,577.89
What is the present value of a perpetuity that pays $3,900 per year if the discount rate is 11 percent?
$35,454.55
Your client is 45 years old, and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $8,000 per year, and you advise her to invest it in securities which you expect to provide an average annual return of 8 percent. If she follows your advice, how much money would she have at age 65?
$366,095.71
What is the future value of an ordinary annuity that pays $3,000 per year for 9 years? The appropriate interest rate is 8 percent.
$37,462.67
Riley Brothers has a DSO of 31 days, and its annual sales are $4,600,000. What is its accounts receivable balance? Assume it uses a 365-day year.
$390,685
An investment will pay $1,000 at the end of each of the next 4 years, $900 at the end of Year 5, and $700 at the end of Year 6. What is its present value if other investments of equal risk earn 9 percent annually?
$4,242.05
Beckwith Sisters has a DSO of 37 days, and its annual sales are $4,100,000. What is its accounts receivable balance? Assume it uses a 365-day year.
$415,616 DSO = A/R / avg. daily sales ADS = annual sales / 365
Hansen's Auto Supply has $1,021,000 in current assets and $420,000 in current liabilities. Its initial inventory level is $390,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can its short-term debt (notes payable) increase without pushing its current ratio below 2.3?
$42,308
The Bellagio Corporation recently reported net income of $3,000,000. It has 300,000 shares of common stock, which currently trades at $55 a share. Bellagio continues to expand and expects that 1 year from now its net income will be $3,750,000. Over the next year it also anticipates issuing an additional 60,000 shares of stock, so that 1 year from now it will have 360,000 shares of common stock. Assuming its price/earnings ratio remains at its current level, what will be its stock price 1 year from now?
$57.29 Solve for price: P/E = price / EPS
Beckwith Brothers has a DSO of 43 days, and its annual sales are $5,200,000. What is its accounts receivable balance? Assume it uses a 365-day year.
$612,603 DSO = A/R / avg. daily sales ADS = annual sales / 365
The Bellagio Corporation recently reported net income of $2,000,000. It has 250,000 shares of common stock, which currently trades at $60 a share. Bellagio continues to expand and expects that 1 year from now its net income will be $2,500,000. Over the next year it also anticipates issuing an additional 50,000 shares of stock, so that 1 year from now it will have 300,000 shares of common stock. Assuming its price/earnings ratio remains at its current level, what will be its stock price 1 year from now?
$62.50 Solve for price: P/E = price / EPS
Your client is 35 years old, and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $9,000 per year, and you advise her to invest it in securities which you expect to provide an average annual return of 6 percent. If she follows your advice, how much money would she have at age 65?
$711,523.68
Your client is 25 years old, and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $3,500 per year, and you advise her to invest it in securities which you expect to provide an average annual return of 6 percent. If she follows your advice, how much money would she have at age 70?
$744,602.30
What is the present value of a security that will pay $14,000 in 10 years if securities of equal risk pay 4 percent annually?
$9,457.90
Consider the following financial data for Lexi's Music Stores: Statement of Financial Position as of December 31, 2012...Calculate Lexi's total asset turnover.
.87
Consider the following financial data for Steve's Music Stores: *insert long statements* Calculate Steve's total asset turnover.
0.58 TATO = sales / TA
Consider the following financial data for Steve's Home Accessories: Calculate Steve's total asset turnover.
0.59 TATO = sales / TA
Consider the following financial data for Mary's Music Stores: Calculate Mary's return on assets (ROA).
0.85% ROA = NI / TA
A firm has a profit margin of 2.5 percent and an equity multiplier of 2.2. Its sales are $180 million and it has total assets of $60 million. What is its return on equity (ROE)?
16.50%
Concrete Constructors has a return on assets (ROA) of 7 percent, a 2 percent profit margin, and a return on equity (ROE) of 9 percent. What is its equity multiplier?
1.29 ROE = ROA x EM EM = ROE / ROA
Bill plans to retire in 20 years. He currently has saved up $100,000, and he believes he will need $1,000,000 at retirement. What annual interest rate must Bill earn to reach his goal, assuming he does not save any additional funds between now and retirement?
12.20%
If you deposit money today in an account that pays 5.6 percent annual interest, how long will it take to double your money?
12.72 years
A firm has a profit margin of 2.25 percent and an equity multiplier of 2.2. Its sales are $150 million and it has total assets of $50 million. What is its return on equity (ROE)?
14.85% ROE = PM x TATO x EM TATO = sales / TA
If you deposit money today in an account that pays 4.3 percent annual interest, how long will it take to double your money?
16.46 years
Raleigh Racers has $12 billion in total assets. Its balance sheet shows $2 billion in current liabilities, $3 billion in long-term debt, and $7 billion in common equity. It has 750 million shares of common stock outstanding, and its stock price is $25 per share. What is Raleigh's market-to-book ratio?
2.68
Consider the following financial data for Steve's Computer Stores: Statement of Financial Position as of December 31, 2012...Calculate Steve's return on assets (ROA).
2.88%
You have $2,478.42 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every year until your account totals $400,000. You expect to earn 12 percent annually on the account. How long will it take to reach your goal?
22 years
Mooney's Autos has an equity multiplier of 1.3, and its assets are financed with only long-term debt and common equity. What is its debt-to-capital ratio?
23.1% D/C = 1 - (1/EM)
Mooney's Pictures has an equity multiplier of 1.4, and its assets are financed with only long-term debt and common equity. What is its debt-to-capital ratio?
28.6% D/C = 1 - (1/EM)
What is the present value of a security that will pay $20,000 in 20 years if securities of equal risk pay 6 percent annually?
3.33%
Raleigh Racers has $12 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $8 billion in common equity. It has 950 million shares of common stock outstanding, and its stock price is $30 per share. What is Raleigh's market-to-book ratio?
3.56 M/B = price/BVPS BVPS = equity / #shares
Assume you are given the following relationships for the Rainboldt Corporation: Sales / Total assets 1.4× Return on assets (ROA) 5.15% Return on equity (ROE) 6.40% Calculate Rainboldt's profit margin.
3.68% PM = ROA / TATO
Assume you are given the following relationships for the Rainboldt Corporation: Sales / Total assets 1.4× Return on assets (ROA) 5.40% Return on equity (ROE) 6.90% Calculate Rainboldt's profit margin.
3.86%
Helen recently received a credit card with a nominal interest rate of 21 percent. With the card, she purchased some new clothes for $350. The minimum payment on the card is only $15 per month. If Helen makes the minimum monthly payment and makes no other charges, how long will it be before she pays off the card?
30.3 months
Mary recently received a credit card with a nominal interest rate of 22 percent. With the card, she purchased some new clothes for $250. The minimum payment on the card is only $10 per month. If Mary makes the minimum monthly payment and makes no other charges, how long will it be before she pays off the card?
33.7 months
The real risk-free rate is 1 percent, and inflation is expected to be 2 percent next year and 4 percent for the following 5 years. Assume that the maturity risk premium is zero. What is the yield on 4-year Treasury securities?
4.50%
Consider the following financial data for Tom's Home Accessories: *insert long statements* Calculate Tom's return on assets (ROA).
4.83% ROA = NI / TA
Assume you are given the following relationships for the Rainboldt Corporation: Sales / Total assets 1.7× Return on assets (ROA) 3.70% Return on equity (ROE) 6.95% Calculate Rainboldt's debt-to-capital ratio, assuming it uses only debt and common equity financing.
46.76% EM = ROE / ROA D/C = 1 - (1/EM)
You borrow $70,000 and must make annual loan payments of $6,743.97 for 15 years, starting at the end of the year. What interest rate are you being charged?
5%
Consider the following financial data for Mary's Computer Stores: Statement of Financial Position as of December 31, 2012...Calculate Mary's average collection period for accounts receivable.
54.4 days
Ware's Autos has an equity multiplier of 2.2, and its assets are financed with only long-term debt and common equity. What is its debt-to-capital ratio?
54.5%
You borrow $80,000 and must make annual loan payments of $6,974.77 for 20 years, starting at the end of the year. What interest rate are you being charged?
6%
Bill plans to retire in 18 years. He currently has saved up $350,000, and he believes he will need $1,000,000 at retirement. What annual interest rate must Bill earn to reach his goal, assuming he does not save any additional funds between now and retirement?
6.01%
Consider the following financial data for Tom's Pool Supply: Calculate Tom's days sales outstanding.
64.1 days DSO = A/R / avg. daily sales ADS = annual sales / 365
Helen recently received a credit card with a nominal interest rate of 16 percent. With the card, she purchased some new clothes for $450. The minimum payment on the card is only $10 per month. If Helen makes the minimum monthly payment and makes no other charges, how long will it be before she pays off the card?
69.2 months
You have $39,722.09 in a brokerage account, and you plan to deposit an additional $2,500 at the end of every year until your account totals $100,000. You expect to earn 9.8 percent annually on the account. How long will it take to reach your goal?
7 years
The real risk-free rate is 3 percent. Inflation is expected to be 2.5 percent this year, 3.5 percent next year, and 4 percent thereafter. The maturity risk premium is estimated to be 0.13 ´ ( t - 1)%, where t is the number of years to maturity. What is the yield on a 9-year Treasury note?
7.82%
If you deposit money today in an account that pays 8.8 percent annual interest, how long will it take to double your money?
8.22 years
You have $26,882.80 in a brokerage account, and you plan to deposit an additional $3,500 at the end of every year until your account totals $100,000. You expect to earn 8.4 percent annually on the account. How long will it take to reach your goal?
9 yrs
The real risk-free rate is 4 percent. Inflation is expected to be 4 percent this year, 4.5 percent next year, and 5.5 percent thereafter. The maturity risk premium is estimated to be 0.07 ´ ( t - 1)%, where t is the number of years to maturity. What is the yield on a 10-year Treasury note?
9.88%
Consider the following financial data for Steve's Home Accessories: *insert long statements* Calculate Steve's days sales outstanding.
90.0 days DSO = A/R / avg. daily sales ADS = annual sales / 365
All other things being equal, which of the following would decrease the current ratio?
Current operating expenses are paid.
Why is ratio analysis useful?
It is a way of standardizing numbers and can facilitate comparisons between firms.
All other things being equal, which of the following would cause interest rates to rise?
The Federal Reserve contracts the money supply.
All other things being equal, which of the following would decrease the current ratio?
The estimated taxes payable are increased.
All other things being equal, which of the following would cause interest rates to rise?
The federal government's budget deficit increases.
All other things being equal, which of the following would increase the current ratio?
a fixed asset sold for less than book value
Your client is 25 years old, and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $2,000 per year, and you advise her to invest it in securities which you expect to provide an average annual return of 9 percent. If she follows your advice, how much money would she have at age 70? a. $1,051,717.47 b. $98,100.00 c. $1,146,372.04 d. $96,654.57 e. $4,349,455.75
a. $1,051,717.47
An investment will pay $600 at the end of each of the next 2 years, $700 at the end of Year 3, and $1,000 at the end of Year 4. What is its present value if other investments of equal risk earn 6 percent annually? a. $2,479.86 b. $1,821.82 c. $1,913.83 d. $2,735.85 e. $2,297.07
a. $2,479.86
What is the future value of an ordinary annuity that pays $1,300 per year for 5 years? The appropriate interest rate is 6 percent. a. $7,328.22 b. $6,890.00 c. $8,698.47 d. $7,767.91 e. $1,739.69
a. $7,328.22
The real risk-free rate is 3 percent. Inflation is expected to be 3.5 percent this year, 4.5 percent next year, and 5 percent thereafter. The maturity risk premium is estimated to be 0.14 ´ ( t - 1)%, where t is the number of years to maturity. What is the yield on a 6-year Treasury note? a. 8.37% b. 7.67% c. 8.70% d. 0.84% e. 7.20%
a. 8.37%
If you deposit money today in an account that pays 7.3 percent annual interest, how long will it take to double your money? a. 9.84 years b. 7.30 years c. 13.70 years d. 3.94 years e. The answer cannot be calculated without knowing how much money is initially deposited.
a. 9.84 years
Which of the following is true about the quick ratio?
a. It is a liquidity ratio. b. It cannot exceed the current ratio. c. It is also called the acid-test ratio. d. It measures the ability of the firm to pay off its short-term obligations without relying on inventory. e. All of the above answers are correct. Answer: E
Which of the following statements is correct?
a. The higher the interest rate on its debt, the lower a firm's BEP ratio will be, other things held constant. b. The higher its tax rate, the lower a firm's BEP ratio will be, other things held constant. c. The higher its debt ratio, the lower a firm's BEP ratio will be, other things held constant. d. If a firm's expected basic earning power (BEP) is constant for all of its assets and exceeds the interest rate on its debt, then adding assets and financing them with debt will raise the firm's expected return on common equity (ROE). Answer: D
Which of the following is correct?
a. The year-end balance in the inventories account reliably and accurately represents the average level of inventories for the entire year. b. Ratio analysis is very useful because it allows us to accurately compare two firms in completely different industries. c. The firm should always strive to keep its current ratio as high as possible. d. Ratios can be artificially manipulated with "window dressing" techniques. Answer: D
What is the present value of a perpetuity that pays $3,800 per year if the discount rate is 7.5 percent? a. $70,426.67 b. $50,666.67 c. $3,534.88 d. ¥ (Infinity) e. $39,013.33
b. $50,666.67
If you deposit money today in an account that pays 7.1 percent annual interest, how long will it take to double your money? a. 7.10 years b. 10.11 years c. 14.08 years d. 16.17 years e. The answer cannot be calculated without knowing how much money is initially deposited.
b. 10.11 years
You borrow $70,000 and must make annual loan payments of $6,743.97 for 15 years, starting at the end of the year. What interest rate are you being charged? a. 4% b. 5% c. 7% d. 8% e. 6%
b. 5%
What is the present value of a security that will pay $20,000 in 15 years if securities of equal risk pay 4 percent annually? a. $8,000.00 b. $14,485.28 c. $11,105.29 d. $19,230.77 e. $36,018.87
c. $11,105.29
If you deposit $10,000 in an account that pays 9 percent annually, how much would you have after 6 years? a. $15,400.00 b. $10,900.00 c. $16,771.00 d. $5,962.67 e. $15,416.80
c. $16,771.00
Suppose you invest $4,200 today in an account that earns a nominal annual rate (i nom) of 16 percent, with interest compounded semiannually. How much money will you have after 9 years? a. $60,742.56 b. $43,848.00 c. $16,783.28 d. $8,395.82 e. $15,972.44
c. $16,783.28
An investment will pay $900 at the end of each of the next 2 years, $700 at the end of Year 3, and $600 at the end of Year 4. What is its present value if other investments of equal risk earn 7 percent annually? a. $2,897.20 b. $1,678.37 c. $2,656.36 d. $2,364.98 e. $1,815.24
c. $2,656.36
If you deposit $15,000 in an account that pays 3.5 percent annually, how much would you have after 11 years? a. $10,274.19 b. $20,775.00 c. $21,899.55 d. $26,039.27 e. $15,525.00
c. $21,899.55
You have $11,422.98 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every year until your account totals $450,000. You expect to earn 10 percent annually on the account. How long will it take to reach your goal? a. 24 years b. 25 years c. 22 years d. 26 years e. 23 years
c. 22 years
The real risk-free rate is 4 percent, and inflation is expected to be 2 percent next year and 5 percent for the following 4 years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities? a. 9.00% b. 11.00% c. 7.50% d. 6.00% e. 4.00%
c. 7.50%
What is the present value of a security that will pay $5,000 in 25 years if securities of equal risk pay 5 percent annually? a. $16,931.77 b. $1,250.00 c. $4,761.90 d. $1,476.51 e. $3,484.90
d. $1,476.51
Your client is 25 years old, and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $9,500 per year, and you advise her to invest it in securities which you expect to provide an average annual return of 6 percent. If she follows your advice, how much money would she have at age 70? a. $130,763.80 b. $5,884,371.13 c. $2,142,327.18 d. $2,021,063.38 e. $453,150.00
d. $2,021,063.38
Zack plans to retire in 24 years. He currently has saved up $350,000, and he believes he will need $1,000,000 at retirement. What annual interest rate must Zack earn to reach his goal, assuming he does not save any additional funds between now and retirement? a. 2.71% b. 7.74% c. 35.00% d. 4.47% e. 1.46%
d. 4.47%
Helen recently received a credit card with a nominal interest rate of 20 percent. With the card, she purchased some new clothes for $475. The minimum payment on the card is only $15 per month. If Helen makes the minimum monthly payment and makes no other charges, how long will it be before she pays off the card? a. 29.5 months b. The card will never be paid off. c. 56.7 months d. 45.4 months e. 22.1 months
d. 45.4 months
You want to buy a house, and a mortgage company will lend you $215,000. The loan would be fully amortized over 20 years (240 months), and the nominal interest rate would be fixed at 6.25 percent, compounded monthly. What would be the monthly mortgage payment? a. $2,514.39 b. $13,437.51 c. $11,347.56 d. $19,126.89 e. $1,571.50
e. $1,571.50
Suppose you invest $4,200 today in an account that earns a nominal annual rate (i nom) of 12 percent, with interest compounded monthly. How much money will you have after 10 years? a. $13,044.56 b. $3,383,857,071.05 c. $47,040.00 d. $4,639.41 e. $13,861.62
e. $13,861.62
What is the present value of an ordinary annuity that pays $700 per year for 10 years, assuming the annual discount rate is 8 percent? a. $324.24 b. $3,242.35 c. $6,481.48 d. $5,072.82 e. $4,697.06
e. $4,697.06
What is the present value of an ordinary annuity that pays $1,800 per year for 4 years, assuming the annual discount rate is 8 percent? a. $1,323.05 b. $5,292.21 c. $6,666.67 d. $6,438.77 e. $5,961.83
e. $5,961.83
You borrow $90,000 and must make annual loan payments of $12,515.88 for 15 years, starting at the end of the year. What interest rate are you being charged? a. 10% b. 12% c. 9% d. 8% e. 11%
e. 11%
You have $18,399.00 in a brokerage account, and you plan to deposit an additional $6,500 at the end of every year until your account totals $300,000. You expect to earn 10.6 percent annually on the account. How long will it take to reach your goal? a. 18 years b. 16 years c. 17 years d. 19 years e. 15 years
e. 15 years
Helen recently received a credit card with a nominal interest rate of 19 percent. With the card, she purchased some new clothes for $400. The minimum payment on the card is only $20 per month. If Helen makes the minimum monthly payment and makes no other charges, how long will it be before she pays off the card? a. 33.9 months b. 13.6 months c. The card will never be paid off. d. 19.4 months e. 24.2 months
e. 24.2 months
Mike plans to retire in 24 years. He currently has saved up $350,000, and he believes he will need $1,000,000 at retirement. What annual interest rate must Mike earn to reach his goal, assuming he does not save any additional funds between now and retirement? a. 35.00% b. 1.46% c. 2.71% d. 7.74% e. 4.47%
e. 4.47%
The real risk-free rate is 2 percent, and inflation is expected to be 4 percent next year and 3 percent for the following 6 years. Assume that the maturity risk premium is zero. What is the yield on 4-year Treasury securities? a. 2.00% b. 9.00% c. 5.00% d. 6.00% e. 5.25%
e. 5.25%
The real risk-free rate is 1.5 percent. Inflation is expected to be 3.5 percent this year, 4 percent next year, and 5 percent thereafter. The maturity risk premium is estimated to be 0.06 ´ ( t - 1)%, where t is the number of years to maturity. What is the yield on a 6-year Treasury note? a. 6.08% b. 6.80% c. 0.36% d. 5.30% e. 6.38%
e. 6.38%
If a firm's ROE is low and management wants to improve it, the increased use of debt could help, most directly through its effect on the
equity multiplier
The inventory turnover ratio would be most important when analyzing a(n)...
grocery store.
As a fixed-rate, amortized loan is paid off over time...
more and more of each payment goes toward reducing principal, while less and less goes toward interest.
A savings and loan institution that (i) obtains most of its capital from short-term deposits that are withdrawable on demand, and (ii) uses those funds to make long-term fixed-interest-rate mortgage loans, would be most profitable if the yield curve were...
normal.
Consider the following financial data for Smith Corp.: Statement of Financial Position as of December 31, 2018...Compared to its peers, Smith...
obtains less of its capital from equity financing.
Consider the following financial data for Nguyen Enterprises: Balance Sheet as of December 31, 2019...Compared to its competitors, Nguyen.
uses more financial leverage.