The process in which the principal amount of a security is repaid gradually over time is referred to as
A. securitization.
B. depreciation.
C. amortization.
D. discounting.
Answer: C
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Explain how wholesalers have been able to use technology to cut costs
What will be an ideal response?
Which of the following statements is CORRECT?
A. The use of debt financing will tend to lower the basic earning power ratio, other things held constant. B. A firm that employs financial leverage will have a higher equity multiplier than an otherwise identical firm that has no debt in its capital structure. C. If two firms have identical sales, interest rates paid, operating costs, and assets, but differ in the way they are financed, the firm with less debt will generally have the higher expected ROE. D. The numerator used in the TIE ratio is earnings before taxes (EBT). EBT is used because interest is paid with post-tax dollars, so the firm's ability to pay current interest is affected by taxes. E. Other things held constant, increasing the total debt to total capital ratio will increase the ROA.
Coverall Paints agrees to sell Grade A-1 latex outdoor paint to Dropcloth Painters to be delivered May 8. On May 7, Coverall tenders Grade B-2 paint, which Dropcloth. rejects. Two days later, Coverall tenders Grade C-3 paint with an offer of a price allowance. Coverall has
A. additional, unlimited time to cure. B. a reasonable, additional time to cure. C. one more day to cure. D. no more time to cure.
A firm is considering four projects with the following PIs, NPVs, and Costs
Project A: PI of 1.3, NPV of $3,600, and cost of $12,000; Project B: PI of 1.4, NPV of $5,600, and cost of $14,000; Project C: PI of 1.5, NPV of $5,000, and cost of $10,000; Project D: PI of 2.1, NPV of $8,800, and cost of $8,000. Rank the projects from best to worst in terms of their NPVs. Now rank the projects from best to worst in terms of their PIs. What will be an ideal response?