Which one of the following situations reflects a weak internal control system?
a. All employees are well supervised.
b. A single employee is responsible for comparing a receiving report to an invoice.
c. All employees must take their vacations.
d. A single employee is responsible for collecting and recording of cash.
d
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When will the payback method be useful as a quick approximation of the discounted cash flow methods?
a. When cash flows are round figures b. When cash flows follow similar patterns c. When cash flows are of small amounts d. When cash flows are recovered in a period of 5 years
You should not use a pocket calendar to keep track of your commitments as they are out dated and no longer used in the workplace.
Answer the following statement true (T) or false (F)
Return on equity is driven by (1 ) the spread between the operating return on assets and the interest
rate, and (2 ) changes in the debt ratio. Indicate whether the statement is true or false
A tree is constructed to value an option on an index which is currently worth 100 and has a volatility of 25%. The index provides a dividend yield of 2%
Another tree is constructed to value an option on a non-dividend-paying stock which is currently worth 100 and has a volatility of 25%. Which of the following are true? A. The parameters p and u are the same for both trees B. The parameter p is the same for both trees but u is not C. The parameter u is the same for both trees but p is not D. None of the above