The Dodd-Frank Act of 2010:
a. requires that lenders ensure borrowers will repay their mortgage loans.
b. prohibits unfair and deceptive lending practices, although subprime mortgages are excluded from the scope of the Act.
c. expands protection for borrowers of high-cost mortgage loans.
d. requires that lenders disclose the minimum amount a consumer could pay on a variable rate mortgage.
c
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What is an advantage of a qualified plan in retirement benefits?
A. a retirement plan that provides benefits exclusively to its owners and top managers B. immediate tax deductions for the funds employees contribute to the plan C. exemption of contribution from employees D. tax-free withdrawals for highly compensated employees E. taxable earnings on the money in the retirement fund
Merry Company uses the cash basis of accounting. Merry Company made $600,000 in payments to its suppliers during the year. Merry's beginning inventory was $20,000, and its ending inventory was $35,000. In addition, Merry had a beginning accounts payable of $40,000 and an ending accounts payable of $70,000. What is Merry's cost of goods sold under the accrual basis of accounting?
A) $585,000 B) $600,000 C) $615,000 D) $625,000
The group that provides raw materials or resources that the project team needs to complete the project is:
A) Suppliers. B) Intervenor groups. C) Top management. D) Functional managers.
Which of the following statements is CORRECT? Assume that the firm is a publicly-owned corporation and is seeking to maximize shareholder wealth.
A. If a firm has a beta that is less than 1.0, say 0.9, this would suggest that the expected returns on its assets are negatively correlated with the returns on most other firms' assets. B. If a firm's managers want to maximize the value of the stock, they should, in theory, concentrate on project risk as measured by the standard deviation of the project's expected future cash flows. C. If a firm evaluates all projects using the same cost of capital, and the CAPM is used to help determine that cost, then its risk as measured by beta will probably decline over time. D. Projects with above-average risk typically have higher-than-average expected returns. Therefore, to maximize a firm's intrinsic value, its managers should favor high-beta projects over those with lower betas. E. Project A has a standard deviation of expected returns of 20%, while Project B's standard deviation is only 10%. A's returns are negatively correlated with both the firm's other assets and the returns on most stocks in the economy, while B's returns are positively correlated. Therefore, Project A is less risky to a firm and should be evaluated with a lower cost of capital.