The U.S. government will pay Edie Company $2,500,000 each six months, equal to 2.5% of the $100 million face amount of the treasury bonds (5% annual coupon rate, paid in two installments each year), and will repay the $100 million at the end of five years. At the time Edie Company purchases the bonds, the market prices these bonds to yield Edie Company 6% annually (3% each six months). The bonds
are classified as held to maturity and Edie Company would classify this investment as a(n) _____on its _____ because it intends to hold the securities for _____
a. current asset; balance sheet; less than one year
b. current asset; income statement; less than one year
c. noncurrent asset; balance sheet; more than one year
d. noncurrent asset; income statement; more than one year
e. current asset; statement of cash flows; less than one year
C
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What is one manner in which new technologies have affected public relations practice?
A. New technologies have lengthened the news cycle, meaning that once something becomes news, it stays in the news for a very long time. B. New technologies have enabled public relations practitioners to communicate better with corporate lawyers, thus reducing friction between the public relations and legal functions in organizations. C. New technologies require public relations practitioners to constantly monitor the digital media environment for information—truthful or not—about their organizations. D. Despite advances in new technologies, most journalists still prefer to receive news releases via snail mail, in hard copy. E. None of the above; new technologies have had no effect on public relations practice.
The PE ratio:
A. Indicates how a stock is trading in relation to cumulative earnings over the life of the company. B. Tends to be higher for growth stocks. C. Tends to be higher for value stocks. D. Typically is less than 1.
DeRonnius has just become the new marketing analyst for a company that produces vinyl siding for homes. In an effort to forecast his firm's sales for the coming year, he needs to find where the greatest opportunities are for selling his product. DeRonnius looks at the sales for the last five years and calculates a growth trend. He then collects data from a combination of other factors, such as population density, family size, home ownership, and per capita income. Finally, DeRonnius looks at the correlation between the sales trend data and the various combinations of demographic data. DeRonnius is employing the ____ forecasting method for the sales growth trend and the ________ method for the correlation.
A. time series analysis; regression analysis B. executive judgment; regression analysis C. market tests; regression analysis D. regression analysis; time series analysis E. market tests; time series analysis
In the lending/borrowing process, a financial intermediary function is to bear the risk that the borrower will not repay
Indicate whether the statement is true or false.