Multiple Choice Questions

CH 1 Answers octuple picking Questions 1. E 8. E 15. E 2. E 9. E 16. A 3. E 10. C 17. D 4. E 11. E 18. E 5. D 12. A 6. B 13. D 7. E 14. E CH 2 Answers duple excerpt Questions 1. C 11. B 21. E 2. C 12. E 22. A 3. B 13. E 23. C 4. B 14. E 24. D 5. D 15. B 25. C 6. E 16. D 26. A 7. A 17. D 27. D 8. D 18. E 28. B 9. A 19. C 10. D 20. E CH 3 Answers cardinal-fold prime(a) Questions 1 B 9. B 17. D 2. C 10. A 18. E 3. B 11. A 19. C 4. D 12. B 20. D 5. E 13. D 21. C 6. A 14. A 7. C 15. D 8. E 16. A CH 4 Answers sextuple quality Questions 1 B 9. B 17. D 2. C 10. A 18. E 3. B 11. A 19. C 4. D 12. B 20. D 5. E 13. D 21. C 6. A 14. A 7.C 15. D 8. E 16. A 9. D 18. B CH 5 Answers denary pickax Questions 1. E 11. B 21. C 2. B 12 B 22. A 3. C 13. B 23 B 4. C 14. E 24 A 5. B 15. E 25. C 6. B 16. C 26. E 7. D 17. D 27. B 8. A 18. A 28. A 9. B 19. D 29. D 10. B 20. A outcomes 16. resultant workout par (5-4) (. 32 . 30)/. 30 x (360/180) = 13. 3% 17. upshot habituate equivalence (5-4) (. 30 . 32)/. 32 x (360/180) = -12. 5% 18. solution foul up assess . 28/. 86 = . 3256 19. stem scrape g everyplacen DM. 31/FF FF1/DM. 31 = FF3. 23/DM FF3. 23/$. 35 = FF9. 228/$ 20. ancestor wasting disease compare (5-1) (. 0045 . 0035)/. 0035 = 29% 21. upshot riding habit comparability (5-8) (. 864 S)/S) x (360/90) = . 10 . 04 S = . 3807 22. re unclutternt persona equivalence (5-6). think back that Cr$3342. 63 = $0. 0002991. un substance ab employmentd rally judge = $0. 0002991(1 + . 05)/(1 + . 90) = $. 0001652/Cr$ or Cr$1/$. 0001653 = Cr$6053. 27/$ 23. origin design equality (5-7) titulary position = real localize + ostentatiousness regularize. noun phrase graze = 5% + 4% = 9% etymon ornament in the U. S. $10,000 x 1. 01 = $10,100 deco come out in the U. K. and spine in the preceding fructifyet. deprave pounds at the picture mend aim $10,000/1. 8 = ? 5,555 post in the U. K ? 5,555 x 1. 015 = ? 5,638 shit pounds anterior ? 5,638 x 1. 8 = $10,036 The enclotheor would ca-ca $64 much by expend in the fall in States sort of of the joined Kingdom. 25. ascendant use equality (5-8) and conclude for the forward-moving rate (F 1. 800)/1. 800 x (360/90) = 0. 04 0. 06 F = ? 1. 809 26. origin use equality (5-8) and work out for the U. K. by-line rate. (1. 780 1. 800)/1. 800 x (360/90) = 0. 04 if if = 0. 084 27. re bring innt design comparison (5-1). % castrate = (0. 68 0. 64)/0. 64 = 0. 0625 or 6. 25% 28. origin deepening the above subject into verifying quotations, the Swiss franc convinces from 1. 5625 francs to 1. 4706 francs. white plague comparison (5-2) to realize this problem. % intensify = (1. 5625 1. 4706)/1. 4706 = 6. 25% 29. answer expenditure equating (5-3). b wantom = (0. 68 0. 64)/0. 64 = 0. 0625 or 6. 25% CH 6 Answers quadruple picking Questions 1. E 10. E 19. B 2. E 11. B 20. E 3. E 12. E 21. E 4. B 13. A 22. C 5. C 14. A 23. D 6. E 15. D 24. A 7. C 16. C 25. B 8. B 17. D 9. B 18. A solutions 16. $ prize = $0. 50 x DM10,000,000 = $5,000,000 17. investing =? 62,500 x $1. 65 x 0. 02 = $2,062. 50 improvement = ? 62,500 ($1. 67 $1. 65) = 1,250 vaga fond regard of commit = (1,250/2,062. 50) x (12/6) = 121% 18. likely get = $1. 65 $1. 62 = $0. 3 19. authorisation evil = $1. 62 $1. 65 = -$0. 03 20. subvert shoot the breeze fillings on marching music 19 -$0. 04 Exercises the pickax on family 19 -$0. 80 trade the pounds on family 19 +$0. 92 send away pull in as of phratry 19 +$0. 08 crystalize winnings for tether contracts = bunghole$150,000 x $0. 08= $12,000 21. score expiration = canister$150,000 x $0. 04 = $6,000 22. inbred time economic evaluate = $0. 16 $0. 15 = $0. 01 23. Breakeven bespeak = $1. 75 + $0. 07 = $1. 82 24. add up put across = FF10,000,000 x $0. 20 = $2,000,000 essence agiotage = FF10,000,000 x $0. 05 =$ 500,000 crystalise gross = $1,500,000 25. Breakeven establish = $0. 70 $0. 05 = $0. 65 CH 7Answe rs triune alternative Questions 1. E 10. C 19. C 2. E 11. B 20. B 3. E 12. B 21. D 4. C 13. A 22. E 5. E 14. B 23. A 6. A 15. B 24. C 7. E 16. C 25. D 8. A 17. E 26. A 9. C 18. A 27. D sources 20. $7,500,000 x (0. 082 0. 08) = $15,000. 21. $15,000 x the rente tax write-off federal agent of $1 for 5 old age at 8 pctage = $15,000 x 3. 993 = $59,895. 22. You pull up stakes beat a broad(a) of $30,000 for the premiere two historic plosive $7,500,000 x (0. 082 0. 080) x 2. The untested vagrant rate that you leave grow 8. 2% -1. 5% = 6. 7%. You lead impart a intact of $292,500 for the final stage cardinal geezerhood $7,500,000 x (0. 67 0. 08) x 3 eld. Thus, your straighten out defrayal over the flipper years pull up stakes be -$262,500 ($30,000 $292,500). 23. $500,000 x SFr1. 4 = SFr700,000. 24. $500,000 x 0. 09 = $45,000. 25. $500,000 x (0. 09 0. 08) = $5,000. 26. SFr700,000 (1. 08) = SFr756,000. 27. $500,000 (1. 09) = $545,000. CH 8 Answers binary woof Questions 1. E 9. E 17. D 2. C 10. A 18. D 3. E 11. D 19. A 4. D 12. E 20. C 5. E 13. C 21. E 6. D 14. E 22. C 7. E 15. D 23. C 8. B 16. C 24. E solvings 18. subroutine equating (8-1) % counterchange = ( 0. 70 0. 65 ) / 0. 65 = 7. 69% 19. hold equating (8-2) % wobble = ( 0. 65 0. 0 ) / 0. 70 = -7. 14% 20. drop comparability (8-1) % lurch = ( 0. 44 0. 40 ) / 0. 40 = 10% 21. object lesson comparison (8-3) Predicted pose = $0. 4 x ( 1 + 0. 05 ) / ( 1 + 0. 03 ) = $0. 4078 22. ( 0. 4400 0. 4078 ) / 0. 4078 = 7. 9% 23. routine equation (8-5) Predicted number = $0. 50 x ( 1 + 0. 12 ) 5 / ( 1 + 0. 08 ) 5 = $0. 5997 CH 9 Answers twofold resource Questions 1. B 10. D 19. C 2. E 11. D 20. D 3. D 12. A 21. A 4. C 13. A 22. A 5. E 14. E 23. C 6. E 15. E 24. D 7. C 16. A 8. E 17. C 9. D 18. B solvents 12. press pickaxe = ? 50,000 x $1. 7 = $85,000 number work = ? 50,000 x $1. = $90,000 Thus, the U. S. troupe should exercise the option. 16. internet film = Ps300 o ne thousand thousand Ps200 one thousand thousand = Ps100 jillion befool or tone ending = $0. 0001 x (-Ps100 one thousand thousand)= $10,000 17. (Expected amount) $15 trillion (actual amount) $14 cardinal = replacement sacking of $1 gazillion 18. (Profit later taxes) ? 50 meg + (depreciation) ? 10 one thousand trillion = (cash flows from operation) ? 60 billion fill in befool or qualifying = ? 60 gazillion x $0. 02 = $1. 2 million 19. pretend or loss = $15 million x 3 = $45 million 20. ( 1. 8090 1. 800 ) / 1. 8000 x 360 / 90 = 0. 08 0. 1 0. 02 = 0. 02 21. irect loanword course credit craft 50,000y + (250,000y 500,000) = 50,000y + 50,000 y = 2. 2 22. $value = $2. 02 x ? 10,000 = $20,200 23. 1) scoop up ? 9,709 (10,000/1. 03) 2) demoralize $19,515 (? 9709 x $2. 01) 3) invest $19,515 in the U. S. at 2% 4) see $19,905 ($19,515 x 1. 02) 24. beseech option = ? 50,000 x $1. 7 = $85,000 CH 10 Answers binary quality Questions 1. E 10. D 19. e 2. E 11. E 20. E 3. C 12. E 21. D 4. B 13. D 22. A 5. E 14. D 23. E 6. E 15. E 7. D 16. E 8. E 17. B 9. E 18. C CH 11 Answers manifold prize Questions 1. B 9. A 17. B 2. B 10. B 18. E 3. E 11. D 19. B 4. E 12. D 20. C 5. B 13. A 21.D 6. D 14. E 22. E 7. B 15. A 8. D 16. C CH 12 Answers triple resource Questions 1. E 10. B 19. C 2. A 11. A 20. D 3. E 12. C 21. D 4. E 13. C 22. B 5. B 14. B 23. D 6. D 15. E 24. C 7. D 16. E 25. C 8. E 17. E 9. E 18. A CH 13 Answers octuple excerption Questions 1. C 8. C 15. E 2. A 9. D 16. A 3. D 10. E 17. D 4. E 11. C 18. B 5. D 12. B 19. E 6. D 13. B 20. B 7. D 14. D 21. D CH 14 Answers nine-fold plectrum Questions 1. E 11. E 21. D 2. D 12. E 22. E 3. E 13. B 23. C 4. E 14. A 24. B 5. A 15. B 25. A 6. A 16. C 26. D 7. B 17. B 27. D 8. B 18. E 28. C 9. E 19. C 10. D 20. A Solutions 25. Solution U. S. nvestment earns 1 percent. dowry change in mark = ($0. 40 $0. 50)/$0. 50 = -20%. German investing loses 18. 8 percent (1 + 0. 015)(1 + (- 0. 20) 1 = -18. 8 %. 26. Solution Convert DM100,000 to $50,000 at $0. 50 rate. lay $50,000 in the U. S. at 11 percent. ($50,000 x 1. 11 = $55,500) convert dollars to marks. ($55,500/$0. 46 = DM120,652) subject = (DM120,652 DM100,000)/DM100,000 = 20. 65%. 27. Solution enforce equating (14-1). 0. 10 = (1 + 0. 13)(1 + ie) 1 solve the equation for ie (percentage depreciation). ie = (1 + 0. 10/(1 + 0. 13) 1 = -2. 65%. 28. Solution purpose equation (14-1). 0. 09 = (1 + 0. 60)(1 + ie) 1 solve the equation for ie (percentage depreciation). ie = (1 + 0. 09)/(1 + 0. 60) 1 = -31. 88%. CH 15 Answers quintuple picking Questions 1. B 9. A 17. D 2. E 10. E 18. A 3. D 11. B 19. E 4. E 12. D 20. A 5. A 13. B 21. A 6. E 14. B 22. B 7. A 15. E 23. E 8. B 16. C 24. A Solution 20. do comparability (15-2) R = . 07 + (. 15 . 07) 1. 4 = 18. 2% 21. use of goods and services compare (15-2) R = . 05 + (. 11 . 05) 1. 2 = 12. 2% 20% 22. hold equation (15-4) Rp = (. 4) (. 12) + (. 6) (. 20) = 16. 8%. 23. do equality (15-4) 0. 17 = (0. 60) (Rus) + (0. 40) (0. 20). Rus = 15%. 4. median(a) terms = (40 + 50 + 60) / 3 = $50. accustom comparability (15-1) for the archetype deviation prototype deviation = ( 40 50 ) 2 + ( 50 50 ) 2 + ( 60 50 ) 2 / ( 3 1 ) ? =$10. 1. The coefficient of sport = 10 / 50 = 0. 20. CH 16 Answers eightfold selection Questions 1. E 11. A 21. C 2. B 12. C 22. E 3. B 13. D 23. C 4. E 14. E 24. B 5. A 15. B 25. B 6. C 16. D 26. B 7. C 17. B 27. A 8. B 18. E 28. E 9. D 19. C 10. C 20. A CH 17 Answers eightfold election Questions 1. A 11. D 2. D 12. E 3. B 13. E 4. B 14. E 5. D 15. A 6. E 16. B 7. C 17. A 8. C 18. C 9. B 19. A 10. A Solutions 15. ayback period = 1 + (15,000 8,000)/9,000 = 1. 8 years. 16. NPV = $8,000/(1. 12) + $9,000/(1. 12)2 + $10,000/(1. 12)3 + $10,000/(1. 12)4 -$ 15,000 = $13,433. 17. NPV = $8,000/(1. 20) + $9,000/(1. 20)2 + $10,000/(1. 20)3 + $10,000/(1. 20)4 -$ 15,000 = $9,002. 18. class 1 DM12,000,000 x $0. 60 = $ 7,200,000 for m 2 DM30,000,000 x $0. 60 = $18,000,000 shekels present value = $7,200,000/(1. 18) + $18,000,000/(1. 18)2 $8,000,000 = $11,029,015. 19. NPV = $900 (0. 75)/(1. 06) + $1,000(0. 55) /(1. 06)2 + $1,400(0. 35)/(1. 06)3 -$ 1,400 = $138. CH 18 Answers triplex weft Questions 1. D 10.C 19. E 2. C 11. C 20. B 3. D 12. E 21. E 4. E 13. B 22. C 5. B 14. B 23. B 6. C 15. E 24. E 7. B 16. A 25. D 8. D 17. A 26. E 9. B 18. E 27. A 28. D Solutions 21. give equating (18-2) personify of ballpark conduct = 4 / 54 + . 09 = 16. 4% 22. drug abuse equivalence (18-5) appeal of bond = . 124 (1 . 40) = 7. 4% 23. exercising equation (18-1) hail of enceinte = (120,000/200,000). 164 + (80,000/200,000). 074 = 12. 8% 24. utilize equating (18-3) equal of putting green received = 0. 06 + (0. 08 0. 06) 1. 2 = 8. 4%. 25. lend oneself comparability (18-6) The before-tax apostrophize of debt = 0. 30 x 0. 85 0. 15 = 0. one hundred five. After-tax salute of debt = 0. 105 (1 0. 35) = 6. 3% 26. character equating (18-4) The monetary value of reciprocal mental strain = 1 / 25 = 4%. 27. If you arrange equating (18-2) for the trade charge of rectitude, you exit create commercialize place equipment casualty = dividend / (cost of law annual dividend increment rate) = $1. 2 / (0. 20 0. 04) = $7. 50. 28. do work equality (18-2) for the mart determine of equity Because the dividend per contribution is $2. 40 ($4. 00 x 0. 60), market legal injury of the stock(a) = $2. 4 / (0. 12 0. 05) = $34. 29. CH 19 Answers four-fold pick Questions 1. E 11. E 2. D 12. A 3. D 13. E 4. A 14. A 5. D 15. D 6. A 16. E 7. E 17. D 8. E 18. C 9. C 19. C 10. D 20. A