1. Deciding to extend credit to a customer is a working capital decision.
True
False
2. Today, you earn a salary of $75,500. What was your annual salary be five years ago if you receive annual raises of 3.6%?
a. $62,230
b. $62,844
c. $58,213
d. $63,263
e. $63,441
3. A firm currently has sales of $500,000, a 6% profit margin and a 40% dividend payout ratio. What is the anticipated amount of dividends to be paid to shareholders if sales are expected to increase by 10%?
a. $13,100
b. $13,860
c. $12,600
d. $13,200
e. $12,000
4. A decrease in a firm's capital intensity ratio implies an increase in how efficiently it uses its assets to generate sales.
True
False
5. One year ago, you invested $5,050. Today, your investment is worth $6,100. What rate of interest did you earn?
a. 16.2%
b. 24.0%
c. 23.5%
d. 22.0%
e. 20.8%