1. flecibility issues are those which
a. deal with a company's financing reserves
b. impact the debt capacity that a firm should maintain
c. all of the above
2. Earl Jason is saving for a pair of jet skis. How much money must Earl put aside now to receive $14,000 six years from now if the money is compounding at an 8% annual compound rate?
a. $8847
b. $8800
c. $8822
d. $8810
e. none of the above
3. A bond which is valued at par has a yield to maturity which is ____ to its coupon rate.
a. equal to
b. greater than
c. less than
d. none of the above
4. When projected assets are more than projected liabilities and owners equity, the plug will be
a. notes payable
b. notes receivable
c. cash
d. none of the above
5. Most bonds pay interest
a. monthly
b. quarterly
c. semiannually
d. annually
e. none of the above.