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Question
Kim has just graduated from law school. She had taken an education loan of $45,000, which now must be repaid in equal monthly installments over the next six years. What is the amount of the monthly loan repayment, if the loan carries a simple annual interest of 5 percent? The first payment will be made in one month.
a. $689.76
b. $721.71
c. $702.46
d. $658.92
e. $724.72
Answer
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Related questions
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a. immediate annuity
b. annuity due
c. uneven cash flow stream
d. ordinary annuity
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Q:
A firm plans to make investments of $5,000 for the next 10 years, paying the amount at the end of each year. This form of cash flow pattern represents a(n) _____.
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Q:
Which of the following agreements is included in the Basel III Accord (2010)?
a. Agreement to increase banks' capital (owners' equity) requirements in an effort to reduce the risk that mega bank failures will cause future financial crises
b. Agreement to put restrictions on the ability of the U.S. government to use taxpayers' funds to bail out large financial institutions
c. Agreement to create new organizations to help provide consumers clear and accurate information related to credit so that better-informed decisions can be made
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Q:
Which of the following is true about financial institutions in the United States compared to those in other countries?
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b. U.S. financial institutions have been regulated less than their foreign counterparts with regard to expansion (branching) and the services that could be offered.
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a. Commercial bank
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a. underwriting syndicate
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Q:
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Q:
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When issuing new securities, which of the following decisions is made jointly by a corporation and its investment banker?
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b. Deciding which investment banker to use
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Q:
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Q:
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Q:
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a. True
b. False
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a. True
b. False
Q:
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a. True
b. False
Q:
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a. True
b. False
Q:
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a. True
b. False
Q:
Dual listing of a stock leads to a decrease in the marketability of the stock.
a. True
b. False
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The Securities and Exchange Commission (SEC) cannot exercise control over stock trades by corporate insiders.
a. True
b. False
Q:
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a. Securities and Exchange Commission Act
b. Wall Street Transparency and Accountability Act
c. Emergency Economic Stabilization Act of 2008
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Q:
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a. True
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The Securities and Exchange Commission (SEC) was created to develop and approve a set of common international accounting rules.
a. True
b. False
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a. True
b. False
Q:
All firms that are publicly traded in the United States will be required to adopt the _____ in the near future.
a. Generally Accepted Accounting Principles (GAAP)
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c. Governmental Accounting Standards Principles (GASP)
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Q:
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a. The transactions will have no effect on the current ratios.
b. The current ratios of both firms will be increased.
c. The current ratios of both firms will be decreased.
d. Only Emerald Corporation's current ratio will be increased.
e. Only Ruby Company's current ratio will be increased.
Q:
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b. Firms with relatively low debt ratios are exposed to more risk compared to firms with relatively high debt ratios.
c. Firms with relatively high debt ratios have higher expected returns when business is bad.
d. Firms with relatively high debt ratios have higher expected returns when business is good.
e. Firms with relatively low debt ratios have higher expected returns when business is poor.