45. Which of the following is an example of a capital market instrument? a. Commercial Paper. b. Treasury bills. c. Preferred stock. d. Banker’s acceptances. 46. Which of the following ratios will increase as a firm uses more financial leverage? a. The debt-to-equity ratio b. The inventory turnover c. The time-interest-earned ratio 47 You need $2,000 to buy a new stereo for your car. If you have $800 to invest at 5 percent compounded annually, how long will you have to wait to buy the stereo? a. 18.78 years. b. 14.58 years. c. 8.42 years. d. 6.58 years
45. Which of the following is an example of a capital market instrument? a. Commercial Paper. b. Treasury bills. c. Preferred stock. d. Banker’s acceptances. 46. Which of the following ratios will increase as a firm uses more financial leverage? a. The debt-to-equity ratio b. The inventory turnover c. The time-interest-earned ratio 47 You need $2,000 to buy a new stereo for your car. If you have $800 to invest at 5 percent compounded annually, how long will you have to wait to buy the stereo? a. 18.78 years. b. 14.58 years. c. 8.42 years. d. 6.58 years
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 8P
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Question
45. Which of the following is an example of a capital market instrument?
a. Commercial Paper.
b. Treasury bills.
c.
d. Banker’s acceptances.
46. Which of the following ratios will increase as a firm uses more financial leverage?
a. The debt-to-equity ratio
b. The inventory turnover
c. The time-interest-earned ratio
47 You need $2,000 to buy a new stereo for your car. If you have $800 to invest at 5 percent compounded annually, how long will you have to wait to buy the stereo?
a. 18.78 years.
b. 14.58 years.
c. 8.42 years.
d. 6.58 years.
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