One way to finance expansion is through the issuing of bonds. When this happens, your company is charged a _____% brokerage fee for issuing the bonds.
a. 2% c. No fee is charged
b. 5% d. 7.5%

1 Answer

Answer :

b. 5%

Related questions

Description : You are charged a ______ brokerage fee to issue bonds and ______ brokerage fee if you retire bonds prior to their maturation date. a. 0%; 5% b. 5%; 5% c. 5%; 0% d. 5%; 1.5% e. 1.5%; 5%

Last Answer : d. 5%; 1.5%

Description : You are charged a ____ brokerage fee to issue stock and ____ brokerage fee to retire stock. a. 5%; 0% b. 5%; 1.5% c. 1.5%; 5% d. 0%; 5% e. 5%; 5%

Last Answer : b. 5%; 1.5%

Description : You pay no brokerage fee if you: a. issue bonds. b. retire bonds. c. retire stocks. d. acquire current debt. e. issue stocks.

Last Answer : d. acquire current debt.

Description : Which of the following will result in the highest interest rate: a. Issuing Bonds. b. Issuing Stock. c. Current Debt. d. Emergency Loan. e. Both a combination of a and b.

Last Answer : d. Emergency Loan.

Description : What is your bond rate? The prime rate is 10%; your current bond rating slipped one category (from AAA to AA). a. 12.1% b. 10.5% c. 11.4% d. 11.2%

Last Answer : b. 10.5%

Description : If your interest rate is 12.1%, and when you issue new bonds, the bond interest rate is: a. 10.7%. b. 12.1%. c. 13.5%. d. 6.1%. e. 12%.

Last Answer : c. 13.5%.

Description : Capital needed for company activities cannot be acquired through: a. stocks and bonds. b. profits. c. current debt. d. arbitrarily firing employees. e. all of the above.

Last Answer : d. arbitrarily firing employees.

Description : Which of the following will give your company an AAA bond rating: a. Have contribution margins higher than 30%. b. Have absolutely no debt. c. Retire all of the current outstand stock. d. Pay a dividend that is less than EPS. e. Retire bonds before they are due.

Last Answer : b. Have absolutely no debt.

Description : The turnover rate a. is the percentage of workers who left the company last year, excluding down-sizing. b. does not ignore down-sizing factors. c. is not driven by recruiting spend or training ... factors like retirement, relocation and weeding out poor workers (about 5%). e. a and d.

Last Answer : e. a and d.

Description : Which of the following is not one of the primary concerns in the Finance Department? a. Acquiring the capital needed for company activities. b. Establishing a dividend policy that maximizes the ... structure of the firm, its relationship between debt and equity. e. Deciding promo and sales budget

Last Answer : e. Deciding promo and sales budget

Description : Your finance department is primarily concerned with a. acquiring the capital needed for company activities. b. establishing a dividend policy that maximizes the return to shareholders. c. setting credit policies for customers and suppliers. d. profits. e. all of the above.

Last Answer : e. all of the above.

Description : The Finance Department can use which of the following methods to acquire capital for company activities? a. Current Debt, Stock Issues, Bond Issues, and Profits b. Profits, Current Debt, Withholding ... Stock Issues, and Profits e. Current Debt, Stock Issues, Bond Issues, and cooking the books

Last Answer : a. Current Debt, Stock Issues, Bond Issues, and Profits

Description : The following represent core company activities that must be addressed each year except: a. Research and Development. b. Marketing. c. Finance. d. Labor Negotiations. e. Production.

Last Answer : d. Labor Negotiations.

Description : Emergency loans are made at what rate over the normal Current Debt interest rate? a. 5% b. 7.5% c. 10% d. 12% e. 25%

Last Answer : b. 7.5%

Description : The interest rate on a bond ______ by________ for each______ in the bond rating category. a. Increases; 0.5%; Decrease b. Decreases; 1.4%; Decrease c. Increases; 0.5%; Increases d. Decreases; 1.4%; Increase e. Increases; 7.5% ; Decrease

Last Answer : a. Increases; 0.5%; Decrease

Description : For each point of change in automation, your company is charged ______ per unit of capacity. a. $6.00 c. $4.00 b. $5.00 d. $7.00

Last Answer : c. $4.00

Description : Which of the following is true about the Accounts Receivable Lag and its implications on demand? a. If you offer no credit, demand falls to about 60% of normal. b. At 30 days, demand is 90%. c. At 45 days, demand is 95%. d. At 60 days, demand is 98.5%. e. At 90 days, demand is 100%.

Last Answer : d. At 60 days, demand is 98.5%.

Description : A bond with the number 12.6S2005, indicates that: a. the interest rate is 12.6%; due in May. b. the interest rate is 12%; due on June 05. c. the interest rate is 12%; due in June 2005. d. the interest rate is 5%; due on December 6. e. the interest rate is 12.6%; due on December 31, 2005.

Last Answer : e. the interest rate is 12.6%; due on December 31, 2005.

Description : Negotiation Ceilings which represent the maximum management is willing to pay are always a. 12% above the starting positions. b. 5% above the starting positions. c. 10% above the starting positions. d. unlimited. e. none of the above.

Last Answer : c. 10% above the starting positions.

Description : In Capstone® what would the bond number be for a bond with an interest rate of 6.5% that matures in 2003? a. 6.5S03 b. 2003S6.5 c. 6.5S2003 d. .03S6.5 e. 6.5.2003

Last Answer : c. 6.5S2003

Description : Which screens are necessary to make a complete human resource decision when the advance module has been activated? a. Production & human resources b. Marketing & human resources c. Finance & marketing d. Human resources & TQM e. None of the above choices are correct

Last Answer : a. Production & human resources

Description : Where are the credit policies for customer and supplier set in Capstone.xls? a. Marketing spreadsheet b. Production spreadsheet c. Finance spreadsheet d. Credit spreadsheet e. None of the above

Last Answer : a. Marketing spreadsheet

Description : Which module in CAPSTONE allows investment in workforce training? a. HR b. Planning c. Finance d. Marketing

Last Answer : a. HR

Description : Your ___________ department controls the performance and size, therefore position of your sensor products within the market. a. Planning b. Finance c. R&D d. Marketing

Last Answer : c. R&D

Description : .Finance Decisions should be made a. before the other departments enter their decisions. b. at any time. c. after the other departments have entered their decisions. d. after the R&D department has entered its decisions. e. none of the above.

Last Answer : c. after the other departments have entered their decisions.

Description : .A functional manager is responsible for a. one of the five market segments. b. R&D, Marketing, Production, Finance, Human Resources, and TQM/PI. c. one of the five products in the starting product line. d. none of these. e. monitoring competitors in their entirety.

Last Answer : b. R&D, Marketing, Production, Finance, Human Resources, and TQM/PI.

Description : Which of the following is not a primary concern for your Finance Department? a. Acquiring capital b. Setting credit policies for customers and suppliers c. Employee turnover d. Establishing a dividend policy e. Capital structure of the firm

Last Answer : c. Employee turnover

Description : Your team will make decisions for a. Marketing. b. Finance. c. Human Resources. d. Production. e. all of the above.

Last Answer : e. all of the above.

Description : What happens to a company when it increases the A/P lag? a. It improves its cash position. b. It deteriorates its cash position. c. It loses credibility. d. Its suppliers withhold material for production. e. a, d.

Last Answer : e. a, d.

Description : What happens to a company when its debt-to-assets ratio increases? a. Its credibility among creditors suffers. b. It envisages higher risk. c. Its short term interest rates increase. d. Its bond rating is reduced. e. c, d

Last Answer : e. c, d

Description : Looking at the production, if the potential bar is higher than the actual one, a. the company should spend more budget in sales. b. the company over produced and missed sales ... company under produced and missed sales opportunities. e. the company should spend more budget in marketing.

Last Answer : d. the company under produced and missed sales opportunities.

Description : If your company offers no credit terms, demand a. remains constant. b. falls 25%. c. falls 50%. d. falls 65%.

Last Answer : d. falls 65%.

Description : Vulcanized rubber contains sulphur – (1) 2% (2) 3-5% (3) 7-9% (4) I 0- 5%

Last Answer : (2) 3-5% Explanation: A vulcanized flexible tyre rubber contains about 3 -5% of sulphur whereas hard rubber (ebonite) contains about 32% of sulphur. The stiffness of vulcanized rubber depends on the amount of sulphur added.

Description : According to a report by Reserve Bank of India, country‟s gross bad loans are expected to grow from 7.6% to ________ by March 2017. A) 9.2% B) 8.2% C) 8.5% D) 8.0% E) None of these

Last Answer : C) 8.5% Explanation: Gross bad loans at banks may rise to 8.5 percent of total assets by March 2017 from 7.6 percent in March 2016 if the central bank orders them to conduct a second round of ... Meanwhile, under a -severe stress situation, total bad loans could rise to 9.3 percent in March 2017.

Description : Present rate of interested on on 1, 2, 4, 5 years fixed deposit(TD) is a) 6.25%, 6.50%, 7.25%, 7.50% b) 7.25%, 7.50%, 8%, 8.2% c) 8.2%, 8.3%, 8.4%, 8.5% d) None of these

Last Answer : c) 8.2%, 8.3%, 8.4%, 8.5%

Description : The rate of interest in RD account opened before 01 Dec 11 and on or after 01 Dec 2011 and up to 31 Mar 12 is a) 6.5%, 7% b) 7.5%, 8% c) 8%, 8.5% d) 8%, 8.2%

Last Answer : b) 7.5%, 8%

Description : Vulcanized rubber contains sulphur (1) 2% (2) 3-5% (3) 7-9% (4) 10-15%

Last Answer : 3-5%

Description : Assuming no additional product promotion, what percent of customers, reached through last year’s marketing campaign will carry over into the current year? a. 33% b. 50% c. 67% d. 0% e. None of the above

Last Answer : c. 67%

Description : What is working capital? a. The funds needed for the day to day running of the company b. The cash on hand at the end of the day c. Profits less current liabilities d. The amount of funds a company needs to run indefinitely e. Total sales less total expenses

Last Answer : a. The funds needed for the day to day running of the company

Description : If the potential bar is lower than the actual, a. the company over produced and missed sales opportunities. b. the company lost sales because other companies over produced. c. the company ... as last period and under produced nothing. e. the company under produced and missed sales opportunities.

Last Answer : c. the company picked up sales because other companies under produced.

Description : If all of the capacity on a production line is sold a. all remaining inventory is sold for half the average cost of production. b. a loss is written off on the income statement. c. Capstone ... company will receive a cash payment of 65% the original investment on capacity. e. all of the above.

Last Answer : e. all of the above.

Description : Each year the company receives bond ratings. The range of these bond ratings from best to worse is: a. A to F. b. A to C. c. D to AA. d. D to AAA. e. AAA to D.

Last Answer : e. AAA to D.

Description : The percentage of workers that left the company last year is the: a. Complement. b. Separated Employees. c. Productivity Index. d. Turnover rate. e. None of the above.

Last Answer : d. Turnover rate.

Description : If the previous year you reached 100% customer awareness in your company, this year what will you need to do to maintain this level? a. There is nothing to do. I have already reached as much awareness ... half of the money spent the previous year to reach 75% of the population. e. None of these.

Last Answer : c. I would only need to create 33% new awareness to maintain 100% this year

Description : Which of the following is not a Process Management Initiative available to your company? a. Concurrent Engineering b. GEMI Sustainability c. Continuous Process Improvement d. UNEP Green e. Channel Support System

Last Answer : b. GEMI Sustainability

Description : If you sell off a production line (capacity and automation), the amount of cash that the company will receive will be a. 65% of the original cost. b. average cost of production for the previous year (market ... . 50% of the book value. d. 50% of the acquisition cost. e. 65% of the book value.

Last Answer : a. 65% of the original cost.

Description : .How many assembly lines are there? a. Always exactly five per company b. One for all companies c. One per company d. None of these.

Last Answer : d. None of these.

Description : If current wages are set at $10/hour, what would be the minimum starting pay that your company would offer? a. $6/hour b. $8/hour c. $10/hour d. $12/hour e. none of the above

Last Answer : b. $8/hour

Description : If your company has a sales budget of $3 million and drops it to zero, a. accessibility drops by $1 million every year. b. awareness drops to zero. c. accessibility drops to 0% in three years. d. sales will drop to zero. e. all of the above.

Last Answer : c. accessibility drops to 0% in three years.

Description : R&D completion time can be diminished a. by repositioning a product. b. the more a company changes a product’s MTBF. c. when several products are put into R&D at the same time. d. when a company takes advantage of existing technology. e. none of the above.

Last Answer : d. when a company takes advantage of existing technology.