Fin Test Bank

MBA 8622: Practice Final Exam (F alone 1999)



1. According to the textbook, what should be the principal(prenominal) objective of the management of a firm?
a. Maximize authorise income
b. Minimize risk
c. Maximize customer satisfaction
d. Build a intemperate team of well-trained, motivated employees
e. Maximize sh beholders wealth


2. Which of the sideline statements is most correct?
a.The present value of an rente repayable will exceed the present value of an ordinary annuity (assuming all else equal).
b.The future value of an annuity due will exceed the future value of an ordinary annuity (assuming all else equal).
c. The nominal following rate will always be greater than or equal to the effective annual arouse rate.
d. Statements a and b ar correct.
e. All of the statements above are correct.


3.Frank Lewis has a conventional, 30-year, fixed-rate, $100,000 mortgage with a nominal interest rate of 10 percent and monthly compounding. Which of the following statements regarding his mortgage is most correct?

a.The monthly payments will decline all over time.
b. The proportion of the monthly payment which represents interest will be lower for
the last payment than for the first payment on the loan.
c.



The total dollar amount of principal being paying(a) off each month gets larger as the
loan approaches maturity.
d. Statements a and c are correct.
e. Statements b and c are correct.



4.Your uncle has agreed to deposit $3,000 in your brokerage account at the beginning of each of the next five years (t = 1, t = 2, t = 3, t = 4 and t = 5). You estimate that you tolerate earn 9 percent a year on your investments. How much will you have in your account at a time after your uncle makes his last deposit (at the beginning of year 5)? (Hint: This is more(prenominal) complex than it seems and you should draw a timeline).
a. $13,719.39
b. $16,719.39
c. $17,954.13...If you want to get a full essay, order it on our website: Orderessay



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