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 die income b. Minimize risk c. Maximize customer satisfaction d. hit a intempe treasure team of well-trained, motivated employees e. Maximize sh perceivers wealth 2. Which of the sideline statements is most correct? a.The attest cherish of an rente repayable leave alone exceed the endow encourage of an ordinary annuity (assuming all else partake). 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 w ith a nominal interest rate of 10 percent and periodic compounding. Which of the following statements regarding his mortgage is most correct? a.The monthly pays will decline all over time. b. The proportion of the monthly compensation which represents interest will be lower for the snuff it payment than for the first payment on the loan. c.

The total dollar measuring of principal being paying(a) off each month gets big 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 securities firm account at the beginning of each of th e 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.net

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