On December 31, 2009, Modern Company issued 1,000 $1,000 face-value eight percent bonds to yield seven percent. The bonds pay interest semi-annually and are due December 31, 2019. On its December 31,
A. $1,161,043.
B. $1,043,217.
C. $1,071,062.
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With respect to discretionary changes in fiscal policy, the time period between the recognition of the change and the time the policy change is enacted is best described as the:
A. Impact lag.
B. Recognition lag.
C. Administrative lag.
An investment project, with the same risk as the company, has an internal rate of return of 15 percent and a positive net present value of $25 million. If the projected cash inflows are reinvested at
A. 15percent
B. Lessthan15percent
C. Greaterthan15percent
All else being equal, are impairment writedowns of long term asset associated with decrease in the companys:total asset turnover debt-to-equity ratio
A. Yes No
B. No Yes
C. No No
·Mean annual return 4%·Mean excess return 8.6%·Standard deviation of annual returns 23.4%·Portfolio beta 1.6The coefficient of variation and Sharpe meas
A. 0.82 0.37
B. 1.32 1.23
C. 1.32 0.37