Fin Test Bank

MBA 8622: Practice Final examination (F alone 1999) 1. According to the textbook, what should be the principal(prenominal) objective of the management of a firm? a. maximize pass arrive at income b. Minimize risk c. Maximize customer satisfaction d. Build a grave team of well-trained, motivated employees e. Maximize sh beholders wealth 2. Which of the break statements is around correct? a.The face up rank of an rente due ordain exceed the chip in respect of an ordinary rente (assuming all(prenominal) else comprise). 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 yard will always be greater than or equal to the effective annual provoke array. d. Statements a and b ar correct. e. All of the statements above atomic number 18 correct. 3.Frank Lewis has a conventional, 30- division, fixed-rate, $100,000 mortgage with a nominal interest rate of 10 percent and periodical compounding. Which of the following statements regarding his mortgage is most correct? a.The monthly pays will decline all oer time. b. The proportion of the monthly fee which represents interest will be lower for the pop off payment than for the first payment on the loan. c.

The total dollar nub of principal being paying(a) off each month gets large as the loan approaches maturity. d. Statements a and c are correct. e. Statements b and c are correct. 4.Your uncle has concord to deposit $3,000 in your brokerage house account at the ascendant of each of the next pentad years (t = 1, t = 2, t = 3, t = 4 and t = 5). You estimate that you tolerate enlighten 9 percent a year on your investments. How more 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: Ordercustompaper.com

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