Which of the following are capital structure concerns

TCO 1) Which of the following are capital structure concerns?I. how to obtain short-term financingII. the company’s financing mixIII. the cost of fundsIV. how and where to raise money (Points : 4)I and III, II and IIIII, III and IVI, III and IVAll of the aboveQuestion 2. 2. (TCO 1) Market values reflect which of the following: (Points : 4)The amount someone is willing to pay today for an asset.The value of the asset based on generally-accepted accounting principles.The asset’s historical cost.A and B onlyNone of the aboveQuestion 3. 3. (TCO 1) Use the following tax table to answer this question:Taxable IncomeTax Rate$0- $50,000 15%$50,001- 75,000 25$75,001- 100,000 34$100,001- 335,000 39$335,001- 10,000,000 34Riddell, Inc. earned $144,320 in taxable income for the year. How much tax does the company owe on this income? (Points : 4)$39,535$49,069$51,285$56,285$78,535Question 4. 4. (TCO 3) Regional Bank offers you an APR of nine percent compounded quarterly, and Local Bank offers you an EAR of 9.15 percent for a new automobile loan. You should choose ______________ because its _______ is lower. (Points : 4)Regional Bank, APRLocal Bank, EARRegional Bank, EARLocal Bank, APRQuestion 5. 5. (TCO 3) You deposited $8,000 in your bank account today. Which of the following will increase the future value of your deposit, assuming that all interest is reinvested? Assume the interest rate is a positive value. Select all that apply: (Points : 4)a decrease in the interest rateincreasing the initial amount of your depositdecreasing the frequency of the interest paymentsextending the length of the investment periodQuestion 6. 6. (TCO 3) You want to have $15,000 for a down payment on a house five years from now. If you can earn 13 percent, compounded annually, on your savings, how much do you need to deposit today to reach your goal? (Points : 4)$7,858.11$8,141.40$9,803.58$12,464.28$14,213.25Question 7. 7. (TCO 3) Paper Pro needed a new store. The company spent $65,000 to refurbish an old shop and create the current facility. The firm borrowed 75 percent of the refurbishment cost at eight percent interest for 11 years. What is the amount of each monthly payment? (Points : 4)$91.05$284.13$556.50$682.87$731.60Question 8. 8. (TCO 3) John borrowed $5,500 four years ago at an annual interest rate of 10 percent. The loan term is seven years. Since he borrowed the money, Sonny has been making annual payments of $550 to the bank. Which type of loan does John have? (Points : 4)interest-onlypure discountcompoundedamortizedcomplexQuestion 9. 9. (TCO 3) Fanta Cola has $1,000 par value bonds outstanding at 12 percent interest. The bonds mature in 25 years. What is the current price of the bond if the YTM is 13 percent? Assume annual payments. (Points : 4)$1078$1085$927$1000Question 10. 10. (TCO 6) The market where one shareholder sells shares to another shareholder is called the _____ market. (Points : 4)primarymainsecondaryprincipaldealerQuestion 11. 11. (TCO 7) Which one of the following statements concerning financial leverage is correct? (Points : 4)The benefits of leverage are unaffected by the amount of a firm’s earnings.The use of leverage will always increase a firm’s earnings per share.The shareholders of a firm are exposed to greater risk anytime a firm uses financial leverage.Earnings per share are unaffected by changes in a firm’s debt-equity ratio.Financial leverage is beneficial to a firm only when the firm has minimal earnings.Question 12. 12. (TCO 3) A 10-year bond pays 11 percent interest on a $1000 face value annually. If it currently sells for $1,195, what is its approximate yield to maturity? (Points : 4)9.33%7.94%12.66%8.10%Question 13. 13. (TCO 8) Which of the following is true regarding bonds? (Points : 4)Bonds do not carry default risk.Bonds are not sensitive to changes in the interest rates.Moody’s and Standard and Poor’s provide information regarding a bond’s interest rate risk.Municipal bonds are not free of default risk.None of the above is trueQuestion 14. 14. (TCO 8) Which one of the following bonds is the most sensitive to interest rate movements? (Points : 4)zero-coupon, five yearseven percent annual coupon, five yearzero-coupon, 10 yearfive percent semi-annual coupon, 10 yearfive percent annual coupon, 10 yearQuestion 15. 15. (TCO 6) A call provision in a bond agreement grants the issuer the right to: (Points : 4)repurchase the bonds prior to maturity at a pre-specified price.replace the bonds with equity securities.repurchase the bonds after maturity at a pre-specified price.change the coupon rate, provided the bondholders are notified in advance.buy back the bonds on the open market prior to maturity.