Saudi Electronic University

FIN 101

Bonus Quiz

Question1:)Amani is planning to invest $25,000 in a money market account for two years. The account pays interest of 5 percent compounded on a monthly basis. How much money will Amani have at the end of two years?

A) $26,780 B)$27,623 C)$27,500 D)$27,422

Question 2 :

Liquidity Ratio indicates

1. How balanced is the organization?
2. How profitable is the organization?
3. How well is the organizational position to meet its short-term obligations?
4. How are the organization’s assets financed and ability to take on new debt?

Question 3:

You need to have $50,000 to buy a car in 3 years. If you can invest in an account that pays 8 percent compounded quarterly. How much will you have to invest today to attain you target in 3 years?

A)$36,400.522 B)$39,424.658 C)$45,340.633 D)$25,000.345

Question 4:

Your brother is planning to invest $4,000 every year in an investment paying 11 percent annually for the next three years, to pay for vacation. What will be the amount he will have at the end of the three years?

A)$13,368.4 B)$14,640 C)$12,929.89 D)$12,500

Question 5:

Financial decisions of the firm are guided by:

A)Financial Leverage B)Risk-Return Trade OFF C)Retention Ratio

D)Firm’s Wealth

Question 6 :

What is the present value of a $50 perpetuity if interest rates are 7%?

A)$663.5 B)$788.12 C)$714.29 D)$611.21

Question 7:

Salima has invested in an investment that will pay him $4,000 $5,000 $6,000 , and $7,000 over the next four years. If the opportunity cost is 10 percent, What is the future value of the cash flows she will receive?

A)$24,000 B)$24,500 C)$24,974 D)$23,974

Question 8:

Moon Ltd. Buys a Stock for $35. After one year, the stock price is $40 and he receives a dividend of

$2. Calculate the return of it’s stock for the period?

A)40% B)50% C)20% D)30%

Question 9:

If you deposit SAR 5,000 in a bank @ 12% per year interest rate for 4 years. Calculate the amount at the end of 4 yrs. , if the interest is compounded Semi- annually.

1. SAR 7,000
2. SAR 5,969
3. SAR 7,969
4. SAR 8,169

Question 10:

Hillman Corporation reported current assets of $3,495,055 on December 31,2011 and current assets of

$4,103,839 on December 31, 2010. Current liabilities fot the firm were $2,867,225 and $2,760,124 at the end of 2011 and 2010, respectively. Cash flow invested in net working capital at Hillman Corporation during 2011 will be:

A)$201,500 B)275,000 C)325,000 D)284,115

Question 11:

The future value of an investment of $100,000 made today for five years and paying 8.75 percent, compounded quarterly will be:

A)$154,154.24 B)154,637.37 C)154,883.03 D)154,874.91

Question 12:

You are looking to invest $22,000 today in a bank that will earn interest at 8.75 percent annually. How much will you have at the end of five years?

A)$33,463.318 B)$34,400,423 C)$32,900.666 D)$35,200,566

Question 13:

Angles Brokers generated net income of $233,412 this year. At year end, the company had accounts receivables of $47,199, inventory of $63,781, and cash of $21,461. It also had accounts payables of

$51,369, short- term notes payables of $11,417, and accrued taxes of $6,145. The net working capital of the firm is

A)$68,931 B)$69,655 C)$70,000 D)$63,510

Question 14:

The statement of cash flows dose not include

1. Cash flows from investing activities
2. Cash flows from financing activities
3. Changes in Net Assets
4. Cash flows from operating activities

Question 15:

Mohammed has invested in a fund that will provide him a cash flow of $8,500 for the next 8 years. If his opportunity cost is 6 percent, what is the present value of this cash flow stream?

A)$52,783.247 B)$50,190,787 C)$48,660,66 D)$55,420.566

Question 16:

The standard deviation is 18% and the expected return is 15.5% than the coefficient of variation would be:

A)2.50% B)-2.5% C)1.16% D)0.96%

Question 17:

Morgan Sports Equipment Company has accounts payable of $1,221,669, cash of $677,423, inventory of $2,312,478, and accounts receivable of $845,113. What is the company’s quick ratio?

A)2.11

B)1.20

C)3.14

D)1.25

Question 18:

In February 2011 the risk -free rate was 4.75 percent, the expected return on the market was 10.75 percent, and the beta for Dell stock was 1.31. What is the expected return that was consistent with the systematic risk associated with the returns on Dell stock?

A)15% B)12.61% C)23.6% D)20%

Question 19:

Multiyear product or service contract with periodic cash flows that increase at a constant rate for a finite number of years is called

1. annuity due
2. growing annuity C)perpetuity D)ordinary annuity

Question 20:

You invest $1500 in a Hedge fund today that pays 6 percent interest annually. How long will it take to double your money?

1. 12 years
2. 9 years
3. 10 years
4. 8 years