Bender Day 10

Question 1

Name external factors that directly affect the competitive environment of a firm?

Answer 1

1. Existence of substitutes
2. Bargaining power of suppliers
3. Barriers to market entry

note: political issues are external factors to the overall industry, not just one firm

MCQ-04066

Question 2

What is true assuming the demand for a product is price elastic?

Answer 2

An increase in price will result in a decline in total revenue

when demand is price elastic, an increase in price will result in a decline in quantity demanded that is proportionately larger than the increase in price

MCQ-03515

Question 3

How do you calculate interest payable with a $3 million bonds with a face value of $10k and a coupon rate of 9% and the effective interest rate of 8%

Answer 3

Bond × Coupon rate

MCQ-15779

Question 4

High Low method

Answer 4

MCQ-07723

Question 5

In a regression analysis, the coefficient of determination measures:

Answer 5

Goodness of fit

Measures the proportion of the total variation in the dependent variable (y) explained by the independent variable (x)

MCQ-04344

Question 6

What is not supporting documentation for an IT Security Policy?

Answer 6

Vision Stmt

MCQ-14596

Question 7

If tax rates are expected to decrease, the WACC will:

Answer 7

Increase, bc the after tax cost of debt will decrease

MCQ-07791