5 . The breakeven point in dollars can be computed by dividing the contribution margin into the fixed operating costs .
Multiple-choice ( 1point each )
6 . The ________ is the extent of an asset ' s risk . It is found by subtracting the pessimistic outcome from the optimistic outcome
7 . ________ measure ( s ) the risk of a capital budgeting project by estimating the NPVs associated with the optimistic , most likely , and pessimistic cash flow estimates
8 . If a firm uses an aggressive financing strategy , 9 . The two major sources of short-term financing are 10 . At the operating breakeven point , ________ equals zero . Problems ( show your work ) ( 1 Point )
11 . Xiao Li wishes to accumulate $ 50,000 by the end of 10 years by making equal annual end-of-year deposits over the next 10 years . If Xiao Li can earn 5 percent on her investments , how much must she deposit at the end of each year ?
12 . Hayley makes annual end-of-year payments of $ 6,260.96 on a fiveyear loan with an 8 percent interest rate . The original principal amount was
13 . Hewitt Packing Company has an issue of $ 1,000 par value bonds with a 14 percent annual coupon interest rate . The issue has ten years remaining to the maturity date . Bonds of similar risk are currently